Financial Accountant in Practice (FAP)
The following persons are eligible to apply for membership as a Financial Accountant in Practice (FAP), also referred to as Accounting Officer:
Short Description of the Designation
The Financial Accountant in Practice (FAP) performs duties as an Accounting Officer and provides a number of accountancy related services to companies, close corporations, partnerships, sole proprietors, trusts and various other types of small business and non-corporate undertakings. The Financial Accountant in Practice (FAP) must have acquired knowledge of and demonstrate competence in areas such as Financial Accounting, Internal and External Auditing, Taxation, Company Law, Management Accounting and Practice Management.
Some of the FAP's key duties and responsibilities are to:
- Prepare and sign off Financial Statements for Close Corporations and Companies who’s PIS score is under 100 or is owner managed.
- Do an independent compilation or review of Annual Financial Statement for Companies and Incorporates who’s PIS score is under 100. The Financial Statements for both Companies and CC needs to comply with IFRS or IFRS for SME’s.
- Prepare and sign off Financial Statements for NPO’s and PBO’s – as long as the organization’s constitution and PIS score allows it.
- Can prepare and sign off Financial Statement for Trusts if the trust deed allows it.
- Can prepare and sign off Financial Statements for a Sole Proprietor, Partnership and Money Lenders.
- Be allowed to accept the audits of Schools, but this needs to be understood in terms of the School’s Act 84 of 1996 as well as the requirements of the Schools Act in the various Provinces.
Criteria for obtaining the Professional Designation
The following persons are eligible to apply for membership as a Financial Accountant in Practice (FAP), also referred to as an Accounting Officer:
A person who has completed an IAC diploma in Accounting, Cost and Management Accounting and Company Secretaries.
A person who have completed an Accounting qualification with a minimum SAQA rated NQF Level 6 (pre 2009) and NQF Level 7 (post 2009).
Accounting Officers of the following Institutes are also eligible for professional membership of the IAC.
- South African Inst. of Professional Accountants (SAIPA)
- South African Inst. of Chartered Accountants (CA) (SA)
- ACCA, CIMA, CSSA
Please note that Members from Zimbabwe who want to register as an Accounting Officer with the IAC in South Africa will have to ensure that in addition to the normal criteria they pass:
- Company Law (in terms of South African Legislation)
- Taxation (in terms of South African Legislation)
The applicant must be compliant with the Institute’s code of conduct
All practicing IAC members, who provide a service to the public, are compelled to have professional indemnity insurance.
For the Professional Designation to be awarded, professionals must comply with the following minimum academic requirements:
Have completed an Accounting qualification with a minimum SAQA rated NQF Level 6 (pre 2009) and NQF Level 7 (post 2009).
The qualification must contain the following core subjects:
- Financial Accounting 3.
- Company Law
- Auditing 1 or Internal Auditing 2.
Practical / Workplace Experience
To have gained a MINIMUM of three years, supervised training (per IAC logbook), under the guidance of a registered Accounting Officer.
To have gained a MINIMUM of six years relevant, practical accounting experience at a management or supervisory level.
The application must be supported by an affidavit, stamped and signed by a Commissioner of Oaths, verifying the applicant's practical experience, as well as a comprehensive job description.
Once the academic and practical component has been met, an applicant would need to undergo a 3 hour written evaluation followed by a 2 hour oral evaluation,conducted by a registered IAC assessor,covering the following:
- Company Law
- Practice Management
The pass mark for the assessment evaluation is as follows:
- Accounting 80%
- All other subjects 75%.
CPD Requirement for the Accounting Officer:
Must complete 40 CPD hours per annum (20 structured + 20 unstructured) comprising of at least 4 categories, viz, Accounting (i.e. IFRS), Taxation, Company Law, Auditing & Review Engagements, and any other area in which the applicant specialises in.