Views of black trainee accountants in South Africa on matters related to a career as a chartered accountant

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1 Views of back trainee accountants in South Africa on matters reated to a career as a chartered accountant ESader Department of Appied Accountancy University of South Africa BJErasmus Department of Business Management University of South Africa Abstract Against a backdrop of ony 337 back chartered accountants in a tota of approximatey in South Africa in 2003, the South African Institute of Chartered Accountants (SAICA) is reviewing its current transformation targets for Information was required to review the obstaces that back trainees in genera and accountants in particuar experience en route to quaifying. Accounting as a career was investigated from a theoretica point of view. A questionnaire was designed, which focused mainy on probems and barriers in respect of career guidance; funding and bursaries; roe modes in the profession; knowedge of the profession; and exposure to business. The questionnaire was distributed to a 755 back trainee accountants that were registered with SAICA. A tota of 313 questionnaires were returned, representing a response rate of 41,45%. A ack of knowedge about the chartered accountancy profession and careers reated to the profession was identified as one of the main reasons for the sma number of backs in the profession. Career guidance at schoo was stated as the main contributing factor in this regard. A ack of funding and of bursaries was stated as the second most important reason why students do not choose a career in accounting. Other important barriers identified incude the imited nature of the work given to trainee accountants to do and the resuting imited work experience that they gain; a ack of back mentors in firms; racia bias on the part of supervisors; and a ack of recognition of and respect for the work competed. continued Meditari Accountancy Research Vo :

2 Views of back trainee accountants in South Africa Back trainee accountants suggest that academic support programmes shoud be introduced to assist them to prepare for examinations, a forum shoud be estabished for students of Accounting in which they can interact with accounting professionas through workshops; a network group of professiona back mentors in the business sector shoud be formed; and the advancement and retention of back members within the profession shoud be encouraged. Awareness programmes shoud be accorded a high priority in the short term. Key words Back trainee accountants Barriers Careers Chaenges SAICA Career guidance 1 Introduction Since 1994, the South African government has focused on, inter aia, actions to eiminate workpace discrimination against backs. Severa aws have been introduced to ensure workpace equity, the most important of which is the Empoyment Equity Act of 1998 (EEA). This act has as its objective to achieve equaity in the workpace by eiminating unfair discrimination and promoting equa opportunity through the impementation of positive and proactive measures (affirmative action) to advance persons in the designated groups (backs, cooureds, Asians, women and persons that have disabiities) (Jain, Soane and Horwitz 2003:34). Other aws that directy support the EEA are the Basic Conditions of Empoyment Act of1998, Labour Reations Act of 1995 and Skis Deveopment Act of The EEA does not set quotas, but rather enabes stakehoders to deveop their own pans. Against this background, the South African Institute of Chartered Accountants (SAICA) and other stakehoders have assumed the responsibiity to advance the representation of members of the designated groups, and back peope in particuar, in the accounting profession. In 2003, SAICA had approximatey members of which ony 337 members (ess than 2%) were back. At the end of November 2001, ony (11,9%) of the tota number of trainee accountants registered with SAICA were back. At the time that the present study was undertaken, the number was ony 755. It was in terms of this scenario that SAICA and the Association for the Advancement of Back Accountants of Southern Africa (ABASA) approved that a survey be undertaken among back trainee accountants in South Africa. According to SAICA (2003), an ongoing effort is being made to increase the number of back South African chartered accountants and the Institute is reviewing its current transformation targets for It is one of the cornerstones of SAICA s ong-term strategy to boost the number of the nation s back chartered accountants (CAs SA) said Ignatius Sehooe, SAICA s Executive President. Wearedoingaot,butmorecanbedone.Targets 130 Meditari Accountancy Research Vo :

3 Sader & Erasmus have been set in order to ensure that we do not ose focus in striving to achieve our goa (SAICA 2003:2). SAICA cassifies back South Africans into three categories: Asian, back and cooured. At the end of March 2003, there were Asian CAs, 337 back CAs and 226 cooured CAs. SAICA s origina transformation targets were to have back, 950 Asian and 700 cooured CAs (SA) by When comparing the resuts for 2002 with the targets to be achieved by the end of 2003, it becomes cear that: The target for the number of back CAs by the end of 2003 was The actua number of back CAs that was expected to register that year, based on the resuts of that year s QE II (Quaifying Examination), was however 41. This transated into a shortfa in the target set of Simiary, the target for cooured CAs aso transated into a shortfa of 171 by the end of The target for Asian CAs has aready been met. The target for 2005 was 950 CAs, whereas were registered by the end of March Sehooe readiy acknowedges that the origina targets that were set for the number of back and cooured CAs to quaify in recent years have not been achieved. He says that the probem has been a preponderance of part-time students. Back trainees in particuar are obiged to pursue distance earning, because they cannot afford to study without simutaneousy earning a iving. SAICA is therefore invoved in a process of reviewing its transformation targets and processes to achieve more meaningfu progress with a view to finaising a comprehensive transformation pan that incudes reaistic targets. The number of back trainees who wrote the QE I in March 2003 has risen to an a-time high of 170 candidates, which is indicative of the positive efforts that the profession has aready made. Against this background, SAICA s targets may initiay have been ambitious. However, the targets wi be set at a far more reaistic and achievabe eve in the ight of the experiences of the recent past and the chaenges that face trainees from previousy disadvantaged backgrounds. SAICA expects to revea its comprehensive transformation pan, which wi incude revised targets, in the atter haf of 2003 (SAICA 2003:2 ). According to Temkin (2003), ony 20% of the back candidates passed the first part of the quaifying examination for chartered accountants in 2003, whereas the overa pass rate was 45,3%. The pass rate for back, Asian and cooured candidates was 28,1%. According to SAICA s Executive President, the pass rate of first-time candidates who study fu time at universities is 80%, but the rate is consideraby ower at distance-education institutions. SAICA has indicated its intention to raise more money for students to study fu time and to assist distance-education students. Transformation in the profession wi not be possibe if the pass rate for backs is ow. A ow pass rate wi aso have a negative effect on chartered accountancy as a profession and as a career. Many trainee accountants wi be discouraged and wi be incined to change their career shoud definite steps not be introduced to enhance their career prospects. Meditari Accountancy Research Vo :

4 Views of back trainee accountants in South Africa 2 The probem and the purpose of the survey The acceeration of the process of producing the required number of back chartered accountants by the year 2005 requires that information be obtained that is needed to devise soutions. At the time of the investigation very itte information was avaiabe. The primary objective of the investigation was to ascertain the views of back (excuding cooured and Asian) trainee accountants on matters reated to a career as a CA. From a strategic point of view, the information coud contribute towards the prevention by the profession of the oss of back members in whom a great dea of training has been invested. The information coud aso be used to identify recruitment techniques with which the number of potentia new trainees coud be increased. 3 Career choice a brief overview Schreuder and Theron (2001:37) define a career choice within the subjective context of the individua s preferences, aspirations, orientations and intentions, as we as in the objective context of economic conditions and socioogica factors such as famiy background and education. Theories underying career choice have their origins in the matching-men-and-jobs approach that prevaied eary in the twentieth century and in which the centra supposition was that an individua s traits shoud match the requirements of the job. This approach gave rise to the structura trend in theorising in which the focus is on the content of career choice. Content theories are aimed at expaining or predicting career choice in terms of specific factors, for exampe individua characteristics or psychoogica phenomena that are invoved in the choice. Another trend, the deveopment trend, focuses on the process of career choice. The so-caed process theories are conceptuaisations of career choice as a dynamic process that evoves in stages. In compiing the questionnaire, cognisance was taken of these theories in order to ensure that reevant questions are posed regarding the career choice of back trainee accountants. The socioeconomic situation of potentia back candidates obviousy payed an important roe. From the perspective of human resources management, back trainee accountants shoud be exposed to a continuous process of mutua acceptance by means of a psychoogica contract. Their beiefs about their future obigations towards the empoyer (e.g. working hard and oyaty towards the organisation) and the rewards offered by the empoyer (e.g. job security and a good saary) constitute the psychoogica contract that shoud be maintained through reaistic job previews to reduce unreaistic expectations. This process coud be based on a tota information programme to meet the shift to the transactiona psychoogica contract in which empoyees or future empoyees are mainy concerned with persona benefits and the satisfaction of persona needs (Miward and Brewerton 2001: ). This information process can be differentiated into the foowing segments: 132 Meditari Accountancy Research Vo :

5 Sader & Erasmus Knowing how: The career-reevant skis and job-reated knowedge required to become an accountant. Knowing why: The vaues, beiefs and phiosophy that are inherent to the job of an accountant. Knowing the industry: Where and how to find empoyment once quaified and the extent to which empoyer organisations wi be abe to satisfy the prospective empoyee s needs and utiise his or her skis (congruence). Once a career choice has been made, it is essentia that trainee accountants be made aware of the steps to be taken in the management of their career. The first step is to expore the possibe career options within the accounting profession. This step entais the coection and anaysis of information (for exampe on vaues, taents, jobs and organisations). The information wi create an awareness of the sef and the environment (step two) so that more informed decisions can be made about a career goa (step three). Once the career goa has been formuated, a career strategy (step four) can be seected to achieve the career goa. Step five is to impement the career strategy, which wi enabe the accountant to progress towards the set career goa and receive feedback on the progress made (step six). Feedback received on the envisaged career enabes the person concerned to do a career appraisa (step seven) in order to determine whether the career goa and strategies are sti reevant. The information obtained from the career appraisa can be used for career exporation, enabing the career-management cyce to continue (Swanepoe, Erasmus, Van Wyk and Schenk 2003; Ne, Geber, Van Dyk, Haasbroek, Schutz, Sono and Werner 2001:508). In the course of any career, various career probems may be experienced. Exampes of such probems are a ack of career guidance; knowedge of a career; career expectations; career panning; educationa background; ack of funding for educationa deveopment; perceived discrimination; and career barriers such as cutura differences and the ack of back roe modes in the CA profession. Research has reveaed that a supervisor is an empoyee s most important career counseor within an organisation. However, a study undertaken by the American Management Association found that the majority of the supervisors that were surveyed thought that career panning is a burden, career panning for subordinates is not part of their job and that they are not equipped for the job (Carre, Ebert, Hatfied, Grober, Marx and Van der Shcyf 1998:253). A simiar situation exists in South Africa and there is no doubt that the accounting profession is not excuded from this scenario. Career management in the accounting profession invoves the integration of the needs that are determined by the profession; unique organisationa needs; and the career goas and aspirations of individuas, especiay those of back trainee accountants. Effective career buiding in the accounting profession shoud be a forma and panned process that receives support from the professiona body and the top management of the organisation. Furthermore, it shoud be recognised as a process that invoves the co-ordination of a number of stakehoders and an ongoing attempt to eiminate probems and barriers. Meditari Accountancy Research Vo :

6 Views of back trainee accountants in South Africa 4 Research methodoogy 4.1 Research instrument A questionnaire was designed to serve as a survey instrument to identify the profie of back trainees and to obtain their views on the various practica probems that they encounter in their endeavour to quaify as a chartered accountant. The foowing matters were covered by the questionnaire: A genera profie, incuding the age, gender, marita status and ownership of the respondents and the environment in which they grew up. A profie of the work environment and remuneration, incuding the commencement of traineeship, type of empoyment and remuneration eves. An educationa profie that focuses on respondents eve of education, study programmes and the type of schoo that they had attended as we as their parents eve of educationa training. Probems and barriers experienced by respondents, incuding matters reating to career guidance; funding and bursaries; ack of roe modes in the profession; knowedge of the profession; and exposure to business. Career expectations, job satisfaction and career goas. The roe of SAICA in assisting trainees to achieve success in their career. 4.2 Target popuation The target popuation comprised 755 back trainees who were registered with SAICA. The questionnaire was distributed to a of these trainees. Usabe responses were received from 313 trainees, which represents a response rate of 41,45%. 4.3 Statistica anaysis The SPSS programme was used for the statistica anaysis of the data. The statistica anayses mainy comprised contingency tabes (with the Chi-square test for significance) in cases in which two categorica variabes were compared. In the case of scaes, for exampe a 5-point scae, the t-test was performed when two groups were compared on these scaes and the one-way anaysis of variance F-test when more than two groups were compared on these scaes. In genera, a eve of significance of 0,01 was used, because a eve of 0,05 was considered to be too enient in view of the arge number of tests performed and the need for some protection against type I error. Detaied tabes of the statistica anaysis are not provided with this paper. However, the significant differences that were found are reported in the sections that foow. 5 Resuts and discussion 5.1 A genera profie of the respondents Approximatey haf of the respondents are younger than 25 years of age. Amost haf of them are femae, whereas femaes represent ony 15,8% of the membership 134 Meditari Accountancy Research Vo :

7 Sader & Erasmus of SAICA. Therefore more back femaes are joining the profession. In October 2002, femaes represented 44% of the back trainees that were registered with the Institute. The survey aso reveaed that 63% of the femae respondents are younger than 25 years of age. The majority of the respondents (85%) are singe; 90% do not own property and 58% do not own a car. Neary haf (46%) of the respondents grew up in a rura environment, 35% grew up in a town and 19% in a city. Fifty-five percent of the respondents commenced their traineeship after the year Most respondents (41%) are empoyed by arge accounting firms (15 partners or more) and amost 35% are empoyed by smaer firms (1 5 partners). There is a significant difference in the saaries paid by the various auditing firms. A greater proportion (60%) of the respondents that are empoyed in arger firms earn more than R per annum, in comparison with 14% and 9% respectivey of the respondents that are empoyed in medium and sma firms and who earn ess than R per annum (Chisquare = 104,8; p = 0,000). Approximatey 48% of the respondents perceive their saaries to be ower than those of other empoyees in simiar jobs and with simiar experience. Regarding the eve of their studies, 40% of the respondents are in the fina year of study for the Certificate in the Theory of Accountancy (CTA), which means that they are sti to sit for Part I of the Quaifying Examination (QE). Thirty-eight (14,13%)of the respondents report that they have passed Part I, and 5 (2,15%) report that they have passed Part 2 of the Quaifying Examination (QE). Most students who are studying for the CTA (58%) are students at Unisa and 19% are students at the University of Nata (Durban). Ony 27% of the respondents indicate that they are, or have been, fu-time students. As mentioned above, SAICA wishes to raise funds and encourage more back students to undertake their studies on a fu-time basis, because the Institute beieves that it woud significanty increase their chance of success. Whie most of the respondents agree that there shoud be more support programmes for back students, ony 30% of the respondents indicate that they are attending, or have attended, support programmes whie studying. Ony 20% of the respondents indicate that they either have, or have had, a bursary or that their fees are being paid by their empoyer. This finding came as a surprise, because at present the Big 5" auditing firms in South Africa aocate arge sums of money for the awarding of bursaries to prospective back CAs. Most respondents (75%) have attended predominanty back government schoos. A significanty arger percentage of the group that is younger than 25 years attended predominanty white and private schoos than did the oder respondents (Chi-square = ; p = 000). Amost 40% (38,91%) of the fathers of the respondents have ess than a grade eight educationa quaification. This finding obviousy reveas the professiona environment in which the respondents grew up. SAICA is aware of this probem and aocates a arge proportion of its human and financia resources, in partnership with its accredited and registered training offices (auditing and accounting firms in pubic practice as we as companies in commerce and industry), towards rectifying Meditari Accountancy Research Vo :

8 Views of back trainee accountants in South Africa the probem. SAICA s Thuthuka Project, of which the object is to deveop the Mathematics and Accounting skis of earners in grades 11 and 12, is aso gaining momentum. Thuthuka (which means to deveop) is SAICA s innovative crusade that is aimed at fast-tracking growth in the number of back accountants. The programme commenced a year ago with a piot project in the Eastern Province where grade 12 earners (spit 50/50 on gender ines) were invoved in acceerated Mathematics and Accounting teaching programmes. A sum of R62 miion, which has been obtained from skis deveopment evies over a five-year period, has been earmarked for Thuthuka. A sum of R9 miion has been spent in the first year. The funding is mainy aocated for educationa materias and the teaching of educators and earners. An anaysis of Thuthuka earners recent academic resuts has reveaed the achievement of remarkabe successes, which incude the foowing (2002 resuts): Of the earners who wrote the matricuation examination in the Eastern Province, had participated in the Thuthuka Project. The Thuthuka earners did remarkaby we in the examination. Sixty-four percent of them passed Mathematics and 77% passed Accounting. These percentages represent a major achievement when they are compared with the examination resuts of the non-thuthuka earners. Of the atter group, ony 37% passed Mathematics and 65% passed Accounting. Furthermore, approximatey 85% of the first-year students who registered for ast year s Accounting course at Fort Hare University in the Eastern Province passed the course. It was the first intake of students from the Thuthuka Project. The success can be argey attributed to the Accounting aboratory set up by SAICA s Thuthuka Project, in association with partners and sponsors, to raise the eve of comprehension of and proficiency in the subject at Fort Hare. The positive spin-offs that have emerged from Thuthuka in 2002 have prompted SAICA to: Extend the programme for 2003 to earners in grade 11, in addition to grade 12. Add Engish to Mathematics and Accounting. Lay the foundation for roing out the programme in the Limpopo Province and the KwaZuu-Nata Province in 2004 (SAICA 2003:1 3). 5.2 Probems and barriers Genera probems Respondents were asked why, in their view, there had previousy been such a sma number of back CAs. The foowing are the main reasons that were provided: Lack of career guidance (87%). Lack of funding and bursaries (70%). 136 Meditari Accountancy Research Vo :

9 Sader & Erasmus Lack of roe modes in the profession (60%). Lack of knowedge in schoos about the profession (57%). Lack of exposure to business (52%). Eighty-seven percent of the respondents indicate that the main reason for the sma number of backs in the profession is a ack of career guidance in schoos. Careerguidance counseors have a great infuence on a schoar s eary career decisions. Career counseors shoud assist individuas to evauate their aptitudes, abiities, interests and vaues as they reate to career seection (Sherman, Bohander and Sne 1998:282). SAICA shoud consider sponsoring schoo counseors, through the Department of Education, to visit accounting firms and to make career information avaiabe to earners about chartered accountancy as a profession. A specific probem in the workpace is that supervisors tend to abdicate their responsibiity to act as a mentor and a coach. These tasks are essentia and of the utmost importance in any organisation. Supervisors shoud provide guidance in respect of overcoming career barriers together with transferring knowedge about managing careers in a voatie environment (Be 1996:167). The second most important reason for not choosing a career in accounting was said to be a ack of funding and bursaries. Ony 20% of the respondents were studying, or had studied, with the assistance of a bursary or were, or had been, sponsored by their empoyer. SAICA has indicated that more funds wi be made avaiabe to support students. However, it is important to maintain standards and to improve students pass rate. Amost 60% of the respondents indicate that a ack of roe modes in the profession is a reason why there had previousy been such a sma number of back CAs. Mabena (1997:7) aso identified a ack of knowedge about the chartered accountancy profession and careers reated to the profession in the back community as being one of the main reasons why there was such a sma number of backs in the profession. With the very few back chartered accountants in South Africa, every opportunity shoud be taken to highight the successes of those back business peope that have a chartered accountancy quaification. This measure wi assist in creating a positive image of the profession and enabe potentia back chartered accountants to identify with successfu roe modes. The foowing reasons are considered to be the east important: Instabiity in the community (12%). Length of initia training (18%). Empoyer prejudice (27%). Lack of teachers in commerce and mathematics (29%). The age group younger than 25 was compared with the age group oder than 25 regarding the reasons given (more important versus east important), but no significant differences were found. Meditari Accountancy Research Vo :

10 Views of back trainee accountants in South Africa Probems encountered during studies for the CA quaification Both business in genera and the accounting profession in particuar participate activey in the campaign to attract more backs to the profession in South Africa. However, the impementation of effective soutions wi depend on understanding the probems experienced by back students during their studies. The various probems experienced by back trainees are isted in tabe 1. Tabe 1 Probems experienced during studies for the CA quaification Possibe probems* Major proem* Minor proem* No proem* Mean score Financia difficuties whie studying 60,40 24,83 14,77 2,4564 Not enough time to study whie aso working 54,64 32,12 13,25 2,4319 Lack of exposure to practica business matters 42,81 28,76 28,43 2,1438 Poor time management 39,60 37,58 22,82 2,1678 Too arge a gap between work on a graduate eve and work on a postgraduate eve 23,27 45,09 31,64 1,9164 Lack of mentors in the firm 28,77 26,03 45,21 1,8356 Practica probems (transport, access to computers) 28,76 32,11 39,13 1,8963 Poor eve of career guidance in high schoos 28,14 24,41 47,46 1,8068 Lack of roe modes in management 25,25 27,27 47,47 1,8356 Litte support from empoyer in respect of studies 24,24 35,02 40,74 1,8350 Litte hep from ecturers for students who have a imited background in Accounting 23,97 32,53 43,49 1,8068 Learning environment not conducive to effective earning 23,73 31,53 44,75 1,8322 Poor eve of training in Accounting in high schoo 21,53 18,75 59,72 1,6181 Ineffective study techniques 21,14 40,94 37,92 1,8249 Inabiity to contro factors that have a bad effect on academic success 18,46 38,93 42,62 1,7847 Too much emphasis on theory instead of on practica matters 11,88 47,80 40,34 1,7153 Fear and anxiety prior to tests/examinations 18,06 42,36 39,58 1,7085 Tooittetimeinwhichtocompeteassignments 17,23 34,46 48,31 1,6892 Lecturers are unsympathetic regarding probems of an academic nature 13,94 38,68 47,39 1,6655 Difficuty in asserting themseves in a predominanty white academic environment 13,47 30,30 56,23 1,5724 Work that is studied is of itte practica vaue 10,30 32,18 57,79 1,5225 Probems in respect of technica terms used by ecturers 5,15 32,99 61,86 1,4330 Tests, assignments and examinations are written in Engish 3,68 13,76 83,56 1,1913 Poor comprehension of ectures presented in Engish 0,34 13,80 85,86 1,1448 Inabiity to understand printed (Engish) course materia 0,34 10,47 89,19 1,1115 * Major, minor, no probem expressed as percentages. 138 Meditari Accountancy Research Vo :

11 Sader & Erasmus Tabe 1 indicates that more than 40% of the respondents identify the foowing to be the major probems experienced during their studies for the CA quaification: Financia difficuties. Atogether 60% of the respondents consider this matter to be a major probem, whie 14% do not consider it to be a probem at a. Insufficient time to study whie aso working. Ony 13% of the respondents consider this matter to be a probem. Lack of exposure to practica business matters in comparison with white students. Forty-three percent consider this matter to be a major probem whie 28% consider it to be a minor probem or do not consider it to be a probem at a. In a previous survey, back CAs indicated the foowing matters to be the three major probems that they experienced whist studying for the CA quaification: They were required to write tests and examinations in Engish, the earning environment was not conducive to earning and the they acked practica business exposure (Sader 2003:163). Tabe 1 aso indicates that more than 80% of the respondents identify the foowing to be minor probems which they experience whie studying for the CA quaification: Inabiity to understand printed (Engish) course materia (89%). Poor comprehension of ectures presented in Engish (86%). Tests, assignments and examinations are written in Engish (84%). According to the responses of the trainee accountants who participated in the survey, there appears to have been a shift in the probems experienced by back trainee CAs. Financia difficuty appears to be accorded a high priority at present whereas previousy Engish as the medium of instruction had been a major probem. A possibe expanation for this shift coud be that the contemporary trainee accountants are more proficient in Engish owing to having had better schooing than their predecessors. The foowing significant differences are apparent with regard to the above in terms of age group and pace of empoyment: (a) Age group The quaity of accountancy training I received in high schoo was poor and I see itte practica vaue in the work I have to study. Oder students experience this matter to be a greater probem than younger students do (t = 3,46; p = 0,001 and t = 2,829; p = 0,005 respectivey). This trend may indicate an improvement in the quaity of training in Accounting at high schoo over a number of years. In the recent past, auditing and accounting firms have been active in the advancement of back trainees and in assisting them to quaify. The younger trainees may have experienced these initiatives to a greater extent than the oder trainees who did not have the same exposure. Meditari Accountancy Research Vo :

12 Views of back trainee accountants in South Africa Lecturers do itte to accommodate students with a imited background in Accounting. Oder students consider this matter to be a greater probem than younger students do (t = 2,934; p = 0,004). The reason for this difference may be that oder students were more disadvantaged by the former apartheid schoo system. (b) Pace of empoyment Significant differences were found to exist in regard to the foowing probem areas: My empoyer does itte to support me in my current studies. This is a greater probem for the respondents who are empoyed in smaer firms (mean = 2,056) than for those that are empoyed in medium-sized firms (mean = 1,936) and in arge firms (mean = 1,551) (F = 9,473; p = 0,000). Generay, the arger firms are more active in respect of introducing academic support programmes to assist back trainees to prepare for examinations. This trend coud aso be due to the fact that arger firms can afford such programmes whereas smaer firms do not have the resources. The roe that the SETA (Sector Education Training Authority) can pay in improving the situation shoud be investigated. I find it difficut to aocate enough time to my studies whie aso fufiing my commitments at work. This is a greater probem for respondents who are empoyed in the medium-sized firms (mean = 2,532) than for the respondents who are empoyed in the smaer firms (mean = 2,409) and in the arger firms (mean = 2,263) (F = 5,600; p = 0,001). However, this is a probem that is experienced by a the race groups in the profession. I have no mentors working with me in the firm. Few, if any, differences exist in this regard between respondents who are empoyed in sma firms and in medium-sized firms (mean 2,031 and 2,000 respectivey). However, the empoyees of the arger firms again report fewer probems in this area (mean = 1,5583) (F = 7,443; p = 0,000) Larger firms have more financia and human resources avaiabe that enabe them to aocate mentors to back trainees Acceptance versus resentment The respondents were asked whether the firm in which they are empoyed woud make a suitaby quaified back CA a partner in the firm. Sixty-four percent of the respondents answered in the affirmative. Respondents were asked to indicate whether they perceive any resentment towards them. A tota of 41,53% of the respondents report that they perceive that they are definitey accepted by their co-workers, whie a further 37,54% perceive a sight resentment towards them. Ony 12,96% report that they perceive either fairy strong resentment or very strong resentment on the part of their co-workers. (See tabe 2.) 140 Meditari Accountancy Research Vo :

13 Sader & Erasmus Tabe 2 Perceived attitudes of other empoyees, incuding supervisors, peers and subordinates Attitudes Respondents % Definitey accepted by other empoyees Sight resentment Initia resentment has dissipated Fairy strong resentment Very strong resentment ,53 37,54 7,97 9,97 2,99 301* 100% * Tweve respondents did not answer this question Barriers Respondents were asked to identify the career barriers that they experience. Tabe 3 ists the various types of career barriers experienced: Tabe 3 Career barriers % of respondents* who indicate the barrier Restriction on type of work given, thereby imiting experience 64,65 Lack of back mentors in firm 61,95 Perceived racia bias on the part of supervisors 45,45 Lack of recognition and respect for work competed 45,12 Cutura differences 39,39 Lack of opportunity for professiona deveopment 36,70 Ethnic preconceptions 28,96 Lack of roe modes in the management of the firm 28,96 Resistance on the part of cients of the auditing firm 22,90 Lack of opportunity to interact sociay with coeagues 19,19 Lack of co-operation of peers 16,84 Inadequate educationa background 16,16 Other barriers 12,46 * 297 respondents repied to the questions on career barriers. The foowing important barriers were identified: The imited type of work that they are given, resuting in imited work experience (64,65%). Lack of back mentors in firms (61,95%). Racia bias on the part of supervisors (45,45%). Lack of recognition of and respect for work competed (45,12%). Meditari Accountancy Research Vo :

14 Views of back trainee accountants in South Africa It is of importance that two of the above-mentioned barriers (imited type of work and ack of recognition of and respect for work competed) are job reated and not perceptua issues. It shoud be possibe for empoyers to address these barriers at a manageria eve. Supervisors coud give trainees added responsibiity and the concomitant recognition to enhance their sef-confidence in the workpace, which woud contribute to a positive attitude towards a career in accountancy in genera and towards the empoyer in particuar. In a recent survey among back chartered accountants in South Africa, it was found that 70% of the respondents identify the imited nature of the work given to them and therefore their imited experience; perceived racia bias on the part of supervisors: and ack of back mentors as being the three most important career barriers (Sader 2002:170). These three matters appear to be a common probem for backs in the accounting profession. The roe of the supervisor is again highighted and therefore action pans that are impemented to empower supervisors to address these issues coud contribute towards the aeviation of the probem. 5.3 Career expectations, job satisfaction and goas Career expectations The survey aso covered the career expectations of back trainees. The overa resuts in respect of career expectations are expressed on a scae of 0 to100 and showninfigure1. Figure 1 Career expectations Job satisfaction is ranked highest (95%), foowed by remuneration (83%). Power and status ranked owest (26%). The study among back chartered accountants highighted the same three career expectations as being important as does this study among trainee accountants (Sader 2002:175). Choosing a career is a daunting task 142 Meditari Accountancy Research Vo :

15 Sader & Erasmus and is one of the most important decisions to be taken in ife. It is to be expected that trainees who choose a career in chartered accountancy wi cite job satisfaction, foowed by remuneration, as two important career expectations, because there is a perception that being a CA means having a arge income and, to some extent, a gamorous job. Nevertheess, it coud be difficut to retain young trainees, because they coud experience difficuties eary in their career. Exampes of such difficuties are a reaity shock and a possibe mismatch of expectations and the respondent s capabiities. Empoyers shoud focus on strategies to counter eary career frustrations by introducing career information sessions to highight successes and reaities and to ensure that career expectations can be met Job satisfaction Respondents were asked to rate the foowing items in accordance with the extent to which they contribute to their job satisfaction. The resuts are refected in tabe 4. Tabe 4 Job satisfaction Present working conditions Diagree % Neutra % Agree % Mean % I ike working as part of a team 2,94 13,40 83,56 3,8 I am productive 8,09 12,62 79,29 3,7 I can appy in my job what I have studied, etc 6,13 14,84 79,03 3,7 I ike what I am doing 11,65 18,77 69,58 3,5 My practica experience heps me with my studies 13,03 18,57 68,40 3,5 I earn new things 12,01 22,73 65,26 3,5 I enjoy the company of my co-workers 14,19 32,26 53,55 3,4 I am accepted by my co-workers 14,19 32,26 53,55 3,3 Job-training opportunities 25,16 28,06 46,78 3,2 My job is secure 24,84 32,90 42,26 3,1 I have the authority that I need to get the job done 35,06 31,17 33,77 2,9 Good benefits 67,23 19,48 12,99 2,4 I receive a good saary 70,65 22,58 6,77 2,3 * Each item was scored on a scae on which 2 = no probem, 3 = a minor probem and 4 = a major probem. The main reasons cited by the respondents for experiencing job satisfaction are that they ike working as part of a team (83,56%), fee that they are productive (79,29%), can appy to their job what they have studied (79,03%) and ike what they are doing (69,58%). The survey reveas that, generay speaking, back trainees in South Africa perceive their jobs positivey, except for their remuneration and benefits. Ony 6,77% report that they are paid we and ony 12,99% report that the benefits are good. They aso compain that they ack the authority to do their job (33,77%). Meditari Accountancy Research Vo :

16 Views of back trainee accountants in South Africa There are significant differences between the oder and younger age groups in respect of saaries received, job-training opportunities and authority to get the job done. The oder respondents (i.e. respondents oder than 25 years) are much ess satisfied than the younger ones regarding their saary and their job-training opportunities (mean = 3,060 and 3,360 respectivey; t = 3,261; p = 0,001); job security (mean = 2,263 and 2,450 respectivey; t = 2,743; p = 0,006); the fact that they are earning new things (mean = 3,396 and mean = 3,660 respectivey; t = 3,365; p = 0,001); and the fact that they can appy to their jobs what they earn in their studies (mean = 3,047 and 3,290 respectivey; F = 2,691; p = 0,008) Reasons for choosing a career in accounting Prospective empoyers are often interested in why an empoyee chooses a certain career. Respondents were asked for their reasons for choosing a career in chartered accountancy and aso which factors had infuenced their choice (see tabe 5). Tabe 5 Reasons for choosing a career in accounting Factor Career prospects Saary potentia Inteectua chaenge Security Enjoyed Accounting at schoo Interesting work Prestige of the profession Aptitude for figures Wanted a speciaist business background Encouraged by parents Potentia for fu-time or part-time work from home Famiy member is/was an accountant Coud study part-time Encouraged by career advisor or schoo career counseor Respondents* % 72,5 69,0 69,0 58,8 56,9 54,6 53,7 48,6 45,7 13,1 10,9 10,2 9,6 9,3 * These percentages do not add up to 100, because respondents coud indicate more than one reason. Fifty-five percent or more of the respondents mentioned the foowing five reasons, which are indicated in their order of importance: Career prospects. Inteectua chaenge. Saary potentia. Security. Enjoyed Accounting at schoo. 144 Meditari Accountancy Research Vo :

17 Sader & Erasmus The fact that career advisors, parents and famiy members pay such an insignificant part in the trainees choice of a career in accounting points to the absence of a positive recruitment effort and a ack of knowedge in back societies about career possibiities in accounting Long-term career goas Respondents were asked about their ong-term career goas. The overa resuts are refected in tabe 6 beow: Tabe 6 Long-term career goas Long-term career goas Respondents % Financia-executive position in business sector Partnership in nationa/internationa CA firm Own business in a fied other than accounting Own accounting practice Management-consuting position in firm Academic career Simiar job, but a higher saary ,8 23,1 16,8 15,5 3,8 1,7 1,3 238* 100% * Seventy-five respondents did not answer this question. Most respondents wish to become a financia executive, and 23,1% aso wish to become a partner in a nationa or an internationa firm. Respondents were asked to rate the prospects of achieving their career goa. Seventy percent of them rated their prospects as either very high or high. This information is refected in tabe 7. Tabe 7 Prospects of achieving the career goa Prospects Respondents % Very high High Average Low ,8 37,3 25,4 4,5 311* 100% * Two respondents did not answer this question Quaifying as a CA The respondents were asked to what extent they agree with the statements contained in tabe 8 beow. Meditari Accountancy Research Vo :

18 Views of back trainee accountants in South Africa Tabe 8 Quaifying as a CA Statements Diagree % Neutra % Agree % Mean % Most backs ack the motivation required to become a fuy quaified CA. 21,68 16,83 61,49 3,4 There are no financia incentives for me to compete my postgraduate studies in Accounting. 67,32 13,73 18,95 2,5 It is not reay worthwhie to compete the CTA, because of the cost and effort invoved. 86,04 7,47 6,49 2,2 Being a CA wi have no dramatic ong-term effect on my career opportunities and income potentia. 87,70 7,12 5,18 2,1 * Each item was scored on a scae on which 2 = no probem, 3 = a minor probem and 4 = a major probem. Tabe 8 reveas that 61% of the respondents agree with the statement that, generay speaking, backs ack the necessary motivation to become a fuy quaified CA. It shoud be borne in mind that, according to a survey of Britain s top universities undertaken by the recruitment consutancy Fresh Minds, many graduates perceive accounting to be a poor career option. Less than five percent of them perceive accounting to be a good career, compared to 25 percent who want to get into banking and amost 30 percent who are keen to be a management consutant (Viveiros 1995:26).This trend coud appear in South Africa, too. Another factor to be considered is that the fied of accounting is undergoing changes as it transforms into a knowedge services profession, becomes more invoved with technoogy initiatives, genera management, e-commerce projects and human resources (Financia Management 2001:17). A study undertaken in Ohio, USA, found that currenty certified pubic accountants woud not necessariy make the same choice if they were to start their education over again (Price 2000:7). A of these factors coud contribute towards making it increasingy difficut to attract trainee accountants in future. 6 The roe of the South African Institute of Chartered Accountants The respondents were asked whether they think that the Institute coud do more to assist back trainees in their career. Ninety-eight percent of them answered in the affirmative. The respondents were aso asked in which way, in their opinion, the Institute coud do more to assist backs to achieve their fu career potentia. In the main, the respondents suggest that the Institute coud do the foowing (see tabe 9): (a) Introduce academic support programmes to assist trainees to prepare for examinations (75%). In this regard, the exampe of Unisa is significant. With effect from 2003, Unisa offers a dipoma course at the postgraduate eve to prepare accounting graduates for the BCompt honours degree and the 146 Meditari Accountancy Research Vo :

19 Sader & Erasmus (b) (c) Certificate in the Theory of Accounting (CTA). This dipoma course assists fina-year accounting students to compete their studies. Estabish a forum for accounting students on which they can interact with accounting professionas through workshops, etcetera (71%) and form a network of professiona back mentors in the business sector. This coud be done in conjunction with the estabishment of forma mentorship programmes. Encourage the advancement and retention of back members within the profession (64,71%). Tabe 9 Possibe ways of assisting back students Possibe ways of assisting back students Number* %** Ranking Introduction of academic support programmes, which 51 75,00 1 assist backs to prepare for examinations Estabishment of a forum for accounting students on 46 67,65 2 which they can interact with accounting professionas through workshops, fied trips, etc Formation of a network of professiona back mentors 44 64,71 3 in the business sector Encouragement of the advancement and retention of 42 61,76 4 back members in the profession Estabishment of forma mentorship programmes 35 51,47 5 Promotion of awareness of the profession among 34 50,00 6 minorities by means of advertising campaigns Recruitment of more backs to serve on its councis 27 39,71 7 and committees Creation of more eadership roes in its councis/committees 25 36,76 8 * As respondents coud indicate more than one type of barrier, the tota of these figures does not tota 313. ** Cacuated as a percentage of the 298 respondents that answered yes to this question. 7 Summary and concusion The auditing profession in South Africa has received a great dea of criticism over the past number of years. The Enron debace in the USA and the coapse of severa oca companies ed Mr Trevor Manue, Minister of Finance, to refer, in his budget speech in 2003, to aeged weaknesses in corporate contro. Unfortunatey, a the negative pubicity has taken its to and a fresh beginning is required to make the accounting profession attractive again. This study has obtained vauabe information regarding the profie of back trainee accountants. Apart from the genera demographic profie, it has generated Meditari Accountancy Research Vo :

20 Views of back trainee accountants in South Africa specific information that coud assist in the formuation of strategies to increase the number of back trainee accountants and eventuay the number of trainees that quaify. Issues that stand out as having had an important effect on the number of avaiabe trainees are: Lack of career guidance. Lack of funding and bursaries. Lack of roe modes in the profession. Lack of knowedge in the schoos about the profession. It woud be possibe to address most of the above issues by means of an aggressive awareness campaign. It is debatabe, however, whether this measure woud be sufficient to increase the number of back accounts to 3 000, which is the target for The contribution that the accounting profession itsef can make towards making the profession attractive in future shoud be emphasised. By creating interesting career paths, increasing opportunities for promotion and providing professiona guidance, the profession can make an important contribution towards attracting back trainees. The possibiity of providing assistance to trainees by means of bridging or support programmes has been raised. The Department of Education shoud become activey invoved in providing the necessary infrastructure to impement these programmes at the institutions that train accountants. The accounting profession shoud aso pay an important part in the structuring of these programmes and shoud make staff avaiabe to guide trainees. Professiona guidance, interesting career paths and promotion opportunities shoud be emphasised. A matter of crucia importance is the roe and responsibiity that managers (supervisors) have as mentors to and coaches of trainee accountants. The fufiment of this roe wi enhance the image of their organisation, guide trainee accountants as they endeavour to overcome barriers in the workpace and enhance job satisfaction. Finay, it shoud be reaised that the training period of an accountant has traditionay been regarded as that period in which a high eve of dedication is required and speciaised skis are acquired. There shoud be no iusions about what is required of the trainee and about the professionaism that accompanies this profession. The awareness programmes shoud convey this message unambiguousy. 148 Meditari Accountancy Research Vo :

21 Sader & Erasmus Bibiography Be, C.R Managers as mentors: Buiding partnership for earning, Berrett- Koeher, San Francisco. Carre, M.R., Ebert, N.F., Hatfied, R.D., Grober, P.A., Marx, M. and Van der Schyf, S Human Resource Management in South Africa, New Jersey: Prentice Ha. Financia Management Graduates dismiss accountancy as future career option, Apri: Jain, H.C., Soane, P.J. and Horwitz, F.M Empoyment equity and affirmative action: an internationa comparison, Sharpe, New York. Mabena, P Cuture, power and difference: discourse anaysis in South Africa, London, Zed, University of Cape Town Press, Cape Town. Miward, L.J. and Brewerton, P.M Psychoogica contracts: empoyee reations for the twenty-first century personne psychoogy and HRM. Ne, P.S., Gerber, P.D., Van Dyk, P.S., Haasbroek, G.D., Schutz, H.B., Sono, T. and Werner, A Human resource management, 5th edition, Oxford University Press, Cape Town. Price, J.C Woud you make the same choice again?, OHIO CPA Journa, Vo. 59, No. 4, October-December, p.7. SAICA SAICA reviewing transformation targets for aspiring CAs, SAICA Communique News Service, June, pp.1 4. Sader, E A profie and the work environment of back chartered accountants in South Africa, Meditari Accountancy Research, Vo. 10, pp Sader, E Aspects of higher education and back chartered accountants: empirica findings, South African Journa of Higher Education, Vo. 17, No. 1, pp Schreuder, A.M.G. and Theron, A.L Careers an organizationa perspective, 2nd edition, Juta, Cape Town. Sherman, A., Bohander, G. and Sne, S Managing human resources, Ohio, South Western. Swanepoe, B., Erasmus, B.J., Van Wyk, M. and Schenk, H South African human resource management: theory and practice, Juta,CapeTown. Temkin, S Accountants body concerned at ow back pass rate, Business Day, 26 June Viveiros, C.H Thirtysomething...whichwaynow?, Accountancy SA, Apri, pp Meditari Accountancy Research Vo :