Browsing by Department "College of Accounting"

Now showing 1 - 20 of 115
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    A Conceptualization of remote Auditing framework
    (2024) Dlamini, Zenani; Singh-Sewpersadh, Navitha
    Auditing was an activity that was typically performed from the audit client's premises or the auditor's offices. If the audit client had significant components in other countries, the lead auditor would appoint a component auditor within that country to perform the audit work to support the group engagement team's audit opinion. Globalization and the COVID-19 pandemic changed the audit environment leading to the environment becoming more digitized. The pandemic enforced a work-from-home strategy; thus, audit fieldwork had to be performed remotely. Studies around the remote auditing model suggested that it would lead to lower audit quality and professional skepticism due to the lack of physical presence. Furthermore, previous research on the remote auditing model was performed from the perspective of component auditors, internal auditors, or information technology (IT) auditors. This study aimed to explain the structure and positioning of the remote audit environment in the traditional audit framework. To date, no academic study has explored the structure of the remote audit environment and its position in the context of the traditional audit framework. Using the SCP paradigm and the Unified Services Theory, this study filled an important research gap in the auditing literature. It was used as a base to understand the remote audit environment. This qualitative study collected data using semi-structured interviews to answer the research questions. The findings from this study found that the remote auditing model was a preexisting model which could have been implemented before the COVID-19 pandemic; however, there was no demand for it. The pandemic's impact and technological changes exacerbated the need for a remote audit environment. The results also indicated that remote audit firms operated as a support structure to traditional audit firms. However, they offered a level of competition from a South African perspective. Furthermore, in assessing the audit quality measures in the remote audit environment, it was noted that they were no different from those of traditional audit firms. Finally, the results indicated the presence of some limitations to the remote audit environment. Keywords: remote audit, audit quality, technology, consequence management, global business services, COVID-19
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    A study on the possible impact of constructive lease capitalisation on selected listed South African companies' financial statements, in light of IFRS 16 leases
    (2019) Cape, Jared; Modack, Goolam
    This study analyses the possible effects of constructive lease capitalisation on all companies in four sectors of the Johannesburg Stock Exchange (JSE) namely Industrial Transportation, Food and Drug Retailers, General Retailers and Travel and Leisure, in light of the impending adoption of IFRS 16.1 The capitalisation is performed using a model developed by Imhoff Jr., Lipe, & David, (1997) & Imhoff Jr., Lipe, & Wright, (1991) as well as further refinements in Dillon, (2014) & Fulbier, Silva, & Pferdehirt, (2006). The analysis looks at the effects of constructive capitalisation on key leverage and profitability ratios, and line items in the financial statements. The study also assesses the impact on disclosed loan covenants and whether constructive capitalisation will result in the breach of any covenants. The results show that the adoption of IFRS 16 has an impact on key ratios and line items specifically leverage ratios and earnings before interest, tax, depreciation and amortisation (EBITDA) margin. The sector most impacted is the Food and Drug Retailers. No loan covenants were breached as a result of constructive capitalisation, however the impact on the covenants was both positive and negative.
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    Accounting for employee stock options
    (2010) Van Zyl, Warrick Boyd; Uliana, Enrico
    The use of ESOs as a form of employee remuneration has grown dramatically in recent years, fuelling a significant amount of research. The current accounting standards (IFRS 2 and IAS 33) do not reference this research and as a result the accounting records do not accurately reflect the economic nature of these transactions. This study will: 1. Evaluate the requirements of IFRS 2 and IAS 33 by developing an accounting model for each standard and comparing the current rules with this theoretical benchmark. 2. Further examine any identified differences by means of empirical tests. The objective is thus to establish a theoretically sound approach to ESO accounting that can be confirmed by empirical testing.
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    Accounting for the financial instruments listed on the South African futures exchange in the context of the International Accounting Standards Committee conceptual framework
    (1997) Baker, Shannon Bruce; Everingham, Geoff
    The objective of this study was to evaluate the views of both preparers and users of financial statements on a number of issues related to South African Futures Exchange (SAFEX) financial instruments. These issues related to the perceptions of the SAFEX market price as a measure of fair value for financial reporting purposes, as well as perceptions of the International Accounting Standards Committee (IASC) asset and liability definition. These were formulated into the hypotheses set out in chapter 1. The objectives of the study were achieved by a literature search related to financial instruments and SAFEX, as well as empirical data collection through the use of postal questionnaires and the evaluation thereof.
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    An assessment into the state of transformation disclosure for the top 50 companies listed on the Johannesburg Stock Exchange
    (2019) Mjali, Chuma; Minter, Tessa
    The main purpose of this study is to examine the current extent of transformation disclosure in the integrated reports/annual reports of the top 50 listed South African companies on the Johannesburg Securities Exchange (JSE) for the 2018 year. A longitudinal assessment to discern the developments in transformation disclosure trends over a 5-year period (2014 -2018) was also undertaken. Transformation for purposes of this study refers to transformation of the workplace “to be truly non-racial and non-sexist within companies”. Transformation is very topical in South Africa bearing in mind the historical injustices of the past and thus the need for redress. Disclosure relating to transformation is argued to be a pivotal contributing instrument that could empower stakeholders towards holding companies accountable. The specified transformation disclosure is required by the Employment Equity Act and is considered to be mandatory. The transformation disclosure reported by companies within their annual reports/integrated reports was thus critically scrutinised by application of a scoring technique relating to a closed list of 15 variables selected. Results showed that disclosure relating to the transformation variables was low overall despite there being a statutory requirement, with the highest scores recorded around the corporate social responsibility variable. The stunted level of transformation disclosure has wider implications for users of these reports and their ability to be afforded the opportunity to facilitate action and thus exercise accountability in relation to these companies.
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    An empirical evaluation of the capital asset pricing model in South Africa
    (1986) Stewart, Alan James Harris; Knight, R F
    This thesis presents an empirical evaluation of the validity of the Capital Asset Pricing Model (CAPM) in South Africa. More specifically, the behaviour of share prices on the Johannesburg Stock Exchange during the eight years from 1973 to 1980 is evaluated. The study is the first direct test of the CAPM in South Africa. The methodology employed is a cross-sectional regression technique which has been used successfully in testing overseas security markets. An extension to the usual methodology is made by comparing the results obtained using a I published market-index with those obtained using an internally generated index. The historical development and the derivation of the CAPM is discussed in the thesis, as is the relationship between the CAPM and the Efficient Markets Hypothesis. The results indicate a strong possibility that the CAPM is a valid model in a South African context. Refinements to the research methodology strengthen this conclusion. A potential problem in the interpretation of the results of tests of this sort is also discussed, as is a recent extension to the theory. The overall conclusion is that the CAPM is a valid model, however further research is required to establish this with greater certainty.
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    An Implementation Outcomes Evaluation for the Nal?ibali FUNda Leader Network: Eastern Cape Province
    (2023) Sithole, Stella; Duffy, Carren
    The need to improve literacy skills among the youths in South Africa has been a national priority area, with several programmes being implemented by the South African government and non-profit organisations in the country. These programmes aim to develop and improve literacy and reading skills among the youth. One such intervention is the Nal'ibali campaign. While Nal'ibali implements several interventions, this minor dissertation presents the findings of an implementation outcomes evaluation of their FUNda Leader Network. The FUNda Leader Network comprises volunteers from disadvantaged areas who implement reading clubs within their communities. The evaluator used the implementation outcomes framework developed by Proctor et al. (2011) to investigate seven implementation outcome domains of the programme, namely, acceptability, adoption, appropriateness, feasibility, fidelity, penetration, and sustainability. In line with these domains, the evaluator proposed eight evaluation questions that directed inquiry on the programme facilitators and their experiences, programme activities and service delivery, service uptake and utilisation, outcomes achieved and success stories of programme beneficiaries, as well as the sustainability of these outcomes, post the intervention. Through assessing these domains, overall, the evaluation aimed to evaluate the extent to which Nal'ibali's FUNda Leader Network was implemented with fidelity and the programme's effectiveness in achieving its intended outcomes. A qualitative approach utilising semi-structured interviews was employed to collect the data. A total of six interviews were conducted. Findings support the FUNda Leader Network as a relevant initiative that has facilitated the development of reading abilities and the creation of a reading culture amongst the youths in some of the disadvantaged communities in the Eastern Cape. The FUNda Leaders interviewed were satisfied with the campaign and its activities and were able to share stories about how the network and the activities enhanced knowledge and confidence among the youth in their respective reading clubs. While some interviewees discussed some community resistance, they shared the strategies adopted to raise awareness about the importance of the intervention among the parents and the community, resulting in subsequent support for the programme. This dissertation reports the findings of the implementation domains as well as the success stories of programme beneficiaries (outcomes). Additionally, recommendations to further improve the programme are discussed. Overall, the evaluation returned positive implementation and outcomes results for Nal'ibali's FUNda Leader Network. Keywords: reading clubs, youth literacy, implementation evaluation, outcomes evaluation, implementation outcomes framework
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    An investigation into the ability of non-IFRS earnings measures' to predict future operating cash flows for a sample of South African JSE listed companies
    (2018) Chittenden, Reece; Miller, Taryn
    This study investigates whether or not non-IFRS earnings measures can predict future operating cash flows. Many companies consistently present non-IFRS earnings measures, being voluntarily disclosed earnings measures lacking in formal definition, in order to communicate a companies’ core or sustainable earnings. Prior research into the usefulness of non-IFRS earnings measures has shown mixed results around the measures’ ability to predict a company’s future stock returns. Furthermore, there is some evidence that non-IFRS earnings measures have been used opportunistically to report a more favourable financial performance compared to IFRS earnings, questioning the usefulness and relevance of non-IFRS earnings measures. A linear mixed model was used to investigate the ability of non-IFRS earnings measures’ to predict future operating cash flows [CF(T+1)] using the top 40 Johannesburg Stock Exchange (JSE) companies over the sample period from 2012 to 2016. The results of the statistical analysis showed that the non-IFRS earnings measure within the final model showed a positive and significant relationship with CF(T+1), which aligns with findings of a similar Australian study. Further to this, the inclusion of an indicator variable for mining companies was found to improve the model’s ability to predict future operating cash flows using non-IFRS earnings measures. The results of this study add to the growing area of research surrounding non-IFRS measures by uniquely focusing on South African companies, with similar results to prior studies. These findings may be of assistance to analysts and investors for valuation purposes and to standard-setting bodies for consideration as part of their current research project on performance reporting. Finally, the results provide justification for non-IFRS earnings measures as valid and useful metrics for analysis of company performance.
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    An investigation into the powers of the Auditor-General SA and its ability to strengthen the quality of democracy in South Africa
    (2019) Dhansay, Asief; Minter, Tessa
    The overall objective of the study is to provide commentary on the extent to which the public sector audit process contributes to the strength of democracy in South Africa by enhancing accountability. By studying audit outcomes, the concerns of the Auditor-General of South Africa (AGSA) around lack of accountability due to auditee non-responsiveness was confirmed. The amendments to the Public Audit Act which give the AGSA the power to sanction individuals is therefore considered necessary as a mechanism to change the culture of non-responsiveness amongst auditees and to therefore ensure accountability going forward. A comparative evaluation was conducted for the Ugandan public service where the Ugandan Auditor General has similar powers. This case study points to the necessity of supreme audit institutions in developing countries having enhanced powers to ensure accountability and thus enhance the quality of democracy, although there may be a trade off with the other dimensions of democracy, bringing in to question the overall quality of democracy. The study also outlines areas for future considerations which may impact on the strength of public financial accountability.
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    An investigation into unifying early warning prediction models
    (2023) Grieve, Jason; Singh-Sewpersadh, Navitha
    Forecasting financial distress has been regarded as a serious and significant problem, and if not signalled in time, has catastrophic ramifications on worldwide economies. Financial distress models are in existence and have been tested with varying results of success. However, there are varying definitions of financial distress which have contributed to the in-cohesiveness of financial distress literature where users have a limited ability to know what condition of financial distress is being forecast. Following a comprehensive literature review, it was found that financial distress models (Altman, 1968; Beaver, 1966; Gupta, 1983; Ohlson, 1980; Taffler, 1983; Zmijewski, 1984) have not been unified into an early warning signal (EWS) framework according to the specific financial distress conditions they have abilities to predict. Findings also found that risk (Beneish, 1999; Schilit, 2003) and earnings management measures (Sloan, 1996) play a significant role in financial distress forecasting but have also yet to be unified into an EWS framework. This study aims to unify financial distress, risk prediction and earnings management measurements into an EWS framework developed by Tavlin et al. (1989) to enable users the ability to identify the type of EWSs predicted and contributing reasons reducing the fragmentation of the extant literature. The investigation period of the study was for six years (2016 to 2021) using paired sampling methodology with a final sample of 72 delisted and 72 listed companies from the Johannesburg Stock Exchange (JSE). The study employed descriptive analysis to interrogate the results. The results indicated that financial distress models (Altman, 1968; Beaver, 1966; Gupta, 1983; Taffler, 1983; Zmijewski, 1984) and risk and earnings management measures (Beneish, 1999; Schilit, 2003; Sloan, 1996) could be unified into an EWS framework. Key words: bankruptcy prediction; credit risk; probability of default (PD); early warning signals; financial distress, JSE; risk; earnings management
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    An outcome evaluation of the Work 4 Progress Programme for unemployed youths
    (2023) Pophiwa, Pamela; Duffy, Carren
    This evaluation assessed whether the Work 4 Progress programme, a youth employment programme implemented by Action Volunteers Africa achieved its intended short-term and long-term outcomes. The programme is designed to improve the employability of young people aged between 18 to 25 years who are not in employment, education or training (NEET), by providing them with work opportunities, life coaching and career guidance. The evaluation used a mixed-method exploratory sequential design to collect data. To measure the outcomes of the programme, 29 alumni completed an online survey designed to assess their attainment of the programme outcomes namely: work-related skills and competencies; personal growth and career orientation. Eight participants also took part in semi-structured face-to-face interviews with the evaluator. The programme's Executive Director was also interviewed to promote triangulation of the results. Results of the analysis of the survey data revealed that the Work 4 Progress programme is likely to improve the employability of youths and the participants were overall satisfied with the experience. Results from the analysis of interview data revealed three overall themes. The emerging themes were: 1) Understanding backgrounds, 2) Career guidance is crucial and useful and 3) Programme praxis and knowledge in the real world. Overall, the informants felt that the programme equipped them with the skills and competencies needed in the world of work. The triangulation of the quantitative and qualitative results revealed both the economic and social benefits of engaging in the Work 4 Progress programme. The findings of this evaluation reinforce the importance of multi-component interventions as essential in improving the employment outcomes of youths with socio-economic disadvantages.
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    An analysis into the hedging effectiveness and efficiency of the share index futures market in South Africa
    (1992) Levett, Peter; Page, Mike
    There has been much written on the ability of futures to reduce risk thereby hedging against potential market declines. However, the effect on return has been largely overlooked. This study investigates the risk and return effectiveness of hedging and hedging strategies using share index futures (SIF) market in South Africa. The empirical analysis is based on actual market data applied in terms of the most prominent hedging strategies, namely the traditional, minimum-variance, beta and Howard & D'Antonio (H&D) strategies. As hedging effectiveness is dependent on market efficiency, an analysis of the pricing efficiency of the South African market is performed with reference to the cost-of-carry valuation model and arbitrage pricing techniques. The results overwhelmingly indicate that the minimum-variance hedge strategy is the most optimal of the four strategies in terms of both risk and return. The beta hedge performed badly in terms of both risk and return (even worse than the naive traditional hedge strategy) and often led to overhedging. The beta strategy is not considered appropriate as an estimate of the minimum-variance hedge ratio in the South African situation because the futures price fluctuates significantly more than the spot index resulting in overstated hedge ratios.
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    An analysis of changes in liquidity around share splits
    (1997) Smith, Brian Ashley; Uliana, Enrico
    Surveys of U.S. market participants reveal a belief that liquidity improves following a share split. Contrary to this, empirical studies on U.S. markets generally conclude that liquidity worsens. These contradictory views have as yet not been reconciled. Furthermore, there is little evidence as to the charge of liquidity on the Johannesburg Stock Exchange ("the JSE"). The primary objective of this study is to understand how liquidity, as measured by trading volumes, changes around a share split on the JSE. The study also seeks to gain a more precise understanding of the nature of any change in liquidity in order that it may be related to the effect that a split has on volatility and returns. Twenty-three share splits were selected from the period between December 1990 and June 1996. These splits were screened to ensure that no contemporaneous events were present which may have influenced the results. Five study periods were then defined around each split.
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    An analysis of the perceived effectiveness of remuneration committees in deciding on executive compensation in South African listed companies
    (2009) Penkin, Kenneth David; Wormald, Michael; Cramer, Peter
    This thesis will examine the administration of executive compensation in listed companies in South Africa in order to understand the background to the topical emotion expressed by the public about the quantum of executive earnings. The Thesis attempts to explain how approaches are made to these vast payments. It commences with the history of the management of executive compensation. Before the 1990s, disclosure of directors' emoluments was limited to one amount. Companies suffered losses due to the Agency Theory where executives dominated boards. With the introduction of remuneration committees and corporate governance, control was moved to a committee of the board of -non-executive directors (a remuneration committee). The purpose of this research was to ascertain whether such a committee is effective. Interviews were held with leading executives and an analyst. An electronic survey was dispatched to the chief executive officers and chief financial officers of a large selection of listed companies. The results of the research are summarised and conclusions expressed on all such views with the addition of limited input of the author's views. The question requires an examination of the effectiveness of remuneration committees. Some suggestions are also made as to future research and actions which may be conducted. This thesis shows that remuneration committees are not as effective as they should be and will explain why this is so.
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    An analysis of the quality of environmental disclosures in the annual financial statements of selected South African companies and a suggested environmental reporting model
    (1994) Dewar, Nichola Jane; Everingham, Geoff
    Environmental damage has become of widespread concern, so much so that some companies are disclosing environmental information in their annual reports, the traditional medium for communication to shareholders and other users. There is no recognised reporting model or framework for the reporting of environmental information. As a result, these disclosures are often ad hoc, and objective determination of their quality is extremely difficult. Furthermore, to the writer's knowledge, no survey of environmental disclosures has been conducted in South Africa. The objectives of this dissertation included the determination of an appropriate environmental reporting model, based on the critical review of the accounting legal and economic literatures. The reporting model suggested is that of compliance with legal environmental standards, with certain additional financial information. An existing disclosure index, enabling the objective measurement of environmental disclosure quality, was extended and adapted to the South African situation. Analysis of the index scores revealed an improvement in the quality of environmental disclosures over a five year period, and that disclosures are not influenced by a company's total assets or the presence of international shareholders. Analysis of index scores on a group basis revealed that disclosures are not made as a result of a top-down approach. However, companies in similar industries in a group tended to have almost identical disclosures. Comparison of the results of the South African survey with a similar American one, revealed a significant disparity between disclosure scores for the oil, paper and steel industries. This disparity is exacerbated by the difference in time period of at least 15 years, and suggests that the difference in disclosure quality is possibly as a result of the disparity in content and enforcement of legal environmental standards. With the opening up of international markets to South African business, producers may no longer be able to ignore international environmental standards, and the poor quality of South African disclosures may well prove unacceptable. Without more effective legal environmental standards, there will be little progress towards improved environmental disclosures.
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    Analysis of the relationship between foreign shareholding and ESG performance of South African listed companies
    (2023) Addison, Kate; Herbert, Shelly
    Given the global movement towards sustainability and the stagnant economic growth of South Africa, this study seeks to determine if there is a relationship between the foreign shareholding percentage of listed companies and the environmental, social and governance (ESG) scores of these companies. Foreign investment has been identified as a driver of economic growth. This study examines the relationship between ESG scores of JSE-listed companies and the percentage of foreign shareholding of these companies from 2015 to 2019. This study relied on ESG data provided by the FTSE Russell. In analysing the data through a generalised linear mixed effects model, this study identified a positive and significant association between the overall ESG, environmental, and social scores and the percentage of foreign shareholding, respectively. Stakeholder theory suggests that companies will determine action based on the interests of all relevant stakeholders. Where foreign shareholders are concerned about ESG performance, companies increase their ESG ratings, taking both their current and future investors into consideration. This study is value-adding in providing evidence for the South African government to mandate a national transition to better ESG practices.
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    An analysis of the use of discounted cash flow methods and real options to value flexibility in real estate development projects
    (2007) Bauer, Michael; Correia, Carlos
    Surveys of firms outside the property sector indicate the growth in the use of DCF methods such as the NPV and IRR methods to evaluate projects as compared to the use of such naïve methods as Payback and the Accounting rate of return. The growing convergence of theory and practice is indicated by the growing use of the NPV method. The objective of this study is to determine the capital budgeting methods used to evaluate real estate development projects and to compare the results of a survey with the results of other studies. Further, recent developments in capital budgeting theory, indicate that the investment valuation tools such as the Net Present Value (NPV), Internal Rate of Return (lRR), Payback Period (PP), and theAccounting Rate of Return (ARR) may fail to recognize flexibilities in real estate development projects. As a consequence, the discounted cash flow methods (DCF) may systematically undervalue strategic or large-scale real estate development projects. Two methods are introduced as an alternative to address the weaknesses of the DCF methods. Decision Tree Analysis (DTA) employs an approach to analyse flexibilities by creating a chain of possible options and allows alternative courses of action for management to adapt their initial strategies in order to capitalise on new opportunities or to minimise losses. Real Option Analysis (ROA) introduces the theory of valuing financial derivates, in particular call options, and allows the staging of the development. These instruments further introduce a risk management aspect, as call options have a limited down side and an unlimited upside. Each approach has advantages and shortcomings and should only be used in appropriate circumstances. DTA is suited for the analysis of the project specific risks. ROA on the other hand, is a superior tool when dealing with uncertainty. The thesis finds that that over 90% of all respondents are using a combination of NPV and IRR methods most often to evaluate development opportunities. Interestingly, 85% of all respondents are also using the payback period. Other methods used are the profitability index, residual value, free cash flow, economic value, and return on equity. Developers have adopted DCF methods such as NPV and IRR as the primary methods to evaluate projects rather than naïve methods such as Payback and ARR, although these latter methods remain in use. The use of decision tree analysis and real option analysis is very limited.
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    The application of AC 122 to research and development, in the pharmaceutical industry : conceptual issues and implementation concerns : a case study
    (1998) de Waal, Margaret Suzanne; Everingham, Geoff
    Research and development spending has become increasingly important over the last two decades. Despite this, the South African business community has largely ignored the South African accounting standard for research and development costs, AC 122, issued in 1994. A review of the comments received from a number of respondents to the exposure draft to AC 122 and it's international equivalent, lAS 9 (revised), suggests that the implementation difficulties associated with AC 122 are the major reason for the apparent lack of acceptance of AC 122 by the local accounting profession and industry. This research attempts to identify these implementation concerns, specifically in relation to the pharmaceutical industry, so as to provide guidance for implementing AC 122 in this industry. From an analysis performed of AC 122 and the responses of a number of members of the local and global business community, three main implementation problems associated with AC 122 were identified. These are (a) the appropriate allocation of R & D costs between research costs and development costs, (b) implementing the requirement to capitalise development costs, and (c) determining the most appropriate method and time period for amortising a development asset. The identification of these problems also highlighted that AC 122 is deficient in implementation guidance and requires the exercise of an unusually high level of subjective judgement. This study illustrates that it is possible to develop guidelines for overcoming the problems identified in the pharmaceutical industry. This research also provides an approach for similar research in other R & D intensive industries. However, the time and cost of performing such an exercise is likely to limit the industry approach to accounting for R & D costs. The research led to the conclusion that the accounting standard for research and development costs in South Africa is difficult to apply consistently in practice, and requires amendment if it is to obtain the support of the accountancy profession and commerce.
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    The application of activity based cost and management to support competitive strategy in the banking sector : a South African case study
    (2007) Domingo, Tony Mendes; Chivaka, Richard
    Includes bibliographical references (leaves 217-236).
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    Assessing PGDA entrance requirements: Appropriate or in need of change?
    (2023) Andrew, Samuel; Carpenter, Riley
    With the decreasing student pass rates in the Postgraduate Accounting Degree (PGDA) at the University of Cape Town (UCT) as well as UCT's lowered placement in ITC pass rate rankings – an assessment on PGDA's current entrance requirements could provide insight into a way-forward. The objective of this study is to evaluate endogenous factors that affect student performance in PGDA and ITC, namely race, secondary school type, home language, gender, age, and core final-year accounting course results (Financial Reporting III (FR3), Taxation II (TAX2), Corporate Governance II (CG2), Management Accounting II (MA2), and Business Analysis and Governance (BAG)). After identifying the factors linked to success, these factors were used to determine optimal entrance requirements that maximise the success of students in passing PGDA and ITC. Finally, the recommended entrance requirements were assessed against current and old entrance requirements and the effects of these requirements on student diversity was considered. A quantitative research method was used – comprising of stepwise regression, multivariate regression, and logistic regression models, together with receiver operator curves. The data was obtained from a sample of students that had commenced PGDA in 2018, 2019 and 2020 at UCT. The findings indicate that race and prior academic performance are the best predictors of academic success, however race was not considered when setting entrance requirements. Interesting findings were identified between core undergraduate courses and success in the four PGDA courses and ITC as not all undergraduate courses predicted academic success. Specifically, the lack of a significant relationship between core accounting subject – FR3 – and postgraduate courses – CG3 and MAF – in addition to ITC success. Furthermore, a significant, negative relationship was identified between MA2 and FR4. Recommended entrance requirements were identified to have adverse effects on student diversity for access, but minimal effect on pass rates. This study adds to existing literature on student performance in tertiary accounting programmes in South Africa with a specific focus on CTA course success. These findings could be useful for the UCT in determining the most appropriate entrance requirements to set for PGDA as well as whether setting such requirements would be equitable.