Registered Auditor vs. Chartered Accountant: Key Differences Explained
Registered Auditor vs. Chartered Accountant: What’s the Difference?
If you’re exploring the world of finance and accounting, you’ve probably come across two key roles: Chartered Accountant (CA) and Registered Auditor (RA). While both are essential to financial operations and compliance, their responsibilities, training, and legal mandates set them apart. Let’s break it down in simple terms.
The Basics: What Do They Do?
Chartered Accountant (CA):
CAs are the backbone of a company’s financial management. They handle everything from preparing financial records to offering tax advice and financial planning. Their work ensures the business operates within international accounting standards.
Registered Auditor (RA):
RAs are essentially CAs with additional qualifications and responsibilities. Their main job is to independently review a company’s financial statements. Think of them as financial detectives, ensuring everything is accurate, compliant, and above board.
Responsibilities: What Sets Them Apart?
Chartered Accountant (CA)
- Prepares financial reports and statements.
- Offers advice on taxes, budgets, and financial planning.
- Helps businesses with day-to-day financial operations and long-term strategy.
Registered Auditor (RA)
- Conducts independent audits of financial statements.
- Investigates irregularities such as fraud or misstatements.
- Ensures compliance with strict auditing standards.
While CAs can work inside a company or as external consultants, RAs must remain impartial, often working as external auditors to maintain objectivity.
Legal and Regulatory Differences
- CAs: Guided by international accounting standards, they focus on financial accuracy and compliance.
- RAs: Governed by the Independent Regulatory Board for Auditors (IRBA) in South Africa, RAs follow auditing standards and perform legally required audits, like those for JSE-listed companies.
Importantly, only Registered Auditors can perform statutory audits in South Africa, giving them a unique and vital role in financial oversight.
Training: The Journey to Each Profession
To Become a Chartered Accountant (CA):
- Complete a SAICA-accredited qualification.
- Gain practical experience through a SAICA training contract.
- Pass two major exams: the ITC and the APC.
To Become a Registered Auditor (RA):
- First, qualify as a CA(SA).
- Complete the Audit Development Programme (ADP), an 18-month training program with a registered auditing firm.
- Prove your auditing expertise through a portfolio of evidence.
When Are They Needed?
CAs: You’ll find them in every business, managing finances, advising on tax, and assisting with strategy.
RAs: They step in when an independent review of financial records is required. This could be for annual audits, regulatory compliance, or investigating suspected fraud.
Key Takeaways
- Not every CA is an RA, but every RA starts as a CA.
- CAs focus on managing and reporting financial data, while RAs specialize in impartial audits.
- Becoming an RA adds an extra layer of responsibility and authority, allowing you to perform statutory audits.
Whether you’re a business owner or someone exploring a career in accounting, understanding these roles can help you choose the right professional—or the right career path. Both CAs and RAs play crucial roles in maintaining trust, transparency, and compliance in the financial world.