Professionals

Chartered Accountants: An integral part of the corporate world

BY HIRAN H. Senewiratne

THE Institute of Chartered Accountants of Sri Lanka (ICASL) is a professional qualification that has public interest before self interest and is one of the best professional qualifications one could acquire, President of the ICASL Indrajith Fernando said.

Business has become the language of work and accountancy plays an important part in the business world and accountancy becomes a very popular profession.

The basic qualification to get enrolled with the Institute is GCE A/L, if not, students with the Association of Accountant Technicians (AAT), is entitled to exemptions in the exam.

It also conducts continuous professional educational and development programmes for members to keep their knowledge updated.

All four stages of the examination could be completed in two years and the total investment would be less than Rs. 20,000.

The Council of the Institute is responsible for the administration and management of the Institute. The Council also conducts qualifying examinations, supervises and regulates student education and training, secures the maintenance of professional standards among members and the advancement of the profession.

The Council consists of the President, Vice-President and four members elected by the members and six members appointed by the Minister of Internal and External Trade, Commerce and Food.

The Institute also conducts compulsory courses parallel to the main programme to enhance professional skills of student members, Fernando said.

The Institute has over 2390 members, of whom around 600 are abroad; and over 16,000 registered students.

Members of the Institute describe themselves as "Chartered Accountants", and use the designatory letters "ACA" or "FCA" depending on whether they are Associates or Fellows of the Institute.

The strategic review and planning carried out by a representative committee of the institute in mid 2003 showed how much work will be needed to prepare students, members and the administration to meet the challenges facing the profession and to comply with the statements of member obligations (SMO) of the IFAC.

'We used these to develop our strategic plan and to launch a major project with the assistance of the World Bank to improve the Relevance and Quality of Undergraduate Education (IRQUE) for students.

The details are included in the report of the Council,' he said. ICASL also facilitates an MBA programme on Finance, conducted by the University of South-Queensland in Australia.

This qualification is also an entry qualification for MBA programmes not only in Sri Lanka but also in overseas as well.

The Institute also gives assistance to students who perform well at exams. Audit firms give scholarships for article clerks who performed well at exams, he said.

Qualified members also could obtain the membership from the Institute of Chartered Accountants England and Wales after completing their tax paper, law paper and the case study.

In recent years, the Institute has made strenuous efforts to get close to all of its members especially those in business. Today over 50 per cent of their 3000 members are non-practising accountants.

'We rightly make a great deal of the fact that chartered accountants play a leading role in boardrooms. The employability of the qualification is 99 per cent and one third of the members are employed overseas.

An increasing number of their members lead international businesses and Organisations. The CEO's and the CFO's Forums activated during the year conducted several events towards this objective.

With the increase emphasis on audit committees and internal audits. Fernando hopes to propose forums for Audit Committee members and Internal Auditors.

The Members of the Institute are regulated by a Code of Professional Conduct and Ethics prescribed by the Council.

The Institute examinations comprise Foundation, Intermediate and Final Part I and Part 11.

The Institute is a member of the International Federation of Accountants (IFAC) in NewYork and the International Accounting Standards Committee (IASC). It is also a member of the Confederation of Asian and Pacific Accountants (CAPA), and a founder member of the South Asian Federation of Accountants (SAFA).

The Institute is the sole accounting standards setting authority in Sri Lanka, and the application of such standards is mandatory for all companies listed on the Colombo Stock Exchange.