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Members’ Forum

QP Concept and Philosophy Transitional Arrangements Accreditation Process

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Purpose

We need to understand and appreciate what our education standards

Why we need to establish our own qualifying benchmarks in Hong Kong

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QP Concept and PhilosophyObjectives of New Professional Accreditation

Framework:

To ensure that professional accountants will have the required competency to meet future challenges

To establish our own benchmarks for competency standards for professional accountants in Hong Kong

To achieve international recognition

Benchmarking to best international practices on accreditation, education and training

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Content, Standards & QualityThe 1997 blueprint outlined a new Professional Accreditation System covering the following aspects of qualifying process:

Pre-entry education • Graduate entry (international norm)• Accreditation of academic qualifications

Qualification Programme• Competency-based standards

Practical experience • A structured Authorised Employer/Supervisor sch

eme

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CPA Designation

 

 

 

 

 

Degree (Graduate

Entry)

Accredited Degrees or equivalent

QualificationProgramme

Competency Based Standards

Authorised Employer/

Supervisor Scheme

3-5 Years Supervised

Work Experience

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QP Training Philosophy Develop skills in application of knowledge

– problem identifications and solving

Develop professional judgment

Develop generic skills within business context (eg communication, interpersonal and leadership skills)

Integrate knowledge across fields

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QP Trains Candidates to Research

Apply knowledge to solve practical problems

Integrate knowledge across technical areas

Work with others to achieve common goals

Communicate effectively

Be exposed to simulated practical situations

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HKICPA Qualification ProgrammeModule B

Financial Management

Module C

Auditing & Information

Management

Module A

Financial Reporting

Module D

Taxation

4 3-hour Module Workshops (study materials provided)over 15 weeks

3-hour Open-Book Exam

Final Professional Examination6-hour Open-Book Exam

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Benefits of QP

Shortest route to qualify as CPA (Practising), with full exemptions from Hong Kong PC Examinations

2-Paper exemptions with CICPA

Internationally recognised- Get designations of CPA / CA / ACCA- In Australia, New Zealand, UK and

others.

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HKICPA / CPA Membership Admission

QUALIFICATION PROGRAMME

+ practical experience in accounting (3-5 years)

+ relevant auditing experience

CPA (HKICPA Member)

CPA (Practising)

Members of recognized accountancy bodies

HKICPA Aptitude Tests*

PC Exams * ACCA, CPAA & ICAEW exempted

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Benefits of QP

• Next targeting recognition in Canada

• Government recognition: Continuing Education Fund

– Only need $5,000 to get a professional qualification

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Recognised Overseas Accountancy Bodies

ICAA(Australia)

ICANZ(New Zealand)

SAICA(South Africa)

ICAS(Scotland)

ICAEW(England &

Wales)

ICAI(Ireland)

ICAZ(Zimbabwe)

CPA Australia

ACCA

AIA

CIMA

CIPFA

AICPA(USA)

CICA (Canada)

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Review of Existing Recognition Arrangements

• Notice to discontinue existing recognition arrangements with effect from 1 July 2005 given to:

– MRA: ACCA, CPA Australia

– Unilateral recognition: AIA, AICPA, CICA, CIMA and CIPFA

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• Purpose : To bring uniformity and consistency to the future standard of our membership admission

• Delegated authority to qualify members

• Introduction of evaluation process

– To assess overseas qualifications for mutual recognition purpose

Review of Existing Recognition Arrangements

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Transitional Arrangements

• CPA Australia– Pass all exams before 31 Dec 2005

– For applications received on or after 1 July 2005:

• Experience after 1 Jul 2005 under AE/AS

• Aptitude Test applies after 1 Jul 2005

• AIA, AICPA, CICA, CIMA, CIPFA– HKICPA will honour membership applications before 1 J

uly 2005

Prof. Exam + Experience + Aptitude Test = Membership

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Transitional Arrangements

• ACCA– Relevant degree holders - Pass all exams before 1 July

2005

– Non-relevant degree holders – Pass all exams before 1 July 2006

– For applications received on or after 1 July 2005:

• Experience after 1 Jul 2005 under AE/AS

• Aptitude Test applies after 1 Jul 2005

– Bridging Programmes for conversion to QP framework (under approval by Council)

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• Document entitled “Information for Professional Bodies seeking Recognition” published on HKICPA website www.hkicpa.org.hk

• Outline review process– To assess overseas qualifications for mutual

recognition purpose

• Process, procedure and criteria: Open, clear and transparent

Accreditation Process for Recognition

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• Indepth assessment of:– Tertiary education– The professional programme– Practical experience

• Also cover to a lesser extent assessment of:– The profession and general environment– Requirements for maintenance of membership e.g. continui

ng professional development

Review Process

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• Step 1:

– Professional body to complete Questionnaire (Appendix 1)

– Desk Review: To establish if there is substantial gap and whether to proceed to Step 2

– Agree reviewer (independent consultant)

Review Process – 3 step approach

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• Step 2:

– Submit detailed information (Appendix 2)

– Reviewer to conduct a desk review of

information submitted

Review Process – 3 step approach

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• Step 3:

– Only when Steps 1 and 2 desk review completed to the satisfaction of HKICPA for full recognition status

– Site Visit by Reviewer to Professional Body’s home country to assess (Appendix 3):

• Quality of personnel involved• Quality of implementation of procedures documented,

etc • Covering the areas under reviews

Review Process – 3 step approach

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• Detailed Review Report

– Based on HKICPA requirements ie QP framework as the benchmarks

– HKICPA will use Report and other information to determine the level of recognition to be given

– HKICPA Committees and Council to deliberate on recommendation

– Discussion with Professional Body– HKICPA will formally advise the Professional Bod

y of its decision

Outcome of Review Process

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• Consistency and uniformity of standards are our aims

• This is our responsibility as the statutory body for the profession in Hong Kong

Accreditation Process

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Thank-you very much!