Presented by: Andrew Heng CA(M), CPA(Aust), CPA(Mongolia), CPA (Cambodia), CFP B.Com, LLB(UWA)
Sarbanes-Oxley Act of 2002 • The Sarbanes-Oxley Act of 2002 is a US federal law enacted on July 30, 2002 in response to a number of major corporate and accounting scandals e.g. Enron. • These scandals, which cost investors billions of dollars when the share prices of the affected companies collapsed, shook public confidence in the nation's security markets.
Transformation of the Business World • Financial misdeeds have led to many regulatory changes giving rise to increased emphasis on ethics. • Accountants’ stature have elevated to Public Guardian. Increased demand for their services. • New opportunities emerge in areas of business/ financial planning, coaching, mentoring, forensic accounting
Trends Impacting Accountants of Tomorrow • Increasing demand for skilled professionals • Enterprise risk management • Fair value accounting • Globalization • Fraud control
What Clients Want • Clients are becoming increasingly sophisticated and forward looking and have higher expectations. The client of the future will have a sharper understanding of finances and be more demanding of quality service covering a broader range of services: • Sourcing finance • Financial planning • Business coaching • Advisory services
Generations X and Y • Generation X – those born between 1965 to 1982 • Generation Y – those born between 1983 to 1997. relate more to their profession than to an employer, generation of multi taskers, belief in self worth, unafraid of changes. • Generation Y - want to see strong and focused leadership within organisations for which they work. • Gen X and Y less interested in investing in an accounting firm. This means more accountants are likely to come from graduate backgrounds other than the traditional Bachelor of Commerce or Bachelor of Accounting.
New Rules, New Roles • Increased demand in accounting and finance professionals - new job opportunities and higher career profile • New regulations – created a level playing field for entry-level staff and experienced staff • Demographic changes affects the talent pool • Colleges and Universities offering more courses in response to marketplace needs • Interest in accounting programs is on the rise
Competencies for a Changed Environment • Specific attributes employers seek – spreadsheet skills, flowcharting, database applications expertise etc • Certifications remain highly valued for accounting and finance professionals • Technology-related certifications are valued • Communications abilities – both written and verbal – and soft skills become important, • Accountants will have to improve their technical skills, offer financial planning
Paths to Success • Opportunities are in abundance for accounting and finance professionals. Public accounting for instance is the most popular option. • Public accountants develop broad based skills and gain experience preferred and often required for positions in both public accounting and private industry. • Consultants with expertise in internal control, information security, business continuity planning, anti-fraud, mergers and acquisition are highly sought. • Corporate accounting would be another popular career choice as it ventures into offering guidance for daily operation through value creating activities.
Public Accounting: A New Order • New regulation and changes have reshaped the work of public accountants. Heightened emphasis has been put on auditing and consulting services. • Recent legislation has made auditing the primary focus of firms hence raising its labor, time and fees. • The rise in demand has caused second tier firms to expand their service offering to greater heights to cater to the ever demanding market.
Specialities and Skills in Demand • General Accounting • Financial Analyst • Internal Audit • International Accounting • Forensic Accounting
Industry Statistics • The impact of new regulations on businesses • 37% - pressure to meet compliance deadlines • 31% - collaboration between accounting and information technology • 30% - a more ethical environment • 58% - have already implement new practices to ensure greater control of accounting processes
Industry Statistic…cont’d • Specialties and skills in demand • 49% responded general accounting • 17% responded internal auditing • Workforce demographic trends • Total enrollment in accounting programs for the period of 2000-2004 rose 19% • The overall number of accounting degrees awarded increased 8% in 2003-2004
Lifelong learning • Supplement your degree with professional degree/ masters • Certifications provide a level of expectations that the person is competent to carry the work required • Stay up to date with legislative and regulatory changes • Develop soft skills - communication and presentation skills, community services, clubs etc • Enhance yourself in IT area – spreadsheets, powerpoint, database
QUESTIONS? Contact : Ferrier Hodgson Monteiro & Heng Monteiro & Heng Chambers No. 22, Jalan Tun Sambanthan 3 50470 Kuala Lumpur Tel : 603-22736227, Fax : 603-22737503 Email : email@example.com Website : www.ferrierhodgson.com Andrew Heng firstname.lastname@example.org