Young CAs task force report

A Task Force on the CA profession was constituted a year ago by the Council of the Institute of Chartered Accountants of British Columbia.

Given impetus by an editorial authored by ICABC Council Member Johan de Rooy, FCA, which appeared in the October, 1999 issue of Beyond Numbers, the task force met electronically and the 18 members provided information on recruitment, relevance, competing designations or degrees, stereotypes and the CA education process. The task force's final report was received by Council last May.

NOTE FROM THE CHAIR, JOHAN DE Rooy, FCA

"All is less than well for many younger and potential CAs. The dynamics of the employment market place, coupled with new and exciting career opportunities and increasing importance of quality of life issues, materially challenges both the attractiveness and relevance of the CA designation. The Task Force's report amplifies this sentiment."

SUMMARY OF FINDINGS

In its discussions about competing designations or degrees, the task force concluded there is increasing competition from other accounting designations (CGA, CMA and even the CPA), as well as increasing competition from MBA programs and other related business designations such as the Certified Financial Planner (CFP) or Certified Management Consultant (CMC).

In terms of the other accounting designations, there was an emerging perception in the market place that the CMA and CGA programs produce more well-rounded and business-ready professionals and offer more career opportunities than the narrowlyfocused CA trained in public practice. Many also suggested that if someone were considering a career in finance or operations, it would be better to look at an MBA program for the best preparation.

Concern about salary levels was voiced by several participants who pointed out the earning potential for MBAs and others outside of public practice - especially in the high-tech field - is one of the main reasons many do not select the CA program, which is perceived to mean longer hours and lower pay.

The report addresses the relevance of the CA program and many young CAs are concerned about the content, the need for specialization, and the importance of providing ongoing education in the areas of specialty. Though the participants acknowledge the respect with which the CA designation is regarded in the business community, they question the adequacy of the preparation the CA program provides in terms of leadership and whether or not the exposure to many industries during articling is sufficient.

Employment issues identified by the report centered on low entry salaries and long hours. Young or potential CAs, it was argued, are no longer convinced by the promise of future compensation and are actually put off by the "unattractiveness of the work environment." According to a 1999 salary survey of UBC Commerce graduates, students in the CA articling program earn about 20 per cent less than their peers in other programs.

The participants in the task force expressed concerns about the public image of CAs, particularly in regard to the narrowness with which the profession is often viewed. They claim in both social and professional settings, CAs are not regarded as suited for many management positions for which they are indeed qualified.

This same concern with image resonated again in the report's section on recruitment and promotion. The task force's report suggested that the profession begin to communicate the benefits of the profession at the high school level and emphasize the CA designation as a "stepping-stone to senior management positions." Members pointed out that the Institute had the major responsibility for the image of the profession because "the training firms will not want to emphasize the post-designation opportunities outside of public practice."

However, it was admitted that, "getting paid while you earn a designation is a very strong feature of the CA program." The report suggests that the Institute's communications be 11 realistic" and focus on obtaining the designation as "only a piece of the picture."

The task force participants discussed qualification issues, with particular emphasis on the high failure rates and experience requirements for the CA training program. There was some dissatisfaction expressed with instructors in both the School of Chartered Accountancy and the Professional Development program, as well as concerns about inconsistencies across the country in how the Canadian Institute of Chartered Accountants deals with the opportunities and requirements for CAs in each province.

In terms of involvement at the Institute, the task force recommends there be concerted efforts to get the opinions of young CAs and to maintain constant two-way communications with that segment of the membership. "The Institute is not sufficiently directed to the interests of young CAs and there is a feeling that young CAs will not have any influence therefore, they feel intimidated to volunteer or do not want to waste their time if their ideas would not be considered."

The report suggests that the Institute could better promote the benefits of membership to young CAs and offer career counseling as a specific opportunity.

WE WANT YOUR REACTION

What do you think of the Task Force report? Do you agree with its conclusions? What needs to be done to improve attractiveness? What role can the Institute play? Write to us or email us at beyondnumbers@ica.bc.ca.

YOUNG CA TASK FORCE MEMBERS:

Johan de Rooy, FCA, Instructor, UBC Faculty of Commerce, Chair

Scott Armstrong, CA, Wooten King & Mulhem, Richmond

May Chan, CA, Onset Capital Corporation, Vancouver

Angeline Chandra, CA, PricewaterhouseCoopers LLP Vancouver

Graham Drexel, CA, Grosvenor International Canada Ltd., Vancouver

Stefani Gan, CA student, KPM LLP Vancouver

Patrick Gramiak, CA KPMG UP, Kamloops

Greg Ibbott, CA student, Grant Thornton UP, Vancouver

Kevin Kilpatrick, CA, Auditor General of BC, Victoria

Beth Laughton, CA, KPMG UP Vancouver

Nancy Montgomery, CA, Ernst & Young UE Abbotsford

Monica Norgren, CA 36onetworks, Vancouver

Jennifer Parker, CA student, KPMG LLP Vancouver

Harvey Peters, CA, Staley, Okada, Chandler & Scott, Burnaby

Matthew Quinlan, CA student, PricewaterhouseCoopers LLP, Vancouver

Patricia Tattersall, CA student, BDO Dunwoody LLP, Kelowna

Judy Vanden Bos, CA student, Grant Thornton LIP Vancouver

Tina Williamson, CA, Canfor Corporation, Vancouver

Copyright Institute of Chartered Accountants of British Columbia Oct 2000
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