Since its inception in 2010, the Initial test of Competence (ITC) has stood as a formidable gatekeeper for aspiring Chartered Accountants (CA (SA)). Over the years, it has earned a reputation for rigor, serving as a crucial milestone in the journey towards obtaining the esteemed CA (SA) designation. However, after nearly a decade and a half the ITC as we know it concluded its final sitting in June 2024.
Starting in January 2025, the South African Institute of Chartered Accountants (SAICA) will inaugurate the Initial Assessment of Competence (IAC), marking a significant shift in the approach to assessing the capabilities of future CA's. This change reflects SAICA's commitment to evolving the first part of the qualifying exams to align with the dynamic demands of modern business environment.
The IAC is designed to integrate seamlessly with the "CA's of the Future" competency framework, which emphasizes not only technical proficiency but also the broader, more complex skill set required in today's rapidly changing landscape. This new assessment aims to ensure that aspiring CA's are equipped with the competencies needed to navigate and lead in an increasingly globalized and technology-driven world.
The key changes from ITC to IAC is noted in the table below:
Initial Test of Competence | Initial Assessment of Competence |
4 Papers are written | 3 Papers are written |
The exam takes place over 2 days | The exam takes place over 3 days |
Each paper consists out of 100 marks | Each paper will consist out of 120 marks with only one scenario |
Each paper has 30 minutes reading time and 2 hours and 30 minutes writing time | Each paper will be 4 hours long with no split between reading and writing time |
The scenario is distributed during reading time and after 30 minutes the required is distributed | The reading and the required will be distributed together at the start of the assessment |
SAICA has however noted that the IAC will undergo a transition process with the 2025 including limited Professional Values, Attitudes and Acumens (PVAA's) and excluding the digital acumen. However, throughout 2026 and 2027 the IAC will start to incorporate:
The Assessment of Digital Acumen
The Assessment of the Public Sector
The Further Assessment of the PVAA's in an integrated manner
A new format third paper which will be competency based.
Despite the above seeming daunting one must remember that SAICA as a professional body has a responsibility to it's current and future members to ensure their competency framework remains aligned with international standards and expectations.
Dillen Breitenbach
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