Expert Series Talk:Expert Series Talk:Accountants of the FutureAccountants of the Future

12 June 200812 June 2008

Presented by:Presented by:

Andrew HengAndrew Heng

CA(M), CPA(Aust), CPA(Mongolia), CPA CA(M), CPA(Aust), CPA(Mongolia), CPA (Cambodia), CFP B.Com, LLB(UWA)(Cambodia), CFP B.Com, LLB(UWA)

Sarbanes-Oxley Act of 2002Sarbanes-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 WorldTransformation 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 Trends Impacting Accountants of TomorrowAccountants of Tomorrow

• Increasing demand for skilled professionals

• Enterprise risk management

• Fair value accounting

• Globalization

• Fraud control

What Clients WantWhat 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 YGenerations 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.

Life Cycle of An AccountantLife Cycle of An Accountant

Age Meteor to Mentor

age 22-28 (post-university degree; early phase ofprofessional work):

Develop technical skills, gainexposure to working with staff and clients. Complete professional degree e.g. CPA

age 28-38 (broaden experience) Perform roles in business environment to gaincommercial and business experience.

age 38-50 or 55 (prime fee-earning phase):

Adviser y role with high fee-earning focus. Supervise a number of other technical personnel and mentor them in accounting and business.

New Rules, New RolesNew 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 EnvironmentCompetencies 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 SuccessPaths 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 OrderPublic 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 DemandSpecialities and Skills in Demand

• General Accounting

• Financial Analyst

• Internal Audit

• International Accounting

• Forensic Accounting

Industry StatisticsIndustry 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…Industry Statistic…cont’dcont’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

Workforce Demographic Trends Workforce Demographic Trends

Lifelong learningLifelong 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?QUESTIONS?Contact :Contact :

Ferrier Hodgson Monteiro & HengFerrier Hodgson Monteiro & Heng

Monteiro & Heng ChambersMonteiro & Heng Chambers

No. 22, Jalan Tun Sambanthan 3 No. 22, Jalan Tun Sambanthan 3 50470 Kuala Lumpur50470 Kuala Lumpur

Tel : 603-22736227, Tel : 603-22736227,

Fax : 603-22737503Fax : 603-22737503

Email : Email : ferrier@fhmh.com.my

Website : Website : www.ferrierhodgson.com

Andrew HengAndrew Heng

aheng@fhmh.com.myaheng@fhmh.com.my