Transforming South Africa's accounting sector

South Africa's accounting and audit industry has been under scrutiny due to recent scandals involving companies like Steinhoff and Tongaat, as well as issues with financial management in state-owned enterprises. Linda Maqoma, President of the Advancement of Black Accountants of Southern Africa, spoke to CNBC Africa about the challenges and opportunities in the industry. Maqoma acknowledged that the profession is facing trust issues but emphasized the progress being made to rebuild credibility and restore leadership excellence. She highlighted the critical role accountants play in ensuring organizational credibility and stressed the importance of having the right people in leadership positions to drive trust. On the topic of transformation, Maqoma commended the strides that have been made but emphasized the need for meaningful engagement and participation to drive impactful change. She urged for a shift in mindset and approach towards transformation, focusing on creating opportunities for growth and value for members of underrepresented groups in the industry. Maqoma expressed optimism about the partnerships and collaborations that are helping to drive transformation in the sector, including engagements with organizations like the auditor general, Sapporo, and Old Mutual. When asked about potential partners that are not currently involved in transformation efforts, Maqoma highlighted the need for stronger collaborations with educational institutions and government entities like the National Treasury. She stressed the importance of addressing systemic issues within the country and the role that the accounting and auditing sector plays in shaping the nation's financial landscape. In terms of attracting young talent to the accounting profession, Maqoma emphasized the importance of promoting mathematics as a gateway subject for accounting. She discussed initiatives aimed at increasing participation in mathematics among young students, as well as efforts to make accounting more practical and engaging for the next generation. Maqoma underscored the need to expose young children, particularly from underrepresented communities, to subjects that can open up doors for future opportunities. Overall, Maqoma's insights shed light on the challenges and opportunities facing South Africa's accounting sector. By focusing on rebuilding trust, driving meaningful transformation, and promoting mathematics education, the industry can work towards restoring credibility and fostering a diverse and inclusive workforce.