Expert Series Talk:

Accountants of the Future

12 June 2008
 Presented by:

Andrew Heng
CA(M), CPA(Aust), CPA(Mongolia), CPA
(Cambodia), CFP B.Com, LLB(UWA)
 Sarbanes-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 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
Accountants of Tomorrow

• Increasing demand for skilled professionals

• Enterprise risk management

• Fair value accounting

• Globalization

• Fraud control
 What 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 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 Accountant
Age Meteor to Mentor
age 22-28 (post-university Develop technical skills, gain
degree; early phase of exposure to working with staff
professional work): and clients. Complete
professional degree e.g. CPA
age 28-38 (broaden experience) Perform roles in business
environment to gain
commercial and business
experience.

age 38-50 or 55 (prime fee- Adviser y role with high fee-

earning phase): earning focus. Supervise a
number of other technical
personnel and mentor them in
accounting and business.
 New 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 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 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 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 Demand

• General Accounting

• Financial Analyst

• Internal Audit

• International Accounting

• Forensic Accounting
 Industry 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…cont’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
 Lifelong 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?
Contact :

Ferrier Hodgson Monteiro & Heng

Monteiro & Heng Chambers

No. 22, Jalan Tun Sambanthan 3
50470 Kuala Lumpur
Tel : 603-22736227,
Fax : 603-22737503
Email : ferrier@fhmh.com.my
Website : www.ferrierhodgson.com

Andrew Heng
aheng@fhmh.com.my