Tougher requirements needed to become a public accountant

Tougher requirements needed to become a public accountant

The more stringent registration requirements for public accountants include the mandatory requirement that applicants have specific audit management experience, said ACRA.

SINGAPORE: The requirements have been raised for those applying to become public accountants. Starting from February next year, they will need to accumulate around five years of work experience before they can apply to become public accountants - up from about three years currently.

The more stringent registration requirements for public accountants include the mandatory requirement that applicants have specific audit management experience, the Accounting and Corporate Regulatory Authority (ACRA) said on Friday (Aug 1).

ACRA said that from Feb 1, 2015, all applicants who want to become public accountants must have gained 2,500 hours of experience in audit management, which would take about two years. In order to ensure that the audit management experience is gained at an appropriately senior level, the 2,500 hours will only count after an applicant has completed his professional accountancy training.

In addition, the applicant's experience needs to be supervised and attested by an Audit Principal, who is someone with at least five years of experience as a public accountant and has a good track record with ACRA.

Speaking at the Auditing and Assurance Conference organised by the Institute of Singapore Chartered Accountants (ISCA), ACRA chief executive Kenneth Yap said the change will ensure closer alignment of the practical experience requirements with a public accountant's core responsibility of ensuring high quality audits.

"Audit is a cornerstone of public confidence in capital markets. We must ensure that audits in Singapore remain of the highest quality. Audit opinions rest on sound judgement and healthy scepticism, the application of which can only be gained through adequate and relevant experience," he said.

In Singapore, only a public accountant or an accounting entity approved by ACRA may provide an audit opinion on financial statements.

ACRA said the revised requirements were drawn up in consultation with the professional accountancy bodies and representatives from both large and small audit firms. It added that a public consultation was also conducted in 2012, which showed broad support for the proposed new requirements.

"It's definitely a step in the right direction; and it's in line with international practices and education standards," said Loh Khum Wai,Country Managing Partner (Singapore), Ernst & Young.

- CNA/ek/rw


- wong chee tat :)

Blood ties: Family members of the ultra-rich beat accountants in giving financial advice

Blood ties: Family members of the ultra-rich beat accountants in giving financial advice

Whom do Asia’s wealthiest trust?

Asia is experiencing unprecedented growth, and Asian businesses are riding this rising tide of wealth. But it seems that high net-worth Asian business owners still prefer to run to their family members for business counsel, sidelining lawyers, accountants, and private bankers in the process.

According to Standard Chartered and Campden Wealth Research’s report, most high net-worth individuals in Asia prefer to follow financial advice from their family members, while accountants come in second and advice from lawyers come in third.

Next in line are private bank advisors, independent asset managers, investment bankers, family offices and commercial bankers.

“Total trust, some participants explained, is reserved only for those individuals closest to the business--namely, family and long-time colleagues,” the report noted.

Here’s more from the report:

The role of family businesses in the development of the private sector across Asia is equally important. Family businesses account for 32% of the total stock market capitalisation of the regionand 34% of its gdp.

“[T]his is a crucial stage of the business and family members are more likely than external advisors to care about and nurture the business. Our commercial profts put the food on our table and provide for our wants and needs, so we are [invested] in sustaining it. . .” said one respondent.

Family businesses are also important players in growing international and inter-regional trade, and in assisting regional economic development through exports. On average, international sales represent up to 36%per cent of the total sales for family businesses in Asia, compared to 8 per cent in North America.

- See more at: http://sbr.com.sg/financial-services/news/blood-ties-family-members-ultra-rich-beat-accountants-in-giving-financial-a-1#sthash.mOo2K2Mp.dpuf



- wong chee tat :)