Members’ Forum

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

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. Module A Financial Reporting Module B Financial Management Module C Auditing & Information Management 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 HKICPA Qualification Programme

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. Members of recognized accountancy bodies QUALIFICATION PROGRAMME HKICPA Aptitude Tests* + practical experience in accounting (3-5 years) CPA (HKICPA Member) PC Exams + relevant auditing experience CPA (Practising) HKICPA / CPA Membership Admission * 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. 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) Recognised Overseas Accountancy Bodies

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. Review of Existing Recognition Arrangements • 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

15. Transitional Arrangements Prof. Exam + Experience + Aptitude Test = Membership • 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

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

18. Review Process • 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

19. Review Process – 3 step approach • 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)

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

21. Review Process – 3 step approach • 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

22. Outcome of Review Process • 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

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

24. Thank-you very much!