| The requirements for entry in the profession of | | | | Accreditation Council for Accountancy and |
| accounting vary from country to country. | | | | Taxation (ACAT), provided that the candidate |
| Accountants may be licensed by a variety of | | | | passed the eight-hour Comprehensive Examination |
| organisations, such as the UK's Association of | | | | for Accreditation in Accounting which tests |
| Chartered Certified Accountants (ACCA) and | | | | proficiency in financial accounting, reporting, |
| Institute of Chartered Accountants, and are | | | | statement preparation, taxation, business |
| recognized by titles such as Chartered Certified | | | | consulting services, business law, and ethics. An |
| Accountant (ACCA) and Chartered Accountant | | | | ABA specializes in the needs of small-to-mid-size |
| (UK, New Zealand, Canada, India, Pakistan, South | | | | businesses and in financial services to individuals |
| Africa), Certified Public Accountant (US, New | | | | and families. In states where use of the word |
| South Wales, Hong Kong), Certified Management | | | | ¯Â¿Â¾ is not permitted, the practitioner |
| Accountant (Canada), Certified General | | | | may use Accredited Business Advisor. |
| Accountant (Canada), or Certified Practising | | | | The United States Department of Labor's Bureau |
| Accountant (Australia). Some commonwealth | | | | of Labor Statistics estimates that there are about |
| countries (Australia and Canada) often recognise | | | | one million persons [1] employed as accountants |
| both the certified and chartered accounting bodies. | | | | and auditors in the U.S. |
| The majority of "public" accountants in New | | | | U.S. tax law grants accountants a limited form of |
| Zealand and Canada are Chartered Accountants; | | | | accountant-client privilege. |
| however, Certified General Accountants are also | | | | Hong Kong SAR, People's Republic of China |
| authorized by legislation to practise public | | | | General In Hong Kong, the accountancy industry is |
| accounting and auditing in all Canadian provinces, | | | | regulated by the HKICPA under the Professional |
| except Ontario and Quebec, as of 2005. There is, | | | | Accountants Ordinance (Chapter 50, Laws of |
| however, no legal requirement for an accountant | | | | Hong Kong). The auditing industry for limited |
| to be a paid-up member of one of the many | | | | companies is regulated under the Companies |
| Institutes and other bodies which are effectively a | | | | Ordinance (Chapter 32, Laws of Hong Kong), and |
| form of professional trade union. Unlike the Law | | | | other Ordinances such as the Securities and |
| Society, which can legally stop a solicitor from | | | | Futures Ordinance, the Listing Rules, etc. |
| practising, accountancy institutes do not have | | | | Accounting standards The regulating of |
| such authority. However, auditors are regulated. | | | | accountancy, auditing, membership, professional, |
| Canada In Canada, there are three recognized | | | | licensing all falls under the HKICPA. However, in |
| accounting bodies: the Canadian Institute of | | | | many cases, the HKICPA themselves are helpless |
| Chartered Accountants (CA) and the provincial | | | | in concluding what constitutes properly prepared |
| and territorial CA Institutes, the Certified General | | | | financial statements. There were some attempts |
| Accountants Association of Canada (CGA), and | | | | in obtaining external professional legal opinions on |
| the Society of Management Accountants of | | | | behalf of its members (e.g. what constitutes "true |
| Canada, also known as the Certified Management | | | | and fair") but they are non-binding in court. The |
| Accountants (CMA). CA and CGA were created | | | | ultimate True and Fair / True and Correct of a |
| by Acts of Parliament in 1902 and 1913 | | | | set of published financial statement falls under the |
| respectively and CMA was established in 1920. | | | | Court system in Hong Kong, which relies on the |
| The CA program focuses on public accounting and | | | | generally accepted practice in Hong Kong. This is |
| candidates must obtain auditing experience from | | | | consistent with other common law practices. |
| public accounting firms; the CGA program takes a | | | | In 2005, the HKICPA adopted almost all the most |
| general approach allowing candidates to focus in | | | | current accounting and auditing standards from |
| their own financial career choices; the CMA | | | | the IFAC and its associated standard setting |
| program focuses in management accounting. Both | | | | bodies with the additions of a few local written |
| the CA and the CMA programs require a | | | | interpretations of these principal based accounting |
| candidate to obtain a degree as a program entry | | | | and auditing standards. Local written |
| requirement. The CGA program only requires a | | | | interpretations try to cater to the unique |
| degree as an exit requirement prior to | | | | situations in Hong Kong such as the problem of |
| certification. | | | | the remaining land lease. |
| Auditing and Public Accounting are regulated by | | | | Prior to the formation of HKICPA in 1972 (or |
| the provinces. Historically, only CAs can perform | | | | formerly know as HKSA before 2004 |
| audits in Ontario. | | | | September), the auditing industry was loosely |
| In 2004, the provincial government of Ontario | | | | regulated. Organizations including The Society of |
| passed a new Public Accounting Act that would | | | | Chinese Accountants and Auditors ("SCAACPA") |
| allow qualified CGAs and CMAs to perform audits, | | | | has helped in standardising recognised auditors for |
| conditional on their organizations being able to | | | | financial statements. |
| demonstrate that their qualification and regulatory | | | | There were also few serious accounting and |
| programs are equivalent in rigour to that of the | | | | auditing standards prior to 1986. |
| CA program. As of March 2006, this process of | | | | Before 1972, auditing standards were often upheld |
| evaluation had not yet begun. In Quebec as well, | | | | by the individual integrity of these professional |
| CAs still have exclusive public company audit | | | | auditors. |
| rights by statute. In British Columbia and Prince | | | | Accounting standards were based on the few |
| Edward Island, CAs and CGAs have equal status | | | | international firms in the then colony including |
| regarding public accounting and auditing; In the rest | | | | Lowe, Bingham and Matthews, KPMG, Sanford |
| of Canada, CAs, CGAs, and CMAs are considered | | | | Yung, etc. |
| equivalents pursuant to provincial and territorial | | | | 1972 was seen as a turning point for the |
| legislation. | | | | accountancy profession in Hong Kong. |
| As of year 2006, the Chartered Certified | | | | Most international accounting firms (the |
| Accountant (ACCA) is also recognized by | | | | forebearers of the Big Four accounting firms |
| Canadian government as an eligible qualification to | | | | today) established their presence in Hong Kong |
| audit federal government institutions in Canada. | | | | within a few years before or after the |
| Furthermore, The Canadian branch of ACCA is | | | | establishment of HKICPA. |
| pursuing recognition for statutory audit purposes | | | | In 1974, the british based accountancy body with |
| in the province of Ontario under the province's | | | | a global presence - Association of Chartered |
| Public Accounting Act of 2004 Australia In | | | | Certified Accountants (ACCA) assisted with |
| Australia there are three main local professional | | | | setting up the Hong Kong Institute of Certified |
| accountancy bodies. | | | | Public Accountants (formerly named "Hong Kong |
| Professional National Accountants (PNA) and | | | | Society of Accountants") as the local statutory |
| Member of National Institute of Accountants | | | | accountancy body in Hong Kong. |
| (MNIA) are members of National Institute of | | | | HKSA looked upon the exams from 2 |
| Accountants Australia. | | | | accountancy bodies - the aforementioned ACCA |
| Chartered Accountants are members of the | | | | from UK and the ASCPA from Australia. At that |
| Institute of Chartered Accountants in Australia. | | | | time university education in the Colony was less |
| Certified Practising Accountants (CPA) are | | | | common than nowadays. Both accountancy |
| members of CPA Australia. | | | | bodies did not require university degree and so |
| However, the Chartered Certified Accountant | | | | HKSA deemed these as suitable for the Hong |
| (ACCA) qualification is also recognised as a | | | | Kong admission standards. |
| prescribed body for insolvency purposes under | | | | Around 1985, the HKICPA adopted most of their |
| the Corporation Act 2001, section 1282 and for | | | | auditing and accounting standards from ICAEW. |
| audit purposes by ASIC under Practice Statement | | | | Around 1994, the HKICPA slowly adopted their |
| 180 Auditor recognition in Australia. | | | | auditing and accounting standards from the IFAC |
| New Zealand In New Zealand, there is only one | | | | and its associated standard setting bodies. Full |
| local accountancy body, the New Zealand Institute | | | | integration was achieved by the HKICPA within 10 |
| of Chartered Accountants (NZICA). | | | | years, i.e. in 2005. Senior accountants in Hong |
| In order to audit public companies an individual | | | | Kong may consider this a period of re-learning, |
| must be a member of either the NZICA or an | | | | adoption of frameworks and principle based |
| otherwise gazetted body. | | | | standards and a more stringent in governance and |
| Chartered Certified Accountant (ACCA) | | | | regulation of the accounting profession. |
| qualification has also been gazetted under the | | | | Accountancy practitioners There are no |
| relevant act (Under Section 199 of the Companies | | | | restrictions to call himself an "accountant" in Hong |
| Act 1993: Qualifications of Auditors). An ACCA | | | | Kong as long as it does not imply that he is |
| member can practice as long as they hold an | | | | actually a qualified accountant or "Professional |
| ACCA public practice certificate (with audit | | | | Accountant". However, non-qualified individuals |
| qualification) in their country of origin. | | | | (including those who were qualified overseas but |
| United States of America In the United States, | | | | not registered with HKICPA as an International |
| practicing accountants include Certified Public | | | | Associate) who call themselves Professional |
| Accountants (CPAs), Certified Internal Auditors | | | | Accountants, CPA or CPA(practising) in Hong |
| (CIAs), Certified Management Accountants | | | | Kong probably will face actions from HKICPA. |
| (CMAs) and Accredited Business Accountants | | | | After 2004, all Professional Accountants are |
| (ABAs). The difference between these | | | | designated into Certified Public Accountant (CPA) |
| certifications is primarily the types of services | | | | or Fellow Certified Public Accountant (FCPA). |
| provided, although individuals may earn more than | | | | Individual CPAs who are licensed by the PAO to |
| one certification. | | | | sign-off audited reports for financial statements |
| Additionally, much accounting work is performed | | | | of Limited Companies under Companies Ordinance |
| by uncertified individuals, who may be working | | | | would be known as Certified Public Accountant |
| under the supervision of a certified accountant. | | | | (Practising) (CPA(Practising)). To make it more |
| A CPA is licensed by the state of his/ her | | | | confusing, there are no restriction for |
| residence to provide auditing services to the | | | | CPA(Practising) to call themselves simply as CPA. |
| public, although most CPA firms also offer | | | | This "Practising" title appears to be similar in |
| accounting, tax, litigation support, and other | | | | meaning as an "Registered Auditor" (R.A.) in some |
| financial advisory services. The requirements for | | | | countries and is seen to be a form of (and the |
| receiving the CPA license varies from state to | | | | only) professional speciality. |
| state, although the passage of the Uniform | | | | From 1972 to 2004, all Professional Accountants |
| Certified Public Accountant examination is required | | | | in Hong Kong would call themselves either |
| by all states. | | | | "AHKSA" (Associate member of HKSA) or |
| This examination is designed and graded by the | | | | "FHKSA" (Fellow member of HKSA). The |
| American Institute of Certified Public Accountants. | | | | individuals who were then licensed to sign-off audit |
| A CIA is granted a certificate from the Institute | | | | reports were known as Certified Public |
| of Internal Auditors (IIA), provided that the | | | | Accountant or Public Accountants ("CPA or PA") |
| candidate passed a rigorous examination of four | | | | prior to September 2004. These peculiar terms |
| parts. A CIA mostly provides his/her services | | | | appears to be unique in Hong Kong, and has |
| directly to his/her employer rather than the public. | | | | created confusion for the rest of the professions |
| A CMA is granted a certificate from the Institute | | | | around the world, and even some accountants |
| of Management Accountants (IMA), provided that | | | | themselves, as to what AHKSA is. There were |
| the candidate passed a rigorous examination of | | | | accounts for lay persons who cannot differentiate |
| four parts and meet the practical experience | | | | the differences between AHKSA and ACCA. |
| requirement from the IMA. A CMA mostly | | | | All the CPA and CPA(Practising) need to pass a |
| provides his/her services directly to his /her | | | | set of examinations designated by the HKICPA. |
| employers rather than the public. A CMA can also | | | | CPAs(Practising), in particular, have to go through |
| provide his services to the public, but to an | | | | more rigorous examinations and have to |
| extent much lesser than that of a CPA. | | | | demonstrate that he is competent in local taxation |
| An ABA is granted accreditation from the | | | | and audits. |