PoE Guidance

The Audit Development Programme (ADP) is a period of work experience undertaken by a qualified professional accountant, currently SAICA’s Chartered Accountants (CAs), which is relevant to the work of a Registered Auditor (RA). The work experience enables the individual’s development of professional competence in the workplace and provides a means whereby individuals can demonstrate the achievement of professional competence in a RA firm.

Registered Candidate Auditors (RCAs) are required to report to the IRBA on a six-monthly basis on their progress throughout the ADP. Final assessment is through the submission of a Portfolio of Evidence (PoE). There is no written assessment. The PoE must be submitted to the IRBA when the Oversight Registered Auditor (ORA) is satisfied that the RCA has completed the minimum period of 18 months, 1 500 productive hours in audit and assurance and has achieved the required competencies.

The quality of the submitted PoE will determine the length of time it takes for the IRBA to assess and conclude on whether the RCA is signed-off, it is therefore important to ensure that documents submitted reflect the required depth and breadth of competence and this has been appropriately and sufficiently documented.

The PoE is made up of the following:

  • A declaration by the ORA.
  • A declaration by the RCA.
  • All completed six-monthly reports.
  • The RCA’s self-assessment of the learning outcomes achieved on the competency framework.
  • Professional curriculum vitae of the RCA.
  • A copy of the CPD hours undertaken during the ADP.
  • Evidence of any other special achievements or duties beyond that of audit.

Each of the elements of the PoE will now be discussed in detail:

Element of the PoE Template Overview
Declaration by the ORA Word

The ORA will write the declaration only at the point where the following have been met:

  • The minimum time and hours;
  • The required competencies; and
  • The ORA believes that the RCA is ready to register as a RA.

The ORA must write the declaration after having reviewed and signed-off on the PoE to be submitted to the IRBA. The ORA’s declaration must be written on the firm’s letterhead and must be signed by the ORA. To ensure objectivity and independence, the ORA Declaration will not be submitted to the panel evaluating the PoE. This is because the declaration contains personal details that may identify the Firm name, ORA and the RCA. The declaration will therefore be evaluated by the IRBA’s ADP team.

Declaration by the RCA Word The RCA will write the declaration only at the point where the following have been met:
  • The minimum time and hours;
  • The required competencies;
  • The ORA believes that the RCA is ready to register as an RA; and
  • The ORA has reviewed and signed-off on the PoE to be submitted to the IRBA.

To ensure objectivity and independence, the RCA Declaration will not be submitted to the panel evaluating the PoE. This is because the declaration contains personal details that may identify the Firm name, ORA and the RCA. The declaration will therefore be evaluated by the IRBA’s ADP team.

Six-monthly reports
 
 
XLSX RCAs are required to submit, on a six monthly basis, Six-Monthly Reports. Failure to submit the six-monthly reports may lead to cancellation of an RCAs ADP registration.

On completion of the ADP, the RCA is required to submit all the Six-Monthly Reports, as part of the PoE.

Where RCAs have a number of small engagements or other services such as agreed upon procedures, the RCA may decide to indicate these as one engagement on the six-monthly report.

RCAs are to also ensure that the six-monthly report may be easily traced to the self-assessment. This may be achieved by ensuring that engagements are accurately referenced. Refer to the paragraph dealing with client names below.

To ensure objectivity and independence, RCAs must not indicate the following in the Six-Monthly Reports:

  • RCA Name
  • ORA Name
  • Firm Name
  • Client Names – Clients must be identified by a reference number, this reference number must be a random number decided by the RCA. It may not be a reference that is decided by your firm and it must not be traced to your files. The same reference number must be used to refer to the same client in all PoE related documents to ensure that the IRBA can trace client information to the different documents in the PoE.

RCAs will be identified using the RCA number.

ORAs will be identified using the ORA’s RA number.

Job Complexity: The dimensions of complexity standards (1D, 2D and 3D), required for the demonstration of specialist competence are defined in the IRBA's Competency Framework for RCAs (Specialist Technical Competence). The IRBA does not expect RCAs to achieve 3D on their first engagement or to rate all engagements as 3D. The IRBA acknowledges that an RCA may have some engagement on 1D, some on 2D and others on 3D level.

Roles and Responsibilities: On the Six-Monthly Report, the RCAs must provide a high level overview of their roles and responsibilities on each engagement. Detailed explanations will be provided through Appendix A as discussed below. This high-level overview must be provided, where applicable, under each of the stages of an audit life cycle as provided.

Category 2 Competencies: Where the RCA has had exposure on the job to competencies on Category 2, the RCA must briefly explain these under this section. Where the competencies have not been achieved on the job but through other interventions, these competencies will not be listed on this section but on the CPD Activity Report.

Category 3 Competencies: Where the RCA has had exposure on the job to competencies on Category 3, the RCA must briefly explain these under this section. Where the competencies have not been achieved on the job but through other interventions, these competencies will not be listed on this section but on the CPD Activity Report. RCAs may be signed-off without having been exposed to Category 3 competencies.

Non-technical competencies: The RCA must, under this section, give an overview under the applicable categories provided, of the non-technical competencies achieved.

Sign-off: The Six-Monthly Report must be signed by the RCA. The ORA will also sign the report as evidence of a review.
 

Engagement Feedback Form The IRBA recommends that the Six-Monthly Reports are done on an engagement by engagement basis, in this regard RCAs must, at the end of each engagement; prepare the Six-Monthly Reports by completing the Engagement Feedback Form. At the end of the six-month period, RCAs will combine all the engagement feedback forms to complete the six-monthly report.

Preparing the Six-Monthly Report on an engagement by engagement basis will ensure that the Six-Monthly Reports are accurate and up-to-date.

Where RCAs have a number of small engagements or other services such as agreed upon procedures, the RCA may decide to indicate these as one engagement on the engagement feedback form.

RCAs are to also ensure that the six-monthly report may be easily traced to the self-assessment. This may be achieved by ensuring that engagements are accurately referenced.

Sign-off: The Engagement Repot Form must be signed-off by the RCA and their immediate line manager on the engagement. The ORA must also sign as evidence of a review.

Appendix A – Engagement Roles and Responsibility  The Six-Monthly Report provides an overview of your roles and responsibilities in a six-month period. As the Six-Monthly Report does not provide for a detailed account of the RCA’s roles and responsibilities, such as sections of the engagement completed or reviewed by the RCA. Appendix A provides an opportunity for the RCA to give more details on their roles and responsibilities.

The Appendix must be completed for each engagement on the Six-Monthly Report. This therefore means that the Appendix will accompany the Six-Monthly Report. The number of Appendices to be completed will be dependent on the number of engagements included on the Six-Monthly Report.

The Client reference number used to refer to a specific engagement on the appendix must be the same number used to refer to that specific engagement on the Six-Monthly Report.

Sections Completed by the RCA: Under this section the RCA will detail all the sections that were physically completed by the RCA. These will be all the sections where the RCA did the actual work.

Sections Reviewed by the RCA: Under this section the RCA will detail all the sections where the RCA was a reviewer. These will for example be all the sections completed by junior staff members and the RCA reviewed.

RCA’s self-assessment Technical Competences The Self-assessment must be submitted as part of the PoE only on completion of the ADP. The self-assessment must not be submitted, as part of the six-monthly reporting process.

Even though the self-assessments are to be submitted on completion of the ADP, candidates are encouraged to start completing the self-assessment on an engagement by engagement basis. This means that, on completion of an engagement, the RCAs must complete the self-assessment with the competencies they have been exposed to on the specific engagement. RCAs must not wait for the 18 month period to start completing the self-assessment.

The Self-assessment must also be easily traceable to the six-monthly reports. Refer to the section dealing with six-monthly reports above.

RCA’s are required to evaluate themselves on the competencies and then complete the last two columns of the self-assessment. The columns must be completed as follows:

  • Demonstrated (Yes/No):

- Under this column RCAs are required to indicate whether they have demonstrated the competence in question. Indicate this with a simple ‘yes’ or ‘no’.

  • Reference:

- Under the reference column RCAs must describe how they have had exposure on the competencies. Reference in this regard will be in the form of reference to the sections completed or reviewed and reports written. RCAs must not refer to client names. Clients may only be identified by the client reference number as discussed on the Six-Monthly report section above.
- For Category 2 competencies achieved through other interventions, the RCA must refer to the interventions, such as training attended, through which the competences were achieved. RCAs may in this regard provide Names of training attended.

Non-technical competences
Professional curriculum vitae of the RCA   The IRBA considered writing a CV as an important profession skill. Candidates’ must therefore ensure that their respect the confidentiality of firm and client details when drafting their CVs.

The CV must tie back to the RCAs six-monthly report and self-assessment.

The Self-assessment must also be easily traceable to the six-monthly reports. Refer to the section dealing with six-monthly reports above.

When drafting their CVs, RCAs must take into account the following:

Personal details section:

- The personal details section must only include the following:

  • RCA Number

- RCAs must identify themselves using their RCA number. There must be no mention of names, surname and ID number.
- RCAs must not include their contact details
- No gender details
- No race details
- No addresses

Educational History:

- This section may be dealt with as normally dealt with in a general CV.

Work Experience:

- Current Employment:

  • Firm Name: The current firm of employment must not be mentioned by name, it must be called The RA Firm.
  • Client Details: client names must not be mentioned. RCAs may detail their work experience using codes for their clients or they may detail their work experience by broadly describing work they have done per period without a mention of client details.

- Previous Employment: The section dealing with previous employment may be dealt with as normal, provided the current firm name is not mentioned anywhere.

References Section:

- The reference section of a CV is not required.
- RCAs must not provide their ORA details

General:

- The CV should not be accompanied by certificates. All certificates and supporting documents must be retained by the RCAs and not be attached to the CV.
 

Copy of the CPD hours undertaken during the ADP XLSX RCAs must report on CPD activities undertaken during the ADP period. Where RCAs are registered with SAICA, CPD reports from SAICA will suffice.

The template provided must be completed by RCAs who are not registered with SAICA.

It is important to note the CPD activity report’s link to Category 2 competencies. Where Category 2 competencies have been achieved through other interventions, the CPD Activity report or SAICA CPD Report must clearly indicate the training covering these competencies. The CPD activity report must, therefore tie back to the RCAs six-monthly report and self-assessment.

 

Recognition of Prior Learning (RPL)

RCAs who wish to complete the ADP in less than 18 months may do so through RPL. RPL will be considered where the RCAs have experience on a more senior level on entering the ADP. The PoE requirements as detailed above will be applicable. RCAs will have to register for the ADP and then indicate to the IRBA that they will be submitting their PoE earlier than 18 months due to prior experience.
The IRBA encourages candidates who are still employed by the firm in their audit department, on a more senior level and have completed their training programme, but have not qualified as Chartered Accountants or have not registered for the ADP to start compiling their PoE. This makes it easier for the candidates to have their PoE ready should they wish to submit their a PoE earlier than 18 months.

Other supporting documents

All other documents supporting the RCA’s competence, but are not listed in the PoE above must not be submitted as part of the PoE. These documents must be retained by the firm for a period of at least five years. The IRBA may, on a sample basis through its ADP monitoring processes, call for these supporting documents. Refer to the ADP booklet for examples of the supporting documentation that may be retained as support for the RCA’s competence.

Compiling the PoE

The IRBA encourages RCAs to take responsibility for compiling the PoE. The ORA plays an oversight role to ensure that all ADP requirements are met. The IRBA encourages the RCAs to start compiling the PoE from the very first day on the ADP.

Assessment of the PoE

The final assessment of whether an RCA has met the requirements to register with the IRBA as an RA is the responsibility of the IRBA. The IRBA will appoint an assessment panel to evaluate the PoE. The panel will comprise a pool of not less than 12 members. Every PoE will be evaluated by three members of the panel. To ensure objectivity and independence, each panel member will evaluate the PoE independent of the other members and send their comments to the IRBA.
Should all members agree in their initial assessment of the PoE, the IRBA will communicate this decision to the RCA. If the members don’t agree, the IRBA will collate the three members’ individual comments and send to all three members. This affords the members an opportunity to consider the other members’ comments. The identity of the members will not be revealed, each member will be allocated a number to ensure that objectivity and independence are maintained. On this second review, the members will once again send all their comments to the IRBA. If they are in agreement, the IRBA will communicate the decision to the RCA. If they are not in agreement, the IRBA reserves the right to call for an interview between the panel, the ORA and the RCA. This will be the first time the three panel members meet. The interview will afford the members an opportunity to clarify matters with the ORA and the RCA.

The results of the assessment will be:

  • Successfully completed the ADP
  • ADP not yet complete

In cases where the result is “ADP not yet complete” the panel members will give clear motivation for the assessment result.

For more information on the ADP, refer to the ADP Booklet or contact the ADP team at adpadmin@irba.co.za .