PQ magazine March 2017
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Questionspotting: what is going to come up in the March ACCA exams?
CIMA updates exam rules
AUDIT ISN’T SEXY ENOUGH ANYMORE
The audit profession is at a tipping point. There is now real concern that few people will be attracted to a career in audit, and there could be a huge skills gap. The call has come for audit to be ‘repositioned’ and sold to the next generation by demonstrating the positive role it plays in society. Changing the perception of the accountancy profession in general, and audit in particular, will be no mean feat. However, recent discussions appear to show that there is an even bigger threat to the accountancy profession on the horizon as firms look to totally change the skill-set of their audit teams. Accountancy could be asked to take a back seat as firms look to recruit more data and risk analysts, and cyber security experts. One Big 4 firm admitted while it currently recruits 1,000 graduates for chartered accountancy training each year for its audit teams it may look to cut this to just 200. If the accountancy bodies want to keep ahead of the curve they may have to have to change the very essence of their accountancy qualifications. The recent joint report from the Financial Reporting Council and ICAS said that the profession needed to develop the audit skills base at the same time as the audit of the future evolves. Waiting for audit to change will be too The first ICAEW professional CBEs are upon us, with the Audit & Assurance and Tax Compliance exams the first to switch over from paper to computer in March. The ICAEW’s James Patrick told the recent tutor’s conference that the institute has learned a lot of lessons from the September and December pilots. While it might seem obvious, he said those sitting the CBEs had to become familiar
Colella: ‘audit needs to attract the most talented individuals’
late given the time-lag involved in recruiting, developing and training staff. There will undoubtedly be a greater emphasis on IT skills within audit teams, to complement the use of IT specialists. The report’s authors felt that the development of multi-disciplinary teams will clearly impact on how and who the firms recruit. To meet the challenges of today and tomorrow the report, Auditor Skills in a Changing Business World, said there are three key skills that need to be enhanced: business acumen, technology
and data interrogation, and soft skills. ICAS CEO Anton Colella said: “Audit quality relies on quality people. The challenge is that audit needs to attract and retain the most talented individuals – now and in the future. More and more we need to demonstrate what an exciting and fulfilling career choice it can be.” • See Author Skills in a Changing Business World and The Capability & Competency Requirements of Auditors in Today’s Complex Global Business Environment, both from ICAS and the FRC.
ICAEW CBEs about to launch with the exam software, and to this end the ICAEW has uploaded lots of support and guidance. Patrick stressed that students need to know how to show their workings and how to make their responses ‘visible’. To help this process the ICAEW has introduced a
little note on every screen, not just the opening screen. Patrick explained that a minority of students were trying to put too much in the answer cells and were not showing where their workings could be found. Markers can’t go hunting through all the cells to find these
answers, he explained. The ICAEW has also changed its online practice exam delivery service. Connectivity was an issue for those using their employer’s laptops. So these can now be downloaded in advance and run offline.