The integrity of chartered accountancy tests in Pakistan has always been admired, due to which the examination center of CA are considered most disciplined venues. With such a disciplined process of examination, the scope of chartered accountancy in Pakistan has witnessed an upward trend. If you look at the history of chartered accountancy, it started from United Kingdom in 1880 and the first Institute of Chartered Accountants of Pakistan (ICAP) was established in 1961 and ever since this profession has recorded zero unemployment rate. To have a deep insight into scope of this emerging profession, Sunday Plus have exclusively talked with ICAP’s Vice President Mohammad Maqbool. He is a renowned educationist, author of many accountancy and auditing books, and a qualified chartered accountant from England.
- What are the new trends in accounting and auditing profession in Pakistan?
What is coming up all over the world related to this discipline is the applied concept. In ICAP we are also trying to apply this new requirement as it’s the demand of the job market.
- So in this scenario, are you trying to reshape the educational content and syllabus of accountancy?
We have already addressed this issue and our latest education scheme was rolled out in 2013. We made all those changes and have made some educational reforms towards certain direction.
- How often do you revise the syllabus to meet international standards?
Ideally it should to be five to six years. But in ICAP we did miss out this, we last reformed it in 1995, and it was in 2013 after 22 years we took drastic steps to reform the syllabus.
- What kind of reforms have you brought?
Computer based exam for four subjects and will update it to the eight papers soon. Second, we brought here focused study material. The third improvement is the focused study material. We are planning to upgrade the educational institutes, work on their infrastructure, quality and ICAP’s scheme regarding this matter will soon bring out a new policy. We are also bringing in multi subject assessment.
- How do you see the scope of chartered accountancy in Pakistan?
Great. This profession always have its value in the society. And since the establishment of Institute of Chartered Accountants of Pakistan (ICAP) in 1961, our graduates have experienced zero unemployment. Pakistani CAs have great demand in Middle East and other international communities. They are working abroad and contributing in those economies and making the Pakistani product recognize over there. So, not only internally but also outside Pakistan they are making the country proud. Pakistani brand is considered more rigorous and more knowledgeable. We always take pride in this region.
- Do you consider it a brain drain? Are they working abroad because of lack of opportunities here?
No, actually the CAs qualifiers first look around the opportunities locally and then look for better perspectives elsewhere. If they feel that they can have better prospects abroad and improvement of their earning level then they move out. But we are not having the shortage of caliber in Pakistan. It’s not brain drain, its export of this qualification.
- How many CAs are ICAP producing annually?
In Pakistan we have around 6,700 qualified chartered accountants. CA candidates take exams twice a year and in each attempt, around 250 to 280 people are qualifying. Out of total 25% are working abroad rest are working in Pakistan. 1,400 are engaged in public practices and their own consulting, auditing as partners, or sole proprietors. 1,100 are in education sector and the remaining is working with different industries, banks and other businesses. And they are working at higher levels in head offices of all major banks. Actually they are not CAs they are business leaders. They are business leaders designing strategies rather than doing accounting or auditing.
- What’s the criterion to pass this qualification?
There is myth that passing CA is next to impossible. This is not the case. If 600 people are passing every year then you can say that the percentage of passing outs is increasing 8 to 9 percent every time. We in ICAP are not happy with the statistics. We know this country needs more CAs and we are here to work for the growth of this number without compromising on the quality.
- What are you doing to improve the passing out rate?
We can do it three ways. By taking in the good intake and attracting better students and by adjusting are process by giving them better support and third thing, we are assessing our assessment system and upgrading it.
- Students would definitely be interested in knowing who actually designs the papers?
This is the only institute which has the highest level of integrity in its examination. We have a number of examiners who develop the paper and we keep them total secret and nobody can find out whom exactly are they. We never disclose their identity.
- Is there a single person or a committee that sets the papers? Are these people from the institute?
We have qualified CA examiners but paper setters are from outside.
- From the current lot why are majority of the students failing?
Unfortunately, for every single CA in Pakistan there are 36,000 people. Due to lack of awareness among the intermediate students we get poor intake and very few are aware of this profession and its strength.
- What are the pre-requisites of becoming a chartered accountant?
Commitment, dedication, persistence.
- Are there any global qualifications alternative to |Pakistan’s CA qualification?
No person can be known as CA in Pakistan unless he is member of the Institute of Chartered Accountants of Pakistan (ICAP). He might to holding that education from anywhere around the world. They will have to pass certain papers to qualify the tax and laws are not relevant to Pakistan so have to arrange some courses to meet Pakistan’s needs. We have developed linkages with internationally recognised chartered accounting institutes to get some kind of reciprocity. We have six to seven recognized institutes in the world in Australia, UK, and Ireland etc.
- What’s the future of students who are enrolled but quit half way?
Whoever completes the training even if he has not passed a single paper can get jobs starting from Rs. 40,000 because practically they know everything.
- Do you take graduates from all disciplines?
Yes, we take students from all disciplines, but the only difference is that the student with accounting background gets exemptions in certain subjects. However, students from engineering background produce better results as compared to students with commerce background.
- Do you perceive CA has ample job opportunities in local market keeping in mind the current situation of Pakistan?
Pakistan’s economy is dropping down but the unemployment of CAs is not decreasing. There is a direct relationship between the number of professional accountants and good economy. Sixty to seventy percent of our industries have never worked with a chartered accountant. They help industries in cost reduction, work on economies, strategic plans, and those industries will get benefit which will ultimately boost economy.
- Any suggestions for the new aspirants who want to pursue his/her career in chartered accountancy?
Choose this profession, I guarantee you that this profession will lead you to success. Come with commitment, dedicate you time and stay persistent and end of the day you will be the most rewarded person.
