ACCA guide to career pathways in public practice

Contents

introduction using the guide 1 acca in public practice the acca Qualification Summary The nine domains of competence The exam syllabus Experience requirements Ethics CPD 2 careers in public practice: audit, tax and advisory audit Introduction Career pathway in audit Roles and responsibilities in audit Technical competences in audit Business skills and behavioural competences in audit tax Introduction Career pathway in tax Roles and responsibilities in tax Technical competences in tax Business skills and behavioural competences in tax advisory Introduction Career pathway in advisory Roles and responsibilities in advisory Technical competences in advisory Business skills and behavioural competences in advisory 3 choosing the right pathway Mobility in public practice Tracking progress along the career path

4 5

6 6 6 8 8 8 9

9 9 9 10 11 12 13 13 13 13 14 15 16 16 16 16 17 17

18 20

career pathways in public practice

ConTEnTS

Introduction

this guide is a quick reference for anyone interested in pursuing a career in public practice. it is also very useful for individuals already working in the sector, in any size of firm, and considering their next career move.

It has been developed to assist individuals in providing a structured method to planning and managing their careers in the sector so they can begin to answer questions like: Is a job in audit right for me? Am I likely to enjoy a career in tax? What are my options in moving within the sector? Can I move outside into the wider accountancy or business field? What are the skills and knowledge I would need to develop?

It is interesting and more than just interesting. As an audit professional you are privy to the workings of a company. You can learn a lot of things you wouldnt otherwise have had a chance to.
senior manager, big four

The information in the guide was developed through research, interviews and surveys of professionals and It starts by providing an overview new joiner in a public practice practitioners in audit, tax and advisory of how the ACCA Qualification as well as discussions with ACCA develops the competences and skills member firms. Their insights and opinions on career paths, that employees in the sector require. It goes on to explore the competences and job roles were then compiled into the guide. three key service lines typically found in many public practice organisations audit, tax and advisory, explaining the typical We hope that the information in this document serves to roles and responsibilities of professionals at different career assist in making important career decisions. It should help in stages and roles, and the related competences that should be identifying and guiding professional development requirements, developed to be successful at each stage. It also considers the and provide greater certainty and understanding for individuals issue of career mobility both within the sector, and outside in the about future career options so that they may enjoy a successful wider business environment what are the roles or service lines and rewarding career. that provide most career flexibility, and at what career levels is

I love the fact that when I joined, I joined with a group of people my own age. You build strong relationships as most assignments are carried out in teams

it easier to change career direction? Finally, it introduces the individual to ACCAs online global competence tool ACCA Compass, which enables individuals to track progress against their career paths and to target future roles by better understanding the skills and knowledge they would need to develop.

Using the guide

learn about how the acca Qualification has been developed to be appropriate to roles across public practice.
exams

acca membership

ethics

experience

average years of experience senior executive director/partner

understand more about the different service lines across public practice. read about the roles, key responsibilities, and skills required, and review the different career paths individuals can take.

1015 912, 1015 68, 912 57, 68 46 23

executive director senior manager manager executive senior senior associate associate

model a the audit career pathway in the big four and medium sized firms

ree rp rog res sio n

track progress in your career path by using accas new competence assessment tool, ACCA Compass.

career pathways in public practice

USInG THE GUIDE

ACCA in public practice

the acca Qualification ACCA has a clear understanding of, and strong commitment to, the needs and aspirations of accountants in public practice. over 35,000 ACCA members are employed in the public practice sector, in small and medium sized practices through to the Big Four accounting firms. ACCA offers qualifications which allow students and members to focus on education and training that is highly relevant for a modern career in public practice. The ACCA Qualification has been designed as a business relevant, first choice qualification for those seeking a rewarding career in accountancy, finance and management. As the international leader by size in 47 markets, ACCA is uniquely placed to provide employers with a globally recognised and portable qualification for accountants in public practice. The ACCA Qualification has been designed to provide accountants in public practice with the relevant capabilities and competences they need as identified by members and key employers. It is designed not only to ensure that ACCA members are immediately fit for business as fully contributing employees, but that they are fit for the future and possess the capabilities to add real value to their organisations and have the aspirations and potential to accept high levels of responsibility and to carry out the most senior roles in public practice. The ACCA Qualification is flexibly designed to allow students to select particular combinations of exams and work-based practical experience that are specifically tailored for their work, particularly those within public practice. This booklet explains how the ACCA Qualification can be shaped to support careers in the public practice field across three key service areas audit, tax, and advisory. a summary of the acca Qualification The ACCA Qualification comprises three components:

professional ethics and governance

business management

personal effectiveness

performance management and management accounting

finance and financial management

financial accounting and reporting

taxation

audit and assurance

business and commercial law

professionalism, ethics and governance: this tests and develops the appropriate ethics, values and standards of behaviour, including the requirement to comply with legal, regulatory and social requirements, as well as developing a good understanding of risk management principles and processes. business management: this tests skills and knowledge in relation to project management and managing others for example, directing the work of others, monitoring and managing progress and quality of work, driving improvements through change and innovation, and providing leadership towards meeting specific assignment goals. personal effectiveness: includes those competences associated personal skills, such as communicating effectively, interacting and behaving appropriately with colleagues and others, committing to personal learning and development, self management and effectively using information and communications technology. performance management and management accounting: this tests the knowledge and skills in relation to the application of management accounting techniques, financial planning. budgeting and decision making, and performance evaluation and control finance and financial management: this tests skills and knowledge in investment analysis and appraisal, and business financing

acca membership

exams

ethics

experience

financial accounting and reporting: focuses on statutory accounting requirements, and developing skills and knowledge in key financial reporting areas, preparing and interpreting financial transactions and statements taxation: this tests skills and knowledge across the range of corporate, indirect and personal tax issues. It involves understanding the full range of computation, planning and reporting issues audit and assurance: Develops skills and knowledge across the entire audit cycle, and ensures competence is developed in all auditing areas. business and commercial law: Ensures competence is developed in all regulatory aspects.

To

qualify as an ACCA member, trainees must: pass all examinations there are 14 papers complete the Professional Ethics module complete ACCAs practical experience requirements (PER).

the nine domains of competence The design and content of the ACCA Qualification is derived from extensive consultation and with reference to best practice in professional education and training, and in accordance with the International Federation of Accountants (IFAC) standards. ACCA has identified nine domains of competence relevant for professional accountants working in public practice covering its exams and experience requirements.

A ACCA in public practice

The nine domains of competence bring together ACCAs exams and experience requirements so that examinations and performance objectives can be aligned which means that public practice trainees can see how the knowledge developed through study links to the workplace. Benefits of linking exams and experience: Putting into practice in the workplace techniques and theories learnt via the exams Higher exam success rates and faster progression to ACCA.

professional ethics and governance F1, P1 Po: 1, 2, 3

business management F1, P3 Po: 7, 8, 9

personal effectiveness F1 Po: 4, 5, 6

performance management and management accounting F2, F5, P5 Po: 12, 13, 14

finance and financial management F9, P4 Po: 15

financial accounting and reporting F3, F7, P2 Po: 10, 11

examinations F1, Accountant in Business F2, Management Accounting F3, Financial Accounting F4, Corporate and Business Law F5, Performance Management F6, Taxation F7, Financial Reporting F8, Audit and Assurance F9, Financial Management P1, Professional Accountant P2, Corporate Reporting P3, Business Analysis P4, Advanced Financial Management P5, Advanced Performance Management P6, Advanced Taxation P7, Advanced Audit and Assurance

taxation F6, P6 Po: 19

audit and assurance F8, P7 Po: 17

business and commercial law F4 and across all Pos

experience performance objectives Po1 Demonstrate the application of professional ethics, values, and judgements Po2 Contribute to the effective governance of an organisation Po3 Raise awareness of non financial risk Po4 Manage self Po5 Communicate effectively Po6 Use information and communications technology Po7 Manage ongoing activities in your area of responsibility Po8 Improve departmental performance Po9 Manage an assignment Po10 Prepare financial statements for external purpose Po11 Interpret financial transactions and financial statements Po12 Prepare financial information for management Po13 Contribute to budget planning and production Po14 Monitor and control budgets Po15 Evaluate potential business/investment opportunities and required finance options Po16 Manage cash using active cash management and treasury systems Po17 Prepare for and collect evidence for audit Po18 Evaluate and report on audit Po19 Evaluate and compute taxes payable Po20 Assist with tax planning

career pathways in public practice

ACCA In PUBlIC PRACTICE

ACCA in public practice

the exam syllabus ACCAs examination syllabus contributes directly to the development of skills and knowledge that accountants in all public practice roles require. Students are required to complete 14 papers in total as follows: fundamentals Knowledge module three papers The Knowledge module introduces public practice trainees to core accounting concepts across business, providing them with basic understanding of finance principles and techniques. F1, Accountant in Business F2, Management Accounting F3, Financial Accounting fundamentals skills module six papers The Skills module builds on the knowledge module, exploring in more depth six core technical accounting areas that any accountant in public practice, regardless of their particular service area should be technically proficient in. F4, Corporate and Business Law F5, Performance Management F6, Taxation F7, Financial Reporting F8, Audit and Assurance F9, Financial Management professional essentials module three papers The Essentials module provides public practice trainees with the in-depth understanding they will need as they progress their careers in public practice. The papers introduce the trainee to applying knowledge and professional judgement across a number of key areas, including corporate governance, internal control, compliance, risk management, statutory finance reporting and strategic business issues. P1, Professional Accountant P2, Corporate Reporting P3, Business Analysis professional options module two papers The options module allows trainees to select two optional papers from a choice of four. Trainees in public practice are usually recommended to take P6 and P7 papers which require the trainee to apply relevant knowledge and professional judgement to tax and auditing issues. P6, Advanced Tax P7, Advanced Audit and Assurance Visit www.accaglobal.com for further information on ACCA examination syllabus.

experience reQuirements ACCAs practical experience requirement is a key component of the ACCA Qualification. To become ACCA members all trainees must also gain relevant practical experience. In order to perform effectively as an ACCA-qualified accountant in public practice, and to help future career challenges, individuals need to develop their skills in the workplace. All ACCAs need to have achieved 13 performance objectives (nine essentials and four options) and at least 36 months worth of relevant practical experience. Performance objectives are benchmarks of effective performance that describe the types of work activity in which trainees will be involved. essentials Cover the general business, management and personal effectiveness skills that accountants in public practice must be able to demonstrate. All of these performance objectives need to be acquired by the trainee. Po1 Demonstrate the application of professional ethics, values, and judgements Po2 Contribute to the effective governance of an organisation Po3 Raise awareness of non financial risk Po4 Manage Self Po5 Communicate Effectively Po6 Use information and communications technology Po7 Manage ongoing activities in your area of responsibility Po8 Improve departmental performance Po9 Manage an assignment. options Covers the other technical and accounting finance domains of competence within the ACCA Qualification. ACCA recommends completion of Performance objectives 1720 for those trainees working in public practice as they are tax and audit focused. Po17 Prepare for and collect evidence for audit Po18 Evaluate and report on audit Po19 Evaluate and compute taxes payable Po20 Assist with tax planning Visit www.accaglobal.com for further information on ACCAs practical experience requirements. ethics All ACCA trainees are required to complete a Professional Ethics Module as part of completing the ACCA Qualification. The module gives trainees exposure to a range of ethical perspectives. Central to the ACCA Qualification is the prominence of professional values, ethics and governance these are essential skills required by all accountants, but particularly those employed in public practice, as the profession moves towards strengthened codes of conduct, regulation and legislation. The aim of the professional ethics module is to help trainees develop the ethical knowledge, sensitivity and judgement which can then be applied in the exams. Visit www.accaglobal.com for further information on the Professional Ethics Module.

AACCA in public practice

continuing professional development a lifetime of competence ACCA recognises that ongoing development does not finish when individuals qualify as ACCA members. To add value to their clients, all public practice employees must remain competent and up to date throughout their careers. ACCA Realise is ACCAs leading edge continuing professional development (CPD) scheme. All members are required to undertake relevant CPD to ensure that they maintain and develop the knowledge and skills needed to succeed in todays dynamic and demanding business environment. With a focus on ethics and relevant learning and development, ACCA Realise has been designed to: help members plan and identify relevant CPD help reassure employers that members keep themselves up to date and employ an ethical approach offer a measurable and transparent approach to CPD provide an accessible range of services for members.

cpd for public practice ACCA has developed a wealth of learning resources specifically designed for members in public practice to ensure they remain competent as accountancy professionals, and to support them in planning, sourcing and achieving their CPD. The resources have been designed to ensure the CPD process supports members career development, through a simple and flexible process. Access to learning resources includes faceto-face courses, technical updates and presentations, further qualifications, and access to ACCAs Virtual learning Centre which includes a wide range of e-learning content highly relevant to public practice employees. Visit www.accaglobal.com/members for further information.

Careers in public practice: audit, tax and advisory

audit introduction to audit A public practice audit service requires the auditor to express an opinion on the financial statements of a company prepared by the directors based on an audit. The auditors would have conducted their audit in accordance with approved standards on auditing, based on Generally Accepted Auditing Standards (GAAS) in their respective countries. Those standards require that the auditors comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on an auditors judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, auditors understand and consider the companys business, its internal controls or risks of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements. Most accounting firms will have developed a set audit methodology.

career pathway in audit All firms are unique, and this is reflected in many respects, not least of which are the pathways. Generally, the pathway available within public practice would resemble one of the two models (A or B) below. Model A reflects the career pathways available in larger firms such as the Big Four and medium sized firms. Smaller firms may utilise the pathway illustrated in Model B. Career progression within audit is very structured. Models A and B both provide an indication of how you can expect your career to evolve in the profession. The average number of years you will spend before progressing to each of the positions is shown for each model. The best thing about audit? Theres job security for one. The other is the breadth and depth of knowledge you learn from working for clients from many different industries.
executive director

An entry level associate who joins a public practice with no prior experience is usually expected to hold a degree in accounting or finance from a recognised university and/or posses a professional qualification like ACCA. Promotion in public practice is usually based on performance, vacancies or whether they can create a business case for you to be promoted especially to become a partner.

career pathways in public practice

CAREERS In PUBlIC PRACTICE: AUDIT, TAx AnD ADVISoRY

Careers in public practice: audit, tax and advisory

acca profiles
average years of experience senior executive director/partner
ree ca

acca profiles
average years of experience senior executive director/partner executive director senior manager manager assistant manager senior semi senior associate model b the audit career pathway in smp
ree ca

Directors and partners

1015 912 68

executive director senior manager manager executive senior senior associate associate

Directors and partners

1015 912 710 68

rog rp n sio res

rog rp n sio res

Managers

57 46

Managers 35 24 Seniors Trainee 12

Seniors Trainee

23

model a the audit career pathway in the big four and medium sized firms

roles and responsibilities in audit As you progress from associate level onward, the roles and responsibilities expected of you will evolve as well. While the naming conventions used at each level may differ from one firm to the next, in general the roles and responsibilities are similar for equivalent positions. The brief descriptions below outline the responsibilities commonly expected from each of the positions and their equivalents. A public practice firm would usually have its own individual job descriptions which will detail any additional or differing expectations. director/audit partner Develop and manage client relationships Identify opportunities and contribute to growth and development of practice Ensure financial targets are met Act as engagement partner Responsible for overall client engagement acceptance and risk management process Guide and manage overall provision of services to portfolio of clients Responsible for delivering high quality services while adhering to compliance standards Lead people initiatives. audit manager Fully accountable for the audit of higher complex organisations including risk management practices Supervise and control completion of audit assignments including assessing internal controls, systems, planning Tailor audit programmes to suit client business environment and risks

Review work of audit staff, ensuring quality in compliance with professional standards/requirements Train, supervise and coach staff assigned and contribute to non client work Manage portfolio of clients in terms of net investment Manage client relationships and identify opportunities Participate in professional development activities and in recruiting staff and resource planning. senior auditor Accountable for audits assigned, including planning and control of audit Supervise and coach seniors/associates Review work prepared, ensuring quality in compliance with professional standards/requirements Monitor budget and understand commercial aspects involved such as billings and collections Learn to tailor the audit programme to suit client business environment and risk Report to the manager in charge Begin to contribute to non-client work such as recruitment initiatives. trainee Draft statutory financial statements Handle specific stages of audit work Ensure work is prepared in compliance with professional standards Learn to detect exceptional items and issues of non compliance Report unusual items to the senior auditor.

10

ACareers in public practice: audit, tax and advisory

technical competences in audit The competence profile below shows the typical range of technical competences that audit professionals need to develop across the four key roles of trainee, senior auditor, audit manager and director/partner. To be a very effective auditor, at all career levels, the auditor must ensure that they develop a wide range of technical accounting skills and knowledge across a very broad business spectrum. The nature of a career in an audit service line requires auditors to develop both a sound understanding of business principles and processes, as well as specific client and industry knowledge. There are a number of specific areas in which audit professionals should be developing technical strengths. Whilst demonstrating good knowledge of external auditing techniques and principles across the audit cycle, auditors should be able to demonstrate understanding of implications of general tax issues on businesses (from the perspective of a non-specialist), as well as limited knowledge of specialist tax areas. A key focus of the work auditors perform is around the statutory reporting process so demonstrating understanding of accounting principles, policies and standards, and being able to apply these properly, is very important. Being able to advise on and review

the preparation of financial statements for reporting purposes is also highly important. Being able to understand and apply specific accounting practices effectively across a broad range financial processes within an organisation is very important this includes areas as wide ranging as accounts payable and receivable, general ledger, fixed assets, investment accounting, stock accounting, income recognition and so on, as well as being able to interpret financial transactions and statements. There are other important areas auditors need awareness of the budgeting and strategy process of their clients, and they need good understanding of a clients finance IT systems. Business decision support, knowledge of investment appraisal, and risk management and financial control processes are also all critically important, because knowledge of these areas underpins the work that auditors perform. As audit professionals progress through their career, those in more senior roles would typically be expected to demonstrate superior knowledge across these finance areas, primarily as a result of having more experience and exposure to client processes.

technical competence profile for auditors across key roles

Champion

5.0

(Source: ACCA competence tool ACCA Compass)

Expert

4.0

Skills

3.0

Knowledge

2.0

Fundamental

1.0

0.0 Business decision support, investment appraisal Treasury operations working capital, cash management Corporate governance, Sox, other legal Budgeting and strategy planning General ledger, AP AR, payroll , Preparing management information and commentaries Financing for corporate finance and transction activities Risk management services, financial control Business management Mergers, acquisitions and divestments Finance systems and IT Tax adviser general competences Corporate tax specialist Personal tax specialist Indirect tax specialist Statutory reporting Financial analysis External audit Internal audit General tax

Key Trainee Senior Audit manager Director/partner

career pathways in public practice

CAREERS In PUBlIC PRACTICE: AUDIT, TAx AnD ADVISoRY

11

Careers in public practice: audit, tax and advisory

business skills and behavioural competencies in audit The competence profile below shows the typical range of business skills and behavioural competences that audit professionals need to develop across the four key roles of audit assistant, senior auditor, audit manager and audit partner. The behavioural competence profile of a good audit professional typically becomes more demanding the further up you progress up the career pathway. Developing a strong technical base of skills is important early in an auditing career, however as seniority increases, audit professionals increasingly need to develop a full range of wider business skills and behavioural skills. The skills the audit professional needs to develop at each level is correlated with the roles and responsibilities at each stage of the career.

director/audit partner Commercial understanding Strong negotiation skills Business development skills Strong client relationships and networking skills leadership skills

audit manager/senior manager Customer focused Client and industry knowledge Analytical and problem solving skills Management skills Effective presentation skills Project management skills

senior auditor Communication skills Interpersonal skills organisational skills Mentoring skills Analytical and problem solving skills Management skills

trainee Interpersonal skills Team player Work independently Initiative Developing self Time management

at each career stage, the individual needs to learn new business skills and behavioural competences.

12

ACareers in public practice: audit, tax and advisory

tax introduction to tax A public practice tax service usually involves assisting businesses, individuals and organisations to optimise tax efficiencies and strategies, implement innovative tax planning and maintain compliance via a broad range of tax advisory services. Tax consultants are involved at the heart of transactions such as mergers, acquisitions, or the setting up of new operations abroad. career pathway in tax Career development in tax is structured in a manner closely resembling that in audit. Models A and B both provide an indication of how you can expect your career to evolve in the profession. The average number of years you will spend before progressing to each of the positions is shown for each model.

Associates at entry level are expected to posses a recognised university degree and/or professional qualification like ACCA. As in audit, promotion in tax services is usually based on performance, vacancies or whether you can create a business case for you to be promoted especially to become a partner.

life in tax is a continuous learning process. You have to stay sharp to keep up with new clients and new regulations.
tax director

acca profiles
average years of experience average years of experience

acca profiles

Directors and partners

1215 1012 710

partner
ca

Directors and partners

1015 912 810 68

partner director senior manager manager assistant manager senior semi senior associate model b the tax career pathway in smp
ca ree

director managing consultant consultant senior

ree rp rog res sio

rp rog res sio

Managers 46 Seniors Assistant 23

Managers 57 35 Seniors 12

associate model a the tax career pathway in the big four

Trainee

roles and responsibilities in tax The responsibilities for tax have been grouped together based on the equivalent positions within different public practices. The brief descriptions below outline the responsibilities commonly expected from each of the positions and their equivalent in most practices. While the work at each level may differ slightly from one firm to the next, the responsibilities are generally quite similar to those listed here. director/partner Develop and manage client relationships Identify opportunities and contribute to growth and development of practice Ensure financial targets are met Act as engagement partner Responsible for overall client engagement acceptance and risk management process Guide and manage overall provision of services to portfolio of clients
career pathways in public practice

Responsible for delivering high quality services while adhering to compliance standards Lead people initiatives. managers Lead compliance assignments eg dealing with yearly tax compliance matters of client Responsible for varied and challenging tax consulting assignments Ensure work completed by staff assigned is in compliance with regulations Ensure all associated risk management procedures are complete Involved in representations on behalf of client Supervision and coaching of associates Manage portfolio of clients which includes work in progress to billing and collection Manage client relationships and identify opportunities.
CAREERS In PUBlIC PRACTICE: AUDIT, TAx AnD ADVISoRY 13

Careers in public practice: audit, tax and advisory

senior Prepare tax computations Prepare client correspondence to clients and tax authorities Assist in liaising with the tax authorities on the clients tax liabilities Ensure work is completed in compliance with the professional standards/requirements Supervise and coach assistants Report to the manager in charge Begin to contribute to non-client work such as recruitment initiatives. assistant Assist in the preparation of tax computations Assist in the preparation of correspondence to clients and tax authorities Ensure work is completed in compliance with professional standards and requirements Report to the senior/manager in charge.

technical competences in tax The competence profile below shows the typical range of technical competences that tax professionals need to develop across the four key roles of associate, senior, tax manager and director/partner. To be a very effective tax consultant, at all career levels, the tax professionals must also develop technical skills in other accounting areas however, typically the breadth of technical skills required is less than an audit role, because the nature of the work is even more specialised. As individuals progress within the tax service line, they are more likely to specialise in specific tax areas, and so will need to develop a high level of technical understanding in these areas. Generally, tax professionals and advisors will need to display sound general tax competences such as understanding and complying with the regulatory environment, international aspects of tax where appropriate, tax compliance requirements and tax planning issues. If they specialise in particular tax areas, such as corporate tax, indirect tax, or personal tax, they will naturally be expected to be subject experts.

technical competence profile for tax professionals across key roles

Champion

5.0

(Source: ACCA competence tool ACCA Compass)

Expert

4.0

Skills

3.0

Knowledge

2.0

Fundamental

1.0

0.0 Treasury operations working capital, cash management Budgeting and strategy planning General ledger, AP AR, payroll , Preparing management information and commentaries Financing for corporate finance and transction activities Risk management services, financial control Business management Corporate governance, Sox, other legal Mergers, acquisitions and divestments Finance systems and IT Business decision support, investment appraisal Tax adviser general competences Corporate tax specialist Personal tax specialist Indirect tax specialist Statutory reporting Financial analysis External audit Internal audit General tax

Key Assistant Senior Tax manager Director/partner

14

ACareers in public practice: audit, tax and advisory

Another key technical specialism that tax professionals should develop when they are advising clients is on budgeting and strategy planning issues tax advisers can add most value to an organisation where they have a strong understanding of the organisations overall business strategy they can help tax plan much more effectively. A general understanding of business management principles is important too as tax professionals they are working with clients to add value to their businesses. As tax professionals progress through their career, those in more senior roles would typically be expected to demonstrate superior knowledge across these finance areas senior tax professionals are able to build up highly specialised tax knowledge in certain tax areas or across specific client industries, and have had more experience and exposure to different client. business skills and behavioural competencies in tax The competence profile below shows the typical range of business skills and behavioural competences that tax professionals need to develop across the four key roles of associate, senior, tax manager and director/partner. The business skills and behavioural competence profile of a good tax professional mirrors that required by audit professional again a strong technical base of skills is important early in a tax career, however as seniority increases, tax professionals increasingly need to develop a full range of wider business skills and behavioural skills. The skills the tax professional needs to develop at each level is correlated with the roles and responsibilities at each stage of the career.

director/partner Commercial understanding Strong negotiation skills Business development skills Strong client relationships and networking skills leadership skills

tax manager/consultant Customer focused Client and industry knowledge Analytical and problem solving skills Management skills Effective presentation skills Project management skills

senior Communication skills Interpersonal skills organisational skills Mentoring skills Analytical and problem solving skills Management skills

assistant Interpersonal skills Team player Work independently Initiative Developing self Time management

at each career stage, the individual needs to learn new business skills and behavioural competences.

career pathways in public practice

CAREERS In PUBlIC PRACTICE: AUDIT, TAx AnD ADVISoRY

15

Careers in public practice: audit, tax and advisory

advisory introduction to advisory In the words of some audit and tax partners, Advisory basically performs any other services not provided for by audit and tax. Advisory services generally includes corporate services, mergers and acquisitions, business management, risks advisory, finance function effectiveness, loan applications support, corporate restructuring, business development (eg business plan writing, research into new markets), operational effectiveness. career pathway in advisory In public practices that have a dedicated advisory service, advisory will function as a separate unit with its own pool of permanent staff. Entry requirements range from a recognised degree (need not be an accounting or finance qualification) at associate level for public practices that recruit fresh graduates without prior experience. Individuals with MBAs are sought after. The average number of years they will spend before progressing to each of the positions is shown for each model. Similar to both audit and tax, promotion in advisory services is usually based on performance, vacancies or whether you can create a business case for you to be promoted especially to become a partner.

roles and responsibilities in advisory The nature of the work in advisory is varied and depends heavily on the client. Generally it revolves around providing consultancy services for issues ranging from financial, operational, strategic, technological and human resource issues. on occasion, the projects may require collaboration with staff from tax and audit, to draw on their specific expertise. director/partner Develop and manage client relationships Identify opportunities and contribute to growth and business development Act as engagement partner Ensure financial targets are met Responsible for delivering high quality services while adhering to quality standards Manage revenue generation Manage development of consulting team Lead people initiatives. managers Manage multiple projects that require highly refined business knowledge or technical expertise Manage, network and enhance relationship with clients, with the objective of identifying and pursuing more business opportunities in the future Responsible for revenue generation Oversee the proposal preparation, review and lead or participate in the proposals presentation for clients Responsible for assigned client and engagement acceptance and risk management procedures Ensure delivery of project in accordance to agreed standards/quality Provide guidance to staff Involved in people initiatives such as recruitment and training. seniors Responsible for one or multiple segments of a large project Develop comprehensive knowledge for a specific industry or specialisation Assist in the research and preparation of a proposal. Participate in the proposal presentation Assist with completion of client and engagement acceptance risk management procedures Have moderate to heavy contact with middle and/or senior level management at the clients Supervise and review work of team members ensuring work delivered meets agreed standards/quality. trainees Member of a project team Delivery of work product in compliance with agreed timelines and standards Provide project analytical support, conduct research and data analysis to support the teams analysis and conclusions Assist with completion of client and engagement acceptance risk management procedures May focus on expertise/skills in a specific industry or areas of specialisation Maintain frequent contact with middle or lower management levels in the field.

acca profiles
average years of experience

Directors and partners

1215 1012 710

partner
ca

director senior manager manager assistant manager associate

ree rp rog res sio

Managers 46 Seniors Trainee 23

model a the advisory career pathway in the big four

small and medium sized practices Although the Big Four and some other firms possess their own corporate advisory arm, some small public practices do not utilise the model of three separate distinct service lines (audit, tax and advisory). Instead, when advisory opportunities or jobs arise, the partners in audit and tax will pool together a team comprised of personnel from the existing audit and tax teams. These personnel are generally senior managers and above as they will have acquired the requisite industry knowledge to advise the clients. The team assembled for the advisory job will usually be headed by a partner or director.

16

ACareers in public practice: audit, tax and advisory

technical competences in advisory owing to the breadth of roles that advisory work includes, each specific advisory area, such as acquisitions and mergers, or risk management, IT consultancy and so on will require their own specific technical competence profiles. business skills and behavioural competences in advisory The competence profile below shows the typical range of behavioural competences that advisory professionals need to develop across the key roles in the career hierarchy. The business skills and behavioural competence profile of an advisory professional mirrors that required by both tax and audit professionals as seniority increases, advisory professionals increasingly need to develop a full range of wider business skills and behavioural skills. The skills the advisory professional needs to develop at each level is correlated with the roles and responsibilities at each stage of the career. I love the excitement. Every job is a new experience, different clients, different industries, different client issues and a chance to design different solutions.
advisory manager

executive director/advisory partner Commercial understanding Strong negotiation skills Business development skills Strong client relationships and networking skills Effective presentation skills leadership skills

advisory/senior manager Customer focused Client and industry knowledge Analytical and problem solving skills Management skills Effective presentation skills Project management skills

assistant manager Communication skills Interpersonal skills organisational skills Mentoring skills Analytical and problem solving skills Management skills

associate Interpersonal skills Team player Work independently Initiative Developing self Time management

at each career stage, the individual needs to learn new business skills and behavioural competences.

career pathways in public practice

CAREERS In PUBlIC PRACTICE: AUDIT, TAx AnD ADVISoRY

17

Choosing the right pathway

mobility in public practice what happens when someone wants a career change to a different line of service within a public practice? The competences developed as you progress along your chosen career pathway may qualify you for other roles besides your current role. Public practice usually encourages employees career development via inter departmental transfers rather than lose a valuable talent to the competition. It is an opportunity for employees to gain additional and novel new experience in a different line of service. The map below shows the transfer points available to an individual within assurance, tax and advisory.

audit Public practice provides an excellent starting point for trainees embarking on their careers, and audit is the number one career destination of most trainees. The nature of audit work means that trainees obtain exposure to the role of finance across different client organisations, the principles of financial reporting, and how financial issues impact on the ongoing operations of the business. In addition to providing broad training in finance, because the role is client facing, employees will learn to develop a wide range of other useful skills in the business environment. internal moves The audit service line provides a good basis for developing a career in other service lines within practice, however, typically there is greater likelihood of movement in more junior roles this is simply because the individual would need to learn a new technical skill set, and in more senior roles, this technical know how is typically assumed to already exist.

external moves All organisations recognise the business skills and knowledge that employees can obtain in a public practice organisation. Most public practice employees seek moves external to the firm typically within three years of qualifying as an accountant, when they have plenty of time in their careers to pursue alternative finance career routes either in another public practice firm, or in business. Move to another firm within public practice typically if staying in public practice, individuals will move into similar level roles, or roles one step up the career ladder. Move outside the sector the most common move for audit professionals moving outside the sector is to move into an internal audit role, and then to move into a mainstream finance line role later. However, some movement does occur at senior levels from audit service lines into the corporate sector.

Greater mobility at junior roles

audit

trainee

senior auditor

audit manager/ senior manager

director/partner

tax

associate

senior

tax manager/ consultant

director/partner

advisory

associate

assistant manager

manager/ senior manager

director/partner

Roles with more mobility outside of the public practice sector The most common moves within the public practice sector

18

AChoosing the right pathway

tax The tax career route is attractive to candidates that seek a more specialised career. The nature of tax work means that public practice employees can develop a wide range of different tax skills and knowledge, across different client organisations, They will also develop good business and client relationship skills internal moves If an individual starts their career in tax, and does not pursue a general accountancy qualification such as ACCA, internal moves away from tax into other service lines can become more difficult, because the individual is seen as specialised in the tax area, particularly later in their careers. often many tax professionals commence their career journey in the audit service line, and study for a general accountancy qualification such as ACCA, but switch to tax later to specialise. external moves Move to another firm within public practice Most tax professionals moving outside to other practices seek similar tax roles, either at a similar level, or one step above on the career ladder. Move outside the sector Finance professionals typically move into general tax roles, or in specialised areas of tax. Again, experience that employees in public practice hold is attractive to external business because of the breadth of tax knowledge, and different client experiences they have developed. However, mobility opportunities outside the public practice sector are typically greater earlier on in the career. advisory The nature of roles within advisory is very varied a typical career path within the advisory service line enables the individual to build up specialised knowledge for example, in mergers and acquisitions, or within risk management. Consequently, ACCA provides a strong broad based financial qualification for this service line. In addition to the development of specialised finance knowledge, as with the other service lines, working in advisory provides individuals with exposure to different client businesses and experiences. internal moves It is quite challenging for individuals to move from the advisory service line into either tax or audit lines, owing to the specialised nature of these areas. Moves have most chance of succeeding if the transfer is undertaken early within the career, so the individual has the necessary time to build up the specialised audit or tax knowledge required. It is much more difficult to move internally at more senior levels.

external moves Move to another firm within public practice Most advisory professionals moving outside to other practices seek similar roles, either at a similar level, or one step above on the career ladder. Move outside the sector As noted previously, organisations outside of the public practice sector recognise the business skills and knowledge that employees can obtain in a public practice organisation, and advisory is no exception. In particular, a lot of the specialised roles that advisory professionals perform for example, mergers and acquisition, risk management, or finance function effectiveness, is highly prized and valued by corporate organisations because often this expertise is sought in-house too, and public practice employees bring a wealth of external client experiences. Similarly some of the more generalist business consulting roles, where employees can build up specific industry knowledge is also highly valuable. Consequently, external moves outside of many advisory areas are more likely to happen across all levels of seniority.

career pathways in public practice

CHooSInG THE RIGHT PATHWAY

19

Choosing the right pathway

tracKing progress along the career path The previous section has provided an insight into the different career paths across public practice and beyond. ACCA can also assist in helping individuals track their progress against specific career paths. ACCAs competence assessment tool ACCA Compass has been designed to support public practice employees in the career planning process. It can be used by individuals to understand where they are in terms of their career path, and the skills and knowledge they need to develop to move into targeted roles. They can gain an understanding of the type and level of skills required across all types of roles, at different level of seniority. Key functionality of the tool includes: An online tool based on a framework of almost 100 competences covering key areas of finance, with each competence being supported by further explanatory guidance and interpretation indicators A framework of competences covering the technical and wider business skills required of finance professionals in performing their finance roles across public practice A simple to use hierarchy of skills ratings, enabling end users to clearly identify their levels of skills for each competency relevant to their role A wide range of pre-existing job roles that have already been created for the most common finance roles, allowing users in similar roles to quickly tailor and flex these competence assessments to their own requirements A unique and streamlined reporting process which easily allows individuals to see and understand their own skill strengths and deficiencies further information www.accaglobal.com/members/cpd/plan/acca_compass

20

ACCA Approved Employer

acca works in partnership with approximately 8,500 employers across the world to deliver accountants and finance professionals, trained to the highest standards, supported by access to a comprehensive learning and development offering. we are focussed on supporting your trainees and qualified finance professionals throughout their careers, delivering services through a network of 82 offices and centres.

The ACCA Approved Employer programme is formal recognition of the learning and development support that leading organisations offer to ACCA students and members. It is the platform from which we can develop a mutually beneficial relationship, based on increasing the standard of learning and development support, innovative service, and excellent delivery. For more information, please visit www.accaglobal.com/employers

career pathways in public practice

ACCA APPRoVED EMPloYER

21

About ACCA

acca (the association of chartered certified accountants) is the global body for professional accountants. we aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

We support our 131,500 members and 362,000 students throughout their careers, providing services through a network of 82 offices and active centres. our global infrastructure means that exams and support are delivered and reputation and influence developed at a local level, directly benefiting stakeholders wherever they are based, or plan to move to, in pursuit of new career opportunities. our focus is on professional values, ethics, and governance, and we deliver value-added services through 57 global accountancy partnerships, working closely with multinational and small entities to promote global standards and support. We use our expertise and experience to work with governments, donor agencies and professional bodies such as the International Federation of Accountants (IFAC) to develop the global accountancy profession and to advance the public interest. our reputation is grounded in over 100 years of providing world-class accounting and finance qualifications. We champion opportunity, innovation, diversity, integrity and accountability. By promoting our global standards, and supporting our members wherever they work, we aim to meet the current and future needs of international business. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide. ACCAs theme for 20092010 is accountants for business. This theme emphasises the important roles accountants play in both the private and public sectors, promoting their role as advocates of sound business practices, champions of sustainable business development and identifiers of value drivers which lead to high-performing organisations.

22

career pathways in public practice

23

24

The information contained in this publication is provided for general purposes only. While every effort has been made to ensure that the information is accurate and up to date at the time of going to press, ACCA accepts no responsibility for any loss which may arise from information contained in this publication. no part of this publication may be reproduced, in any format, without prior written permission of ACCA. ACCA July 2009.

ACCA 29 lincolns Inn Fields london WC2A 3EE United Kingdom +44 (0)141 582 2000 www.accaglobal.com