Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Should ACCA be allowed public practice in Pakistan
04-02-2007, 09:52 PM,
#1
Should ACCA be allowed public practice in Pakistan
A great numbers of students are pursuing ACCA qualification in Pakistan. At present ACCA members are not allowed to engage in Public Practice in Pakistan.

With such huge numbers of professionals qualifying ACCA, isn't it the appropriate time to ponder upon the possibility of allowing ACCA members to engage in Public Practice?

Mahmood Chaudhry
ACCA, ACA
Reply
04-03-2007, 01:54 AM,
#2
 
I personally think that they should not be. However, as in many countries they are allowed to engage themselve in public practice, so this fact is also to be considered.
Reply
04-03-2007, 09:20 PM,
#3
 
Dears,

Members of ICAP and ICMAP (with certain restrictions) are allowed to engage in public practice. Both of the above professional categories are governed by Pakistani Laws and Institutes. They are responsible to the stakeholders in accordance with the local laws, applicable standards and code of ethics set by the relevant institutes.

This shows that some institution, regulating the activities and professional conduct of those to which certain assignments are entrusted by the stakeholders of an entity (like audits), is extremely necessary. SECP can only review their activities within the legal boundries and as per its own charter of responsibilities but cannot regulate them as their own institution/association.

For doing so, it is imperative that ACCA regulating body should

-get incorporated in Pakistan, as may be required;

- obtain a local charter from the government;

- introduce some essential papers for the students who want to practise locally (like Companies Ordinance 1984, business, tax and other corporate laws; and

- then after qualifying those papers and undergoing some specific trainning period in practising firms at Pakistan, issues them a practice certificate in consonance of the charter obtained from Govt of Pakistan.

Otherwise, in my view, there is no sense in allowing ACCAs to be in practice in Pakistan.

However, ACCAs can engage theirselves in professional practices through limited liability companies incorporated in Pakistan for providing services. But such services will not include providing external /statutory audit services. They can do consultancies, tax, restructuring' incorporation and liquidation of companies, due diligences, human resource services and other similar services.

Best regards,

Kamran.
Reply
04-04-2007, 02:50 AM,
#4
 
Right, Kamran due to think its probable that in future ACCAs will be allowed to get engaged in practicing (external audit)? May be through the route you mentioned or otherwise.

I am asking this because many of ACCAs, whom I met, are very confident in this regard.
Reply
04-04-2007, 01:19 PM,
#5
 
If we go on to compare different subjects taught or studied in these two qualifications i.e ACCA and CA of Icap, we can see that at this time ACCAs` are ahead of their counterparts as for as financial management is concerned,CAs` are good in financial accounting and in pakistani tax, I suggest that If ACCAs` are not allowed to enter in public practice for some time as you people have said,they should be given the same degree of exemptions as they were used to enjoy in 1990s` . No doubt that ICAP has increased its papers from 14 to 21 but they are giving the same exemptions for ICAEW CAs` where as we have seen that ACCA is getting more equal status to CA of ICAEW in uk which is quite visible from the new scheme launche dby ICAEW to get ACA from ICAew for ACCAs`
Reply
04-04-2007, 01:24 PM,
#6
 
they just have to wait for five years to get ACA from ICAEW, ICAP should bring in for ACCAs` like ICAEW have, In my opinion ICAP should give the audit practice right to those ACCAs` who have completed their ACCA and have five years have passed
Reply
04-04-2007, 04:23 PM,
#7
 
ACCA has already incorporated itself in Pakistan under the Companies Ordinance, 1984 as non profit entity. Now what they need to do is to pursue the relevant quarters. Secondly, I am a strong advocate of the view that ACCA should formalize its training requirements. Instead of recognizing practical experience attained anywhere, it should be made compulsory to spend some time with a firm of qualified accountants.
Reply
04-04-2007, 06:31 PM,
#8
 
Dears,

Irrespective of whatever ICEAW has allowed to ACCAs, it would be unfair to match the both qualifications. I know the details about the evolution of ACCA association in UK, the guys who were behind its establishment, their qualifications, and the need to form such an association in the presence of two institutes of chartered accountants at UK (England and wales as well as scotland)etc.

However, ACCA has grown to a great extent and has found general inclination from the students community.

If it is unknown to the members, I find this oppurtunity to point out that among all qualifications, accountancy field is considered the easiest at UK. This was not the situation when ICEAW was the substantial educator at UK in accountancy field. I dont have any doubts over the quality of the associations/institutes like ACCA or CIMA, but by the passage of time and due to emergence of such institutions, accountancy is losing its importance as a DIFFICULT / IMPORTANT AREA OF EDUCATION specially at UK.

As far as jobs are concerned, we all have so much misconceptions about it. It is a general view that ACCAs have so many jobs at UK. U all know that in Pakistan, ACCAs are not well entertained in industry as well as profession and we think that situation is substantialy different in UK.

Yes, ACCAs have a good job bank at UK. But these all are not the jobs of senior executive positions. Our problem is that we dont understand the culture and setup of other countries and make our assessments. So many jobs in a country do not substantiate that a particular qualification is so good. You all know that the most jobs in our industry are for commerce graduates. This does not result in a conclusion that commerce graduate would be comparable to MBA or M Com.

Still, despite so many jobs available for ACCAs at UK, the most senior and executive positions are always supposed to be held by the members of ICEAW. I have no doubt over it. If any one (ACCA) has such doubt, he should go to UK and pass through a phase of self realization. He will know what I am saying is correct.

Further, ACCAs are qualifying in such an abundance that the avialability of so many jobs is still not catering the inflow. We have so many misconceptions. A pakistani ACCA is very very difficult to be entertained for a good job at UK becoz the UK's own infow is enormous. I am not talking about the rare cases.

Therefore, let us conclude that by no means ACCAs are comparable to ACAs of ICAEW. If you guys have doubts, please check the details of UK market. I said, yes, there are so many jobs for ACCAs but those jobs are not comparable to ACAs. Just like in Pakistan you will see ACMAs seated on all governmental posts and they have very good jobs but they are by no means comparable to ACAs. Why governmental jobs are with ACMAs? Becoz CAs dont go on those jobs. It's very simple.

I know this can hurt so many guys. Whenever some ACCA student comes to me, I always ask him one question. You are in Pakistan, you have no plan to go to UK, then why dint u opt CA instead of ACCA?

Most of the times, I receive the reply, "CA is very difficult". Sometimes I get the answer, "I will do CA after doing ACCA." and sometimes, the reply is found to be very much disturbing, "I tried for CA but could not get through the first exam despite of so many attempts. Therefore, now I am doing ACCA".

I have a trainee who is a qualified ACCA and who started ACCA becoz he failed doing CA after so many times attempting.

I also have a CA student who is ACCA qualified and he qualified ACCA final in first attempt in the age of 20 years. But he is struggling in CA and succeeded in getting only 2 permanent credits in module E despite of two attempts.

What the hell is this? It is not understandable.

In my view, ACCAs should not get CA equivalence, at least in Pakistan, and they must have to undergo all the papers which for the time being are required to qualify by them for becoming an ACA.

Further, ACCAs should not be allowed to do the public practice in Pakistan as an audit firm / sole-proprietorship unless they, by any means, get CA equivalnce from the government.

Allowing public practice would be very illogical where on the other hand ICAP considers them only equal to C.A. Inter.

These are my views with greatest sorries from my ACCA friends.

I am ready for the criticism and would be pleased to see it.

Best regards,

Kamran.

Reply
04-08-2007, 01:10 PM,
#9
 
sir you are right I agree,but dont you think that the person about whom u told us that he has cleared only two papers in two attemts is also an odd example
Reply
04-09-2007, 03:54 PM,
#10
 
Dear Khani,

I know the cases where ACCA qualified people also qualified CA superbly. In my above post I mentioned that I was not talking about the rare cases.

There are still lesser than 5,000 qualified CAs from ICAP despite of passage of 60 years of independence. Some of these CAs have died. Almost 1,000 to 1,500 CAs are working abroad and in Pakistan I roughly estimate that aprroximately 2500 to 3,000 CAs would be working.

What would be the quantum of ACCA qualified people among these 2,500 to 3,000. Very few. In my veiw might be not more than 100 to 200.

Yes, personal abilities have to vary from person to person. But in fact whoever has qaulified CA, I regard him as CA. I personally have three other qualifications/memberships of professional institutes of Pakistan besides CA but I personally regard myself as CA.

Further, if some one has to mention other qualifications with his name along with CA in Pakistan, he has to mention ACA or FCA first of all and then he can mention other memberships with his name. This is required by ICAP.

And dear, the guy I mentioned in my post who passed two papers in two attempts is a genious one. He is one of my best students. What I wanted from mentioning about him is only to differentiate two qualifications and the varying level efforts required for them.

I am not an enemy of ACCA or other qualifications. I might well be doing CFA in near future as well. I am so much interested in it. I have also initiated LIFA. The point was to consider and explain that whether or not ACCAs should be given permission for public practice.

In my view, this should not happen. I have so many reasons to have this opinion. However, if any ACCA want to be in practice, no body can abstain him/her.

One simply has to establish an office, preferably incorporate a private limited (limited liability) company and start his management consultancy work. This will not include external audit/statutory audit as part of their services. However, they can do all other works. This way they might also prove theirselves and get permission for public practice one day, in future.

Best regards,

Kamran.
Reply
04-10-2007, 01:09 PM,
#11
 
Sir,Mr Kamran Sahib, thankyou for giving us your beautifull thoughts, we all are glad to see such a gentleman amoung us,sir,ap kia kahtee hin. kia pakitan mein kush rahnee ke liyee kitna paesa huna chayee, is it necessary to do ca(as you have done) and than cfa or Lifa(kindly give us their difference and important features ,their acceptability and scope in pakitan).Kia karna chayee aur kia nahee. I am really inspired from your personality( written thoughts)
Reply
04-10-2007, 04:39 PM,
#12
 
Dear,

Thank you for your compliments.

In contrast to you, some people dont like to see the members to be active on this forum. They have objection that why and how a Chartered Accountant having a good practice can manage his time to place 100 or more posts in lesser than a month. They dont know that I always work this way in all my assignments. This depends upon a person that how he schedules and manages his work. Where a guy spends 10 minutes only in smoking at his office, i can post three messages on this forum in such a time. Just after 25 minutes I have to attend a metting with CEO of a client company and I am posting this msg. Because I have worked to cater the needs of my meeting and I am confident about it. Anyways. Baseless objections cannot hinder my work and alter my style.

I dont impose my ideas on others. But in my view, one should do CA preferably in Pakistan, if he/she supposes that he/she can do it.

Earning is an other issue. People having matric or below qualification have earned so much due to various factors. So many have made money in estate, oil, money exchange, gold trading and other businesses. I know some simple B.Coms and M.A.s who are earning equal to CAs. Earnings depend upon one's destiny written by God. Basically, I dont recommend to do CA only for its greater earning potential. Rather, I prefer it due to its superiority over other qualifications, at least in Pakistan.

It is preferred over other qualifications in Pakistan, currently. I have no doubts over it. If some one has resources and time and if he/she can put in the required efforts, he/she should do CA.

Now coming to LIFA and CFA. CFA is much more better than LIFA. CFA has three stages and no exemption is offered to CA by them. Its examinations are conducted in Karachi. Registration is done in June and December. The first exam is of objective type and is comparatively easier one. Other two exams are the best tools to judge the analytical approach of a professional in financial management, investment appraisal, investment portfolio management, risk management, performance appraisal, equities and other financial instruments etc. You can get its further details at www.cfainstitute.org

LIFA is not much important and I dont recommend it for you. You can at a later stage do it, if you like to do so.

CFA has a good acceptance and demand in banking, investment and financial sector. It has find good market at GULF.

If you are doing ACCA, I recommend you to do CFA after ACCA.

Best regards,

KAMRAN.
Reply
04-11-2007, 01:46 PM,
#13
 
sir ,how much exemptions are offered to a ca in cfa, will it not be ok for me to go for ca first and then go for cfa,sir r u in karachi or other city?
Reply
04-11-2007, 04:07 PM,
#14
 
There ain't any exemptions in CFA qualifications for CA. You have to attempt all the three papers.
Reply
04-11-2007, 05:16 PM,
#15
 
Dear,

I have mentioned in my previous post that CFA does not allow any exmption to CA.

It would be fine if you wanna do CFA after CA.

Regards,

Kamran.
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)

Contact Us | Accountancy | Return to Top | | Lite (Archive) Mode | RSS Syndication