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Assignment
Professional Accounting Bodies of the World
Name- Nirankar Singh
Roll No.- PGD-FM/09/003
Class- PGDFM (Sem I)
Submitted to- Hariharan Sir
Date- 09/10/2009
INDEX
Sr.No. Assignment Pg.No
I. Professional Accounting Bodies in Australia.
a) CPA Australiab) Institute of Chartered Accountants of
Australia(ICAA)c) National Institute of Accountants(NIA)
3-173-7
8-1213-17
II. Professional Accounting Bodies in Pakistan.
a) Institute of Chartered Accountants of Pakistan(ICAP).
b) Institute of Cost and Management Accountants of Pakistan(ICMAP).
c) Pakistan Institute of Public Finance Accountants. (PIPFA)
18-31
18-24
25-28
29-31
III. Professional Accounting Bodies in United States of America.
a) Association of Government Accountants (AGA).
b) National Association of State Boards of Accountancy (NASBA).
c) American Institute of Certified Public Accountants(AICPA).
32-41
32-34
35-36
37-41
IV. Professional Accounting Bodies in United Kingdom.
a) Chartered Institute of Public Finance and Accountancy(CIPFA)
b) Chartered Institute of Management Accountants(CIMA)
c) Institute of Chartered Accountants in England & Wales (ICAEW)
42-54
42-45
46-49
50-54
V. Professional Accounting Bodies in Hong Konga) Hong Kong Institute of Certified Public
Accountants (HKICPA)
55-58
VI. Professional Accounting Body in Scotland
59-61
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a) Institute of Chartered Accountants of Scotland(ICAS)
I. Professional Accounting Bodies in Australia
1) CPA Australia
CPA Australia is one of three professional accounting bodies in Australia, the others being
the National Institute of Accountants and the Institute of Chartered Accountants of
Australia.
CPA is an acronym for Certified Practicing Accountant, as opposed to United States (and
other countries') usage of Certified Public Accountant. CPA Australia is one of the largest
global accounting bodies, having members through Asia Pacific as well as its home base.
History of Certified Practicing Accountant (CPA)-
The name CPA Australia dates from April 2000. Prior to that, the society had been known as
the Australian Society of Certified Practising Accountants since July 1990. In its current form
the society dates from 1952 when it was incorporated as the Australian Society of
Accountants. The main predecessor bodies of the Society, with year of formation, are:
Incorporated Institute of Accountants, 1886 (changed name in 1921 to the
Commonwealth Institute of Accountants)
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Federal Institute of Accountants, 1894
Association of Accountants of Australia, 1910
Australian Institute of Cost Accountants, approximately 1925
In 1952, the Commonwealth Institute and Federal Institute merged to form the
Society. The Association of Accountants of Australia was merged into the Society
some years later, with the Australian Institute of Cost Accountants following in 1966.
Membership in Certified Practicing Accountant (CPA)-
Full membership requires academic qualifications from an accredited university, of at least
undergraduate degree level with an accounting major, completion of three years mentored
work experience, and completion of six CPA Program segments (subjects) supervised by the
organisation. Further qualifications are necessary to provide services directly to the public
(Public Practice Certificate) or to offer financial planning services. Non-accounting graduates
can achieve CPA status by studying approved graduate conversion courses (Graduate
Certificate, Masters etc) before commencing the CPA Program.
Fulfillment of 120 Continuing Professional Development (CPD) hours per
triennium (3-year period) with a minimum of 20 CPD hours in each year is required for
continued membership. Members must monitor their own CPD hours and declare their
compliance with the annual renewal of membership. CPA Australia also conducts random
audits of members to confirm that they are meeting the CPD requirements.
Full members of CPA Australia use the designatory letters CPA, (CPA (Aust.) in
Hong Kong). Senior members may become Fellows and use the letters FCPA, (FCPA (Aust.) in
Hong Kong).
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The entry tier of membership, Associate level, can use the designatory letters
ASA. Applicants must hold recognized or accredited degree AND must fulfill the core
curriculum stipulated by CPA Australia in order to be admitted as an Associate. Membership
at this level must successfully complete the CPA Australia CPA Program and fulfill the CPA
Australia practical experience mentor program (or similar, offered by certain accounting
bodies that are under mutual recognition agreement with CPA Australia) to become
'qualified' as full member of CPA Australia.
CPA Australia has approximately 119,000 members (CPA/FCPA/ASA). An
increasing proportion of these members are from other countries or Australians located
overseas.
Skill Assessment in Certified Practicing Accountant (CPA)-
CPA Australia is a gazetted Assessing Authority for accountants, external auditors, corporate
treasurers and finance managers seeking to migrate to Australia, in common with ICAA and
the NIA. This is done under contract to the Australian Education International - Australian
National Office of Overseas Skill Recognition (AEI-NOOSR).
Related Organizations of CPA-
In the Australian regulatory framework, CPA Australia and the Institute of Chartered
Accountants of Australia co-operate in an advisory role in formulating and interpreting
accounting standards. Both bodies co-operate closely on professional matters, and issue
joint handbooks. There was some discussion about merging the membership of both bodies,
but there are no concrete plans for this move. Such a move would likely be considered
controversial given the different entry requirements of each organization
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Mutual recognition with CPA-
CPA Australia has mutual recognition agreements with:
American Institute of Certified Public Accountants / National Association of State
Boards of Accountancy (AICPA)
Hong Kong Institute of Certified Public Accountants (HKICPA)
Malaysian Institute of Accountants (MIA)
Institute of Certified Public Accountants of Singapore (ICPAS)
Chartered Institute of Public Finance and Accountancy (CIPFA)
Chartered Institute of Management Accountants (CIMA)
Institute of Chartered Accountants of India (ICAI)
Certified General Accountants Association of Canada (CGA)
Society of Management Accountants of Canada (CMA)
Not every member of CPA Australia is eligible for these mutual recognition agreements. In
particular, but not limited to, those CPAs who do not hold a recognized university degree or
qualified before the 1980s, may be excluded from their scope.
A mutual recognition agreement with New Zealand Institute of Chartered Accountants
(NZICA) was terminated (by NZICA) in 2003.
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CPA Australia has had a mutual recognition agreement with the Institute of Certified Public
Accountants in Ireland but as of 2006 this appears to have lapsed. Now as per new Mutual
recognition with ICAI (Institute of Chartered Accountants of India)on Dt. 03-02-2009 an
Indian CPA can do CPA Australia by passing one paper only and vice versa Four papers of
Indian CPA. Those who have experience of more than one year can become members by
passing supra mentioned exams.
Homepage of CPA- www.cpaaustralia.com.au
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2) Institute of Chartered Accountants of Australia(ICAA)
Institute of Chartered Accountants Australia –Logo
The Institute of Chartered Accountants in Australia (the Institute) is the professional
accounting body representing Chartered Accountants in Australia. It has over 50,000
members and has some 12,000 students. It is a founding member of the Global Accounting
Alliance (GAA)
History of ICAA-
Original crest of Institute of Chartered Accountants in Australia.
The Institute of Chartered Accountants in Australia was constituted by Royal Charter in
1928. The Institute now operates under a Supplemental Royal Charter (amended from time
to time) granted by the Governor-General on behalf of Queen Elizabeth II on 19 August
2005.
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Admission to membership in ICAA-
There are two options to obtain membership: one for those with an accounting degree and
the second for those with a non-accounting degree.
Accounting Degree in ICAA-
To take this path you will be required to have Accounting bachelor or masters degree, from
an accredited Australian university.
Non Accounting degree in ICAA-
There are three routes for non-accounting graduates to take to qualify for the Chartered
Accountants Program:
Graduate Conversion course: available from most Australian universities
Entrance exam: available for non-accounting graduates with significant on-the-job
accounting experience and employer support
Graduate Certificate of Chartered Accounting Foundations: available from Deakin
University as a part-time distance course covering the core accounting knowledge
areas.
Experience -
Then:
Be employed with a Chartered Accountant recognised organisation
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Enrol in the Program and start recording work experience
Complete at least 26 weeks of prior work experience under the supervision of a mentor
Complete the five modules of the Chartered Accountant Program (GradDipCA) which will
take around 14 weeks each.
apply for full membership after accumulating at least three year practical work experience.
Membership in ICAA-
There are a number for different membership categories.
Affiliate Membership - have an accounting degree and at least 5 years membership, but has
not completed the CA Program.
Members - have the designation CA (Chartered Accountant) after their name.
Fellows - have the designation FCA (Fellow Chartered Accountant) after their name - a
continuous member for ten years in a senior position for seven years, you may be
nominated for advancement to Fellowship. To be advanced to Fellow the member must
have demonstrated "leadership".
Teacher of Accountancy - For teachers to obtain membership, they are required to have
completed a Doctorate or Masters by research with a major in an accounting related field,
held a senior academic position for not less than five years, have appropriate Australian
Taxation and Corporation Law knowledge and have references from two Chartered
Accountants and your Head of School and another significant academic.
Certificate of Public Practice - Firms or members who offer their services to the public as
"Chartered Accountants"
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Continuing Education-
Chartered Accounants need to continue their education to ensure they continue to provide
the highest standards of integrity and professionalism. A Chartered Accountant must
complete a total of 120 hours of Continuing Professional Education every three years.
Reciprocial agreements of ICAA-
The Institute has reciprocity agreements with the following overseas accounting bodies:
* The American Institute of Certified Public Accountants (AICPA)
* Canadian Institute of Chartered Accountants (CICA)
* Hong Kong Institute of Certified Public Accountants (HKICPA)
* Institute of Chartered Accountants in England and Wales (ICAEW)
* Institute of Chartered Accountants in Ireland (ICAI)
* Institute of Chartered Accountants of Scotland (ICAS)
* The Japanese Institute of Certified Public Accountants (JICPA)
* New Zealand Institute of Chartered Accountants (NZICA)
* South African Institute of Chartered Accountants (SAICA)
* Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)
Business Leader Awards-
11 | P a g e
The Institute hosts the annual awards; Australia's highest accolade in business. The Business
Leader Awards recognise and celebrate outstanding business leadership in Australian
organisations across a whole spectrum of industries.
Nominees for the Business Leader Awards are judged on their ability to demonstrate
visionary leadership, exhibit best practice, show innovation and take risks, foster positive
employee relations and contribute to the community as well as displaying honesty and
integrity.
Homepage of CA-http://charteredaccountants.com.au/
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3) National Institute of Accountants(NIA)
The National Institute of Accountants (NIA) is an Australian professional accounting body.
History of NIA-
The history of the NIA dates back to 1923:
1923 - Institute of Factory and Cost Accountants, formed in Melbourne, Victoria.
1950 - Institute of Taxation and Cost Accountants, name change.
1957 - National Institute of Accountants, name change.
1967 - Institute of Commercial Studies, name change.
1970 - Institute of Affiliate Accountants, name change.
1988 - National Institute of Accountants, adoption of the precedent name.
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2002 - NIA gazetted as an authorised assessing authority for skilled migration to Australia
2004 - NIA becomes a member of International Federation of Accountants (IFAC)
Membership in NIA-
The NIA has several grades of membership:
Associate (ANIA)
Member (MNIA)
Professional National Accountant (PNA)
Fellow Professional National Accountant (FPNA)
Students studying towards an accounting qualification can join the NIA Student Register.
Membership requirements NIA-
1. ANIA membership requires the completion of an Advanced Diploma in Accounting or
a university degree in accounting.
2. MNIA level membership requires:
Advanced Diploma in Accounting plus the NIA Professional Education Program
Stage1 (Graduate Certificate in Professional Accounting); or
University degree in Accounting; plus
3 years experience in accounting
3. PNA level membership requires
MNIA membership; or
University degree in accounting plus
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Completion of the NIA Professional Education Program Stage 1&2. This leads to a
Master of Commerce (Professional Accounting) from the University of New England
plus
NIA Mentored Experienced Program. This constitutes 3 years structured experience
in accounting, under the supervision of an accountant qualified at PNA level or
equivalent.
4. FPNA membership requires
PNA status
10 years experience in accounting (5 of which at senior level)
6 years membership of NIA.
Members of other professional bodies-
Members of certain other professional bodies may apply for membership of NIA at PNA
level based on their existing qualifications. This includes members of Association of
Chartered Certified Accountants (ACCA) and Chartered Institute of Management
Accountants (CIMA).
The NIA has a mutual recognition agreement in place with the The South African Institute of
Professional Accountants (SAIPA). Formerly known as Institute of Certified Public
Accountants of South Africa.
On 17 September 2009, NIA signed mutual recognition agreement with The Institute of
Chartered Accountants of Sri Lanka. This agreement grants members of both institutes the
eligibility of admission to the other body, paving the way for Australian accountants to
practise in Sri Lanka or vice-versa.
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PNA/FPNA members of the NIA are recognised by the UK's Securities & Investment Institute
(SII) for admission to SII's full membership (MSI). Full membership of SII is recognised by
several national investment professional bodies such as the Financial Services Institute of
Australasia (FINSIA), formerly the Australian Institute of Banking and Finance and the Hong
Kong Securities Institute (HKSI).
Continuing Professional Education (CPE)-
All members of NIA must complete at least 80 hours CPE every two years.
Market reputation of NIA-
The NIA has the same Australian legislative recognition as the other two Australian
accounting bodies, CPA Australia (CPAA) and the Institute of Chartered Accountants of
Australia (ICAA). In particular, the three accounting bodies are defined as 'professional
accounting bodies" in the Corporations Act 2001. Such recognition entitles each of the three
bodies to nominate a representative to the Australian Financial Reporting Council, the
Australian Government's peak body responsible for providing oversight of the setting of
accounting and auditing standards as well as monitoring the effectiveness of auditor
independence requirements in Australia and giving the Government reports and advice on
these matters.
The PNA designation was introduced in 2000 as part of a strategy to upgrade the standing of
NIA in the Australian market. At the time, to become a PNA, the applicant required a
university degree in accounting plus 3 years work experience in accounting.
The NIA became a member of the International Federation of Accountants in November
2004. In order to obtain IFAC membership, the NIA upgraded the academic requirements for
16 | P a g e
the PNA designation to a Masters degree, developed in conjunction with the University of
New England. Existing persons with the PNA designation were allowed to retain their status
without further examination, and transitional arrangements were made for those
completing their studies.
From 1 July 2005, the NIA upgraded the experience requirements for the PNA designation to
a three year competence-based mentored experience program. Aspirants for this class of
membership must demonstrate to a senior accountant that they have the competence to
undertake various tasks required by the NIA.
The reputation of the NIA is also recognised in the Government forums and committees that
it is represented on. These forums and committees include those of the Australian Securities
and Investments Commission and Australian Taxation Office.
Qualification assessment -
Effective from 1 July 2002, the NIA was gazetted by the Australian Minister for Immigration
as an authorised assessing authority for accountants seeking to migrate to Australia under
Australia's skilled migration program. This gives the NIA the authority to assess the
accounting qualifications of such persons.
The requirements to obtain a qualification assessment as an accountant for migration
purposes are not the same as those for actual membership of NIA.
Public practice-
Members of NIA at MNIA, PNA and FPNA level may apply for public practice certificates,
after completing additional requirements set by NIA.Homepage – www.nia.com.au
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II. Professional Accounting Bodies in
Pakistan
1) Institute of Chartered Accountants of
Pakistan(ICAP)
Established 1961
Type Chartered accountancy body, Professional institute
President Asad Ali Shah
Students >35,000
Location Karachi, Pakistan
Campus Karachi Head Office, Lahore, Islamabad, Multan and Faisalabad
Affiliations International Federation of Accountants and International Accounting
Standards Board
Website www.icap.org.pk
18 | P a g e
The Institute of Chartered Accountants of Pakistan is a professional accountancy body in
Pakistan. By 5 May, 2008, it has total 4393 members working in and outside Pakistan. The
institute was established on July 1, 1961 to regulate the profession of accountancy in
Pakistan. It is a statutory autonomous body established under the Chartered Accountants
Ordinance 1961. With the significant growth in the profession, the CA Ordinance and Bye-
Laws were revised in 1983.
In view of globalization of the accountancy profession, the Institute is in the process of
updating the Ordinance and Bye-Laws once again.
The course of ICAP involves a blend of theoretical education and practical training which run
concurrently for a period of three years and equips a student with knowledge, ability, skills
and other qualities required of a professional accountant.
The head office of the institute is in Clifton, Karachi where it has its own premises. The
institute also has regional offices at Lahore, Islamabad, Multan and Faisalabad.
History of ICAP
1850-1881 -In Indian subcontinent there were a few British firms of accountants,
but they were so busy that their services were not available to the general public.
The public companies used to appoint a European auditor for safeguarding the
interests of the European shareholders, and an Indian auditor with the objectives of
safeguarding the interests of the Indian shareholders. The audit of financial
statements were conducted under the Companies Act 1850.
1882-1913- Then the Companies Act of 1882 was passed. Regulations 83-94 of
Table A contained in the First Schedule provided for the audit of accounts of the
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companies adopting that table and for the appointment, remuneration and duties of
the auditors. In those times, it was not necessary for an auditor to be a qualified
accountant. Companies used to employ lawyers as their auditors.
1913-1932- On 1 April, 1914, the Companies Act, 1913 was passed and it was
necessitated that every auditor of a public limited company must be a certified
auditor by the government. The provincial governments were empowered to grant
auditors' certificates but, at the same time, the central government also reserved the
right to recognise members of certain professional bodies as qualified auditors
without obtaining Auditor's Certificate from the government. Consequently the
members of the English, Scottish and Irish Institutes of Chartered Accountants and
the English Society of Incorporated Accountants and Auditors were recognised as
qualified auditors.
At that time there was no provision of any kind for the training and examination of the
accountants. Government of Bombay was the first provincial government to take a
constructive step in the direction of organising the profession. In 1918, it instituted the
Government Diploma in Accountancy called GDA and made regulations for the examination
and training of those who wanted to obtain that Diploma and certificate to practise.
An Accountancy Board was set up by the Government and was attached to the Sydenham
College of Commerce and Economics, Bombay. This functioned till 1932. The Board was
required to register apprenticeships and conduct the required examinations. The successful
candidates were granted the GDA Diploma and they could practise if they had previously
received training as apprentices with a practising accountant. The Accountancy Board was
also required to advise the Government on all matters relating to accountancy and the
Government.
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1932-1947- In 1932, the Government framed rules under Section 144 of the
companies Act, 1913, called Auditors' Certificates Rules, 1932. The objectives of the
rules, broadly, were to register apprenticeships, to conduct examinations, and to
control and regulate the profession of auditing. The accountancy profession was
then being supervised and controlled by the Ministry of Commerce of the Central
Government. With a view to helping the Government in discharging the necessary
responsibilities in respect of the accountancy profession, Indian Accountancy Board
was established. The Board consisted of officials and practising accountants
nominated by the Government. Later, in 1939, appointment of a majority of the
members on the Board was made on the elective principle. The Board was only an
advisory body. The Auditors' Certificates Rules, 1932, required the passing of two
examinations – Registered Accountants first and final. It further laid down the tenure
of the prescribed training which was required to be completed during the period of
apprenticeship. Provisions meant to regulate and control the profession were also
contained therein.
1947-1984- After independence, Pakistan adopted the Auditors' Certificates Rules
1932 with certain amendments in 1950, and thus the auditing profession was
administered under the Auditors' Certificates Rules, 1950. The Rules of 1950 were
generally based on the old rules with some amendments incorporated therein. A
person who passed the Registered Accountants first and final examinations and who
satisfied the Ministry of Commerce, Central Government of Pakistan that the had
completed the prescribed practical training could have his name placed on the
register maintained by the said Ministry and was entitled to use the designation
'Registered Accountant' (RA). The Companies Act, 1913, as adapted by Pakistan
21 | P a g e
allowed only a Registered Accountant to act as the auditor of a public limited
company, although his services could also be utilised for the audit of private
companies, partnership, etc.
In 1952, the Registered Accountants formed a private body known as 'Pakistan Institute of
Accountants' with the object of looking after their own interest and taking up with the
Ministry of Commerce, Government of Pakistan, matters affecting the accountancy
profession.
In June 1959 the Department of Accountancy was established in the Ministry of Commerce
with a Controller of Accountancy to deal with the profession instead of a Section Officer.
During this period, an advisory body called the 'Council of Accountancy' was set up under
Auditors' Certificates Rules, 1950 and recommended the establishment of the Institute of
Chartered Accountants in Pakistan. The Government accepted the recommendations and
the Department of Accountancy assisted by the officials of the Institute and a number of its
members prepared the Draft Ordinance to be passed.
The Chartered Accountants Ordinance, 1961, received the assent of the President of
Pakistan, Field Marshall General Ayub Khan on March 3, 1961 and was published in Part 1 of
the Extraordinary Gazette of Pakistan on March 10, 1961. The Institute of Chartered
Accountants of Pakistan came into being on July 1, 1961. A draft of the Chartered
Accountants Bye-Laws was also prepared and published for inviting public comments. The
amended version called the Chartered Accountants Bye-Laws, 1961 was published in the
Part 1 of the Extraordinary Gazette of Pakistan on July 1, 1961 and was enforced as on that
date. As of that date the Department of Accountancy and the Pakistan Institute of
Accountants having served a very useful purpose for a long time were finally liquidated.
22 | P a g e
The Chartered Accountants Bye-Laws provided for the formation of regional committees to
look after the interests of their members. The members are divided into two classes –
namely, Associate Chartered Accountants (ACA) and Fellow Chartered Accountants (FCA).
1984-till now-
In December 1984, the Companies Act, 1913 was replaced by the Companies Ordinance,
1984 with an order by the President of Pakistan General Zia-ul-haq. With this Ordinance, it
was also necessitated for the manufacturing concern to prepare and maintain cost
accounting records and to arrange cost audit on annual basis by a Chartered Accountant or
a Cost and Management Accountant. It also lays down the requirements for the preparation
of financial statements of unlisted companies. For listed companies the above Ordinance
also made mandatory the National Accounting Standards (NAS) and other standards to be
strictly followed while preparing financial statements.
Keeping in view the convergence, undergone by the major economies of the world such as
United States of America, China and Canada, of the International Financial Reporting
Standards with respective local GAAP, the demand for IFRS specialists is increasing. The
Institute of Chartered Accountants of Pakistan (ICAP) has introduced a diploma in IFRS to
prepare the candidates to avail such opportunities.
Mission Statement of ICAP-
"To achieve excellence in professional competence, add value to businesses and economy,
safeguard public interest; ensure ethical practices and good corporate governance while
recognizing the needs of globalization."
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International Association -
The ICAP is a member of International Federation of Accountants (IFAC), International
Accounting Standards Board (IASB), Confederation of Asian and Pacific Accountants (CAPA)
and South Asian Federation of Accountants (SAFA).
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2) Institute of Cost and Management
Accountants of Pakistan(ICMAP)
Established 1951
Type Professional institute
President Hasan Aziz Bilgrami
Students >15,000
Location Karachi, Pakistan
Campus Karachi Head Office, Karachi Camp Office, Dubai, Lahore, Islamabad,
Peshawar, Quetta and others
Affiliations International Federation of Accountants and International Accounting
Standards Board
The Institute of Cost and Management Accountants of Pakistan was established in 1951 and
was granted statutory status under the Cost and Management Accountants Act, 1966 for
the regulation of the profession of Cost and Management Accounting. The said institute was
originally established with the name 'Pakistan Institute of Industrial Accountants (PIIA)'
which was changed to ICMAP in 1976. It is considered as the oldest professionial
accountancy institute of Pakistan.
25 | P a g e
ICMAP is the sole provider of cost and management accounting education, training and
professional certification in Pakistan. The institute has earned reputation both nationally
and internationally for its high standard in imparting education and testing. The Institute has
been meeting an important national human resource need through a steady flow of
professional management accountants to occupy leading positions in the corporate world.
ICMAP has over 4000 members, who hold senior positions in trade, commerce, industry and
government in Pakistan as well as abroad. The number of active registered students is
around 15000, which makes ICMAP one of the largest professional institutions in Pakistan.
The institute has its head office in Karachi.
International Association of ICMAP-
The Institute is member of the following international accounting bodies:
International Federation of Accountants (IFAC)
International Accounting Standards Board (IASB)
Confederation of Asian and Pacific Accountants (CAPA)
South Asian Federation of Accountants (SAFA)
International and National Recognition-
The accounting bodies that have recognised ICMAP qualification and granted exemptions to
ICMAP Members or Qualified Students in different papers are:
The Chartered Institute of Management Accountants (CIMA), UK
The Society of Management Accountants (SMA), Canada
Institute of Management Accountants (IMA), USA
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The Association of Chartered Certified Accountants (ACCA), UK
The Institute of Chartered Accountants of Pakistan (ICAP)
Institute of Chartered Accountants of Australia (ICA- Australia)
Certified General Accountants Association (CGA), Canada
National Institute of Accountants, Australia
Association of International Accountants, UK
The Institute of Internal Auditors (IIA), USA
Pakistan Institute of Public Finance Accountants (PIPFA)
The Institute of Corporate Secretaries of Pakistan (ICSP)
Role of the Members of ICMAP-
The 'Management Accountants' produced by the Institute, have met the requirements of
the industry over the years and performed creditably in the assigned roles. Today, more
than 60% ICMAP Members occupy top to middle management positions in industry,
financial institutions, consultancy firms etc., as Chief Executive Officers, Managing Directors,
Chairpersons, General Managers, Controllers, Directors of Finance, Company Secretaries,
etc.
Role of Management Accountants as defined by ICMAP-
Breaking down of cost/expenditure into functions and processes to facilitate cost
control at each operational level.
Developing standards for all operating areas and evaluating actuals with the
standards.
Analysing overall business and operational data.
Suggesting alternatives to improve productivity.
27 | P a g e
Identifying areas of wastages, leakages and inefficiencies or invisible losses.
Ensuring optimum utilisation of available resources.
Deploying informatic tools for an efficient management information system.
Contributing to Total Quality Management (TQM).
Assisting in decision-making process at all cadres of management.
Publication by ICMAP-
Cost accounting and audit
Cost Accounting Guideline 1 (The first cost accounting standard issued by the
Institute)
Cost Audit Handbook.
Management Accountant by ICMAP-
The ICMAP takes out a bi-monthly journal Management Accountant which has a circulation
of around 14,000 copies, becoming the only professional journal of the country having
widest circulation. The Institute has also published research based articles on each sector of
the economy.
28 | P a g e
3) Pakistan Institute of Public Finance
Accountants(PIPFA)
Established 1993
Type Professional institute
President Muhammad Sharif
Students >10,000
Location Karachi, Pakistan
Campus Karachi Head Office, Branch Offices at Lahore, Islamabad, and
Faisalabad
Affiliations International Federation of Accountants
Website www.pipfa.org.pk
Pakistan Institute of Public Finance Accountants (PIPFA) is an autonomous body recognized
mainly in the government sector and established under license from the Securities and
Exchange Commission of Pakistan by the authority given under section 42 of the Companies
Ordinance, 1984.
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The body is co-sponsored by the Institute of Chartered Accountants of Pakistan, the
Institute of Cost and Management Accountants of Pakistan and the Auditor General of
Pakistan.
PIPFA has more than 2,500 members and a number of them are members of ICAP and
ICMAP.
The institute was established to produce a second tier of accounting professionals in
Pakistan.
Mission Statement of PIPFA-
"identification, development and imparting knowledge to provide a structure for the
training of accounting professionals in the specialized areas"
International Recognition of PIPFA-
PIPFA is the associate member of International Federation of Accountants (IFAC). Thus,
there are three accountancy institutes in Pakistan that have representation with IFAC, i.e.,
ICAP, ICMAP and PIPFA.
Administrative Structure of PIPFA-
There are 12 governors on the Board. Three governors are appointed by each of the three
sponsoring bodies and the members of the Association elect three.
In addition to the Board of Governors, PIPFA has the following committees: Examination
Committee, Executive Committee, Publication and Seminar Committee, Board of Studies,
Regulation and Discipline Committee. These committees are established for the following
purposes:
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Education and training of students seeking professional qualification and
membership of the Association.
Investigation of cases of unethical conduct by the members or students and initiate
the necessary disciplinary action.
Provision of technical advice to the members on any accounting or auditing issues.
Regional committees are organized to promote the professional education activity at
regional levels through seminars and workshops
Educational Requirements in PIPFA-
The prerequisite entry requirement is Intermediate examination from a recognized
education board, university or institution or any other qualification considered equivalent by
the Board of Governors or “A” levels of General Certificate of Education.
Candidates who have passed accountancy courses from ICMAP or ICAP examinations are
eligible for direct membership of the Institute.
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III. Professional Accounting Bodies in United
States of America.
1) Association of Government Accountants
(AGA)
Abbreviation AGA
Formation 1950
Legal status Association
Purpose/focus Improving Federal, State and Local Government Accounting
in the United States
Headquarters Virginia
Region served United States
Membership Government Accountants
Main organ Journal of Government Financial Management
Website http://www.agcgfm.org
The Association of Government Accountants (AGA) was founded on September 14,
1950. AGA serves Federal, State and local government accounting professionals by
providing education, encouraging professional development, providing Government
Accounting certification, and supporting standards and research to advance
government accountability.
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The Certified Government Financial Manager (CGFM) certification, created in 1994, is
a professional post-nominal title and a standard by which government financial
management professionals are measured. Its education, experience and ethics
requirements have served to elevate the most seasoned financial professionals.
More than 14,000 individuals have received the designation.
Association of Government Accountants-
AGA (Association of Government Accountants) is a non-profit professional
association that serves government accountability professionals.
Mission of AGA-
AGA serves government accountability professionals by providing quality education,
fostering professional development and certification, and supporting standards and
research to advance government accountability.
It is a leading professional organization promoting accountability in government and
has over 15,000 members. Its annual Professional Development Conference is
attended by upwards of 2,000 professionals each year. It has a unique role in
government accountability with membership from state, local and federal
government entities.
History of AGA-
The Association of Government Accountants (AGA) was founded on September 14,
1950 as the Federal Government Accountants Association (FGAA) a group of federal
accountants, led by Robert W. King. AGA has a long history of being the thought
leader for the government accountability profession. Through education, research,
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publications, certification and conferences, AGA reaches thousands of professionals
and provides more than 100,000 continuing professional education (CPE) hours
annually. The association supports the careers and professional development of
government finance professionals working in federal, state and local governments as
well as the private sector and academia.
AGA has played an instrumental role in developing accounting and auditing
standards and in generating new concepts for the effective organization and
administration of financial management functions, including the passage of the
Inspector General Act of 1978 and the Chief Financial Officer's Act of 1990. AGA
conducts independent research and analysis of all aspects of government financial
management.
Certification of AGA-
Since its inception in 1994, the Certified Government Financial Manager (CGFM) has
become the standard by which government financial management professionals are
measured. Its education, experience and ethics requirements have served to elevate
the most seasoned financial professionals.
Today more than 14,000 individuals have received the designation. The CGFM is the
first certification broad enough to cover the whole field of government financial
management—federal, state and local. It measures a wide range of knowledge and
skills that a professional needs to succeed in the federal government financial
environment, or to meet the unique challenges faced by state and local government
financial managers
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2) National Association of State Boards of
Accountancy (NASBA)
The National Association of State Boards of Accountancy (NASBA) is an umbrella group for
the 55 state boards that regulate the accountancy profession in the United States of
America.
There is one board for each of the 50 states, plus the District of Columbia, Puerto Rico, U.S.
Virgin Islands, Guam and the North Mariana Islands.
Structure of the U.S. accounting profession-
In the United States, the designation of Certified Public Accountant (CPA) is granted at state
level. Individual CPAs are not required to belong to the American Institute of Certified Public
Accountants (AICPA), although many do so.
NASBA acts primarily as a forum for the state boards themselves, as opposed to AICPA
which represents CPAs as individuals
Role of NASBA-
NASBA's primary role is to:
act as a forum for state boards to discuss issues of common concern
encourage reciprocal recognition of the CPA qualification between states
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enable state boards to speak with one voice in dealing with AICPA, the Federal
Government, and other stakeholders.
NASBA is a member of the International Federation of Accountants.
Uniform CPA Examination-
Responsibility for the Uniform Certified Public Accountant Examination is shared between
AICPA, NASBA and the state boards:
AICPA is responsible for setting and scoring the examination, and passing scores to
NASBA.
NASBA maintains the National Candidate Database and matches score data received
from AICPA with candidate details. NASBA also maintains records for those who have
passed the exam in the past.
State boards are responsible for assessing eligibility to sit for the examination. They
are also the final authority on passing results to candidates (which they receive from
NASBA).
AICPA and NASBA also co-operate in setting up and maintaining mutual recognition
agreements with foreign accountancy institutes. As of June 2006, the only countries with
such agreements exist are Ireland, Mexico, Australia and Canada. Accountants from these
countries who meet the specified criteria may be able to sit for the International
Qualification Examination (IQEX) as an alternative to the Uniform CPA Exam. IQEX is also
jointly administered by AICPA and NASBA, however state boards are not involved at the
examination stage (only at licensure).
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3) American Institute of Certified Public
Accountants(AICPA)
AICPA offices in Durham, North Carolina.
The American Institute of Certified Public Accountants (AICPA) is the national, professional
association of CPAs in the United States, with more than 330,000 members, including CPAs
in business and industry, public practice, government, and education; student affiliates; and
international associates. It sets ethical standards for the profession and U.S. auditing
standards for audits of private companies; federal, state and local governments; and non-
profit organizations.
Approximately 40% of its members are engaged in the practice of public accounting, in areas
such as auditing, accounting, taxation, general business consulting, business valuation,
personal financial planning and business technology. The majority (60%) of its members are
CPAs who work in industry, government and education. However, because of the AICPA's
major role in self-regulation of most practicing CPAs, a large part of the AICPA's resources
are devoted to this function and to related programs to help CPAs maintain professional
competence.
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The AICPA's overriding role is to promote and enhance the profession of accounting. To
accomplish this, it has a variety of functions that include: providing group member benefits;
preparing the Uniform CPA Examination; developing CPA professional standards; providing
technical support to CPA members in many areas of practice; operating the profession's
public relations programs; providing support to the academic community and representing
the profession before Congress and federal agencies.
Professional standards setting -
The AICPA sets generally accepted professional and technical standards for CPAs in many
areas. Until the 1970s, the AICPA held a virtual monopoly in this field. In the 1970s,
however, it transferred its responsibility for setting generally accepted accounting principles
(GAAP) to the newly formed Financial Accounting Standards Board (FASB.) Following this, it
retained its standards setting function in areas such as financial statement auditing,
professional ethics, attest services, CPA firm quality control, CPA tax practice and financial
planning practice. Before passage of the Sarbanes-Oxley law, AICPA standards in these areas
were considered "generally accepted" for all CPA practitioners.
In the early 2000s, federal public policy makers concluded that where independent financial
statement audits of public companies regulated by the U.S. Securities and Exchange
Commission are concerned, that the AICPA's standards setting and related enforcement
roles should be transferred to a government empowered body with more enforcement
authority than a non-governmental professional association, such as the AICPA could
provide. As a result, the Sarbanes-Oxley law created the Public Company Accounting
Oversight Board (PCAOB) which has jurisdiction over virtually every area of CPA practice in
relation to public companies. However, the AICPA retains its considerable standards setting,
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ethics enforcement and firm practice quality monitoring roles for the majority of practicing
CPAs, who serve privately held business and individuals.
Member technical support-
The AICPA has many technical and professional committees and task forces that deal with
numerous issues facing CPAs, their clients and the public. The AICPA also provides a wide
array of telephone technical support, educational material, conferences and technical
publications for its members. In addition, it offers specialization credentials in several areas,
such as the Personal Financial Specialist designation for CPAs in personal financial planning.
Other specializations are offered in the ares of business technology and business valuation.
The AICPA's national technical conferences are well known for their excellence. The AICPA
also publishes the Journal of Accountancy, the nation's oldest technical accounting journal,
and The Tax Adviser, and has an extensive website supporting all of these activities.
The AICPA provides substantial support to the accounting programs of colleges and
universities involved with educating future CPAs.
Public relations program-
The AICPA runs a number of public relations activities that include: having members
available to the media to provide technical support in the areas of CPA practice expertise;
operating an extensive high school and college student recruitment program called "Start
Here. Go Places." to encourage students to consider a CPA career; and getting the word out
about the vital role that CPAs play in the U.S. economy in support of financial markets, small
business and entrepreneurship.
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The AICPA also runs extensive public interest programs. One of the most important is an
award winning program called 360 Degrees of Financial Literacy. The program is a multi-
faceted effort, spearheaded by the AICPA, with the support of state CPA societies. It
encourages CPAs to take a broad leadership role in volunteering to educate the American
public, from school children to retirees, on financial topics that apply to their particular
stage of life.
During the fall of 2006, the AICPA and the Ad Council launched a national campaign to
encourage Americans aged 25–34 to "Feed the Pig" as a key step toward building a solid
financial future for themselves and their families. Feed the Pig is a national multi-media
campaign, featuring Benjamin Bankes, a smartly dressed, adult-sized pig intended to evoke
memories of the piggy bank. The campaign's purpose is to deliver a strong message about
the importance and benefits of saving. A dedicated website provides free financial
information and tools to help young "career builders" take control of their finances and
build long-term financial security.
Government relations program-
The AICPA has a Washington office and a political action committee. Many of its Washington
activities have a public interest aspect. The AICPA and its members make recommendations
to Congress and a number of federal agencies to help them better serve the public, in areas
of CPA technical expertise, such as taxation and accounting. In these areas, the AICPA tries
to solely be a technical resource rather than recommending policy positions. For example, in
the social security debate, the AICPA develops white papers that lay out all of the options
and the pros and cons of each option to assist policy makers. A careful process is used to
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weed out any policy bias in such analyses. The Washington office also represents the
profession in matters of specific interest to members.
The AICPA's Political Action Committee is a contributor to U.S. Congressional
representatives and Senators from both parties who sit on various legislative committees of
relevance to CPAs.
External roles-
Certified Public Accountants are licensed by individual states, so they must follow the laws
and regulations of the state they are licensed in. Once achieving state CPA licensure, by
federal regulation, CPAs are automatically licensed to practice before the Internal Revenue
Service, with essentially the same rights and duties as attorneys. For audits involving federal
monies, the Government Accountability Office has issued additional standards commonly
referred to as the Yellow Book.
In addition, the AICPA was a primary source for defining Generally Accepted Accounting
Principles for State and Local Governments through the issuance of an Industry Audit Guide
and Statements of Position.
The AICPA is a leading member of the International Federation of Accountants.
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IV. Professional Accounting Bodies in United
Kingdom.
1) Chartered Institute of Public Finance and
Accountancy(CIPFA)
The Chartered Institute of Public Finance and Accountancy (CIPFA) is a professional institute
for accountants working in the public services.
CIPFA has 14,000 members who work throughout the public services, in national audit
agencies, in major accountancy firms, and in other bodies where public money needs to be
managed. CIPFA is the only UK professional accountancy body to specialise in public
services. The qualifications include the benchmark professional qualification for public
sector accountants as well as a postgraduate diploma for people already working in
leadership positions.
CIPFA promotes public finance globally by standing up for sound public financial
management and good governance. CIPFA works with governments, accounting bodies and
the public sector around the world to advance public finance and support its professionals.
CIPFA is a member of the Consultative Committee of Accountancy Bodies, the umbrella
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organisation for the British accountancy profession. It also belongs to the International
Federation of Accountants.
CIPFA’s regional branches cover the Channel Islands, Europe, Midlands, North East, North
West & North Wales, Northern Ireland, Republic of Ireland, Scotland, South East, South
West & South Wales and Yorkshire & the Humber.
Designation -
Members of CIPFA are entitled to style themselves Chartered Public Finance Accountant and
use the designatory letters CPFA.
History of CIPFA-
CIPFA began life as the Corporate Treasurers’ and Accountants’ Institute in 1885, changing
its name to the Chartered Institute of Public Finance and Accountancy in 1973 when it
obtained its Royal Charter
Qualifications in CIPFA-
The Professional Qualification
The CIPFA qualification delivers the skills required for working in local government, the NHS,
central government, voluntary sector or private sector firms dealing with public services.
Certificate in Charity Finance & Accountancy
Designed by CIPFA and London South Bank University - designed to meet the needs of those
working in the finance functions of charities.
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Certificate in International Treasury Management - Public Finance
A professional qualification in the fundamentals of treasury management for the public
services developed by both CIPFA and the Association of Corporate Treasurers (ACT).
CIPFA Certificate Investigative Practice Qualification (CCIP)
Aimed primarily at investigators who have some experience but who lack any formal
qualification. MSc Accounting & Finance (top-up) for professionally qualified accountants
holding the CIPFA qualification achieved by examination A Masters top up programme to
recognise the level and depth of the Accounting qualification. To complete the MSc
Accounting and Finance you are required to study a research methods module, one further
academic module and complete a dissertation.
Membership in CIPFA-
CIPFA students who have successfully completed the CIPFA Professional Accountancy
Qualification and Initial Professional Development Scheme (IPDS) are invited to apply for
CIPFA Membership. Once membership is approved members can use the designatory letters
‘CPFA’ (Chartered Public Finance Accountant) for as long as they continue membership.
There are two further routes to membership, known as Bye-Laws 5 and 6.These are
normally ‘sponsored’ by Council members or Institute Directors, and are therefore people
who the Institute has worked with closely within financial management and accountancy
within the public service
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Mutual Recognition of CIPFA-
CIPFA and the Society of Management Accountants of Canada signed a mutual recognition
agreement in February 2004.
CMA/CIPFA Dual Qualification and Designations-
CIPFA and CMA Canada have a dual qualification which provides Canadian public sector
employees with comprehensive financial management and leadership training. On
completing the programme, candidates can apply for dual public finance management and
accounting designations as a Chartered Public Finance Accountant (CPFA) and Certified
Management Accountant (CMA) from CIPFA and CMA Canada respectively.
CIPFA and CPA Australia signed a mutual recognition agreement in June 2007.
Although not strictly a form of mutual recognition, CIPFA members of 5 years standing may
apply for direct entry to the Institute of Chartered Accountants in England and Wales
subject to meeting certain criteria.
CIPFA Group-
The CIPFA Group includes, in addition to the main accounting body; Public Finance - a
weekly magazine for the public sector; the in-house CIPFA Education and Training Centre
with almost 3,000 students at locations across the UK, and works with other places of
learning to provide courses locally; and a commercial services arm which provided advice
and services for the public sector. They include information and guidance, courses and
conferences, property and asset management solutions, consultancy and interim people for
a range of public sector clients.
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2)Chartered Institute of Management
Accountants(CIMA)
The Chartered Institute of Management Accountants (CIMA) is a UK based professional
body offering training and qualification in management accountancy and related subjects,
focused on accounting for business; together with ongoing support for members.
CIMA is a member of the Consultative Committee of Accountancy Bodies and the
International Federation of Accountants.
History of CIMA-
CIMA was founded in 1919 as "The Institute of Cost and Works Accountants" (ICWA). It
specialised in the development of accounting techniques for use in the internal control of
manufacturing, service and public sector operations. It developed a position as the leading
professional body in the areas of product costing, budgeting, management accounting,
investment appraisal and business decision making.
In October 1944 the Institute of Cost and Works Accountants organisation in Ireland was
formed.
The institute changed its name from ICWA to the Institute of Cost and Management
Accountants (ICMA) in 1972 and subsequently to the Chartered Institute of Management
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Accountants (CIMA) in 1986, after the granting of a Royal Charter. A global Accounting
qualification based in the UK, which is particularly active in Commonwealth countries. Its
membership has grown from 15,000 in 1970 to 65,000 in 2005. It has played a role in
founding fraternal professional bodies such as the Institute of Cost and Management
Accountants of Pakistan,Institute of Cost and Works Accountants of India and the Institute
of Management Accountants (USA).
Activities of CIMA-
CIMA operates a Masters degree standard scheme of fifteen qualifying examinations for
prospective members. It is active in promoting local education, training and management
development operations, the promotion of new techniques through its research foundation
and the dissemination of management accounting practices through publications and other
media related activities. CIMA has been active in recent educational and vocational
initiatives in former Eastern bloc countries. It publishes a monthly journal, supplied free to
members and registered students, called 'Financial Management' ('Management
Accounting' prior to 1998). CIMA also publishes a quarterly journal called 'Management
Accounting Research', mainly for an academic readership.
CIMA is recognised as a professional accounting body for various statutory purposes by UK
and various overseas governments. The institute regulates the activities of its members by a
code of practice, a discipline committee and (a recent innovation) a continuing education
scheme.
CIMA's governing body is its council, comprising members elected from regional branches.
Each of the branches has a committee and is responsible for much of the 'grass roots'
activity. Activity such as qualification development is undertaken from the London head
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office. The London office is also the location for the annual UK Final of the Global
Management Challenge, a strategic management competition for university students, which
CIMA sponsors.
In July 2009 CIMA added an online community - CIMAsphere - to its website. The
community consists of a range of blogs, discussion boards, groups, community answers,
expert Q&A sessions and some social networking features for members, students and also
the general audience.
Membership in CIMA-
CIMA has two grades of full membership:
Associate - designated by the letters ACMA
Fellow - designated by the letters FCMA
To be admitted as an associate a candidate must have:
completed a period of qualifying practice of at least three years, documented and
signed by appropriate witnesses
passed the institute's 15 qualifying examinations
been proposed and seconded for membership by two individuals who have direct
experience of the candidate's work experience but who do not need to be members
of CIMA or even accountants.
To become a Fellow a candidate ACMA must, in addition, have appropriate experience at a
senior level.
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In the past, CIMA has offered forms of association which do not amount to full membership,
for example an "Affiliate" membership class was promoted in the 1970s.
Strategic Alliances-
CIMA members have access to a number of strategic alliances, including:
An accelerated route to Associateship of the Association of Corporate Treasurers
A mutual recognition agreement with the Society of Management Accountants of
Canada
A mutual recognition agreement with CPA Australia
A strategic alliance with the Institute of Chartered Accountants of Australia
On 26 September 2006, CIMA announced a joint qualification program with the New
Zealand Institute of Chartered Accountants[6]
MOU with Institute of Cost and Works Accountants of India
Strategic Alliance with Institute of Cost and Management Accountants of
Pakistan(ICMAP)
Development in CIMA-
In recent years, CIMA has been party to merger talks with other professional accounting
bodies including the ICAEW in 1995 and again in 2005.
3)Institute of Chartered Accountants in
England & Wales (ICAEW)
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The Institute of Chartered Accountants in England & Wales (ICAEW) was established by a
Royal Charter in 1880. It has over 130,000 members. Over 15,000 of these members live and
work outside the UK. The Institute also has some 9,000 students.
The Institute is a member of the Consultative Committee of Accountancy Bodies (CCAB),
formed in 1974 by the major accountancy professional bodies in the UK and Ireland. The
fragmented nature of the accountancy profession in the UK is in part due to the absence of
any legal requirement for an accountant to be a member of one of the many Institutes. This
is because the term accountant does not have the same legal protection in the United
Kingdom as that given to, say, doctors and lawyers. There are, though, certain legal rights
and duties which are available to professionally qualified accountants. For example,
individuals who operate in the areas of audit and insolvency must be registered and only
members of certain accountancy bodies (such as the ICAEW) are eligible for such
registration. Likewise individuals who describe themselves as "chartered accountants" must
be a member of an accountancy body which holds a 'Royal Charter' and if working in public
practice these chartered accountants must comply with additional regulations such as
holding indemnity insurance and submitting to regular and independent inspections.
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The ICAEW has 2 offices; the main one is in Moorgate, London and the other in Central
Milton Keynes, in the newly built Hub:MK complex.
History of ICAEW-
Early years
Until the mid-nineteenth century the role of accountants in England and Wales was
restricted to that of bookkeepers in that accountants merely maintained records of what
other business people had purchased and sold. However, with the growth of the limited
liability company and large scale manufacturing and logistic in Victorian Britain a demand
was created for more technically proficient accountants to deal with the increasing
complexity of accounting transactions dealing with depreciation of assets, inventory
valuation and the Companies legislation being introduced.
To improve their status and combat criticism of low standards, accountants in the cities of
Britain formed professional bodies. The ICAEW was formed from the five of these
associations that existed in England prior to its establishment by Royal Charter in May 1880.
The Incorporated Society of Liverpool Accountants, formed in January 1870;
The Institute of Accountants in London was formed in November 1870, comprising 37
members under the leadership of William Quilter. In 1871, standards for membership were
established with new members having to show knowledge and aptitude through
successfully passing an oral examination. Initially the London Institute restricted its
membership to that city, but as other institutes were established elsewhere (for example, in
Manchester and Sheffield) it was decided to remove this restriction and as such in 1872 it
simply became known as the Institute of Accountants to reflect its new national coverage;
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The Manchester Institute of Accountants, formed in February 1871;
The Society of Accountants in England (1872);
The Sheffield Institute of Accountants (1877).
The Institute headquarters, Chartered Accountants' Hall, in the City of London, was designed
in the Italian Renaissance style by John Belcher in 1890. It was built by Colls & Sons.[2] It is
widely regarded as one of the finest examples of Victorian Baroque architecture.
In 1948, the institute received a Supplemental Charter.
In 1957 the ICAEW merged with the Society of Incorporated Accountants (founded in 1885
as the Society of Incorporated Accountants and Auditors).
Recent developments in ICAEW-
In 2005 the ICAEW sought to merge with the Chartered Institute of Management
Accountants (CIMA) and the Chartered Institute of Public Finance and Accountancy (CIPFA).
However, this project proved unsuccessful. The Institute also announced at this time that it
was considering dropping the reference to England and Wales in its title to become the
Institute of Chartered Accountants. However, this plan was also withdrawn.
The Institute introduced a new syllabus in 2007. In order to make it more appealing to
prospective students the policy of time-barring students has been removed and the
mandatory examinations will become more flexible based on a modular structure. In
addition to paper based assessments, there are now computer based assessments of
objective test questions (multiple choice).
Admission to membership in ICAEW-
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To be admitted to membership of the ICAEW, applicants must generally complete 450 days
of relevant work experience (training) and pass a series of examinations. The work
experience lasts between three and five years and must be with an employer or employers
approved by the Institute for training. The examinations are in two stages, professional
stage (twelve papers) and advanced stage (two papers and a case study, which must be
taken in the final year of training).
Existing members of ACCA, CIMA and CIPFA of over five years membership may be
admitted, subject to passing an Examination of Experience[3] and sponsorship by two
ICAEW members. Members of equivalent bodies in other European Economic Area
countries and Switzerland may also be admitted to membership after passing an aptitude
test, provided they are a citizen of an EEA state or Switzerland.
Mutual Agreements of ICAEW-
The Institute has mutual recognition agreements in place with:
Institute of Chartered Accountants of India.
Institute of Chartered Accountants of Scotland
Institute of Chartered Accountants in Ireland
Institute of Chartered Accountants of Australia
Canadian Institute of Chartered Accountants
Hong Kong Institute of Certified Public Accountants
New Zealand Institute of Chartered Accountants
Institute of Chartered Accountants of Pakistan
South African Institute of Chartered Accountants
Institute of Chartered Accountants of Zimbabwe
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Institute of Chartered Accountants of Bangladesh (ICAB)
ICAEW members may be admitted to full membership of the above institutions after passing
an aptitude test or subject to other specific requirements.
Membership categories in ICAEW-
Members have the designation ACA (Associate Chartered Accountant) or FCA (Fellow
Chartered Accountant) after their name.
Fellowship is intended to designate those who have achieved a higher level of professional
experience. It is awarded, on application, to those members who have attained at least ten
years of membership and who, at the date of application, have complied with the Institute's
requirements on continuing professional development in the preceding three years and
have no outstanding disciplinary charges against them.
V. Professional Accounting Bodies in Hong
Kong
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Hong Kong Institute of Certified Public
Accountants (HKICPA)
The Hong Kong Institute of Certified Public Accountants (HKICPA) is a professional body for
accountants in Hong Kong.
Its main responsibilities are:
Registration and regulation of profession accountants in Hong Kong.
Issurance of financial reporting standards and auditing standards.
Promotes the accountancy profession to businesses and the general public.
History of HKICPA -
It was set up in 1974 with the assistance of Association of Chartered Certified Accountants
(ACCA) as the local statutory accountancy body in Hong Kong. Formerly named as "Hong
Kong Society of Accountants", it has since renamed to the Hong Kong Institute of Certified
Public Accountants on September 8, 2004.
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Qualification programme -
Since 2001 the institution has begun to offer the "Qualification Programme" or QP for short,
as a direct route to become a member of the institution.
To become a registered student of the QP, there are three routes available:
Holder of a recognised accountancy degree.
Non-accountancy degree holder who has undergone a Conversion Programme.
Sub-degree holder - a HKIAAT who has undergone a Foundation Programme or
Professional Bridging Exam
QP Students will have to complete four modules, plus a final six hours examination. They
will also have to meet the Practical Experience Requirement set by the institute.
The four modules are:
1. Module A - Financial Reporting
2. Module B - Financial Management
3. Module C - Auditing and Information Management
4. Module D – Taxation.
Each module consists of:
15 weeks self-study material provided by the institute,
four interactive workshops to attend, and
a three hours open book examination.
The final examination will consist of material taken from all four modules.
Recognition with other institutions of HKICPA-
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Association of Chartered Certified Accountants (ACCA)-
Prior to 2002, Hong Kong accountants were allowed to obtain full memberships from both
Association of Chartered Certified Accountants (ACCA) and HKICPA under a joint
examination scheme between the two institutions. On 1 July 2005, the institute announced
recognition arrangements between the two institutions under the Agreement of
Recognition Arrangement(ARA). Then on 22 August 2006, a new Agreement of Recognition
Arrangement (MRA) was signed and will be in force until 30 June 2010, replacing an old
MRA that expired in June 2005.
Institutes of Chartered Accountants-
HKICPA has Mutual Recognition Agreements with the major Chartered Accountant bodies
worldwide:
1. Institute of Chartered Accountants in England and Wales.
2. Institute of Chartered Accountants of Scotland.
3. Institute of Chartered Accountants in Ireland.
4. Institute of Chartered Accountants of Australia.
5. Canadian Institute of Chartered Accountants.
6. New Zealand Institute of Chartered Accountants.
7. South African Institute of Chartered Accountants.
8. Institute of Chartered Accountants of Zimbabwe.
These agreements, in general, only apply to relatively recent HKICPA members who
qualified through the Qualification Programme.
Other Institutes -
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HKICPA also has limited recognition arrangements in place with:
Chartered Institute of Management Accountants
CPA Australia
Status of HKICPA -
Incorporated by the Professional Accountants Ordinance (Chapter 50 of the Laws of Hong
Kong) on 1 January 1973, the Hong Kong Institute of Certified Public Accountants (the
Institute) is the only statutory licensing body of accountants in Hong Kong responsible for
regulation of the accountancy profession. There is a associate organization called the
HKAAT.
International links of HKICPA-
The Institute is a member body of the following international or regional organisations :
Asia-Oceania Tax Consultants' Association
Confederation of Asian and Pacific Accountants
International Accounting Standards Board
International Federation of Accountants
International Federation of Insolvency Practitioners
VI. Professional Accounting Body in Scotland
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Institute of Chartered Accountants of
Scotland(ICAS)
The Institute of Chartered Accountants of Scotland (ICAS) is the Scottish professional
accountancy body for chartered accountants and auditors. It is based in Edinburgh.
ICAS is a member of the Consultative Committee of Accountancy Bodies (CCAB) and
International Federation of Accountants (IFAC).
History of ICAS-
The Institute of Chartered Accountants of Scotland (ICAS) is the world's first professional
body of accountants, receiving its Royal Charter in 1854. The institute originated from:
The Edinburgh Society of Accountants, formed in 1854;
The Glasgow Institute of Accountants and Actuaries, formed in 1854;
The Aberdeen Society of Accountants, formed in 1867.
These three bodies merged to form the Institute of Chartered Accountants of Scotland in
1951. It was the first to adopt the designation "Chartered Accountant" and the designatory
letters "CA" are still an exclusive privilege in the UK for members of the Scottish Institute.
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Membership and Qualification-
ICAS has over 16,000 members worldwide working in public practice, industry, commerce,
the public sector and education. Membership is generally obtained by entering a training
contract with an accountancy firm (although it is possible to train within industry), during
which the student gains experience and sits a number of exams. The CA designation is
reserved exclusively for their use in the UK. ICAS is the only UK chartered accountancy body
to provide professional education and training, as well as examinations, for all its students.
Since the mid-1990s, ICAS has trained students located in England & Wales, and in that
respect competes with ICAEW. Details
The ICAS has a special accelerated entry scheme for members of the Chartered Institute of
Taxation.
Mutual recognition of ICAS-
The Institute has mutual recognition agreements in place with:
Institute of Chartered Accountants in England and Wales
Institute of Chartered Accountants in Ireland
Canadian Institute of Chartered Accountants
Institute of Chartered Accountants of Australia
New Zealand Institute of Chartered Accountants
South African Institute of Chartered Accountants
Hong Kong Institute of Certified Public Accountants
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ICAS members may admit to full memberships of the above institutions after passing an
aptitude test or subject to other specific requirements.
Members of equivalent bodies in other European Economic Area member states and
Switzerland may also be admitted to membership after passing an aptitude test, provided
they are a citizen of an EEA state or Switzerland.
A mutual recognition arrangement between the Institute and the Chartered Institute of
Public Finance and Accountancy (CIPFA) was put in place in 1996. However this was
terminated by ICAS in 2005.
Role of ICAS-
Under the Royal Charter, ICAS works in the public interest. The objective of ICAS is to uphold
the integrity and standing of the profession of chartered accountancy in the interests of
society and the membership, through excellence in education and the development of
accountancy and through service to members and the enforcement of professional
standards.
ICAS is a Designated Professional Body under the Financial Services and Markets Act,
licensing firms of CAs to conduct a range of incidental investment business activities. It is a
Recognised Professional Body under the Insolvency Act to issue permits to individual CAs to
conduct insolvency appointments. ICAS is also a Recognised Qualifying Body and Recognised
Supervisory Body in relation to company auditing under the Companies Act 1989.
ICAS is able to authorise members to conduct audit, insolvency and investment business
work in the United Kingdom, Republic of Ireland and Luxembourg. This right is held in
common with ACCA, ICAEW and the ICAI.
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