2010 Public Practice Examination (PPE)

• Technical competencies for professional and specialist competence.
• The professional experience period.

The IRBA celebrates the top achievers in the 2010 Public Practice Examination!

The IRBA hosted the second PPE top ten candidate's luncheon on 5 April 2011 at the Origins Centre, Wits, to honour and celebrate candidates who achieved the top ten positions in the 2010 PPE.

Temba Zakuza, Chairman of the IRBA Education Committee (EDCOM) and outgoing IRBA Board Member welcomed the guests and commended those who have played a pivotal role in shaping the future of these top achievers. He spoke about the level of responsibility and duty these candidates will have in upholding the profession and ensuring the future growth and development of the country.

Hein Wagner, who was born blind, captured the attention of the audience when he delivered an inspirational keynote address drawing on his own life lessons and success. Most of all, he reminded candidates that they are able to achieve whatever it is that they want in life. Hein continues to achieve his goals using just four of the five senses; which begs the question - how much more can we do with all five senses?

Industry leaders, training officers, professional bodies and other stakeholders came together to congratulate those candidates who excelled in the final test of professional competence for Registered Auditors. Bernard Agulhas, the IRBA's CEO, together with Carmen Krull (2009 PPE top ten candidate) presented the top ten candidates with honours certificates and trophies. The top candidate also received a floating trophy.

The following candidates achieved the top ten places:

The IRBA hosts a Support Programme that is aimed at assisting repeat, transformation candidates, who have failed previous attempts at the PPE. The 2010 IRBA Support Programme received a portion of its funding from FASSET.

Laine Katzin, Director of the IRBA Education, Training and Professional Development, presented Waleed Hamed Omar with an award for being the top Support Programme candidate in the 2010 PPE. Ms Katzin also encouraged stakeholders to actively participate in the transformation initiatives of the profession.

The event was closed by Dr Suresh Kana, the IRBA's Deputy Chairman, who offered candidates seven guidelines by which to achieve success. The seven guidelines are:

1. Have a strong sense of your future direction
2. Accept your leadership responsibilities with pride and determination
3. Be passionate about your profession
4. Stand up against corruption
5. Make the best of what you have
6. Keep growing
7. Promote civility amongst all people

Click here for the full speech page.

Dr Suresh Kana’s full speech, delivered to the PPE Top Ten Candidates at a function held at the Origins Centre at Wits in Johannesburg on 5 April 2011.

Firstly, we are now in an age of the democratisation of the leadership and high levels of connectivity. You see the practical implications of this in North Africa and the Middle East.

Through your achievement you will inherit some measure of leadership of this nation. However large or small your share, you must do so with courage and determination. Accept the challenges and responsibilities that go with leadership.

Challenges will always be there and some will be great. Some will appear to be overwhelming. There will be setbacks along the way, but more importantly, it is how you rise above those challenges along the journey of success and personal mastery.

Most people think of September 11 as the tragic day the World Trade Centre collapsed. However there is another remarkable story that began that day that attests to the fact that incredible achievement can result from adversity.

It is the story of New York mayor Rudi Giuliani. Sep 11 was the day that Giuliani was supposed to slide into mediocrity. His people were sick of him they were tired of his awful temper and constant battles against his political enemies, against the media and finally against his own wife.

But fate had another plan and when that day of infamy came Giuliani seized it as if he had been waiting for it all his life. And I quote the result from time magazine: "tough, smart and decisive, he was a crisis manager of immense proportions - Giuliani, has rightfully become mayor of the world and time’s 2001 person of the year".

Giuliani had a choice to make and he consciously decided to make a difference and rise to the challenges facing him despite all the odds!

South Africa faces major social and economic challenges. Rise to these challenges. View challenges as opportunities in another cloak. When you seize the initiative and put your mind to work with perseverance, you will overcome and from that, great opportunities will rise. Don’t allow fear to become your master.

You will feel the surge of confidence and elation within you. All challenges are opportunities because it tests your mettle and lets you know the stuff you are made of. It is the anvil upon which character is forged.

Exercise your leadership role. That is your job; that is your destiny.

Secondly, you are about to move into your next phase of life; a phase of life where you must leave your footprints, a phase of life where you must be bold and determined, a phase of life where you must stand tall.

These are not tasks for the timid. You have completed an educational milestone in your life. If you use what you have learned wisely and continue to grow, life will reward you handsomely.

Our past president Nelson Mandela said "you can take all that I have and everything I own but you can never take away the education I have received".

Education is mankind’s most enduring asset. Treasure it. Nurture it. Share it. And invest it in a better future for yourself and for those who come after you. Commit to lifelong learning.

Now that you have achieved the goals you set for yourself a few years back when you left university, it is time to set new goals. The goals you set today will help determine the success you achieve tomorrow.

You must have a solid sense of direction about where you are going from here. No one will do it for you. Only you can take charge and direct your life. Remember your attitude will determine your altitude.

So think soaring thoughts and galvanize yourself to take action to achieve all you set out to do.

Thirdly, be passionate about your profession. As you go marching into the future, let your spirit be like an eagle, soaring into the heavens - always alert and always in touch with its surroundings.

Let all those who gather around you see that passion shine and radiate your goodness, your intellect, your enthusiasm and, most of all, your integrity.

Fourthly, the fight against corruption is high on the global agenda. Never fall prey to the silent calls of the corrupt, the degenerate, and the mean-spirited. We all hear about the tenderpreneurs.

Keep your own counsel and carry yourself with humble confidence. Whatever you do, use the talents you have to their fullest. Never compromise your beliefs and values no matter what the temptation.

Be ever vigilant against the seductive forces of power and greed. These forces manifest themselves all the time in the corporate world. We have all seen great men and women fall from their positions of power due to some foolish act.

Fifthly, make the best of what you have. As I say this to you I am reminded of an African proverb about a sparrow flying merrily through the air, when he heard a clap of thunder. The sparrow fell to the ground with his two little legs sticking straight up in the air.

An eagle flying nearby saw the sparrow and asked "what’s happening?" The sparrow replied, "The sky is falling down." The eagle, mocking the little bird, replied "and what are you going to do, hold it up with those scrawny legs of yours?" The sparrow looked at the majestic eagle with deep resignation and replied: "one does what one can, with what one has."

Be like the sparrow. Do your best with what you have. No matter how invincible the task may appear.

Point six, keep growing. In all that you do, you must grow, for if you stop building your character, your intellect, and your wisdom of life, you will wither.

Today you are celebrating the educational foundation of your life that you built during your tertiary career and training contract. Keep building on that foundation. And build it strong, so that it can endure and benefit others. By sharing, you magnify your virtues. By being generous and thoughtful in your endeavours, you will make this world a better place for your having been here.

Leave little monuments to yourself along the way. Not vain monuments, but those that are built from consideration, thoughtfulness, compassion, and genuine love of life. Think about how you would like people to remember you and make that your philosophy in life.

Lastly, in all things, I implore you, promote civility among all people. Civility is what defines us as a people. "We may fly through the air like birds; we may swim through the water like fish; but let us walk on earth like men and women."

IRBA Learning Results

OFFICIAL STATEMENT ACCOMPANYING THE RELEASE OF THE RESULTS OF THE PUBLIC PRACTICE EXAMINATION
2010 Statement Issued 25 February 2011

Overall results

The Public Practice Examination (PPE) was written on Tuesday, 23 November 2010 in 23 local venues and two international venues; Namibia and the United Kingdom. Of the 1952 aspirant accountants and auditors who wrote the PPE in 2010 (2798 in 2009), 1585 (2320 in 2009) passed resulting in a pass rate of 81% (83% in 2009). Of the 1495 candidates who wrote the examination for the first time, 1305 passed resulting in a first time pass rate of 87%.

The following candidates achieved the top ten places:

All the top ten candidates achieved honours. In total, honours were awarded to 14 candidates who achieved a pass mark of 75% or above.

Entry to the PPE is a culmination of a long and rigorous academic, training and assessment process aimed at developing the core and professional competence of prospective accountants and auditors. Success in the PPE allows candidates the opportunity to register as a Registered Auditor (RA).

The PPE
The objective of the PPE is to assess the professional competence of candidates at entry to the auditing profession. Within the constraints of a written examination, the IRBA has developed the PPE over the years to ensure that it is an appropriate assessment of professional competence and that it reflects the multidisciplinary public practice environment.

The primary objective of the IRBA as established in terms of section 3 of the Auditing Profession Act, 2005 (the Act) is to protect the public through regulation of the auditing profession. In this regard, the IRBA has a duty to ensure that only those who have demonstrated an appropriate degree of professional competence are registered as auditors.

Candidates must demonstrate an ability to solve multidisciplinary practice problems in an integrated manner and to do so must analyse and interpret information and provide viable solutions to address specific client needs. The ability to demonstrate logical thought and exercise professional judgment is an integral part of the examination.

Admission requirements to the PPE require completion of recognised academic, education, training and assessment programmes. The qualification period is at least seven years and is similar to that of other highly regarded professions and internationally recognised accounting bodies.

Transformation of the profession
Transformation of the profession remains a priority for the IRBA. Of the 855 black candidates who wrote the PPE, 641 passed, representing an overall pass rate of 75%.

The IRBA facilitates a support programme for Black repeat candidates on an annual basis. In 2010, Fasset (the Seta for finance, accounting, management consulting and other financial services) provided the IRBA with funding to assist in hosting the Support Programme. The Programme yielded excellent results in 2010. Of the 87 candidate who completed the programme 61 passed; representing a pass rate of 70%. Without exception the candidates who attended the Support Programme achieved better results on each question than repeat candidates who did not attend the Support Programme in 2010.

In conclusion
The IRBA wishes to acknowledge the significant contribution made by the various education institutions, training offices and professional bodies towards the success of the 2010 PPE candidates.

The IRBA's examination continues to be afforded both local and international recognition and we wish to congratulate our successful candidates on their achievement.

IRBA Learning Results

Any editions of the following books will be permitted, however, the latest edition of the books is prescribed by the Examination Committee:

• IRBA Manual of Information, Guidelines for Registered Auditors, 2010.
• SAICA Handbook 2009/2010: Volume 1A, 1B and 1C ("A Guide through IFRS"), Volume 2 (Auditing) and Volume 3 (Accounting, Ethics and Circulars - including translations).
• SAICA Legislation Handbook 2009/2010 (Volume 1 and 2) containing the following statutes – Companies Act, Close Corporation Act, Auditing Profession Act, the Public Finance and Management Act, Transfer Duty Act, Securities Tax Act, Income Tax Act, Value-Added Tax Act and the Estate Duty Act (LexisNexis - Durban).

The following copies (texts can be downloaded from the IRBA website,www.irba.co.za/or through relevant links) will be permitted:

• IRBA Manual of Information, Guidelines for Registered Auditors, 2010
• IRBA "PAAB Code of Professional Conduct"
• IRBA "Old Disciplinary Rules"
• IRBA Circular: Giving Second Opinions (issued 30 June 2006)
• IRBA Guide: Reportable Irregularities
• IRBA Guide: The auditor attending the annual general meeting
• SAAPS 3 ( Revised- issued March 2010)
• Revised SAAPS 3
• Code of Governance Principles - King III Report
• IFRS for Small and Medium-sized Entities
• ISAE 3402:Assurance Reports on Controls at a Service Organisation
• SAICA Guide: Trading Whilst Factually Insolvent (as updated June 2009)
• The Corporate Laws Amendment Act No 24 of 2006

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1. Introduction

The International Education Paper (October 2001) published by the International Federation of Accountants (IFAC) requires all member bodies to strive to provide reasonable accommodation to persons with proven disabilities to minimise or eliminate the impact of the disability in order to:

• Meet any legal requirements in their jurisdiction;
• Attract as members all persons with intellect and capacity to be professional accountants;
• Demonstrate openness, transparency and caring to their communities; and
• Do what is morally right.

In accordance with the above and in recognition that not all candidates are able to reflect their true ability under normal examination circumstances, the IRBA offers special concessions to candidates with certain disabilities who sit the final test of professional competence, the Public Practice Examination (PPE), each year.

2. The Public Practice Examination

In terms of the Auditing Profession Act, 26 of 2005, it is a requirement for registration as a Registered Auditor (RA) that the applicant has:

1. passed the prescribed examination, and
2. served under a prescribed training contract.

2.1 Admission requirements to the PPE

Admission requirements to the PPE are rigorous and include the following:

1. Successful completion of a recognised academic programme. This refers to an academic programme of a professional institute that develops core competence to the standard that provides a foundation appropriate for further professional development, and which has met and continues to meet the relevant recognition standards defined by the IRBA. The Certificate in the Theory of Accountancy or equivalent offered by universities accredited by SAICA for the purpose of admission to SAICA’s Part I Qualifying Examination is currently recognised.
2. Successful completion of a recognised professional qualifying examination. This refers to an examination of a professional institute that assesses the core competence of a candidate, and which has met and continues to meet the relevant recognition standards defined by the IRBA. SAICA’s Part I, Qualifying Examination is currently recognised.
3. Successful completion of a minimum of 18 months’ practical training under a recognised training programme that is registered with the IRBA. The 18-month period should be completed prior to the first day of the month in which the examination is to be conducted in a specific year. The recognised training programme refers to a training programme of a professional institute which develops professional competence appropriate to the practice of an RA in the public practice environment and which has met and continues to meet the relevant recognition standards defined by the IRBA. Training contracts administered by SAICA and registered and approved by the IRBA are currently recognised.
4. Successful completion of a recognised education programme. A recognised education programme is an education programme of a professional institute which develops the professional competence of a student to the standard appropriate to the practice of an RA at entry level, and which has met and continues to meet the relevant recognition standards defined by the IRBA. The Auditing Specialism courses or equivalent accredited by SAICA are currently recognised.

Once a candidate has met all of the above requirements, he/she is eligible to write the PPE. The PPE aims to assess the professional competence of a candidate at entry level to the profession and assumes that the candidate has already developed the required core competence through an academic programme and has successfully demonstrated that core competence through the successful completion of a professional qualifying examination.

A candidate is given the opportunity of five hours in which to demonstrate his/her professional competence within the context of the PPE. Completion of the examination in the allotted time is critical for success. It is unlikely that candidates who do not complete all questions in the time allowed will pass the examination. Given the importance of time within the examination, it is essential that all candidates are given a fair opportunity in which to demonstrate competence.

Candidates who apply for admission to the PPE may also apply for certain concessions.

All applications for special concessions are subject to rigorous assessment and must be supported by the necessary documentation. The Education, Training and Professional Development Committee (EDCOM) of the IRBA endeavors to provide concessions that are reasonable and seek to minimise the impact of the disability and not provide advantage over other candidates. No concessions will be made regarding the assessment criteria. The same examination standards are set for candidates with disabilities as those applied to all other candidates.

Special concession requests are always considered, but not automatically granted. The granting of special concessions is a privilege and not a right and is granted at the sole discretion of EDCOM.

3. Special Concessions

In accordance with the special concessions policy approved by the IRBA, candidates with certain permanent or temporary physical handicaps or specific learning disabilities (e.g. dyslexia) may apply for certain concessions. These concessions are for candidates who experience severe forms of learning and physical barriers and who may consequently not be able to reflect their true ability in the examination. The concessions have been designed to place such candidates on an equal par with non-disabled candidates and not to give them any advantage.

Some impairments are easily controlled, corrected or lessened, resulting in little or no limiting effect on a candidate. Such conditions which can be neutralised through physical aids or controlled by medical treatment are excluded from the definition disability for the purpose of this policy.

Candidates may apply for special concessions under the following conditions:

• Any specific learning disabilities that may limit the candidate’s ability to successfully demonstrate his/her professional competence within the allocated time period and format of the examination.
• Any physiological difficulties that may impinge upon a candidate’s ability to successfully demonstrate his/her professional competence within the allocated time and format of the examination.

3.1 Nature of special concessions

Due to time being such a critical factor for all candidates writing the PPE, the IRBA will only grant additional time in extreme circumstances provided there is no other viable alternative.

Each candidate’s case will be reviewed by an advisory panel of EDCOM and the most appropriate concession available will be determined. The current types of concessions available are as follows:

1. The use of special equipment such as a computer
2. Use of an amanuensis/scribe
3. Use of a reader
4. Specialised printing of the examination paper e.g. enlarged font, coloured background or varied spacing
5. Examinations in alternative forms such as audiotape, Braille, text to speech
6. Separate accommodation
7. Special seating arrangements
8. Stop the clock concession. This concession allows the candidate the opportunity of having the clock stopped for a specific time in order to rest, stretch, take medication or use the bathroom. The amount of time allocated is determined by the nature of the disorder.
9. Additional time

4. Procedure

1. The decision to apply for a special concession is the sole responsibility of the candidate and as such reflects his/her professionalism and integrity.
2. All applications for special concessions must be submitted by 15 September of the year in which the candidate will sit for the PPE. Should unforeseen circumstances give rise to the need for special concessions after the stipulated date, the candidate must apply for the concession within one calendar month (30 days) after the incident which gave rise to the need for a special concession.
3. The candidate must complete the prescribed application form (available from the IRBA offices/website) and attach full supporting documentation. It is the candidate’s responsibility to ensure that all relevant documentation is included in the application, as the advisory panel will only consider the evidence before them. The IRBA will not contact other persons to obtain or confirm information on the candidate’s behalf; therefore, it is the candidate’s responsibility to supply all supporting documentation. However, EDCOM reserves the right to conduct its own investigation to verify the authenticity of the submitted documentation and the veracity and merits of the candidate’s case.
4. Full supporting documentation includes:
   1. A history of the condition including, recent medical reports (not older than 3 years) from a relevant registered health care practitioner who is registered with a recognised health professional body. The health care practitioner must specify in the report as to the nature of the problem, its duration, likely effects and evidence of any interventions (drug therapy etc.). Within the context of the disability, an indication of the type of concession and, only if relevant, a recommendation for the amount of extra time needed. Medical reports must be typed.
      • Where appropriate diagnostic criteria (DSM IV) must be present and diagnosed by a relevant registered health care professional.
      • In the case of Attention Deficit Disorder (with or without hyperactivity), evidence that concentration is in fact impacting negatively on performance ant that it is difficult to control. No concession will be given without clear evidence that the disorder is not under control.
   2. A history of any previous concessions allowed under exam conditions, including university examinations, CTA or SAICA’s Part I. Relevant copies of the nature of the concession allowed must be attached.
   3. A letter from the current training officer or current employer stating that they are aware of the severity of the circumstances and support the application being made, as well as details of their understanding as to the extent of the difficulty and the effect it has on the candidate’s ability to work.
5. All applications with supporting evidence will be considered by an advisory panel comprising of an educational psychologist or educationist, one or more RAs and a medical doctor. The advisory panel is appointed by EDCOM and will act on behalf of the EDCOM in making special concession decisions.
   1. Applications are assessed based on the information submitted. Applications will be declined if insufficient evidence is submitted.
6. The submission of fraudulent or misleading documentation may result in expulsion from the examination.
7. The IRBA may request that candidates applying for certain concessions are assessed by an appropriate specialist appointed by EDCOM.
8. All reasonable costs incurred in granting and providing special concessions will be covered by the IRBA.
9. Candidates who are granted special concessions will be expected to write the examination at the offices of the IRBA or a designated venue identified by the IRBA.
10. On notification of a special concession, candidates are required to sign and return the terms and conditions applicable to the concession granted.
11. Applications are only considered relevant for the year in which the application was made. If a candidate is unsuccessful in their attempt to pass the PPE, they must re-apply for a special concession the next year.
12. Candidate’s wishing to file an appeal of the decision made regarding their application for a special concession must file a formal appeal notice in writing to the Director: Education, Training and Professional Development within seven days of receipt of the concession notice.
13. Candidates must provide detailed justification for their appeal and include, if necessary, additional supporting documentation.
14. Upon receipt of the formal appeal, all letters of justification and supporting documentation will be forwarded to the original panel and two independent EDCOM members. The appeal panel will consider the candidate’s appeal. The panel’s decision is final.

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1. Important Dates

2. Format of Examination

Open book assessment

2.1 Exam times:

3. Entrance Fee

3.1 R1,650.00 is payable by 02 November 2010 in respect of registration from 03 August 2010 to 02 October 2010.

3.2 An additional fee of R605.00 is payable by 02 November 2010 in respect of late registration after 02 October 2010 and before 02 November 2010.

3.3 An administration fee of 15 % of the above fee(s) is payable for cancellation or withdrawal of registration. This fee is payable by 06 December 2010. Candidates who do not meet the examination requirements will not be charged an administration fee.

3.4 We are aware that the majority of the candidates will still be awaiting their Auditing Specialism (APT) results at the time of registration and as such candidates will be registered provisionally and their registration will only be confirmed once we have received the official results from the audit specialism programme provider.

4. London Examination Venue

4.1 An examination venue will be established in London; however, the IRBA reserves the right to cancel this venue if the number of candidates who register to write at this venue is not feasible.

4.2 Candidates who want to register to write the 2010 PPE at the London venue should do so by 02 October 2010, so that the IRBA can establish the feasibility of the London venue.

4.3 All London PPE candidates will be notified on 01 November 2010 of the additional registration fee that is payable.

5. Alternative Examination Arrangements

5.1 The IRBA may make alternative examination arrangements available to candidates that require these arrangements for medical, personal or other reasons.

5.2 The policies and procedures governing all applications for special concessions will be published on the IRBA Learning website, www.irbalearning.co.za, on 03 August 2010.

5.3 Granting of special concessions is entirely at the discretion of the IRBA.