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- Accounting and audit firms are struggling to find and retain talent.
- This is because SA youngsters often see it as a less innovative industry, according to an expert.
- The number of chartered accountant candidates dropped by 24% in 2022.
- For more stories, visit the Tech and Trends homepage.
South African corporates and audit firms are experiencing a significant talent and skills shortage as youngsters find the industry uninteresting, and international audit firms poach local talent.
As the demand for auditing services continues to grow locally and globally, firms face the challenge of finding qualified professionals to fill key roles.
The advisory board member at Makosi, Bill Tomazin, said: "One of the primary reasons for the shortage is the lack of interest among younger generations.
"Many students are not pursuing careers in auditing, as they view it as a less exciting or less innovative industry. This has led to an aging auditing workforce, with many professionals nearing retirement age."
Research by Caseware International revealed that nine out of 10 accounting and audit firms struggle to find skilled talent.
Two Caseware research reports, the 2023 State of Accounting Firms Trends Report and the 2023 State of Internal Audit Trends Report, outline the talent shortage globally.
The study involved 4 100 accountants and 2 300 auditors.
It revealed that more than 90% of accountants and 95% of auditors found it challenging to hire skilled talent.
Another contributing factor to the talent shortage is the complex nature of auditing work. Chartered accountants and auditors require specialised skills and knowledge.
This includes a deep understanding of financial regulations and accounting principles.
Finding people with top-tier talent and skills in these fields can be difficult, especially in regions where the demand for auditing services is high.
To make matters worse, international companies poach those who acquire the CA (SA) qualification and skills.
This might be great for local talent looking for international opportunities, but it leaves South Africa under pressure. This is because local talent believes that international markets offer higher salaries and more opportunities to achieve long-term goals.
According to the South African Institute of Chartered Accountants, there has been a drop in the number of candidates writing ITC exams in 2022. The number dropped from 3 887 in 2021 to 2 946 by 2022.
Tomazin said:
"By attracting and retaining top tier professionals, auditing firms can ensure they are able to meet the demand for services, maintain the integrity of financial reporting, and contribute to the stability and growth of the economy."
Another factor that has led to a talent shortage in the industry is remote work.
According to Tomazin, this is because working remotely in the auditing industry might have some challenges due to technological limitations. Corporates must invest in tools that tackle this challenge.
"Remote work has the potential to revolutionise the auditing industry. By embracing remote work options and investing in technology, this industry can attract and retain talent.
"For auditing businesses to survive and thrive, it needs to act now and transform the way of work for a more sustainable business landscape as the world continues to evolve at an unprecedented rate," said Tomazin.
