Professional Body Association of Chartered Certified Accountants (ACCA) Professional Title Chartered Certified Accountant (ACCA)
Respondent Michael Walsh, Director, ACCA
Country Global with Headquarters in the United Kingdom
UK statutory requirements on accounting rules are based on the Companies Act 1985, and comply with EU Directives. The Act states that disclosure should be made as to whether accounts have been prepared in accordance with applicable accounting standards. Accounting standards issued by the Accounting Standards Board and its Urgent Issues Task Force are applicable for the purposes of this Act. The accountancy sector in the UK is regulated by law, by professional self- regulation and by an independent regulator. The Association of Chartered Certified Accountants (ACCA) is recognized as a qualifying body and a supervisory body. ACCA operates under a Royal Charter granted by the Privy Council. This covers the holding of examinations. The examinations are also recognized under the Companies Act in respect of Registered Auditors (in other countries national statutes may apply). ACCA is a member of IFAC and FEE and an associate member of CAPA, ECSAFA and AFA.
Members of ACCA work in public practice, industry and commerce, government and other areas. ACCA membership is mandatory to use the designator title. Membership is also mandatory if candidates wish to be Registered Auditors and hold a Practicing Certificate from ACCA. Continuing Professional Development (CPD) is mandatory for practicing certificate holders and is regulated by ACCA. Mandatory CPD is being phased in between 2005 and 2007 for all members.
Admission requirements as a member of ACCA include a formal final examination of professional competence, prescribed programs of professional education and practical training. ACCA's examinations have to be at least at degree level in regard to Registered Auditors. ACCA in fact sets the same standard for all its members. ACCA follows EU Directives and IFAC International Education Standards. ACCA is recognized under the European Union's Mutual Recognition Directive. The ACCA qualification is also fully recognized in the legislation of many other countries around the world e.g. in Hong Kong, Malaysia, Singapore, the Caribbean, and many countries in Africa. ACCA is also recognized for the purpose of registration as an auditor or liquidator under Australia's Corporation Act. ACCA recognizes qualifications from other countries including EU Member States plus Iceland, Norway and Switzerland, also Australia, Canada, Hong Kong, New Zealand, South Africa, Zimbabwe, and certain States in the US. Various conditions apply.
Objective final examination: to test theoretical knowledge; the ability to apply knowledge in practice; intellectual, interpersonal and communication skills; ICT applications; professional values. Key skills are examined as part of the written examinations and training programs. Final examination core program: ACCA's
membership qualification includes 14 written examinations divided into three parts. The final part consists of three core papers plus two papers chosen from four options. ACCA is the provider of the final examination. Examinations are subject to external review. All the examinations are organized by ACCA. ACCA's examiners set the standards of the examinations on a uniform basis worldwide and assess all candidates on the same criteria.
Admission requirements to the final examination cover professional education, practical training and general education. To register as a student of ACCA's professional scheme a candidate must be at least 18 years of age and hold the minimum qualification for entry to a UK degree program. Holders of higher qualifications may attract exemptions from some of ACCA's examinations (not for Part 3 - the final part of 5 papers).
Professional education core program: The examinations papers cover the following: 1.1 Preparing Financial Statements; 1.2 Financial Information for Management; 1.3 Managing People; 2.1 Information Systems; 2.2 Corporate and Business Law; 2.3 Business Taxation; 2.4 Financial Management and Control; 2.5 Financial Reporting; 2.6 Audit and Internal Review; 3.1 Audit and Assurance Services; 3.2 Advanced Taxation; 3.3 Performance Measurement; 3.4 Business Information Management; 3.5 Strategic Business Planning and Development; 3.6 Advanced Corporate Reporting; 3.7 Strategic Information Management.
Universities and commercial companies provide professional education. Necessary expertise and resources are available. Students study at public and private sector colleges, by distance learning, or by home study. ACCA publishes a textbook and a distance-learning program through one of the private sector colleges. There are about 250 colleges, which offer tuition for ACCA courses in the UK and a comparable number outside the UK. ACCA also has a virtual learning site at ACCAdemy.com. Tuition is provided by qualified academics. Outside the UK there are shortages of qualified teachers in some developing countries.
Practical training content: Candidates require a minimum of 3 year's practical experience. This can be obtained before, during or after the examinations and in any (combination of) employment sector - industry, commerce, public practice or the public sector. ACCA lays down standards of competence for membership in a Students Training Record. Assessments by supervisors are subject to a sample check by ACCA. For Registered Auditors: 3 years experience in a company audit environment including 2 years after membership in an approved training office under a qualified principal (other national legislation may apply outside the UK). ACCA's Student Training Record covers: Financial Information, Business Analysis and Measurement, Taxation, Statutory Audit, Internal Review and Consultancy, Asset Management, Business Growth and Development, Manage Information Systems, Manage People. A separate Practicing Certificate Training Record for Registered Auditors covers: Professional Conduct, Accounting, Business Advice,
ACCA expects for the near future major developments in regulation of the profession, professional qualification requirements, professional education and practical training. There will be developments in all these areas mainly driven by market demand and the demands of regulators. The Public Oversight Board for Accountancy in the UK and the Compliance Advisory Panel within IFAC will lead to more independent regulation of the profession in the UK and more global regulation internationally. Market demand will lead to an expansion of accountancy qualifications to include both more generalist subjects as well as more specialist options but based on the traditional accounting core. Accountancy training will become more uniform internationally.