Browsing by Author "Nxumalo, Bhekikhaya Henry."

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The accounting firms' managers' and trainees' perceptions of Chartered Accountancy Profession Charter in KwaZulu-Natal, South Africa.
(2019) Nxumalo, Bhekikhaya Henry.; Mkhize, Msizi Vitalis.
The aim of B-BBEE initiatives in the CA Sector is therefore to significantly increase the number of Black People who manage, own and control enterprises in the sector as well as to contribute to decreases in income inequalities in the country in general. This is to be achieved by means of an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa. Within the CA Sector, the first step and primary focus will be on dramatically increasing the numbers of all Black participants (Africans, Indians and Coloureds) and particularly African CA(SA)s. (CA Charter, 2018). The purpose of this study was to determine the accounting firm’s managers and trainees perceptions of Chartered Accountancy Profession Charter in KwaZulu – Natal, South Africa and to examine the relationship between the accounting firms’ managers’ and trainees’ perceptions of Chartered Accountancy Profession Charter in KwaZulu–Natal and demographic variables such as age, gender and race. The setting for this study is accounting firms in KwaZulu–Natal. A systematic sampling was used. The responses of 30 accounting firm’s managers and 73 trainees were analyzed. Both managers and trainees perceived the seven key elements (ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development) of B-BBEE important in KwaZulu-Natal, South Africa. Ownership, employment equity and enterprise development were rated highly by trainees, while ownership, management control and employment equity were highly rated by managers. In terms of gender, both males and females rated higher management control. Males rated lower in socio-economic development while females rated lower preferential procurement. The variation and ratings were found of how managers and trainees view the importance of B-BBEE elements but all the variations were positive. This research finding requires the accounting profession to recognize B-BBEE ratings by managers and trainees as this will assist accounting profession in complying with the CA Charter. Incongruities between managers and trainees perceptions of the CA Charter call for the accounting profession to conduct awareness in all the accounting firms in KwaZulu-Natal.
Markets' reaction to financial restatements of the Top 40 JSE listed companies.
(2022) Jwara, Nomthandazo Consolatrix.; Mkhize, Msizi Vitalis.; Nxumalo, Bhekikhaya Henry.
There has been a rapid growth of financial restatements. This concerns the investors about the integrity and reliability of the entity’s financial reporting environment and restatements negatively affecting market reactions. Numerous listed companies are restating their financial statements due to inaccurate or misleading information in the previously published financial reports. JSE requires listed firms to correct and amend incomplete or misleading information. A survey on the market reaction around announcements of financial restatements of JSE companies has been a concern and interest to investors, management, and any other concerned parties. As a result, the aim was to examine the causes of financial restatements of the listed top 40 companies in South Africa and establish the markets’ reaction. The study involved the top 40 companies listed on the JSE from 2007 to 2019. The study collected secondary data and the population of thirty-two events was pulled from the JSE SENS. A sample size equaled the entire population of thirty-two events. The window period included 10 days before the announcements, the day of the announcement, and 10 days after the announcement. The IBM SPSS Statistics 27, the statistics software, was used to analyse data. The results indicated a total of thirty-two restatements over a period of thirteen years. The year 2019 was the period that reported the most restatements. Causes of restatements were found to be accounting errors, adoption of the new standard, accounting irregularities, and change in accounting policy. A substantial number of restatements were due to accounting errors. A majority of companies experienced growth in share price on the 10th day after the announcement. Nonetheless, when all days within the window period were included in the analyses, the overall calculation indicated that companies experienced an average decline of - 7.55% in the share price after the announcement. The empirical findings confirm that markets react negatively to the restatements since a significant number of companies exhibited an average decline in share price after the announcement.