ACCOUNTANC Y C AREER GUIDE

Transcription

1 ACCOUNTANC Y C AREER GUIDE YO U R PAT H T O A B R I G H T E R F U T U R E

2 C O N T E N T S 1.0 MIA : Governing the Malaysian Accountancy Profession Accountancy Careers In Accountancy Types of Work Issues Surrounding the World Today and its Impact 15 on the Accountancy Profession 6.0 Route to Becoming a Qualified Accountant in Malaysia Qualifying as an Accountant in Malaysia Recognised Accounting Degree* 19 (First Schedule, Part I of The Accountants Act, 1967) 9.0 Recognised Professional Accountancy Bodies** 21 (First Schedule, Part II of The Accountants Act, 1967) 10.0 Alternative Route to Qualify as Accountants the MIA QE Way Application of Candidacy MIA QE Syllabus Career Prospects in Accountancy 26

3 1.0 MIA : Governing the Malaysian Accountancy Profession THE MALAYSIAN INSTITUTE OF ACCOUNTANTS (MIA) was established in 1967 under the Accountants Act 1967 ( Act ) as the regulatory body of the accounting profession in Malaysia. MIA is the only accountancy body empowered by law to regulate the accountancy profession in Malaysia thus it also represents the voice of all accountants in the country. In Malaysia, the word accountant is protected under the provisions of the Accountants Act 1967, which states that no one can hold himself out or practice as an accountant unless he is registered as a member of MIA. Sections 22& 23 of the Act requires a person residing in Malaysia to be registered with MIA if he/she: 1. Practise or hold himself out as a chartered accountant, auditor, tax consultant, tax advisor or any other like description; 2. Adopt, use or exhibit the terms chartered accountant, auditor, tax consultant, tax adviser or any other term of like description; or 3. Adopt, use or exhibit the term accountant or any other term of like description in such circumstances as to indicate or to be likely to lead persons to infer that he is chartered accountant or that he is qualified by any written law to practise as a chartered accountant. Under Section 26 of the Act, any person contravening Section 22 or 23 shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit (RM10,000) or to an imprisonment for a term not exceeding one year and on a second or subsequent conviction to a fine not exceeding twenty thousand ringgit (RM20,000) or to an imprisonment for a term not exceeding two years. 3

4 MIA : Governing the Malaysian Accountancy Profession The Institute is governed by a Council whose powers are set out under Sections 9 and 10 of the Act. The Council comprises 30 members led by the Accountant-General. Others in the Council include the President of the Malaysian Institute of Certified Public Accountants (MICPA); 10 members elected at the Annual General Meeting; and up to 18 members appointed by the Government, including members from institutions of higher learning and approved professional bodies. MIA S VISION AND MISSION Vision To be globally recognised and respected business partner committed to nation-building. Mission To develop, support and monitor quality and expertise that is consistent with global best practice in the accountancy profession for the interest of stakeholders. MIA S DUTIES The Institute s statutory functions are, inter alia: 1. To determine the qualifications of persons for admission as members; 2. To provide for the training and education by the Institute or any other body, of persons practising or intending to practise the profession of accountancy; 3. To regulate the practice of the accountancy profession in Malaysia; 4. To approve the MIA Qualifying Examination (QE) and to regulate and supervise the conduct of that Examination; 5. To promote, in any manner it thinks fit, the interests of the accountancy profession in Malaysia; 6. To render pecuniary or other assistance to members or their dependents as it thinks fit with a view to protecting or promoting the welfare of members; and 7. Generally to do such acts as it thinks fit for the purpose of achieving any of the aforesaid objectives. As the national accountancy body, MIA sets high ethical standards which must be adhered to by all accountants in Malaysia. All accountants are bound by MIA s strict code contained in MIA s By-Laws (On Professional Ethics Conduct and Practice). Any breach of these By-Laws by members may render them liable to face disciplinary proceedings. MIA members are regulated professionals and the public has a recourse by lodging a complaint to the Institute if things go wrong. The public would also be assured of the minimum quality of the professional services expected as it is mandatory for all MIA members to annually acquire a minimum hours of continuing professional education to ensure that they are updated, even after being trained as an accountant. They are also bound by a strict ethical code whereby failure to comply may result in a member being suspended or even removed from membership depending on the severity of the non-compliance. The Institute also monitors local and international accounting developments and consults regularly with Government and statutory bodies. Members of MIA receive technical services support and information on the latest developments in the profession through the Institute s Continuing Professional Education (CPE) programme and the Institute s magazine, Accountants Today. 4

5 2.0 Accountancy THE BEGINNING OF ACCOUNTING Accountancy is believed to be among the oldest profession in the world. The origin of keeping account has been traced as far back as 8,500 B.C. Archaeologists had found clay tokens in the form of cones, disks, spheres and pellets in Mesopotamia (present Iraq). Further record keeping activities are known to have existed at least four to five thousand years ago amongst the Babylonians, the Egyptians, the Greeks and the Romans. Over the years, accounting has become increasingly sophisticated. In 1494, with the advocation of the principles of a double-entry bookkeeping system, the foundation for modern accounting was laid. The basic principle that for every debit it should have its equal and opposite credit is still true even to this day. The modern era of accounting is recognised to have begun with the chartered accountants of Great Britain where professionals who went beyond bookkeeping to investigate the affairs of businesses and disclosures of financial affairs. The emergence and establishment of the modern corporation and its multiple shareholder owners, triggered off the initial expansion of accounting beyond the mere task of bookkeeping into auditing and other related activities. Thus, the accounts man who was once designated as mere record keeper has changed. WHAT IS ACCOUNTANCY? Accountancy, at present, is one of the leading professions, well sought after by many in society today. As a career, it has, for some time, enjoyed a relative advantage in terms of pay, prestige and job satisfaction. It is rewarding career envied by other 5

6 Accountancy professions. The latest Census of Professional and Institutional Establishments placed accountants as one of the top five money-earners in Malaysia together with lawyers, doctors, engineers and surveyors. More importantly, accountants today are no longer just number crunchers they are the financial eyes and ears of business organisations, they provide the key financial information so vital to the decision-making process. Besides being a means of communicating the financial facts of business life, it is a language-both figuratively and literally, with a set of recognised symbols, arranged according to established rules and principals in such a way that they convey meaning to its readers. Many organisations have changed the ways professional accountants carry out their responsibilities. The use of computer technology, with its accuracy and speed has led to the computerisation of the general ledger and other related accounting systems. With automation in the preparation of accounts, professional accountants of today have more time for analysis and interpretative work. Furthermore, accountants have a reputation for paying attention to details, with the practitioners respected for their integrity, their objectivity and competence. Indeed, this worldwide tradition in the business community and the ever-increasing demand for accountants has posed tremendous challenges to the accounting profession. In a nutshell, accountants are all-rounders who have broad experience in many areas of business problem-solving. With their professional training and a minimum of at least 3 years relevant working experience, accountants registered with MIA can provide the highest standard of professional advice. In Malaysia, accountants who are in public practice and those employed in accountancy positions in commerce and industry as well as government service generally use the designation of Chartered Accountant, C.A.(M). ACCOUNTING STANDARDS There is a direct correlation between the levels of a country s development vis-à-vis the size, level and standard of the accountancy profession. The accountancy profession is unique because it is perhaps the only profession that sets its own laws and guidelines, monitors them and reprimands its members for non-compliance. The development of accounting standards can be likened to the development of laws in the country. Whilst the latter is done by the government for the lawyers, accountants set its own laws in the form of accounting standards, principles and concepts. The accounting standards in Malaysia are set by the Malaysian Accounting Standards Board (MASB) whereas the auditing standards are set by the Malaysian Institute of Accountants (MIA). 6

7 3.0 Careers in Accountancy Good accountants are always highly sought after. They are the main stays within the corporate world and in many cases, the accountants becomes even more than head of a financial department General Manager, Chief Executive the accountant s training and experience can lead right to the top. A sound knowledge of all aspect of business, constant re-appraisal of technical advances and options, together with a trained ability to analyse with accuracy, enable the accountant to play a crucial part in the many areas of opportunity. Banking and merchant banking, management consulting and government offices number among some of the career routes that can be pursued. Accountants can be found in various sectors of industries such as public practice, industry and commerce, public sector and institution of higher learning. In order to get some ideas of the range of services provided by accountants, the job descriptions may be broadly classified into the following categories shown below: ACCOUNTANTS IN PUBLIC PRACTICE Public practice is the term used to describe accountancy firms that are operated by individuals in sole proprietorship or groups of individuals in partnership. The major functions of groups of firms in public practice include auditing and advising clients on financial structure and systems. Many accountancy firms also offer services such as advice on taxation, management, corporate recovery, company secretarial, insolvency and many more. These specialised services are increasing as the accountancy profession is changing due to various reasons. There are more than 1,700 firms in the country providing a wide 7

8 Careers in Accountancy range of services to individuals, businesses, multinational corporations, government departments and statutory bodies. ACCOUNTANTS IN INDUSTRY AND COMMERCE As business conditions change in the 21st century, many industrial and commercial organisations are forced to adopt new methods and technology to remain competitive. Accountants in industry and commerce provide advice on financial matters, business methods, general management and may even serve as internal auditors, financial controllers, tax managers, budget controllers, company secretaries and sometimes even serve as the directors of the organisation itself. This group of accountants form an integral part of the management. As such, accountants in this sector are sensitive to their business environment and fully informed in areas such as production, distribution and marketing. ACCOUNTANTS IN PUBLIC SECTOR Accountants can also choose to work in the public sector. These accountants are generally responsible for the administration and use of public money ranging from managing the finances of a local authority or hospital to multimillionringgit construction projects. Accountants in public sector can serve as treasures, financial officers, auditors and many more. They are employed throughout the public sector for government bodies and statutory boards, for example, Bank Negara and Inland Revenue Board. ACCOUNTANTS IN INSTITUTION OF HIGHER LEARNING This group of accountants are involved in the education sector. There are number of accountants who are teaching in colleges, universities and institutes as lecturers and professors. Their involvement includes the training of future accountants, accountancy research and development and management matters. ENGAGING A PROFESSIONAL ACCOUNTANT IN PUBLIC PRACTICE Accounting Functions Many small businesses do not have the volume of financial transactions that necessitate hiring a fulltime accountant as staff. Engaging an accountant firm on a consultative basis is a good first step for a growing business. The sensible cost of professional services rendered by the accounting firm can often cost less than the salary and benefits of a full-time employee and, at the same time, you may be getting a higher level of advice from a Chartered Accountant. An accounting firm usually handles the following accounting functions: Tax return preparation; Preparing financial statements, including the statement of financial position, statement of comprehensive income, and statement of cash flow; Analysis or problem-solving advice. An accounting firm generally offers an hourly rate schedule. There may be different rates for different accounting on the level of complexity, and the personnel from the accountant s firm who are actually involved in performing the tasks. 8

9 4.0 Types of Work A lot of people have a vague impression or have a narrow perception of what accountants actually do. A layman on the street is likely to respond: taxes, audit, book keeper, consultant or adviser. However, as accountancy is a multi-faceted profession, generally much more is involved than merely keeping accounts. Services performed by accountants are becoming so diversified to a point where some proffered services seem far removed from the traditional areas of expertise. Some aspects or areas of the profession are described below: ACCOUNTING Financial Accounting Financial accountants ensure that the financial statements of an organisation are accurate and that account ledgers and registers are properly maintained and current. Without an accountant on hand, the directors or management team of the business may have to spend a considerable amount of time and effort documenting account transactions which would inadvertently divert valuable time and attention from other pressing business matters and finally the productivity of the business would be affected. By outsourcing the accounting and bookkeeping function to the accountant, the organisation is able to focus on the core business. The bonus is the accountant would provide up-to-date information and advice on the day-to-day management of cash flows and budgeting, thus ensuring greater efficiency and increased profitability. As part of the accountant s integrated services, he/she will also help the organisation to comply with statutory obligations (EPF, taxation, etc.) regularly, plus ensure that the periodic auditing is smoothly carried out. Management Accounting Management accountancy offers a rich and diverse range of opportunities critical to the success of all organisations. The role has changed considerably over recent years. Increasingly involved in the commercial decision-making process, management accountants ensure that betterinformed decisions are made, whether in terms of improving performance, deciding on where to invest capital, reviewing past and current results or planning for the future. The complexity of modern business requires sophisticated systems and finance processes to provide the essential information and support to managers. Decision-makers and management accountants need to be technically capable of developing the information systems, interpreting the outputs and presenting them in a persuasive manner. Financial Reporting Reporting involves the investigation and preparation of accounts to be published or broadcast. It covers the provision of all information from the holder, normally the accountant, to the user, who may be a business owner, line manager, the board of directors, the shareholders or the bank. The information prepared varies from simple bank reconciliation to a full annual report, from a business forecast to support an overdraft application to an investment appraisal on a potential acquisition. In all cases the reporting accountant must bear in mind the end-users of the report. As users of financial reports are seldom involved in the day-to-day activities of the business, the report has to be clear and unambiguous. AUDITING Legislation Under Section 174(2) of the Companies Act, 1965, all companies should appoint statutory 9

10 Types of Work auditor and external auditor to conduct statutory audit on the accounts of a company. This means regardless of your size of business, all companies should appoint a statutory auditor to audit their financial statements under the Companies Act, Currently, there are no exceptions to this requirement. Since the control of most companies is given to the managing director and other managers who act as stewards, their annual reports to owners/shareholders should be audited by an independent party referred to as the external auditor. The work of the external auditor involves analysing and verifying a client s account so as to give an independent audit opinion on the operation and state of affairs of the company. It is also the duty of the external auditor to express an opinion on the company s financial statements and ensure that they have been properly prepared in accordance with the Companies Act and auditing standards. The auditor normally works at the client company s premises because all the records will be located there and he/she will perform tests on these records to form an opinion on them. By presenting a true and fair view of the company s financial statements, audits provide comfort and reassurance to investors, creditors and the general public. Auditing also increases the business credibility with important third parties such as banks, financiers and government departments. When performing an audit, the auditor is able to check the effectiveness of the system of accounting, reporting and budgeting. Such spotchecks ensure the right controls are in place to protect the business assets from negligent use or criminal misappropriation. Via an audit, the auditor also pinpoints and tightens lax procedures and wasteful practices; recommends new ways to strengthen the company s controls and in general, suggest innovative ways and means for the business to run more cost-effectively. An auditor will usually have a wide portfolio of clients. Types of clients vary from large corporations to small joint ventures and partnerships; all are required by law to have an annual audit. Professional licensing requirements to perform an audit In Malaysia, only an approved company auditor, i.e. an MIA member with practising certificate and who has passed an audit interview conducted by the Accountant General Office and obtain an approval from the Ministry of Finance (MOF) pursuant to Companies Act 1965, can be appointed as a company auditor. Benefits of an External Auditor To regard an audit as merely compliance exercise would be to lose sight of the potential value that a business can gain from a well-performed audit. It should be seen as an opportunity to obtain a high value added services that can help strengthen a business in the process, instil greater confidence in the company by its stakeholders by rigorously examining the processes and risks affecting the financial statements. Because of these benefits, and the value associated with the audited financial statements, it is no wonder that banks, creditors and investors often insists on audited financial statements before entering into business dealing. How to find the right auditor To obtain the most value out of the audit process, it is important to choose and approved company auditor that is good match for your company. The approved audit firms range from large 10

11 Types of Work international audit firms to small one or two partner firms. While all audit firms must fulfil MIA s criteria and must adhere to the International Standards on Auditing (ISAs) as well as Code of Ethics, they will naturally differ in what they can offer their clients, in terms of industry experience, time commitment, resources etc. Similarly, the district characteristics of each small and medium enterprises (SMEs) could require different expertise from the audit firms. TAX CONSULTANCY Tax accountants act for a wide range of individuals, partnerships, trusts and companies. Clients include business people, owners of private companies, overseas individuals and companies wishing to invest in Malaysia, and other professional firms. The issuance of an approval to be a tax agent is governed by the Income Tax Act, An approval is only granted after the applicant has passed an interview conducted by the Tax Authorities. Tax accountants assist clients in three areas: Preparing tax returns and calculating tax payments to ensure clients comply with all the requirements imposed by the Inland Revenue Board and thus avoid being penalised for submission of improperly completed returns or for late submission of returns. Ensuring compliance with legislation regarding EPF and SOCSO with respects to salaries and benefits paid to employees. Planning for key events or transactions that clients undertake, e.g. starting a new business, buying or selling a business or passing the business to the next generation. Modern-day tax legislation has become so complex that understanding of the technical ramifications is absolutely essential in order to gain maximum tax benefits and relief. Accountants are familiar with the Byzantine technicalities and legalities of tax, and are therefore, in the best possible position to assess the current tax situations and minimise tax burdens. The accountant will also produce annual tax computations, submit forms to the Inland Revenue Board and, if necessary, expertly handle any subsequent negotiations on the company s behalf. The accountant is also the perfect person to provide ad-hoc advice on specific tax issues as and when they arise. COMPANY SECRETARIAL The Companies Act sets out a bewildering array of duties, responsibilities and guidelines that must be adhered to in administrating a company. Failure to comply with the requirements of the Act can incur severe penalties, including the imposition of hefty fines and in extreme cases, even imprisonment. The accountant can help with the operation within the boundaries of the Act and guide the company to take full advantage of the benefits and protection provided by the Act. The accountant can also assist with matters such as the formation of a company, lodgement of required documents, registration of business names and the submission of various reports connected with the issue and dealing of securities as well as keeping the required books and registers up-to-date. By utilising the services of an accountant, the company profits from the substantial benefits of setting up a company, enjoy separate entity status and limited liability which protects personal assets of the directors and perpetual succession, which ensures the longevity of the company. MANAGEMENT CONSULTANCY Accountants are bonafide management consultants, having served as advisors to a diverse range of businesses and industries. By harnessing 11

12 Types of Work their broad-based expertise, an organisation is able to give the business a competitive edge in all aspects of management. An accountant is the ideal management resource. He/She offers specialised services such as feasibility studies for new products and business projects, funding advice on capital restructuring and gearing, mergers and acquisition assistance in sourcing loans or equity capital, evaluation, design and implementation of new systems. As a one-stop management consultancy, the accountant also provides other specialised services such as corporate planning, operations appraisal, capital investment appraisal, organisational studies and reports, in addition to niche services such as project management for property development and agricultural schemes. INTERNAL AUDITING In addition to external auditors, many organisations now have their own internal auditor to examine and improve its business and accounting system. As internal auditors, accountants would review the organisation s accounting system and appraise the strengths and weaknesses of internal financial controls. Internal auditors conduct specific investigations as required by the management as well as liaise and assist external auditors. CORPORATE CARE SPECIALIST Even in the healthiest of financial climates, lack of liquidity could push your business to the verge of insolvency. An accountant s financial expertise and extensive knowledge of a wide range of businesses allows him/her to propose flexible solutions for a cash-strapped company. The caveat: an accountant s professional advice should be sought immediately in order to apply corrective measures in an effective and timely fashion. In the worst-case scenario of insolvency, your accountant can help you understand your rights, obligations and the range of administration options available to help solve your financial problems. CORPORATE RECOVERY / INSOLVENCY Corporate recovery involves investigating businesses, partnerships and individuals that have got into financial difficulties. Clients come from various industries including the banking sector. Accountants give advice on financial viability, recommend rescue packages or administer insolvency procedures in the event of bankruptcy. To be an approved liquidator, an individual has to be an approved auditor for at least one (1) year and has passed an interview conducted by the Accountant General Office. Approval to act as approved Liquidator is granted by the Accountant General Office pursuant to the Companies Act MERGERS AND ACQUISITIONS An accountant understands the business models of companies operating in diverse industries; thus, he/she can offer in-depth advice and superior service on mergers and acquisitions. Accountants provide vital financial advice and services that can make or break a mergers or acquisitions process, including analysis and due diligence of the targeted entities, the feasibility and viability of any proposed mergers, the valuation of shares post the merger or acquisition and tax issues. CORPORATE FINANCE This includes advising on corporate transactions, such as management buy-ins and buy-outs. The accountant s role can range from a review and advisory capacity to that of lead adviser advising on transaction structures, taxation implications, financing methods and sources, warranty negotiations and any other advice relevant to the particular transaction. Non-transaction work 12

13 Types of Work includes business valuations, business planning and litigation support work. Clients include listed companies, private companies, owner-managed businesses and individuals. CORPORATE TREASURY Corporate treasury involves the identification, assessment and management of financial risk within an organisation. This will usually include the management of cash and deposits, the provision of short-term and long-term borrowings and the hedging of risks associated with interest rate and foreign exchange rate movements. The treasury function reflects the risks inherent within the particular organisation concerned. Even in decentralised companies, it is usual to find a central treasury function. The divisions of the company often treat this as an internal bank. The treasury aggregates all of the internal business and deals with external financial institutions on behalf of the entire company. ENVIRONMENTAL AUDITING An environmental audit is a methodical examination of environmental information about an organisation, a facility or a site, to verify whether, or to what extent, they conform to specified audit criteria. Environmental audit is less structured and usually lacks legal backing and generally accepted accreditation procedures. Environmental audit primarily uses existing documentation of the company being audited, interviews with managers and personnel and observation of practises at the facility to check on environmental quality. FORENSIC ACCOUNTING The integration of accounting, auditing and investigative skills yields the speciality known as forensic accounting. Forensic accounting provides an accounting analysis that is suitable to the court, which will form the basis of discussion, debate and ultimately dispute resolution. Forensic accountants are trained to look beyond the numbers and deal with the business reality of the situation. It is the fastest growing area of accounting today. With the growing complexity of the business environment and the growing number of business related investigations, forensic accounting professionals are increasingly asked to assist in the investigation of financial and business related issues. An accountant is usually trained to analyse and scrutinise various areas of financial information and procedures practised by an organisation. EXECUTIVE RECRUITMENT In today s highly competitive business arena, a key ingredient to business success is picking and retaining the right people; successful staff selection becomes even more imperative when dealing with personnel at executive level. An accountant s extensive business contacts and broad-based knowledge of various industries and professions can be priceless in locating competent and motivated executives to suit business requirements. Accountants are ideally placed carry out an executive search, as he/she would be able to narrow down the field of candidates in an objective manner to ensure compatibility between the candidate and the organisation. Furthermore, his/her wide network ensures that the organisation would have ample of choices from candidates of high calibre. INFORMATION COMMUNICATIONS TECHNOLOGY The services of an accountant is also sought to maximise investments in Information Communications Technology (ICT). An accountant is ideally placed to give expert advice on selecting the right combination of hardware and software to suit both current business requirements and future expansion plans. 13

14 Types of Work An accountant can also provide follow-through service in ensuring the smooth implementation and operation of the ICT systems, especially in identifying specific areas where ICT could substantially improve business efficiency and profits. FINANCIAL PLANNING Accountants are essential advisors both on the business and personal front. Getting an accountant to help with personal financial planning can be vital in realising material goals, whether to build a nest egg for retirement, invest for the future, or simply secure a better lifestyle. In recent years, the scope of investment options has increased. Accountants can advise financial choices and assist with investment planning and estate planning. He/She can help decide on pension plans, insurance, and the purchases of assets such as property, bonds and equities; importantly, he/she is also qualified to act as executor or trustee for any estate. Taxation is also a key element in personal financial planning. The intricacies of modern tax legislation are such that laymen rarely have a thorough understanding of tax ramifications. An accountant, however, is very familiar with the latest tax developments and is highly qualified to offer expert advice to help lighten tax burdens. 14

15 8.0 Issues Surrounding the World Today and its Impact on the Accountancy Profession CHANGES IN TECHNOLOGY Communication and information technology is at the change and its acceleration is in excess of the other types of technological change. In the current environment the holder of the relevant information has the ultimate power and the advantage in decision-making in a swift and precise pace. In order to follow the information technology waves and to avoid from being far behind, educators now have a greater obligation to the students to ensure that they become literate in the business application of the information technology. CHANGES IN POLITICAL AND SOCIAL ENVIRONMENT The social and political environments have also changed drastically. The peace dividends that most of the world benefiting from, also do come from rapid changes in military and armament technology, satellite technology, communication and information technology etc. The fact that most of the entertainment, education and employment could be conducted from home and from distant places, owes its phenomenal changes to advances in the technology. In short, one may conclude that in these areas the technological changes are driving force in social and political environment. 15

16 Issues Surrounding the World Today and its Impact on the Accountancy Profession GLOBALISATION Globalisation and trade liberalisation are redefining the rules of how business is conducted, and the accountancy profession has not been spared of this phenomenon. There is increased need for members to take a pro-active stand in capability and capacity building. Members of the profession would also have to take advantage of the opportunities that present themselves, be resourceful in translating problems into opportunities as well as skilful in managing the risks concerned once the market is opened up to foreign players. There have been calls from various parties within the industry for small practitioners to merge their businesses in order to leverage on each other s strengths in facing the entrance of foreign competitors. PARADIGM SHIFTS The major events, which are and will effect organisations, are not mere extrapolation of the past, but they are paradigm shifts. What is a paradigm shift? Paradigm is a set of rules that (1) describe boundaries, and (2) recommend actions to be successful within those boundaries. Paradigm shift occurs when the rules change, therefore, changing the success factors. Today, most paradigms are shifting revolutionary rather than changing evolutionary. Paradigms, in 1940s and 1950s, were assumed to be in a certain environment for decision-making process. In 1960s and 1970s along with the increased uncertainties and complexities the decision world, paradigms shifted to a world of turbulence and unpredictability. In 1980s and 1990s, the shift has been towards an environment characterised as virtual reality environment. The major cause of such phenomenal shifts is deemed to be the unprecedented changes in technology, globalisation and unification of most markets, and major changes in political and social changes in the world environment. With such transformations in problem solving and viewing the world, one must shift one s paradigms in order to succeed in this new environment. CHANGES IN THE EDUCATION ENVIRONMENT The future of the education is shaped by the changes in technology and the society. The objective of education and its ends seldom change. However, education means or processes do change with the changes in the environment. BUSINESS AND ACCOUNTING EDUCATION Business and accounting education is no exception from most other types of education. The objective of accounting education is to educate and graduate professionals to assume future managerial and accounting roles in business and workplaces in the society. Methods of conducting business are changing dramatically. As a result, the education of future managers should change accordingly to prepare accounting graduates for drastically different styles and technique of complying with the new innovative management functions. 16

17 6.0 Route to Becoming a Qualified Accountant in Malaysia In Malaysia, the word accountant is protected. The Malaysian Institute of Accountants (MIA) was established under Accountants Act 1967 as the national regulatory body for accountants in Malaysia. All persons practising as accountants or auditors in Malaysia must be registered with the Institute. MIA members are categorised as Chartered Accountants. HOW TO BECOME A CHARTERED ACCOUNTANT IN MALAYSIA Chartered Accountant C.A. (M) Route 2 Full member of one of the recognised professional accountancy bodies Apply for MIA membership Route 1 Obtain minimum 3 years of Chartered Accountant s Relevant Experience (CARE) Route 3 MIA Qualifying Examination (MIA QE) Recognised professional accountancy body Recognised university accounting degree Unrecognised university degree/ Professional accountancy body STPM/ GCE A level/ LCCI/ University foundation programme/ Matriculation/ Accounting or non-accounting diploma 17

18 7.0 Qualifying as an Accountant in Malaysia Route 1 OR Route 2 OR To practise or to obtain the `ACCOUNTANT status in Malaysia, one needs to fulfil one of the following qualifications Have obtained a Bachelor of Accounting degree from a recognised local university under Part I of the First Schedule of the Accountants Act, 1967 Have obtained membership in one of the recognised professional accountancy bodies under Part II of the First Schedule of the Accountants Act, 1967 WORK EXPERIENCE For Route 1 and Route 3, once the academic requirements have been fulfilled, the person must obtain a minimum 3 years of relevant practical accounting experience before they apply for MIA membership to become a full-fledged ACCOUNTANT or Chartered Accountant Malaysia, C.A.(M). To help aspiring accountants gain relevant working experience after completing their studies, MIA has created the Chartered Accountants Relevant Experience (CARE) Programme. Under the CARE programme, a mentor will supervise CARE mentees until the necessary minimum 3 years working experience is complete. Route 3 Have passed the MIA Qualifying Examination (MIA QE) 18

19 8.0 Recognised Accounting Degree* (First Schedule, Part I of The Accountants Act, 1967) Bachelor of Accounting, University of Malaya Jalan Lembah Pantai Kuala Lumpur Tel : Fax : Website : Universiti Kebangsaan Malaysia UKM, Bangi Selangor Darul Ehsan Tel : Fax : Website : Bachelor of Accounting, Universiti Teknologi MARA Shah Alam Selangor Darul Ehsan Tel : Fax : Website : Universiti Utara Malaysia UUM Sintok Kedah Darul Aman Tel : Fax : Website : Universiti Putra Malaysia UPM Serdang Selangor Darul Ehsan Tel : Fax : Website : Universiti Islam Antarabangsa Malaysia P.O. Box Kuala Lumpur Tel : Fax : Website : Universiti Sains Malaysia USM Pulau Pinang Tel : Fax : Website : (Information System) Universiti Utara Malaysia UUM Sintok Kedah Darul Aman Tel : Fax : Website : Universiti Tenaga Nasional (the academic programme commenced from the academic year 2002/2003 onwards) Bandar Muadzam Shah Pahang Tel: Fax: Website : 19

20 Recognised Accounting Degree* (First Schedule, Part I of The Accountants Act, 1967) Universiti Multimedia (the academic programme commenced from the academic year 2002/2003 onwards) Jalan Multimedia Cyberjaya Selangor Darul Ehsan Tel : / Fax : Website : Universiti Multimedia (the academic programme commenced from the academic year 2002/2003 onwards) Jalan Ayer Keroh Lama Melaka Tel: Website : Universiti Malaysia Terengganu Kuala Terengganu Terengganu Darul Iman Tel : Fax: Website : Universiti Malaysia Sabah Jalan UMS Kota Kinabalu Sabah Tel : Fax: Website : 20 Universiti Selangor Jalan Timur Tambahan Bestari Jaya Selangor Darul Ehsan Tel : Fax: Website : Universiti Sultan Zainal Abidin Gong Badak Campus Kuala Terengganu Terengganu Darul Iman Tel: Fax: Website : Universiti Sains Islam Malaysia Bandar Baru Nilai Nilai Negeri Sembilan Darul Khusus Tel: /6402/6304/6305/6306 Fax: /6308 Website : Universiti Tunku Abdul Rahman Bandar Sungai Long Campus Lot PT 21144, Jalan Sungai Long Bandar Sungai Long Cheras Kajang Selangor Darul Ehsan Tel: Fax: Website : Bachelor of Accountancy (Honours) INTI International University Faculty of Business, Communications and Law Persiaran Perdana BBN Putra Nilai, Nilai Negeri Sembilan Tel: Fax: Website :

21 9.0 Recognised Professional Accountancy Bodies** (First Schedule, Part II of The Accountants Act, 1967) The Malaysian Institute of Certified Public Accountants (MICPA) 15, Jalan Medan Tuanku Kuala Lumpur Tel : Faks : Website : The Institute of Chartered Accountants of Scotland (ICAS) CA House, 21 Haymarket Yards Edinburgh EH12 5BH, Scotland Tel : Faks : Website : The Institute of Chartered Accountants in England and Wales (ICAEW) ICAEW Malaysia Branch Level 2, Chulan Tower 3, Jalan Conlay Kuala Lumpur Tel : Website : Institute of Chartered Accountants in Ireland (ICAI) CA House, 47 Pearse St Dublin 2, Ireland Tel : Faks : Website : Association of Chartered Certified Accountants (ACCA) ACCA Malaysia Sdn Bhd 27th Floor, Sunway Tower 86 Jalan Ampang 50450, Kuala Lumpur Tel : Faks : Website : The Institute of Chartered Accountants in Australia (ICAA) C-3A-10, 4th Floor, Block C Damansara Intan 1, Jln SS20/ Petaling Jaya Selangor Darul Ehsan Tel : Faks : Website : CPA Australia Suite 10.01, Level 10 The Gardens South Tower Mid Valley City, Lingkaran Syed Putra 59200, Kuala Lumpur Tel : Faks : Website : Canadian Institute of Chartered Accountants (CICA) 277 Wellington Street West Toronto, ON M5V 3H2 Canada Tel : Faks : Website : The Institute of Chartered Accountants in India (ICAI) ICAI Bhawan Indraprastha Marg., Post Box No.7100 New Delhi , India Tel : Faks : Website : Chartered Institute of Management Accountants in United Kingdom) (CIMA) CIMA SE Asia Lot 1.05, Level 1 KPMG Tower, 8 First Avenue Bandar Utama, 47800, Petaling Jaya Selangor Darul Ehsan Tel : Faks : Website : New Zealand Institute of Chartered Accountants (NZICA) c/o New Zealand High Commission 21st Floor, Menara IMC 8, Jalan Sultan Ismail 50250, Kuala Lumpur Tel : Faks : Website : 21

22 10.0 Alternative Route to Qualify as Accountants, the MIA QE Way MIA QUALIFYING EXAMINATION (MIA QE) Since 2003, MIA has been carrying out the MIA Qualifying Examination (MIA QE) as an alternative pathway for accounting, business and finance graduates to qualify as chartered accountants. MIA QE is a step closer for aspiring accountants to be chartered accountants who do not possess a qualification in accountancy recognised by MIA as stated in Part I and Part II of the First Schedule to the Accountants Act ELIGIBILITY Section 15A (2) of the Act provides that a person shall only be eligible to sit for the MIA QE if he/she possesses a qualification relating to accounting, business or finance recognised by the Public Services Department of the Government or other qualifications approved by the MIA Council. These include: Local/Overseas graduates; Students who have graduated from twinning programmes; and Students who have graduated from 3+0 programmes However, pursuant to Rules 3 (3) of the MIA QE Rules 2002, the accounting content in the above qualifications must not be less than 60 percent of the total qualification that will be assessed by the MIA Examination Committee. 22

23 Alternative Route to Qualify as Accountants the MIA QE Way ALTERNATIVE ROUTE TO QUALIFY AS A C.A. (M) 5. QUALIFY & APPLY FOR C.A. (M) MEMBERSHIP Receive the Certified of Successful Completion Apply for membership of MIA & use the designatory letters C.A. (M) after your name 4. UNDERTAKE & COMPLETE THE MIA QE ASSESSMENT FOR ALL 4 PAPERS Attend a series of workshops Sit and pass the final examination 3. REGISTER FOR THE MIA QE WORKSHOP & FINAL EXAMINATION Submit forms with the registration fees Workshop fee RM1,500 per paper (inclusive MIA QE Study Text & Workshop Manual) Final examination RM300 per paper 2. APPROVAL BY THE EXAMINATION COMMITTEE Receive Certificate of Candidacy (CoC) Valid for 2 years Renewal of CoC for another 2 years Access for supporting information from MIA website 1. REGISTER AS A CANDIDATE Submit form with a registration fee of RM300 Include certified true copies of IC, educational certificates a & transcript 23

24 11.0 Application of Candidacy APPLICATION OF CANDIDACY Interested candidates are requested to submit the application form along with the necessary documents and registration fee to MIA on or before the closing date for acceptance of applications as per below: EXAMINATION SESSION MARCH SEPTEMBER CLOSING DATE 31 October of the previous year 30 April of the current year APPLICATION FOR QUALIFYING EXAMINATION The MIA QE consists of 4 papers and candidates have the option of registering for all four papers at one sitting or stagger the papers over a maximum period of four years. Candidates are required to register for the workshop and final examination with MIA and the details are as follows: EXAMINATION SESSION OPENING DATE CLOSING DATE MARCH Mid October of the previous year End November of the previous year SEPTEMBER Mid April of the current year End May of the current year MIA QE ASSESSMENT FRAMEWORK FINAL EXAMINATION (60%) Compulsory to pass the Final Exam To attain at least 30% out of total 60% WORKSHOP EVALUATION (60%) Group (20%) project paper & presentation Individual (20%) quizzes & assignments BCL AFAR AUD TAX 24

25 12.0 MIA QE Syllabus 1. BUSINESS AND COMPANY LAW (BCL) To provide a sound knowledge of the core elements of Malaysian Business Law together with a thorough understanding of the Malaysian Company Law and its regulations with their applications in the management and administration of companies to the best interest of society and the profession. 2. ADVANCED FINANCIAL ACCOUNTING AND REPORTING (AFAR) To equip candidates with the knowledge and skills to apply financial reporting standards in the preparation of financial statements for public companies and group of companies. 3. AUDITING AND ASSURANCE SERVICES (AUD) To equip candidates with the knowledge and understanding of the audit process and reports when performing an audit of financial statements, including considerations for other issues relating to provisions of audit-related and assurance services. 4. TAXATION (TAX) To equip candidates with the knowledge and understanding of the concepts, principles and current taxation practices in Malaysia as well as the ability to solve practical problems and to be familiar with aspects of other relevant legislation. EXAMINATION ADMINISTRATION University Technology Mara (UiTM) has been appointed as the Examination Body to conduct the MIA QE for a period of three years. UiTM will set the examination, mark and assess the answer scripts and forward the examination results to the MIA Examination Committee. The University was selected based on its impressive track record, staff strength and excellent infrastructure. EXAMINATION CENTRES The final examinations are conducted throughout Malaysia at the following venues: 1. UITM Shah Alam for Selangor and Federal Terriority 2. MIA Regional Offices in Johor Bahru, Penang, Sabah and Sarawak. MIA QE CERTIFICATE OF SUCCESSFUL COMPLETION Upon completion of all 4 papers, the successful candidate will obtain a Certificate of Successful Completion from MIA. To qualify for MIA membership, in addition to obtaining the Certificate of Successful Completion, applicants would need to gain 3 years of working experience in the service of chartered accountant or in a government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organisation 25

26 13.0 Career Prospects in Accountancy Accountants have many varied skills and are employable in any industry and businesses. They are employed and are partners in accounting firms, chief financial officers of multi-national organisations, deans and lecturers of the accounting faculties in universities, directors in government departments, chief executive officers, tax advisers, bankers and finance directors of many commercial and industrial organisations. If one were to browse through the daily newspapers for employment, one would find many vacancies for accountants, finance directors, finance executives, finance managers, internal auditors, accounts manager, accounts supervisors, etc. It would also not be surprising to find certain positions traditionally not held by accountants, have advertisements listing the requirements for accounting qualifications. Some of these positions are corporate care managers, relationship managers and such. The prospect for an accountant is therefore limitless. An accountant is normally situated in an ideal position to propel themselves onto the upper levels of management. This is due to the fact that the skills of an accountant are fundamental skills in the business world, which gives the accountant the advantage of understanding the financial workings of an organisation. The expertise of an accountant enables him/her to offer advice on financial matters to the management and therefore becomes a crucial advantage to the career advancement of the accountant. Accountants are also not limited geographically especially for those who choose to acquire an internationally recognised accounting qualification. However, those who acquire other accounting programmes may later pursue an internationally recognised accounting qualification, to enable him/her to market his/her services in the international market. Malaysia, as it moves towards achieving fully developed nation status would require more accountants to fill the many vacancies arising from the industries and businesses which are being established. Foreign investors encouraged by the businesses in the country will need the expertise of accountants to provide them with financial advice. Fresh accounting graduates with no experience may expect a salary between RM1,500 and RM2,000. However, this would depend on the size of the organisation and scope of work. 26

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28 If you are interested to chart your career in the accountancy profession visit or call us at LIKE us on miamainpage YOUR PATH TO A BRIGHTER FUTURE