ADP Reloaded - Phase One (1)

 The ADP team commenced a research project, to review the ADP, to identify its successes, areas for improvement and ultimately culminate in recommendations to improve the ADP. As part of the initial self-assessment, the ADP team noted that it was important to obtain feedback from the ADP stakeholders and conduct research on the continued viability of the ADP in its current form. A task force was formed to review the outcome from the research and propose solutions for the challenges identified and hence the evolution of ADP Reloaded. The objective of the ADP Reloaded project is to holistically explore and implement solutions to improve the ADP processes and experience and to ensure that the assessment processes are efficient and effective to produce suitably qualified and competent Registered Auditors (RAs).

The Registered Candidate Auditors (RCAs) enrolled on the ADP prior to the launch of the ADP Reloaded will be impacted by the changes introduced. Due to the changes culminating from ADP Reloaded having an impact on how ADP programme is facilitated going forward, it is important to set out key principles which will facilitate a seamless transition from the current ADP to ADP Reloaded. A phased in approach is being taken to implement key changes which form part of the ADP Reloaded. The key changes which form part of phase one (1) are as follows:

ADP Reloaded POE:

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:

  • Initial progress report.
  • Final progress report.
  • RCA’s latest performance appraisal.
  • Professional curriculum vitae of the RCA.
  • A copy of the CPD hours undertaken during the ADP.
  • POE declaration form.

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

Element of the PoE Template Overview
Initial Progress Report XLSX RCAs are required to submit the initial progress report immediately after completing six months on the ADP. This is a work in progress document and may be updated throughout the ADP period as the RCA advances on the programme.

On completion of the ADP, the RCA is required to submit all the progress reports, as part of the PoE. The initial progress report comprises of category 1 competencies which must be achieved on the job. The RCA must EXPLAIN in detail HOW they have achieved each competency and provide examples or scenarios from clients where the competencies were achieved.

There are two levels of complexity, intermediate and advanced.

Intermediate - The competencies were achieved on engagements where the RCA was not independent because there was partner/senior manager intervention to provide guidance and develop the RCA.

Advanced - The competencies were achieved on engagements where the RCA was independent because there was none or minimal partner/senior manager intervention to provide guidance to the RCA.

At the end of the 18 months, the RCA must have achieved all the competencies at an advanced level. It is important to note that the progress reports must be updated throughout as and when there are changes in the development of the RCA.

To ensure objectivity and independence, RCAs must not indicate the following in the progress 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.

RCAs will be identified using the RCA number.

ORAs will be identified using the ORA’s RA number. The POE must be submitted WITHOUT delay upon completion of the 18 months.

Final progress report XLSX

The final progress report is submitted after 12 months on the ADP. This is also a work in progress document and must be updated at the end of the 18 months focusing on how the developmental areas noted through the programme were resolved and the actions taken thereof. The updated progress report focuses on category two competencies which are competencies which can be achieved on the job or through other intervention. Other intervention can be through webinars, seminars, workshops, e-learning etc.

The RCA is then required to reflect on their learning and demonstrate how the competency could be achieved on an audit engagement based on their understanding.

The final progress report must be accompanied by the initial progress reports if there were any changes made. At the end of the 18 months, the updated progress reports, with all the competencies achieved at advanced level must be submitted as part of the POE.

RCAs 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:

  • Achieved (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’.

  • Explain HOW the competency was achieved:

- RCAs must describe how they have had exposure on the competencies. Reference in this regard will be in the to clients on which the competencies were achieved.
- 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.

RCA’s latest performance appraisal from the firm No template - Refer to overview column. The RCA is required to provide the latest performance appraisal from the firm which have been signed off by the partner responsible for the RCAs development.
Professional curriculum vitae of the RCA No template - Refer to overview column. Candidates’ must ensure that they respect the confidentiality of firm and client details when drafting their CVs.

When drafting their CVs, RCAs must consider 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 progress reports.

POE declaration form WORD The ORA and RCA must sign the POE declaration form and attach a firm letterhead on the declaration. The RCA must also ensure that the firm’s latest monitoring intensity level from the ADP monitoring visit is included in the signed POE declaration form. This declaration is for internal use only and will not be submitted to the external reviewers for final assessment of the POE.

 New POE format roll out process:

  •  The ADP Reloaded new POE format will be effective from 01 June 2021.
  • All the RCAs who have registered on the ADP for a period of less than twelve (12) months prior to the effective date must use the new POE format. The RCAs and ORAs will be provided with sufficient training and guidance on the new POE format. The training dates will be communicated separately.
  • RCAs who have registered on the ADP for a period longer than 12 months from the effective date may continue with the old POE format. The RCAs must ensure that all their POEs are submitted by 31 March 2022.
  • All the candidates on the old model who did not meet the submission deadlines shall be migrated to the ADP Reloaded from 01 April 2022. The RCAs must complete their POE using the updated templates.

For more details, refer to  ADP Reloaded – POE guidance

International Secondment:

RCAs who are on international secondment in their capacity as audit managers, may have the international experience recognised as part of the POE provided:
  • All applications for international secondment shall be received only from firms which have an RA firm in South Africa. The local firm must have the same audit methodology as the network firm.
  • All applications for international secondment shall be supported by confirmation that there will be an ORA who is an RA from South Africa who will take responsibility for the RCA’s development throughout the ADP. The must be a designated engagement partner from the office abroad who should be assigned to manage the performance of the RCA and provide regular update to the local ORA. Both the local ORA and designated engagement partner should receive training about the ADP online.
  • All the PoE documents shall be reviewed and signed off by the local ORA with the assistance from the designated engagement partner from abroad.
  • The office offering the ADP abroad shall provide confirmation that the RCA has been appointed at a managerial position as part of the ADP registration.
  • A monitoring visit shall be scheduled at the firm where the RCA will complete the ADP programme abroad online. This visit will be scheduled to take place before the candidate completes the programme.
  • The IRBA shall review and approve international secondment applications at their discretion and on a case-by-case basis.
  • A maximum of 12 months international secondment shall be granted to a candidate.
  • The international secondment policy is effective from 01 April 2021.

For more queries, please enquire from the ADP Team on adpadmin@irba.co.za