Sharp drop in CA candidates writing ITC exam
Figures released by the South African Institute of Chartered Accountants (Saica) show that the number of finance graduates writing the Initial Test of Competency (ITC) exam – the first of two board exams that need to be passed to qualify as a chartered accountant (CA) – saw a sharp 24% drop this year.
With 2 946 candidates taking the exam, compared to 3 887 in 2021, concerns have been raised about the decline.
“The reduction in the number of ITC examinees is alarming, especially as it comes in the midst of a boom in global demand for South African-qualified chartered accountants,” said Graeme Marais, director of finance recruitment company Blue Recruiting.
He noted that the number of candidates taking the ITC exam had been on the rise before 2022, growing by 19% in 2020, and 6% in 2021.
“This year’s ITC intake fell by around a quarter, which means the system will be producing fewer chartered accountants,” warns Marais.
“The fact that the potential number of CAs who will graduate in 2025 in South Africa [will consequently] drop by such a large number is a worry.”
Robert Zwane, Saica’s executive in learning, development, and national imperatives, said there are various factors that can account for the drop.
He noted that one of these factors is related to students needing to adapt to blended learning in university during Covid restrictions over the past two years.
“The global consensus is that students have been negatively affected by the challenges of studying remotely,” added Zwane.
According to Prof Nico van der Merwe, outgoing CA programme coordinator at the North-West University, the drop could be due to the Covid pandemic and poor matric mathematics results.
“We have seen a steady drop in students qualifying to study CA with the poorer Grade 12 mathematics,” he said.
He said the universities could not have avoided the drop in CA candidate numbers.
“Saica is maintaining a high standard of qualification and has not changed the competency framework,” he said.