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    The Accounting Industry in South Africa 2023

    Stephen Timm | South Africa | 27 January 2023

    The Accounting Industry in South Africa 2021

    Carole Veitch | South Africa | 15 February 2021

    The Accounting Industry in South Africa 2019

    Duncan Bekker | South Africa | 25 July 2019

    The Accounting Industry in South Africa 2017

    Duncan Bekker | South Africa | 25 October 2017

    The Accounting Industry in South Africa 2016

    Duncan Bekker | South Africa | 05 May 2016

    Report Info

    Report Summary Table of Contents
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    Introduction

    • The accounting sector is the guarantor of financial reporting standards and performs a critical function in the economy. \r\n
    • The industry continues to be affected by recent accounting scandals which have lowered trust in the profession. \r\n
    • While recent regulations aim to bolster efforts to hold auditors to account, there is concern that they may make the profession unattractive to graduates. This and emigration has led to concern over a shortage of auditors. \r\n
    • Transformation, gender diversity and the continuing decline in quality of accounting in the public sector are ongoing concerns. \r\n
    • Regulatory changes that are set to disrupt the industry include the mandatory rotation of auditors, which is due to take effect on 1 April 2023.

    Strengths

    • Formal barriers to entry are low.
    • Its diverse client base includes businesses from all sectors, publicly-traded companies, multinational corporations, state-owned enterprises, public sector entities and public interest entities.
    • South African chartered accountants are highly sought after in South Africa and further afield.
    • The sector has a high level of flexibility and agility.
    • The sector provides professional services to clients in sub-Saharan Africa.
    • The South African accounting sector is well-established and its audit regulator is internationally-recognised.
    • The world’s largest accounting networks have member firms in South Africa.

    Weaknesses

    • Confidence in the integrity of the sector has been compromised by high-profile fraud and financial irregularities.
    • Lack of skilled professionals, particularly in local government finance departments.
    • Small firms typically do not have the capacity to audit large companies.
    • The sector is dominated by four multinational players and is highly concentrated.
    • The sector is perceived to lack independence and accountability.
    • There are relatively few mid-tier players.

    Opportunities

    • Business restructuring services such as business rescue and liquidations are likely to grow with the poor economy.
    • Effective knowledge management can promote innovation, skills retention and secure a competitive advantage.
    • Mandatory audit firm rotation could open the audit market up to new players.
    • Small and mid-tier firms are set to benefit from mandatory audit firm rotation regulations, which come into effect in 2023.
    • Technologies such as artificial intelligence (AI) and machine learning are creating new opportunities for providers of professional services.
    • With trading under the African Continental Free Trade Area agreement underway as of 1 January 2021, analysts expect business activity and investment in Africa to rise.

    Threats

    • Further accounting scandals could cause irreparable harm to the sector’s image.
    • Mandatory audit firm rotation could reduce the number of firms able to carry out audits if it results in a significant increase in costs.
    • New regulations for auditors could disincentivise graduates from opting to join the profession.
    • The ongoing exodus of professionals from South Africa.

    Outlook

    • The low economic growth outlook presents benefits for restructuring professionals as more companies struggle to survive, and challenges for those involved in other corporate work as investment and economic growth slows. \r\n
    • Other challenges are partly due to the loss in trust following various accounting scandals. \r\n
    • New technology and regulations are likely to continue eroding the competitiveness of large accounting firms. \r\n
    • Some role players say mandatory audit firm rotation will promote competitiveness and others it will limit the number of firms that are eligible to undertake audits.

    The Accounting Industry in South Africa
    The Accounting Industry in South Africa 2023

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    The Accounting Industry in South Africa 2019-07-25

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    The Accounting Industry in South Africa 2017-10-25

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    The Accounting Industry in South Africa 2016-05-05

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    2.3. Size of the Industry 5
    3. LOCAL 8
    3.1. State of the Industry 8
    3.2. Key Trends 13
    3.3. Key Issues 18
    3.4. Notable Players 19
    3.5. Corporate Actions 20
    3.6. Regulations 21
    3.7. Enterprise Development and Social Development 23
    4. AFRICA 27
    5. INTERNATIONAL 29
    6. INFLUENCING FACTORS 31
    6.1. Economic Environment 31
    6.2. Labour 32
    6.3. Environmental Issues 36
    6.4. Technology, R&D, Innovation 36
    6.5. Input Costs 39
    7. COMPETITIVE ENVIRONMENT 40
    7.1. Competition 40
    7.2. Ownership Structure of the Industry 40
    7.3. Barriers to Entry 41
    8. SWOT ANALYSIS 42
    9. OUTLOOK 43
    10. INDUSTRY ASSOCIATIONS 43
    11. REFERENCES 43
    11.1. Publications 43
    11.2. Websites 44
    APPENDIX 1 46
    Summary of Notable Players 46
    COMPANY PROFILES 51
    Auditor-General South Africa 51
    Baker Tilly Greenwoods Chartered Accountants 54
    BDO South Africa Inc 57
    Crowe in Southern Africa (Pty) Ltd 66
    Deloitte South Africa 69
    Ernst and Young Inc 72
    Exceed (Cape Town) Inc 77
    KPMG Inc 79
    LDP Chartered Accountants and Auditors Inc 85
    Mazars 89
    Moore South Africa (Pty) Ltd 96
    Nolands Inc 101
    PKF South Africa Inc 104
    PricewaterhouseCoopers Inc 107
    RSM South Africa Inc 121
    SekelaXabiso CA Inc 124
    SizweNtsalubaGobodo Grant Thornton Inc 127
    Theron du Plessis Durbanville Inc 13

    Introduction

    The accounting sector is the guarantor of financial reporting standards and performs a critical function in the South African economy. The knowledge-intensive sector has a workforce of around 56,000 and generates annual revenues in excess of R30bn. Although well-established and anchored by the world’s largest accounting firms, the auditing profession has been mired in controversies relating to fraud and financial irregularities involving several high-profile clients. Recent scandals have highlighted the shortcomings of the external audit and various stakeholders have called for audit reforms saying that trustworthy financial reporting is imperative, especially in times of great uncertainty when reliable information is of vital importance. Regulatory changes that are set to disrupt the industry include the mandatory rotation of auditors, which is scheduled to come into effect on 1 April 2023.

    Strengths

    • Formal barriers to entry are low.
    • Its diverse client base includes businesses from all sectors, publicly-traded companies, multinational corporations, state-owned enterprises, public sector entities and public interest entities.
    • South African chartered accountants are highly sought after in South Africa and further afield.
    • The sector has a high level of flexibility and agility.
    • The sector provides professional services to clients in sub-Saharan Africa.
    • The South African accounting sector is well-established and its audit regulator is internationally-recognised.
    • The world’s largest accounting networks have member firms in South Africa.

    Weaknesses

    • Confidence in the integrity of the sector has been compromised by high-profile fraud and financial irregularities.
    • Lack of skilled professionals, particularly in local government finance departments.
    • Small firms typically do not have the capacity to audit large companies.
    • The sector is dominated by four multinational players and is highly concentrated.
    • The sector is perceived to lack independence and accountability.
    • There are relatively few mid-tier players.

    Opportunities

    • Effective knowledge management can promote innovation, skills retention and secure a competitive advantage.
    • Intelligent technologies such as artificial intelligence and machine learning are creating new opportunities for providers of professional services.
    • Small and mid-tier firms are set to benefit from mandatory audit firm rotation regulations, which come into effect in 2023.
    • With trading under the African Continental Free Trade Area agreement underway as of 1 January 2021, analysts expect business activity and investment in Africa to rise.

    Threats

    • Climate change-related shocks.
    • Continued disruption relating to the coronavirus pandemic.
    • Economic turbulence domestically and globally.
    • Further accounting scandals could cause irreparable harm to the sector’s image.
    • Increasing competition from large technology companies.
    • The ongoing exodus of professionals from South Africa.

    Outlook

    South Africa entered 2021 in the grip of coronavirus. Although role players in the accounting sector anticipate that measures aimed at controlling the spread of the pandemic will continue to cause disruption for months to come, they are confident that financial reporting will not be compromised. Stakeholders say that firms have demonstrated their flexibility and agility, rapidly migrating to digital audit processes to ensure that they continue to meet their reporting obligations. Whether auditors will revert to traditional auditing processes when lockdown is eventually lifted, remains to be seen. Further disruption in the form of regulatory reform is expected to create greater consolidation in the market, with smaller firms joining forces to tackle the domination of the big four players when mandatory audit firm rotation comes into effect on 1 April 2023. Although South Africa’s economic growth prospects remain constrained, the establishment of the African Continental Free Trade Area offers cause for cautious optimism. On 1 January 2021, the massive trade bloc of 1.3 billion people opened for business, paving the way for higher levels of intra-African trade and business activity, which could translate into greater demand for accounting and other professional services.

    The Accounting Industry in South Africa
    The Accounting Industry in South Africa 2021

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    The Accounting Industry in South Africa 2023-01-27

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    The Accounting Industry in South Africa 2019-07-25

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    The Accounting Industry in South Africa 2017-10-25

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    The Accounting Industry in South Africa 2016-05-05

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 5
    2.2. Geographic Position 6
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 13
    4.1.2. Regulations 13
    4.1.3. Enterprise Development and Social Economic Development 16
    4.2. Continental 18
    4.3. International 19
    5. INFLUENCING FACTORS 21
    5.1. Coronavirus 21
    5.2. Economic Environment 22
    5.3. Labour 24
    5.4. Technology, Research and Development (R&D) and Innovation 26
    5.5. Accounting Scandals 27
    5.6. Environmental Concerns 29
    6. COMPETITION 30
    6.1. Barriers to Entry 31
    7. SWOT ANALYSIS 32
    8. OUTLOOK 33
    9. INDUSTRY ASSOCIATIONS 33
    10. REFERENCES 34
    10.1. Publications 34
    10.2. Websites 35
    APPENDIX 1 36
    Summary of Notable Players 36
    COMPANY PROFILES 41
    AUDITOR-GENERAL SOUTH AFRICA 41
    BAKER TILLY GREENWOODS CHARTERED ACCOUNTANTS 45
    BDO SOUTH AFRICA INC 47
    CROWE IN SOUTHERN AFRICA (PTY) LTD 54
    DELOITTE SOUTH AFRICA 56
    ERNST AND YOUNG INC 59
    EXCEED (CAPE TOWN) INC 64
    KPMG INC 66
    LDP CHARTERED ACCOUNTANTS AND AUDITORS INC 71
    MAZARS 75
    MOORE SOUTH AFRICA (PTY) LTD 81
    NOLANDS INC 85
    PKF SOUTH AFRICA INC 87
    PRICEWATERHOUSECOOPERS INC 90
    RSM SOUTH AFRICA INC 100
    SEKELAXABISO CA INC 102
    SIZWENTSALUBAGOBODO GRANT THORNTON INC 104
    THERON DU PLESSIS DURBANVILLE INC 108

    Report Coverage

    This report examines the accounting sector and sector-related knowledge management. It provides comprehensive information on the state and size of the sector and factors that influence it including regulation, revenue and market share, mergers, leadership changes, discussion of mandatory rotation and the sector’s response to it, as well as continental and international information. There are 18 profiles including of the big four firms PwC, Deloitte, EY, and KPMG and medium-sized firms including Grant Thornton, SizweNtsalubaGobodo (SNG) and BDO, which have been involved in a series of mergers. Other profiles include Mazars and PKF in the private sector, as well as the Auditor-General.

    Introduction

    This report examines the South African accounting sector, a major contributor to the tertiary economy and the guarantor of financial reporting standards. Accounting firms are knowledge-intensive businesses, and this report offers an overview of the core profession as well as the role and benefits of knowledge management in the professional services industry. Income from accounting services stands at R29bn and the industry employs some 56,000 people. Prominent firms have been implicated in a slew of accounting scandals and company failures, and the profession is suffering a crisis of public confidence. As a consequence, regulatory pressure is on the rise while technological disruption and market consolidation are increasing competition in the market.

    Strengths

    • Despite recent scandals, the sector remains an African leader in terms of the strength and independence of its accounting standards.
    • Large client base of JSE-listed companies, multinationals, and state entities.
    • Large numbers of internationally connected firms.
    • Low formal barriers to entry.
    • Very high demand for chartered accountants and business skills.
    • Well placed to service growing African demand for professional services.

    Weaknesses

    • Considered to be one of the least transformed sectors in the country.
    • Lack of skills and concerns regarding South Africa’s poor education system.
    • Poor audit quality and a lack of accountability in the public sector.
    • Some stakeholders suggest that market concentration may have an impact on audit quality and independence.

    Opportunities

    • Effective knowledge management, underwritten by emerging technologies, can promote innovation, skills retention, and secure a competitive advantage.
    • Growing investment and business interest in Africa.
    • Increasing advisory and consulting work.
    • Regulatory attempts to increase competition in the sector and drive assurance work to smaller firms.
    • Rehabilitation of government and state audit quality.
    • Technologies driving operating efficiency and creating new opportunities for client services.

    Threats

    • Economic headwinds and policy uncertainty undermining foreign investment and business confidence.
    • Failure to innovate in the face of disruption.
    • Increasing competition from large technology companies and innovative start-ups.
    • Increasingly stringent regulations, including increased regulator powers, mandatory audit firm rotation, and the proposed split of audit and advisory divisions.
    • Lack of skills and a professional brain drain as accountants leave the sector for opportunities in business or overseas.
    • Ongoing accounting scandals undermining confidence in the competence and integrity of the profession.

    Outlook

    Despite enjoying relatively stable demand for its services, the sector is facing a crisis of business and public confidence. Recent scandals have called into question the competence and integrity of the profession, and a number of prominent players face ongoing investigations, legal action, and the loss of high-profile clients. KPMG, a focus of public ire, has instituted wide-ranging reforms and states that it is confident of recovery, but that the process will take time. The South African Institute of Chartered Accountants agrees, saying that although firms and regulators are taking the necessary steps, the key challenge going forward will be to restore trust and confidence in the profession.\r\n\r\nCompetition is increasing, driven by the scandals, new regulations, market consolidation, and technological disruption. Many firms have reported increased pressure on margins as firms cut fees. The situation is exacerbated by the depressed economy, which has seen many companies rein in their consulting budgets. Advisory work is nevertheless of growing importance to accounting firms and promises significant opportunities in the future. Technology will result in the automation of many traditional activities and professionals will expand the scope and depth of their client-focused services. Despite the opportunities, the sector faces the ongoing threat of an insufficiently skilled labour pool and increasingly stringent regulation.

    Read More..
    The Accounting Industry in South Africa
    The Accounting Industry in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.42 (USD)*

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    Historical Reports

    The Accounting Industry in South Africa 2023-01-27

    R 9 500.00(ZAR) estimated $538.72 (USD)*

    View Report Add to Cart

    The Accounting Industry in South Africa 2021-02-15

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    View Report Add to Cart

    The Accounting Industry in South Africa 2017-10-25

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    View Report Add to Cart

    The Accounting Industry in South Africa 2016-05-05

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 6
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 20
    4.1.2. Regulations 22
    4.1.3. Enterprise Development and Social Economic Development 26
    4.2. Continental 27
    4.3. International 29
    5. INFLUENCING FACTORS 31
    5.1. Economic Environment 31
    5.2. Labour 31
    5.3. Technology, Research and Development (R&D) and Innovation 34
    5.4. Environmental Concerns 36
    6. COMPETITION 37
    6.1. Barriers to Entry 39
    7. SWOT ANALYSIS 39
    8. OUTLOOK 40
    9. INDUSTRY ASSOCIATIONS 41
    10. REFERENCES 41
    10.1. Publications 41
    10.2. Websites 42
    APPENDIX 1 44
    Summary of Notable Players 44
    COMPANY PROFILES 48
    AUDITOR-GENERAL SOUTH AFRICA 48
    BAKER TILLY GREENWOODS CHARTERED ACCOUNTANTS 51
    BDO SOUTH AFRICA INC 53
    CROWE IN SOUTHERN AFRICA (PTY) LTD 58
    DELOITTE SOUTH AFRICA 61
    ERNST AND YOUNG INC 64
    EXCEED (CAPE TOWN) INC 69
    KPMG INC 72
    LDP CHARTERED ACCOUNTANTS AND AUDITORS INC 78
    MAZARS 81
    MOORE STEPHENS SOUTH AFRICA (PTY) LTD 85
    NOLANDS INC 90
    PKF SOUTH AFRICA INC 92
    PRICEWATERHOUSECOOPERS INC 96
    RSM SOUTH AFRICA INC 106
    SEKELAXABISO CA INC 108
    SIZWENTSALUBAGOBODO GRANT THORNTON INC 110
    THERON DU PLESSIS DURBANVILLE INC 114

    Report Coverage

    The South African Accounting Sector describes current conditions and developments, focusing on Mandatory Audit Firm Rotation (MAFR), a rule published by the Independent Regulatory Board for Auditors (IRBA) in June 2017. This rule and other factors that influence the success of the sector are discussed in this detailed report. Profiles for 19 companies are provided, including market leaders, the locally-owned operations of the largest audit firms in the world, PricewaterhouseCoopers (PwC), Deloitte, EY and KPMG. Also profiled are the Auditor-General of South Africa and medium-sized South African accounting firm PKF South Africa, which in May 2017 announced the acquisition of Durban-based audit and accounting practice De Witt & Saestad. The deal sees PKF\'s Durban office grow to 240 employees, solidifying the firm\'s position as the largest independent accounting firm in KwaZulu-Natal.

    Introduction

    This report examines the South African market for accounting, bookkeeping, auditing and tax consulting services, with a particular focus on the changing regulatory environment and the events of the last year. The accounting industry is part of the wider business services sector which contributed 20.2% to GDP in 2016. There were more than 41,000 Chartered Accountants (CAs) registered in South Africa in 2016 and some 2,000 active audit firms. South Africa has lost its status as the global leader when it comes to the strength of auditing and reporting standards and the local industry is beset with concerns over recently promulgated regulations, slow transformation and a perceived decline in independence due to allegations relating to KPMG South Africa.

    Strengths

    • Low formal barriers to entry.
    • Relatively strong auditing and reporting standards. Despite the loss of global ranking, the sector remains one of the best in Africa for its accounting standards.
    • Robust support structure and skills development initiatives from industry associations.
    • Stable client base supported by legislative requirements for independent audit.
    • Steady trend of growth in accounting graduates, professionals, and fees.

    Weaknesses

    • Low levels of transformation.
    • Relatively mature market, with a particular concentration of the audit segment.
    • There is a lack of necessary skills.

    Opportunities

    • Demand for accounting services far outstrips supply.
    • Increasing advisory and consulting work.
    • Regulatory attempts to increase competition in the sector.
    • Technology driving efficiency.

    Threats

    • Continuing low economic growth.
    • KPMG scandal might continue to undermine confidence in the independence of the industry.
    • Mandatory audit firm rotation may increase costs without meeting its stated objectives.
    • Political uncertainty and concerns regarding state capture undermining business and investor confidence.
    • Skills shortage.
    • Technological disruption.

    Outlook

    Despite relatively positive performance in a slow economic environment, developments in 2017 have seen the South African accounting sector facing a high degree of uncertainty. Although some role players believe the introduction of mandatory audit firm rotations will increase audit independence and buoy the overall quality of accounting services while facilitating competition and transformation, a number of critics have suggested that there is a lack of evidence as to what the true effects will be. The allegations surrounding KPMG, combined with a global downgrade of South Africa\'s accounting standards has hurt “the reputation of the chartered accountancy profession and CA(SA) designation in South Africa” and a number of stakeholders expect the industry will become more stringently regulated in the future.

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    The Accounting Industry in South Africa
    The Accounting Industry in South Africa 2017

    Full Report

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    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.42 (USD)*

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    Historical Reports

    The Accounting Industry in South Africa 2023-01-27

    R 9 500.00(ZAR) estimated $538.72 (USD)*

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    The Accounting Industry in South Africa 2021-02-15

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    The Accounting Industry in South Africa 2019-07-25

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    The Accounting Industry in South Africa 2016-05-05

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Corporate Actions 20
    4.1.2. Regulations 22
    4.1.3. Enterprise Development and Social Economic Development 23
    4.2. Continental 24
    4.3. International 26
    5. INFLUENCING FACTORS 27
    5.1. Economic Environment 27
    5.2. Labour 28
    5.3. Technology, Research and Development (R&D) and Innovation 30
    5.4. Environmental Concerns 32
    6. COMPETITION 32
    6.1. Barriers to Entry 33
    7. SWOT ANALYSIS 33
    8. OUTLOOK 34
    9. INDUSTRY ASSOCIATIONS 35
    10. REFERENCES 35
    10.1. Publications 35
    10.2. Websites 36
    COMPANY PROFILES 37
    AUDITOR-GENERAL OF SOUTH AFRICA 37
    BAKER TILLY GREENWOODS CHARTERED ACCOUNTANTS 40
    BDO SOUTH AFRICA INC 43
    DELOITTE SOUTH AFRICA 48
    ERNST AND YOUNG INC 51
    EXCEED (CAPE TOWN) INC 55
    GRANT THORNTON SOUTH AFRICA (PTY) LTD 58
    HORWATH IN SOUTHERN AFRICA (PTY) LTD 63
    KPMG INC 66
    LDP CHARTERED ACCOUNTANTS AND AUDITORS INC 74
    MAZARS 77
    MOORE STEPHENS SOUTH AFRICA (PTY) LTD 82
    NOLANDS INC 87
    PKF SOUTH AFRICA INC 90
    PRICEWATERHOUSECOOPERS INC 94
    RSM SA INC 104
    SEKELAXABISO CA INC 106
    SIZWENTSALUBAGOBODO INC 109
    THERON DU PLESSIS DURBANVILLE INC 113

    Report Coverage

    The South African Accounting Sector describes current conditions and recent developments including merger and acquisition activity and the impact of recently introduced regulations. The report profiles 21 companies, ranging from the Big Four market leaders to small companies such as SekelaXabiso (Pty) Ltd and Theron du Plessis Durbanville Inc.

    Introduction

    This report focuses on the South African accounting, auditing, bookkeeping and tax advisory sector. Part of the wider business services sector, which plays an increasingly key role in the economy as a whole, professional financial services were valued at R28bn in 2015. There are just under 40,000 Chartered Accountants (CAs) registered in South Africa and approximately half of these work at the handful of large and medium-sized firms that dominate the local accounting and audit market. South Africa is considered the world leader when it comes to the strength of auditing and reporting standards and local firms have acted as pioneers of modern accounting principles and integrated reporting. However, despite the robust support structure and sophisticated regulatory framework, the local accounting sector is beset by concerns over skills shortages and the slow pace of demographic transformation.

    Strengths

    • Low formal barriers to entry.
    • Robust support structure in the form of an internationally recognised bursary and training programme.
    • Stable client base as legislative requirements for audit underpin the sector.
    • The sector has a trend of steady growth both in revenue and membership.
    • World class auditing and reporting standards.

    Weaknesses

    • Low levels of transformation.
    • Relatively mature market, particularly in the area of large-scale audit.
    • Severe lack of necessary skills.

    Opportunities

    • Core business opportunities in the form of increasing advisory and consulting work.
    • Demand for accounting services currently significantly outstrips industry supply.
    • Demand is only set to increase through organic economic growth and increasing investment into Africa.
    • Shifts in regulation and industry consolidation rendering auditing increasingly competitive.

    Threats

    • New BEE regulations may render many firms non-compliant.
    • Skills shortage has potential to seriously prevent growth.

    Outlook

    The highly regarded South African accounting sector has presented with steady growth in revenue and membership over a number of years, has weathered the economic slowdown very well, and can count on continued demand from a stable client base. Analysts believe that as South Africa\'s regulatory landscape shifts, there will be an increasing amount of advisory and consulting work that will enable accounting firms to expand their core business. The consolidation of mid-tier firms and the introduction of mandatory audit rotations have already led to increased competition in the large audit market. In the words of Hilton Saven, of Mazars, the current state of the sector is characterised by “an opening and an opportunity” for accounting firms.\r\n\r\nWhile the sector is formally sound, SAICA notes that “the lack of skills is quickly becoming critical.” If the skills deficit is not met and the vacancy rate continues to climb, it is likely that the profession, and perhaps the larger economy, will be significantly affected in terms of potential growth. The sector is indeed attempting to meet this challenge. Government and the DTI hope that the new BEE regulations, in conjunction with an internationally recognised bursary and training programme in the form of Thuthuka, will begin to bring sector supply and demand closer to equilibrium. However, as noted by SAICA, a key issue relating to the skills shortage is that there is “no real growth in the pipeline of students, coupled with inadequate throughput pass percentage rates” and the long-term future of the sector is contingent upon how this issue is addressed. SAICA has reported numerous successes with its skills development initiatives but, as noted in the PPS Professional Graduates Survey 2015, 81% of surveyed accountants feel that the current education system is unable to meet demand.

    Read More..
    The Accounting Industry in South Africa
    The Accounting Industry in South Africa 2016

    Full Report

    R 1 900.00(ZAR) estimated $107.74 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 75.42 (USD)*

    Buy Now +

    Historical Reports

    The Accounting Industry in South Africa 2023-01-27

    R 9 500.00(ZAR) estimated $538.72 (USD)*

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    The Accounting Industry in South Africa 2021-02-15

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    The Accounting Industry in South Africa 2019-07-25

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    The Accounting Industry in South Africa 2017-10-25

    R 1 900.00(ZAR) estimated $107.74 (USD)*

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 19
    4.1.2. Regulations 20
    4.1.3. Enterprise Development and Social Economic Development 22
    4.2. Continental 23
    4.3. International 24
    5. INFLUENCING FACTORS 26
    5.1. Economic Environment 26
    5.2. Labour 26
    5.3. Technology, Research and Development (R&D) and Innovation 29
    6. COMPETITION 30
    6.1. Barriers to Entry 31
    7. SWOT ANALYSIS 31
    8. OUTLOOK 32
    9. INDUSTRY ASSOCIATIONS 32
    10. REFERENCES 33
    10.1. Publications 33
    10.2. Websites 34
    COMPANY PROFILES 35
    Auditor-General of South Africa 35
    Baker Tilly Greenwoods Chartered Accountants 39
    BDO South Africa Services (Pty) Ltd 41
    Deloitte South Africa 43
    Ernst and Young Advisory Services (Pty) Ltd 46
    Ernst and Young Inc 51
    Exceed (Cape Town) Inc 55
    Grant Thornton Chartered Accountants SA 58
    Horwath in Southern Africa (Pty) Ltd 65
    KPMG Inc 68
    KPMG Services (Pty) Ltd 71
    LDP Chartered Accountants and Auditors Inc 74
    Mazars 77
    Moore Stephens Cape Town Inc 82
    Nolands Inc 84
    PKF South Africa Inc 86
    PricewaterhouseCoopers Inc 88
    RSM South Africa (Pty) Ltd 98
    SekelaXabiso (Pty) Ltd 101
    SizweNtsalubaGobodo Inc 104
    Theron du Plessis Durbanville Inc 107

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