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Tracy Healy explains what the various professional associations and institutes offer the aspiring accountant.

ICAI

The Institute of Chartered Accountants in Ireland (ICAI) is the largest accountancy body in Ireland, representing almost 23,000 members and students. Last year saw a record student intake for ICAI, with over 1,700 new students and equal numbers of men and women applying.

Chartered accountants work across all business activities and sectors. Nine of the top ten ISEQ companies have a chartered accountant as their financial director or chief executive and chartered accountants are seen as the elite of the financial profession, according to the ICAI.

About two thirds of chartered accountants work in finance, business and industry in roles such as business analyst, management accountant and corporate leadership; with the remainder working in practice in areas such as auditing, tax and consultancy.

There are several routes to full membership of ICAI including graduate level (the most popular route); post-graduate; and direct entry (school-leaver). In the case of graduates, entry is not confined to business or commerce graduates: last year 15% of chartered accountancy students came from non-business graduate backgrounds. Business graduates may avail of numerous exemptions from ICAI examinations, with some degrees gaining an entire exemption from the first year (CAP1) examination.

Graduate trainees are typically required to fulfil a three-and-a-half year contract, but there are exceptions. Students coming through the Institute of Accounting Technicians (IATI) programme will be contracted to their employer for up to five years. Although the majority of trainees are based in medium to large size accountancy practices, an increasing number also train in business. Training in Business students are often introduced to specialised areas in industry such as treasury and management accounting, and may also have the opportunity to be seconded to a practicing firm.

Chartered accountancy is distinguished from other accountancy qualifications by its training model which requires students to enter a training contract under the supervision of a chartered accountant.

According to Diarmuid Breathnach, ICAI student services manager: “We believe that this unique approach of combined work and study, which differs from the exam-driven model of other qualifications, produces more highly skilled and dynamic professionals.”

The new first-year Chartered Accountancy Proficiency (CAP) 1 course was introduced last autumn. This course covers financial accounting, management accounting, finance, law for accountants and taxation. Breathnach said the objective of the new syllabus is to provide newly-qualified chartered accountants transferable skills.

CPA

Someone with a Certified Public Accountant (CPA) qualification is a fully qualified accountant and a member of the Institute of Certified Public Accountants in Ireland. The CPA is a recognised equivalent of other similar statutory bodies in the EU and is included in the EU Directive on recognition of professional qualifications. CPA members and students work across varied roles from practice and industry such as financial, banking, manufacturing, construction, education and consultancy.

There are three main routes to becoming a CPA. The first is to hold a degree, diploma, accounting technician or professional qualification. Route two is a school leaver and route three is a mature student.

According to Eamonn Siggins, chief executive of the ICPAI: “The institute has become the first Irish professional accountancy body to give students the option of tailoring their studies, depending on whether they wish to work in industry or in professional practice. In the final year of study, students are able to select elective subjects, which will give students greater choice and the option to specialise in practice or industry. As with other associations there are many exemptions, so it is worthwhile finding out what you are exempt from first.”

Students must complete four levels of exams, a minimum of three years relevant supervised training and prove their competency in IT. According to Siggins: “This qualification offers flexible study options and the training requirement can be gained in practice, industry or a combination of both. At least 50% of the training must be supervised by a fully qualified accountant and students must maintain a training record.”

CPA has made radical adjustments to its training in recent times, with the introduction of new subjects including corporate law, governance, strategic leadership and managerial finance. Siggins says this new approach, while allowing CPAs to develop the usual technical expertise, also facilitates the development of skills and competencies in areas such as strategy, leadership and management. “The aim is to create a more progressive, innovative and proactive accountant capable of understanding and contributing meaningfully towards every facet of a business,” he said.

ACCA

The Association of Chartered Certified Accountants (ACCA) is the global body for professional accountants. ACCA, which has 447,000 members and students training and working in 170 countries around the world, offers business-relevant qualifications to those who wish to pursue a career in accountancy, finance and management. All students are examined to a single international standard. ACCA say that this qualification is centred on developing skills relevant to the employer and which places ethical and professional behaviour at its core.

ACCA offers a range of core qualifications such as Certified Accounting Technician (CAT) which can be achieved with a combination of nine exams and one year of practical experience. The CAT will then allow exemption from the first three papers of the ACCA qualification which is globally respected.

To complete the ACCA qualification, students are required to pass the ethics module, 14 exams (nine are eligible for exemption) and three years relevant practical experience to demonstrate competences for membership. As well as this qualification, students can complete a BSc in Applied Accounting, either while they are completing the ACCA exams or after.

Once you are a member, ACCA offer the opportunity to complete a MBA in 21 months. This course offers the opportunity to work in fields such as chief financial officer, director or partner in an accounting firm, auditor general, forensic accountant and business advisor. ACCA says that the job mobility attached to this qualification stretches over many industries and sectors and transcends borders.

The majority of ACCA members work in public practice for companies such as KPMG and Deloitte. Graduates can be exempt from some or all of the Fundamentals level exams and those over 21 can approach the qualification from a mature student route, which doesn’t require any academic qualification except for the successful completion of two papers – F2 and F3. The key to this qualification is relevant practical experience. Says the association: “A graduate with a relevant degree and a couple of years relevant experience could complete the qualification in one or two years.”

CIMA

The Chartered Institute of Management Accountants (CIMA) is one of the world’s largest professional bodies in Management Accounting, with a worldwide reach of over 164,000 members and students in 161 countries. In Ireland, the institute has around 7,500 members and students working in companies. Many of firms have aligned with CIMA’s quality assured Training Partnership programme, to deliver training and development to their CIMA employees. The CIMA syllabus is employer led, with its focus on finance and all other sources of sustainable competitive advantage for business.

While the role of traditional accountants is focussed on reporting past performance, CIMA says the role of chartered management accountants is geared more towards assessing business possibilities, grasping opportunities and shaping the future of organisations. Says the institute: "These individuals will have the strategic insight to assess risk and make vital business decisions based on a robust understanding of the business environment."

The flexibility of the qualification allows CIMA members to work in a range of different careers around the world. Four out of ten CIMA members work outside the core finance function in areas such as project management, marketing, general management, strategy and even IT. 

The entry level qualification to a CIMA professional qualification is the Certificate in Business Accounting, which introduces the concept of management accounting and gives the basics of accounting and business. If you have a degree or relevant qualification, you may be exempt from some or all of the five papers at this level.

The CIMA professional syllabus spans management accounting, business management and financial management. Each learning pillar contains three specific subjects. Six papers are examined at the ‘Managerial’ level and a further three at ‘Strategic’ level. Studies are completed with the Test of Professional Competence in Management Accounting, a case study set in a simulated business context.

Once these examinations have been successfully completed, students attain the status of ‘Passed Finalist’. To become a CIMA member, passed finalists must acquire three years’ relevant practical experience. Many students gain this experience during the period they are studying for the qualification.

IATI

The Institute of Accounting Technicians in Ireland (IATI) has over 10,000 members and students in Ireland. Accounting technicians can play a wide range of roles in any organisation, from assistant accountant to office manager to financial controller.

According to Jason O’Connor, director of marketing at IATI: “IATI believes that this unique approach of combined work and study, which differs from the exam-driven model of other qualifications, produces more highly skilled and dynamic professionals. This combination of excellence in education and training gives trainees the edge over their peers, with most trainees finishing their education and training within three and a half years. “

The IATI qualification differs from other programmes as it combines a two year study course with two years of practical work experience. The qualification can be studied full-time, part-time or on a correspondence basis and courses are available nationwide.  IATI students come from all backgrounds. Many already work in accounting related areas, and although experienced, wish to gain a recognised qualification. Others could be mature students who want to get back into the workforce or could also be coming from further education.

In 2007, 60% of IATI graduates took up roles across industry and in accounting practices. The remaining 40% went onto further study and used the IATI qualification as a stepping stone into other professional accounting and taxation bodies.

Content Courtesy of Business Plus magazine. See www.bizplus.ie