Practice

theahmer · 03-08-2004, 02:34 PM

AOA guys n gals,
Well friends I wanna ask some think especially from Mr. SMRaza, Guybrush and Ms Summan. Plz tell me
1 R qualified ACCAs allowed to do practice (audit) in UK, EU, etc?
2 Why qualified ACCAs and ACMAs(ICMAP) r not allowed to do practice in Pakistan?
3 Why don't many ACAs start their own practice?
Thanx n ALLAH HAFIZ

Make efforts not excuses!

sumaaan · 03-09-2004, 10:34 AM

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AOA guys n gals,
Well friends I wanna ask some think especially from Mr. SMRaza, Guybrush and Ms Summan. Plz tell me
1 R qualified ACCAs allowed to do practice (audit) in UK, EU, etc?
2 Why qualified ACCAs and ACMAs(ICMAP) r not allowed to do practice in Pakistan?
3 Why don't many ACAs start their own practice?
Thanx n ALLAH HAFIZ

Make efforts not excuses!
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

1. Yes CA qualified are certainly 'allowed' to practice and audit in UK, EU, etc... And why wouldn't they be, ACCA is an internationally recognized qualification.

2. ACCA and ICMAP qualifieds are allowed to practice in Pakistan.

3. I dont actually understand your last question correctly... If i'm not mistaken, you're a bit confused... To make it simple, an ACA = CA ... Which means that ACA and CA is the same thing... Don't confuse ACCA qualifieds with ACAs... An ACCA qualified is NOT CALLED an ACA (until and unless he is a CA qualified as well).

jbladeus · 03-09-2004, 05:10 PM

Ahmer

If by practice, you mean audit and signing of reports, then the answers to your queries would be like this

1. Although i am not too sure, the ACCAs can audit and sign reports in the UK along with CAs. Maybe some members living in UK can confirm this.

2. Maybe the SECP trusts only the work quality of ICAP CAs, thats why ACCAs and CMAs arent allowed to sign audit reports. <img src=icon_smile.gif border=0 align=middle> Just joking. If i am not mistaken, CMAs can sign audit reports, but only of proprietorships, partnerships and private limited companies having a small amount of share capital. (I dont exactly remember the amount). The most relevant reason in my opinion is that CMAs and ACCAs have literally ZERO audit experience, whereas CAs go through a rigorous 4 year articleship period before qualification in which they get audit experience of various different types of organizations.

3. Starting your own practice requires hard work and lots and lots of dedication. Since this business is based on credibility and trust and which can only be gained with time, starting your own practice isnt everyone's forte. Profits and business dont start coming overnight, so one has to have the patience of a saint and not expect big profits for 2-3 years. On the other hand, if one goes into the industry (ie. get a job), it starts to bear fruits instantly, which although is good for the CAs as a whole, but this also discourages one to start his/her own practice.

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

Goodman · 03-09-2004, 05:57 PM

Hi theahmer

1. Though ACCA can practice and issue audit reports in UK, but my understanding is that EU wide audit reporting is in the process of converging. The ongoing process of greater regulatory control and IAS is a step forward towards a unified economic market eventually (my opinion only).

2. Though I am very new entrant to pakistani market but my understanding is that anybody can practice in Pakistan if he/she has a degree. but audit reporting is currently restricted to the group of people as explained by Guybrush.

3. I am surprised to see your third question... I have many ICAP friends in pindi and lahore, I always joke them why is it so that whoever qualifies from ICAP think of a partnership at the age of 28.
But the reality is that these guys have all the skills to be a good partner and they have proved it, you cant deny that.

smraza · 03-12-2004, 05:20 PM

hi ahmer, i m in agreement with Guybrush, sumaaan and Zubair, i think u have got your answer.

SMR

theahmer · 03-14-2004, 12:18 AM

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hi ahmer, i m in agreement with Guybrush, sumaaan and Zubair, i think u have got your answer.

SMR
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AOA all and Walaikum hi Mr. SMR,
Yeah I've got my answer, but let me clear somethings out first of all Ms. Summan I'm not confused; when I say ACA i mean Associate of ICAP, when I say a CA that means A Chartered Accountant ( no matter whatever institute he blongs to).
Thing I wanna ask is Can ACMAs of ICMAP and ACCAs Audit and sign reports? (if they can why don't they do since I haven't yet seen any ACMA doing audit except Cost Audits) and supplementary question(s)
What is Management Consultancy? and can a CA do Cost Audit?
ALLAH HAFIZ

Make efforts not excuses!

thecharteredaccountant · 03-14-2004, 04:57 PM

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<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>
hi ahmer, i m in agreement with Guybrush, sumaaan and Zubair, i think u have got your answer.

SMR
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>
AOA all and Walaikum hi Mr. SMR,
Yeah I've got my answer, but let me clear somethings out first of all Ms. Summan I'm not confused; when I say ACA i mean Associate of ICAP, when I say a CA that means A Chartered Accountant ( no matter whatever institute he blongs to).
Thing I wanna ask is Can ACMAs of ICMAP and ACCAs Audit and sign reports? (if they can why don't they do since I haven't yet seen any ACMA doing audit except Cost Audits) and supplementary question(s)
What is Management Consultancy? and can a CA do Cost Audit?
ALLAH HAFIZ

Make efforts not excuses!
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

hi!
ok, first i'll try and discuss the questions in your initial post;

1. as a matter of fact i was having this very discussion with my principal a few days ago. In the UK and the EU and even in other countries in the far east and the middleast, ACCAs are often allowed to conduct statutory(external) audits and sign reports, but ive heard until recently, in the UK, like in Pakistan, the ICEAW held a monopoly and held the power in being the only body, the members of which could carry out audits. even right now, there are some sort of limitations on other bodies, while ICEAW remains the leader in auditing. let's see how this changes in a few years from now.
2. in pakistan, ICAP has always been the only body, qualified and approved by the SECP to qualify members who could carry out audits and sign them. ICAP has mnaitained high levels of professionalism through the years and now holds a monopoly which not even the SECP is willing to question. and so, no other bodies and their members can carry out external audits. not ICMA memebers, not CIMA,not ACCA. they can however carry out their internal audits or nonstatutory audits.
3. ACAs, being new memebers to the ICAP often dont end up starting heir own practise becasue this field is very specialized and requires a lot of exprience, expertise, one has to be very well versed and vigilant and even a minor mistake can prove fatal. like in any bsiness, one needs to gain sufficient experience in the particular field before staring their own work, similarly new associates need to gain a lot of experience working in old reputed firms under old and seasoned FCA partners. the reason is the same as why most doctors upon graduating dont open their own clinic. and to get success, one needs a lot of clients and reputation which can be had through years of interaction and presence in the profession under the wings of an older bird.

noe about your last post
im not sure but i think a CA can sign cost audits. if the SECP hasnt provided the authority solely to ICMAP then they can, otherwise, legally they cant.
management consultancy includes everything from offering help to individuals or companies regarding the amount of capital they beed to invest for starting a prticular business, or once their business has commenced, offer them legal, taxational, financial, actuarial guidance etc. helpinmg them analyze the risks, expected profits, make calculations etc. many professionals like CAs, CMAs, ACCAs, Actuaries, lawyers and a lot of others join the mngmt consultancy fields. it's very intereting and are little restriction son who can or cannot offer these services.
hope the info is of some use.

smraza · 03-15-2004, 02:35 AM

As far the ACMAs are concerned, i think (but i m not so sure) they are allowed to audit the fin. statments of the companies whose share capital is less than some specified amount.
and ACCAs are not allowed to do audits as they are not the member of any professional body of Pakistan.

SMR

jbladeus · 03-15-2004, 06:44 AM

Both CMAs and CAs can perform cost audits and issue reports. For some years now, cost audit has been made mandatory for specific industries like cement, oil and dairy fats etc.

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!