APARTHEID S INFLUENCE ON SOUTH AFRICAN ACCOUNTING EDUCATION

Transcription

1 1 APARTHEID S INFLUENCE ON SOUTH AFRICAN ACCOUNTING EDUCATION ALETTA BOSHOFF M Com (Accounting), CA(SA) Senior Lecturer, Department of Accounting, Rand Afrikaans University Johannesburg, South Africa & ANNALIEN CARSTENS M Com (Auditing), CA(SA) Senior Lecturer, Department of Accounting, Rand Afrikaans University Johannesburg, South Africa Contact details: Postal address Department of Accounting Rand Afrikaans University P O Box 524 Aucklandpark Gauteng South Africa 2006 Telephone number or Fax number address abos@eb.rau.ac.za or acar@eb.rau.ac.za or aletta@netactive.co.za

2 APARTHEID S INFLUENCE ON SOUTH AFRICAN ACCOUNTING EDUCATION Abstract The South African society was built on systematically enforced racial division. Apartheid laws aimed at separating Whites (the minority) and Blacks (the majority). As a result Blacks had separate, less funded, lower standard education than Whites. Towards the end of the 20 th century legislation removed racial segregation in South Africa. This paper firstly investigates the impact of the aforementioned situation on South African accounting education, in particular the problems experienced by Blacks to qualify as chartered accountants and the various equity development initiatives undertaken by the South African professional accountancy bodies, universities and training practices to develop and enhance accounting education for Blacks in order to increase the number of Black chartered accountants in South Africa. Secondly, the Qualifying Exam results for recent years are analysed to assess the effectiveness and success of the aforementioned equity development initiatives to change the future racial profile of chartered accountants in South Africa. Thirdly, recommendations are made to promote the effectiveness and success of the various equity development initiatives undertaken by the South African professional accountancy bodies, universities and training practices to change the future racial profile of chartered accountants in South Africa. Key words Apartheid Education Blacks Accounting profession SAICA Universities Training practices

3 1. Introduction 2 For decades the South African society was built on systematically enforced racial division. Apartheid laws aimed at separating Whites (the minority) and Blacks (the majority). As a result Blacks had separate, less funded, lower standard education than Whites. Towards the end of the 20 th century legislation removed racial segregation in South Africa. This paper firstly investigates the impact of the aforementioned situation on South African accounting education, in particular the problems experienced by Blacks to qualify as chartered accountants and the various equity development initiatives undertaken by the South African professional accountancy bodies, universities and training practices to develop and enhance accounting education for Blacks in order to increase the number of Black chartered accountants in South Africa. Secondly, the Qualifying Exam results for recent years are analysed to assess the effectiveness and success of the aforementioned equity development initiatives to change the future racial profile of chartered accountants in South Africa. Thirdly, recommendations are made to promote the effectiveness and success of the various equity development initiatives undertaken by the South African professional accountancy bodies, universities and training practices to change the future racial profile of chartered accountants in South Africa. 2. The legislative implementation of apartheid in education The South African society was built on systematically enforced racial division (Collins, 1994:18). The National Party introduced laws (the so-called Apartheid laws) aimed at separating Whites and Blacks and instituting as a legal principle the theory that Whites should be treated more favourably than Blacks and that separate facilities need not be equal (United States Library of Congress, 2000a:1). Education was no exception. Until very recently the South African education system was segregated along racial, instead of rational lines. The Bantu Education Act No 47 of 1953 decreed that Blacks should be provided with separate educational facilities under the control of the Minister of Native Affairs, rather than the Ministry of Education. The pupils in these schools will be taught their Bantu cultural heritage, and in the words of Hendrik F. Verwoerd, Minister of Native Affairs, will be trained in accordance with their opportunities in life, which he considered did not reach above the level of certain forms of labour. The Bantu Education Act also removed state subsidies from denominated schools with the result that most of the mission-run African institutions were sold to the government or closed (United States Library of Congress, 2000b:1). Official attitudes towards African education were paternalistic, based on trusteeship and segregation. Black education was not supposed to drain government resources away from White education. The number of Black schools increased during the 1960s, but their curriculum was designed to prepare children for menial jobs. Per capita government spending on Black education was only one tenth of spending on White education. Black schools had inferior facilities, teachers and textbooks (United States Library of Congress, 2000c:1). Whereas 96% of all teachers in White schools had teaching certificates, only 15% of teachers in Black schools were certified. Secondary school pass rates for Black pupils in the nation-wide, standardised high school graduation exams were less than 50% the pass rate for Whites (United States Library of Congress, 2000d:1). The general socio-political

4 3 situation in the country also lead to a situation where several Black youths interrupted their education permanently during the 1980s to drive the final decade of the liberation struggle a reign of terror was created in the townships with the slogan freedom before education (Mischke, 1999). This situation inevitably lead to few Black students completing their 12 year school career and being able to enrol at a tertiary institution. The Extension of University Education Act No 45 of 1959, furthermore, prohibited Blacks from attending White institutions, except with the special permission of a cabinet minister, and established separate universities and colleges for Blacks, Coloureds and Indians (United States Library of Congress, 2000b:1). Overall, however, the 1959 legislation reduced opportunities for university education for Blacks and by 1978 only 20% of all university students were Black (United States Library of Congress, 2000e:1). The period 1960 to the early 1990s were also characterised by the appointment of academic personnel at Black higher educational institutions with a lack of qualifications, experience and academic orientation (Smit, 2000). These circumstances had catastrophical consequences for Black higher education. Student demands regarding admission, free education and the democratisation of governing bodies and management structures made university campuses ungovernable (Smit, 2000). The slogan pass one, pass all became common. 3. The implementation of democracy in higher education Despite strong opposition the situation of segregation within the education system was maintained until the mid-1980s, when the total disruption of the education system forced government to allow greater autonomy to universities with respect to admission policies. By that time several university administrations already anticipated the dismal impact of the long-term racial biases in education and began admitting students from all racial groups (United States Library of Congress 2000e:1). Despite these changes the total number of Black students at higher education institutions only increased by an annual average of 14% between 1986 and 1993 and the overall participation rates were still characterised by gross inequalities by the end of 1993 the participation rates for White students was just under 70%, while that for Black students was 12% (South Africa, 1997a). The transformation process in higher education was hereafter driven by the changing political circumstances in the South African society in general. The Bill of Rights (South Africa, 1993) determined that all South Africans are equal in rights and that no individual or groups shall receive privileges or be subjected to discrimination on the grounds of, inter alia, race. The Bill of Rights envisaged the facilitation of access to secondary and tertiary education on a basis equal for all. The new democratically elected government furthermore introduced an integrated, coherent socio-economic policy framework, the Reconstruction and Development Programme (hereafter RDP), that will mobilise the people and resources in the country towards the final eradication of Apartheid and the building of a democratic, non-racial future (South Africa, 1994). According to the RDP an integrated system of education and training system that provides equal opportunities to all, irrespective of, inter alia, their race, had to be developed. Educators had to understand and respond flexibly to the challenges of the new approaches to curriculum, method, delivery and certification which an integrated system of training and education demands (South Africa, 1994).

5 4 South Africa s fragmented education system and the resulting existence of different standards between various universities proved to be a significant barrier to the mobility of students within the education system as well as in the workplace. This lead to the enactment of the South African Qualifications Authority Act No 58 of This act made provision for the development and implementation of a National Qualifications Framework (hereafter NQF) and the establishment of the South African Qualifications Authority (hereafter SAQA) (South Africa, 1995). The NQF is a set of principles and guidelines by which records of learner achievement are registered to enable national recognition of acquired skills and knowledge, thereby ensuring an integrated system (SAQA, 2000). SAQA is a body of members appointed by the Ministers of Education and Labour to oversee the development of the NQF by: formulating and publishing policies and criteria for the registration of bodies responsible for establishing education and training standards or qualifications and for the accreditation of bodies responsible for monitoring and auditing achievements in terms of such standards and qualifications; and ensuring the registration, accreditation and assignment of functions to the bodies referred to above, as well as the registration of national standards and qualifications on the NQF (SAQA, 2000). The South African Qualifications Authority Act further prescribed the development of outcomesbased curricula for all qualifications registered on the NQF by no later than June 2000 (Public Accountants and Auditors Board (hereafter PAAB), 1999:8). The National Commission on Higher Education in 1996 published a report titled A framework for transformation (Smit, 2000). Following on that were the White Paper on Higher Education in 1997 and the Higher Education Act No 101 of The White Paper on Higher Education had as its vision a transformed, democratic, non-racial..system of higher education that will: promote equity of access and fair chances of success to all who are seeking to realise their potential through higher education, while eradicating all forms of unfair discrimination and advancing redress for past inequalities; meet, through well-planned and co-ordinated teaching, learning and research programmes, national development needs, including the high-skilled employment needs presented by a growing economy operating in a global environment; support a democratic ethos and a culture of human rights by educational programmes and practices conducive to critical discourse and creative thinking, cultural tolerance, and a common commitment to a humane, non-racist.social order; and contribute to the advancement of all forms of knowledge and scholarship, and in particular address the diverse problems and demands of the local, national, Southern African and African contexts, and uphold rigorous standards of academic quality (South Africa, 1997a). The Higher Education Act No 101 of 1997 embraced the vision of the White Paper on Higher Education and determined, inter alia, that the admission policy of a public higher education institution must provide for appropriate measures for the redress of past inequalities and may not unfairly discriminate in any way (South Africa, 1997b). In 1998 the Employment Equity Act was enacted. This act seeks to achieve employment equity by eliminating unfair discrimination at the workplace and providing for affirmative action to correct imbalances of the past. The Employment Equity Act prohibits unfair discrimination;

6 requires all companies employing 50 or more people to develop equity plans stating how the company intends removing workplace discrimination and how, and by when, they plan to achieve a diverse and representative workforce; and establishes appropriate enforcement measures and advisory mechanisms to ensure effectiveness (South Africa, 1998). Although not legislation particularly pertaining to education, the Employment Equity Act certainly posed new challenges to, inter alia, the higher education sector in South Africa. The national census results of 1996 indicated the distribution of the South African population as follows (Statistics South Africa, 2001): Blacks 31.1 million 77% Whites 4.4 million 11% Coloureds 3.6 million 9% Indians 1 million 3% 5 Census 1996 Whites 11.0% Coloureds 9.0% Indians 2.5% Coloureds Indians Blacks Whites Blacks 77.5% For employers to be able to establish a diverse and representative workforce, universities have to deliver a pool of students demographically representative of the aforementioned distribution of the South African population.

7 6 In view of the abovementioned legislation, higher education institutions were, towards the late 1990s, challenged with the daunting task to radically change admission policies and the racial composition of their student bodies; re-assess qualifications and curricula content; and develop programmes to redress the imbalances of the past. 4. A handful of Black commerce graduates A report requested by the current Minister of Education during 2000 on the restructuring of South Africa s tertiary education sector found what most had expected the tertiary education system was still too much influenced by the segregationist past and, often inefficient in terms of output by both quantitative and qualitative standards (Development South Africa, 2001). A study conducted by the Black business magazine Enterprise during 2000 (Phungula, 2000:40-43) revealed that Black graduates are emerging at a snail s pace from historically White universities. Black students are especially struggling to make the grades in commerce. Statistics show that graduation figures are not even a quarter of the enrolment figures. This is supported by statistics from the Human Sciences Research Council Register of Graduates 1999 which states that Blacks are only constituting 10.5% of the total number of Business and Management degrees with Whites dominating, constituting 80.3% of these graduates (Department of Labour, 2001). 5. Accounting education and the legacy of apartheid Accounting education did not remain untouched by the aforementioned events. With only 25 Black chartered accountants having qualified by 1990 (Hawksley, 1990), accounting departments at universities, the South African Institute of Chartered Accountants (hereafter SAICA) and training practices were facing a tremendous challenge to redress the imbalances of the past. Imbalances within the accounting education system were the single major contributor towards the imbalances in the accounting profession. It was not possible to increase the number of Non-white chartered accountants, nor provide enough qualified Non-whites for training practices to recruit from, before an equal and high quality accounting education system was not in place for all. The first challenge was to establish the problems experienced by Blacks to qualify as chartered accountants. SAICA sourced the assistance of an organisation known as the Thort programme to carry out research to identify the problems that Black candidates experience and how these can be addressed. The intention was to use these results for intervention to improve the quality of training for Blacks as well as to increase the number of Black trainees (SAICA, 1998) A similar study commissioned by the Association for Black Accountants in Southern Africa (hereafter ABASA) has unearthed evidence of frustration Blacks face to qualify as chartered accountants (Rawana, 1996). The Community Agency for Social Enquiry, a study commissioned to determine obstacles and barriers Blacks face during the process of qualifying as chartered accountants, was completed in December 1995 (Rawana, 1996). The main findings of the abovementioned study, specifically pertaining to the educational stumble blocks, were as follows: the process of qualifying as an accountant was traumatic and may undermine confidence in oneself as a person, in one s ability and in one s culture; it was difficult, for most Blacks, to gain access to institutions enabling them to qualify; few schools offered mathematics and accountancy; children had subjects chosen for them by teachers and, where they were taught, were expected to be passive listeners, rather than active learners;

8 White universities were still difficult to enter, and most of those that were, were not accredited by the PAAB; the quality of lecturing was rated as poor at non-accredited (so-called Black) universities; and lecturers at White universities tended to be well rated on subject knowledge, but were viewed as distant and impersonal in their approach to Black students. SAICA also found that Black 4 th year (or CTA) students are still not passing at the major universities (SAICA, 2000a). That is creating a very negative attitude among Black graduates (SAICA, 2000a). They are choosing to change and continue through distance learning instead of full-time studies. Students, who elect not to go the conventional route where residence is provided on campus, are finding it difficult to settle down before three months into their studies (SAICA 2000a). The reason for this is that they have to find their own flats and food and transport (SAICA 2000a). Black students do not only need to bridge gaps in the practical application of their skills, but they also have cultural and communication gaps to overcome, which make their success particularly tough to achieve (Anon, 1998). Based on the aforementioned findings the following recommendations were made (Rawana, 1996 and Botha, 1996): the retraining of teachers; the redesign of curricula for mathematics and accountancy; firms should create vacation work for scholars and help upgrade teacher skills; universities need to upgrade lecturing skills and change admission criteria; support programmes should continue and be introduced sensitively and not exclusively for Black students; mentorship programmes should be introduced; entrance requirements should be reassessed to establish a student s potential, in addition to evaluating grade 12 results; and in historically White universities, lecturers needed to change their approach. The challenge was to enlarge the pool of talent from which future chartered accountants can be sourced (Mabena, 1998). This is hampered by the unequal allocation of resources by the profession to higher learning institutions, and the recruitment and training of Blacks within firms and corporations, in the light of the commitment towards equity development. 6. SAICA s role in addressing the educational imbalances of the past SAICA plays a major role within the South African accounting profession in creating a framework for equity development within the profession. SAICA sets policies and standards that regulate the profession, covering issues such as education and training (SAICA, 2000a). SAICA is furthermore responsible for the accreditation of tertiary and educational institutions (SAICA, 2000a). Within this framework, a variety of initiatives were launched by SAICA to address the situation of transforming the profession specifically with regards to education, including the following key equity development projects: 7

9 8 SAICA s Equity Development Department SAICA s Equity Development Department has been in existence since 1995 (SAICA, 1998). The mission of the Equity Development Department is to facilitate the transformation of education and training institutions to produce quality Black and female chartered accountants to support economic development in South Africa by the year 2005, through the following: creating awareness of the accountancy profession; identifying potential; and providing ongoing support and development (SAICA, 1999b). The Equity Development Department has three main objectives. The first objective is to develop more Black chartered accountants, general accountants and accounting technicians (SAICA, 1998). The second objective is to transform the structures of SAICA such that there is greater involvement and meaningful participation from Black people and women (SAICA, 1998). The third objective is to transform the Secretariat of SAICA such that it better reflects the population demographics (SAICA, 1998). Growth in the Equity Development Department has been in the number of people employed, but more importantly, in terms of developing and implementing strategies for transforming the profession during the late 1990s (SAICA, 1998). Eden Trust Supported and sponsored by SAICA, ABASA and the PAAB, the Eden Trust was founded in 1988 to fund potential Non-white chartered accountants through bursaries and academic support such as extra lessons and tutorials (Anon, 1999). The Eden Trust s main objective is to provide financial assistance to potential chartered accountants from disadvantaged communities (SAICA, 1999a). In the past, the philosophy of the Trust was to fund mainly grade 12 students. However, to harmonise in line with SAICA s strategy objectives, a decision was taken recently to fund students who are nearing completion of their full-time studies (SAICA, 1999a). A mentorship programme was launched for the first time in April 1999 in each region, and is sponsored by the Herman Olthaver Trust. The aim of the programme is to improve students results and build their confidence through interaction with mentors who have had similar experiences. Trainees and chartered accountants that were previously linked to the Eden Trust are being used as mentors. The mentors closely monitor the progress of each student, in order that problem areas can be identified timeously and addressed.

10 9 University Results - Eden Trust 80% 70% 60% 71% 64% 57% Students 50% 40% 30% 29% 36% 43% % 10% 0% Pass Fail QE Results - Eden Trust Students Candidates 45% 40% 35% 30% 25% 20% 15% 10% 5% 31% 28% 18% 21% 4% 9% 40% 38% 36% 12% 28% 35% % Pass Part 1 Pass Part 2 Pass Part 1&2 Unsuccessfull

11 10 The Eden Trust has helped 106 students to qualify as chartered accountants during the period 1988 up to 1998 (SAICA, 1999a). The aforementioned graphs are, however, indicating an alarming trend. Over the period 1996 tot 1998 the Trust s candidates university results dropped from a 71% pass rate to only a 57% pass rate. This trend is mirrored by the Trust s candidates Qualifying Exam results for the corresponding period. Part 1 passes had dropped to just 18% and the passes for Part 2 to a startling 9%, obviously with a corresponding increase in the number of unsuccessful candidates. The graphs are also evidence to the fact that the Trust s candidates for the entire period under review have an overall 40% or lower pass rate in the Qualifying Exam. In 1999, 90 out of 122 students on all levels who participated in the Trust s programme, passed (SAICA 2000a). 12 candidates passed both parts of the Qualifying Exam and are either completing their training contracts or working in commerce and industry (SAICA, 1999b). 19 students, eight of whom wrote for the first time, passed Part 1 of the Qualifying Exam (SAICA, 1999b). By the end of 1999 the Trust had 124 qualified Black chartered accountants and 97 who have passed Part 1 of the Qualifying Exam and 22 who have passed Part 2 of the Qualifying Exam. Teacher Enrichment Project (hereafter TEP) (SAICA, 2000b) The TEP is a partnership between SAICA, ABASA, the provincial governments of Education, tertiary institutions and various auditing practices and companies in commerce and industry. The aim of the TEP is to increase the number of Black learners entering the accounting profession through the identification, assessment and development of teachers as resources, who will promote the accounting profession to those learners with the potential to qualify. The focus is placed on Accounting, Mathematics and Guidance teachers in grades 10 to 12. All teachers get business exposure through placements in auditing practices and companies in commerce and industry. A business game is incorporated into the TEP to further expose teachers to business in a fun and educational manner and create awareness about business careers. After completion of the programme, successful teachers receive certificates produced by participating institutions and SAICA. Academic support programmes (SAICA, 2000b) SAICA has several academic support programmes in place, the aim of these to facilitate increased pass rates by providing extra tutorial assistance to Black students. These programmes are funded by SEFCO and are managed by the Equity Development Department. Tertiary institutions benefiting from these programmes are Rand Afrikaans University (hereafter RAU), the University of South Africa (hereafter UNISA), the University of Cape Town (hereafter UCT) and the University of Port Elizabeth (hereafter UPE). There are 500 students who benefit from these programmes nationally. The National School of Accounting (hereafter NSA) Rescue Programme enables Black trainees, who are studying part-time with Natal University distance learning, to have quality time to prepare for exams by suspending traineeship for 3 to 4 months prior to exams. These trainees are sponsored by SAICA and receive a minimum living allowance and tuition fees.

12 11 The ABASA Qualifying Exam programme, which started in 1997, assists Black candidates who are repeating the Qualifying Exam to attend an additional refresher course, so as to enhance their chances of passing. SAICA hired a professional researcher to assess the effectiveness and impact of the aforementioned programmes so as to assist with future planning. SAICA Winter School (SAICA, 1998 and 1999a) SAICA has developed a practical programme, called the SAICA Winter School, for 3 rd year and CTA level students to expose Black students to practical issues in accounting and auditing. This programme is the equivalent of three weeks intensive vacation work as intense practical exposure to technical issues is provided. 7. Universities role in addressing the educational imbalances of the past Universities are, where possible, actively involved in the equity development programmes launched by SAICA as discussed above. It is, however, insightful to focus on specific university initiatives to redress the imbalances of the past. The first university initiative was for the larger, traditional White universities to change their language policy to one of parallel language teaching in both English and Afrikaans. Traditional White universities also re-assessed admission policies, obviously also in view of the requirements of the Bill of Rights, RDP and the Higher Education Act of SAICA monitors student intake at universities on an annual basis, and the number of CTA Black students in particular, has increased from 324 in 1997 to about 800 in 1999 and this number has still increased over the last year (SAICA, 1999b). The intake of Black students on first year level for accountancy degrees has also increased over the last number of years. Universities and lecturers are also challenged to implement the requirements of the South African Qualifications Authority Act. Specifically three main developments, over and above the liberalisation of entry requirements, have an impact in this regard, namely: Recognition of prior learning all accountancy competencies obtained through training and/or observation and repetition will need to be assessed and accredited for entry into the levels of the NQF. Competency based education and training new techniques, in addition to the traditional examination procedures, will need to be developed for the assessment and accreditation of accounting competencies for entry into and progression within the NQF. Portability of vocational education accountancy training must allow unrestricted movement of the individual s economic earning potential within the organisation, the industry and the economy as a whole (PAAB, 1996:6). In South Africa, higher education accountancy syllabi define the core body of knowledge required to achieve competence. An outcomes-based approach implies that the curriculum must specify exactly what competencies a learner should be able to demonstrate and how that competence is to be assessed (PAAB, 1999:8). Universities, such as UCT and RAU, have bridging programmes in place for students from historically Black universities (SAICA, 1999a). These Black students found it difficult in the past

13 12 to study towards CTA level to qualify for entrance into the Qualifying Exam, since traditionally Black universities were, and are still not, accredited by SAICA to offer CTA level courses and neither were undergraduate qualifications from these universities accepted at accredited universities for admission to CTA studies. Bridging programmes offer one or two year structured part-time or full-time courses with lectures and regular tests and exams as well as tutoring sessions, which, after successful completion, provides the candidate automatic entrance into a CTA course at an accredited university. UCT follows a unique approach of selecting a limited number of candidates from previously disadvantaged backgrounds (Non-whites) with academic potential. These candidates are subjected to a specifically dedicated full-time programme of lecturing and support sessions with lecturers exclusively dedicated to this programme. RAU follows a different approach where a programme has been developed to bridge students who obtained their three year B Com-degree at non accredited universities (previously disadvantaged universities), before allowing them into CTA. Students attend formal lectures on Saturday mornings. Additional tutoring sessions and a soft and study skills course (introduced for the first time in 2001) supports these formal lectures. In the 2001 academic year 250 students enrolled for this programme. It should be noted that the majority of these students are full-time employees and therefore studying part-time. Since it was found that Black students tend, to their own detriment, to study on distance learning programmes rather than to study full-time several universities embarked on what can be called limited contact programmes for CTA level. Students are able to work and study simultaneously in a structured environment with face to face lectures (SAICA, 2000b). Regular tests are written, thereby developing sound examination and study techniques (SAICA, 2000b). Optional features of these programmes include extra academic support in the form of additional lectures, extra tutorials and tests and simulated examinations (SAICA, 2000b). SAICA s Equity Development Committee has identified three leading universities UNISA, RAU and the University of Natal whose CTA-programmes deserve extra financial support (SAICA, 1998). The majority of Black CTA level students are studying with these institutions. UNISA is exclusively a distance learning institution. At a CTA level UNISA has, however, expanded their activities to include frequent contact sessions in the main cities throughout South Africa as well as neighbouring countries (eg. Botswana, Namibia, Swaziland and Zimbabwe). At a CTA level UNISA could, therefore, rather be classified as a limited contact institution. In addition to the full-time CTA programme presented at RAU (attended by full-time students), RAU also presents a part-time programme on Saturday mornings (attended by employed students studying on a part-time basis). This programme also included tutoring sessions held on Saturday afternoons. The University of Natal also presents a limited contact programme throughout South Africa whereby frequent lectures are provided on Saturdays in the main cities in South Africa.

14 13 QE 1 Results University Comparison Number passed Indians Blacks Coloureds Natal - Durban UNISA UCT Wits RAU Durban - Westville UP UPE QE 2 Results University Comparison Number passed Blacks UNISA NSA (2) APT (1) Natal - Durban Durban - Westville Transkei Wits UCT Rhodes (1) APT is a joint venture between RAU and UCT. (2) NSA is the limited contact programme presented by the University of Natal.

15 14 The university comparison of results on Part 1 of the Qualifying Exam for 2000 brings about interesting trends regarding the effectiveness of the SAICA and university equity development programmes regarding education. Universities with distance learning programmes (Natal-Durban (NSA) and UNISA) are producing the majority of successful Non-white candidates in Part 1 of the Qualifying Exam. This trend corresponds with the discussion earlier that these candidates tend to follow distance learning programmes as oppose to full-time studies. It should be noted that NSA also has a bridging programme and that UNISA partakes in the academic support programmes initiated by SAICA. UCT and RAU are contributing less successful candidates than NSA and UNISA, but still more than the other universities. This can be attributed to both institutions having bridging courses and participating in SAICA s academic support programmes. Although UPE also participates in SAICA s academic support programmes it produces the least number of successful Non-white candidates. It should, however, be borne in mind that this institution has a small number of students compared to the other universities. Wits (University of the Witwatersrand) and Durban-Westville have no specific equity development programme in place. Wits is though an English university who have admitted Non-white candidates throughout the Apartheid years, whilst Durban-Westville is one of the institutions established for a specific racial group, namely Indians. UP (University of Pretoria), a traditional Afrikaans university, also has no specific equity development initiatives in place and consequently produces a very small number of successful Black candidates. Although only marginally more, it can be concluded that universities with distance learning programmes and those who undertake specific equity development initiatives are producing more successful Non-white candidates than universities who are not participating in such programmes. This conclusion is supported by the results for Part 2 of the 1999 Qualifying Exam (note: the results for the 2000 Part 2 Qualifying Exam nor the number of successful candidates for the other Non-white racial groups for 1999 have not been available at the time of submission of this paper). Again universities with distance learning and other equity development programmes outnumbered their counterparts in producing successful Black candidates. SAICA is currently raising funds for a full-time programme for students who may not be able to make it through the existing programmes, but have the potential to succeed. This will be run by NSA (SAICA, 1999a). The Eden Trust recently embarked on a campaign to encourage Black 3 rd year students to study CTA full-time. This will be achieved by committing funding for more senior as opposed to entry-level students (SAICA, 1999a). Another initiative by SAICA is promoting the idea among auditing practices to sponsor full-time study (SAICA, 1999a). Universities will definitely play a vital role in ensuring the success of these initiatives. 8. Training practices role in addressing the educational imbalances of the past Training practices are vital in the success of both SAICA and the universities initiatives for equity development as already discussed. Not only are their sponsorships providing for much needed funds in this regard, but they are active participants themselves. Training practices are also contributing more bursaries to Non-white applicants, giving them an opportunity to study towards becoming a chartered accountant. Other initiatives launched by the Big 5 auditing firms (training practices) to address the imbalances of the past include, inter alia:

16 Mentorship programmes these programmes entail the dedicated monitoring of the development of previously disadvantaged students, including the assurance of complete utilisation of these candidates on audit assignments and study support; Financial support, by means of living allowances, of selected candidates to enable them to study on a full-time basis. Usually a bursary will only consist of class and book fees. Deloitte & Touche Tohmatsu also launched a project during 2000, called Project Siyakhula, whereby Grade 11 and Grade 12 school pupils from previously disadvantaged communities in and around Pretoria and Johannesburg are provided with extra Accountancy classes in order to improve their results in the National School Senior Certificate Examination. The objective of this programme is to address the imbalances of the past at an early stage to enable students from previously disadvantaged backgrounds and communities to enter for accounting education degrees at university level. Notable is the fact that small and medium sized practices find it very difficult to play a significant role in addressing the educational imbalances of the past, since they have limited resources and infrastructure available, as well as limited employment positions, to offer real development opportunities to previously disadvantaged candidates. 9. Accounting education s position towards the end of the 20 th century Having looked at all the major initiatives taken by SAICA, universities and training practices it is necessary to evaluate the overall success of these initiatives in terms of their contribution towards the eradication of the imbalances in the accounting education system. This evaluation will be performed by analysing the results of the Qualifying Exam for the past number of years. The reason for the analysis being that the Qualifying Exam is the only independent national exam for chartered accountants whereby the academic success of accounting university programmes and all other educational support programmes and initiatives can be assessed. The Qualifying Exam, together with the completion of the required term of traineeship, are also the gateway to the profession. These results will, therefore, be a good indication as to the future expectations of the racial distribution of SAICA membership. SAICA has set itself targets in 1997 for 2005 to improve the Black chartered accountants from 5% to 25% of all chartered accountants (SAICA, 1998). In more detail the targets are Black, 700 Coloured and 950 Indian chartered accountants by the year 2005 (SAICA, 1998). The following table sets out the annual targets of SAICA. Members and persons who have passed the qualifying exam Race mix Number Passed Total at 1/9/1998 QE but still training Black Coloured Indian The following graphs provide further information about the actual qualifying results in comparison to the aforementioned targets. 15

17 16 Q E 1 R esults Successful candidates Targets A c tu a ls Coloureds Indians Blacks QE 1 R esults Successful candidates Targets Actuals 20 0 C o lo u re d s In d ia n s B la c ks The above graphs indicate that none of the targets set by SAICA for any of the Non-white racial groups have been met during During 2000 only the targets for Coloureds and Indians have been met, with that of the Blacks falling about 20% short. This is concerning in view of the fact that Blacks constitute the majority of the South African population as indicated earlier. This casts a shadow on the extent to which the targets set by SAICA for 2005 are realistic and achievable.

18 17 Actual QE 1 Results Successful candidates Co lo u re d s In d ia n s Bla c ks It is clear from the above that although there is an increase in the number of successful Non-white candidates over the period 1998 to 2000, it is only marginal in relation to the overall number of successful candidates each year and is still not representative of the racial distribution of the South African population. The number of successful Non-white candidates each year is also not sufficient enough to achieve the long-term targets of SAICA. The aforementioned statistics indicate that the current attempts by universities, SAICA and training practices (as discussed in section 6, 7 and 8) are not effective and aggressive enough to address the imbalances of the past in accounting education. These statistics are also casting doubt over the possibility of the future effectiveness of the existing programmes in their current format. It can be noted from the above discussions that the programmes launched by universities, SAICA and training practices are already in existence for several years and yet no significant progress has been made. The authors are of the opinion that the existing programmes launched by universities, SAICA and training practices should be critically analysed and where necessary, adjusted as soon as possible. 10. Recommendations Addressing the imbalances of the past by universities, SAICA and training practices should, in the opinion of the authors, take place on two levels: Firstly, students from previously disadvantaged backgrounds and communities should be identified and assisted at school level already. This assistance should focus on core subjects such as English (communication skills), Mathematics (analytical skills) and Accountancy (core subject). The quality of education provided should further be enhanced through the

19 18 continuous training and development of teaching staff at school level. It is imperative that initiatives of this nature are launched at all schools throughout South Africa. This implies that universities, SAICA and training practices should get involved in school education as soon as possible. This will ensure that these students are not at a disadvantage compared to White students upon entering for an accounting degree at university level. In this way a representative racial distribution of potential chartered accountants will be ensured. Secondly, bridging programmes should be focussing on incorporating previously disadvantaged adult students into a programme aimed at becoming a chartered accountant. These bridging programmes should be offered on a full-time basis with dedicated lecturing and tutoring staff. Support programmes and study and soft skill courses should support traditional lecturing sessions. Training practices should facilitate this process by funding these students studies as well as their living needs throughout their period of study. Training practices and SAICA should also be responsible for funding particular universities to offer these programmes. The Apartheid system was in place for decades and was only changed in It should, therefore, be realised that the impact of the Apartheid system on education and accounting education in specific, was significant and severe. To expect the imbalances of the past in accounting education to be addressed in a short span of time is opportunistic and unrealistic. Only continuous and dedicated programmes and time could address the situation. 11. Conclusion Apartheid has clearly affected accounting education in South Africa. This is evident from the above discussions and graphical presentations. Despite all the educational equity development initiatives already undertaken by SAICA, South African universities and training practices, South African accounting education has but only taken its first steps in redressing the legacy of Apartheid.

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