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The Accounting Sector in South Africa
BY Carole Veitch
South Africa
15 February 2021
R 14 400.00 (ZAR)  
estimated $ 991.33 (USD) *
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The Accounting Sector in South Africa


The accounting sector is the guarantor of financial reporting standards and performs a critical function in the economy. 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 its clients. These have highlighted the shortcomings of the external audit and various stakeholders have called for audit reforms. 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.


Reputational Damage


Poor accountability, specifically the failure of certain major auditing firms to report financial malpractice and fraud involving private companies and public entities, has resulted in a credibility crisis for the auditing profession. Major firms have implemented controls including audit quality monitoring systems, integrity checks, whistle-blowing initiatives and publication of annual transparency reports. The large firms’ increased reticence to take on clients who present an elevated risk is expected to drive many clients to smaller accounting firms.


Technology


While traditional accounting software has reduced the amount of time spent on routine tasks such as transaction entry, data capture and number crunching, new technologies are fundamentally changing the structure of the profession, entirely automating some of the work. Large firms have launched digital auditing platforms and some have partnered with international technology companies. Big data analytics and the internet of things will vastly increase the amount of data that is analysed and stored.


Report Coverage


This report focuses on the accounting sector in South Africa and includes information on the state of the sector, recent developments and influencing factors. There are profiles of 18 companies including the big four, PwC, Deloitte, EY and KMPG, as well as other prominent companies including BDO and Mazars, and a number of smaller firms.


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