1 Members’ Forum  QP Concept and Philosophy  Transitional Arrangements  Accreditation Process

2 Purpose  We need to understand and appreciate what our education standards  Why we need to establish our own qualifying benchmarks in Hong Kong

3 QP Concept and Philosophy Objectives 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

4 Content, Standards & Quality The 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 scheme

5 CPA Designation Degree (Graduate Entry) Accredited Degrees or equivalent Qualification Programme Competency Based Standards Authorised Employer/ Supervisor Scheme 3-5 Years Supervised Work Experience

6 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

7 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

8 HKICPA Qualification Programme Module 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 Examination 6-hour Open-Book Exam

9 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.

10 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

11 Benefits of QP Next targeting recognition in Canada Government recognition: Continuing Education Fund –Only need $5,000 to get a professional qualification

12 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)

13 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

14 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

15 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 July 2005 Prof. Exam + Experience + Aptitude Test = Membership

16 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)

17 Document entitled “Information for Professional Bodies seeking Recognition” published on HKICPA website Outline review process –To assess overseas qualifications for mutual recognition purpose Process, procedure and criteria: Open, clear and transparent Accreditation Process for Recognition

18 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. continuing professional development Review Process

19 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

20 Step 2: –Submit detailed information (Appendix 2) –Reviewer to conduct a desk review of information submitted Review Process – 3 step approach

21 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

22 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 Body of its decision Outcome of Review Process

23 Consistency and uniformity of standards are our aims This is our responsibility as the statutory body for the profession in Hong Kong Accreditation Process

24 Thank-you very much!