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ISCA Research Study Shows Room to Strengthen Accountancy Education Programmes to Meet Dynamic Business Challenges
- Accountancy professionals must adapt to the changing business environment, technological advancements, the broadening of the role of accountancy professionals, and the enhancement of their Human Capital.
- To be fit for purpose, accountancy education must include four essential skills and knowledge areas: business and accounting, human skills, IT and digital, and ESG.
- More than half of non-tertiary students continue to aspire towards accountancy careers. 55.9% of secondary school students and 60.4% of junior college students are open to pursuing accountancy as a career.
- The top reasons that attract students to an accountancy career are prestige, the ability to specialise, and job security.
Singapore, 14 November 2024 – In response to the evolving demands of today’s fast-paced business landscape and the rapid advances in AI and automation, the Institute of Singapore Chartered Accountants (ISCA) has launched a pivotal research study titled Making Accountancy Education Fit for Purpose for the New Economy. The launch of the research report was announced by Guest-of-Honour Ms Indranee Rajah, Minister in the Prime Minister’s Office and Second Minister for Finance and National Development in her speech at the ISCA Conference today.
Conducted in collaboration with the Big Four accounting firms and Xero, the study critically examines whether current accountancy education aligns with new economic requirements and employer expectations, while also examining the future relevance of the accounting profession.
The study is led by Professor Ho Yew Kee, Professor of Practice (Accounting) and Deputy Dean of Chow Yei Ching School of Graduate Studies at the City University of Hong Kong. It gathered insights from experts across Singapore’s five autonomous universities (NUS, NTU, SMU, SUSS, and SIT) and the Centre of Evidence and Implementation. The study involved interviews with practitioners and students, alongside a survey of over 2,800 students, parents, practitioners, and school counsellors, and a review of over 300 industry reports and publications.
Key Findings and Recommendations
The research, which includes ten strategic recommendations, aims to transform accountancy education to better serve Singapore’s technology-driven economy:
1. Bridging Educational Gaps to Equip Future Accountants
The study calls for a greater focus on three essential skills areas: human skills, digital and IT competencies, and environmental, social, and governance (ESG) knowledge. Currently, Singapore’s accountancy curriculum dedicates only 13% to human skills, 9% to IT/digital skills, and 5% to ESG knowledge, which may need to be enhanced to meet the needs of the new economy. There is a need for this skills gap to be filled so that accountants are better equipped for diverse, dynamic roles in the profession.
2. Redefining Professional Roles for Accountants
As AI takes over routine tasks, accountants are expected to transition into roles that require strategic insights, emotional intelligence, critical thinking, creativity, and adaptability. These competencies allow accountants to add value beyond automated processes, engaging stakeholders and driving innovative solutions.
3. Revitalising Student Interest Amid Declining Enrolment
In line with the global trend of declining enrolment in accountancy programs, cohort sizes for accounting degree courses at Singapore’s autonomous universities have decreased by over 10% since 2018 due to factors such as concerns about job monotony and fears of AI-driven job obsolescence. However, there is potential for engagement and targeted outreach to raise awareness of the profession’s prestige, specialisation opportunities, and global relevance of professional accountancy qualification.
4. Enhancing Internships for Career Development
Structured, purposeful internships emerged as vital tools for career exploration, skill-building, and networking. To enhance the value of internships, there should be robust frameworks that include proper orientation, mentorship, and impactful assignments to provide students with a rewarding, comprehensive experience.
5. A Strategic Action Plan for a Future-Ready Profession
The study presents a detailed action plan to guide efforts by accountancy schools, PAOs, regulators, and employers in closing educational gaps and revitalising the profession. The recommendations include incorporating human, digital, and ESG skills into curricula, fostering collaboration between PAOs and regulators, accountancy professionals and firms and accountancy schools for continuous curriculum improvement, and promoting ongoing professional development for accountancy graduates.
Professor Ho Yew Kee, who led the study, said, “Our findings reveal the pressing need for continuing accountancy education reform for the adaptability and potential of Singapore’s future accountants. We are confident that with the implementation of the recommendations, Singapore’s accountancy sector can lead in addressing the challenges and opportunities of the new economy.”
ISCA President Mr Teo Ser Luck said, “The report is a significant step in ISCA’s continual efforts to enhance the accountancy profession. By working closely with the government and industry partners, ISCA has managed to increase the enrolment of accountancy students in the Singapore Chartered Accountancy Qualification by almost 100%. We will ensure they are well-equipped and ready for the challenges and opportunities ahead.”
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For more information, please contact:
Seah Yi Qin
Manager, Communications
Tel: 9833 3904
Email: yiqin.seah@isca.org.sg
About the Institute of Singapore Chartered Accountants (ISCA)
The Institute of Singapore Chartered Accountants (ISCA) is the national accountancy body of Singapore with over 36,000 ISCA members making their stride in businesses across industries in Singapore and around the world. ISCA members can be found in over 40 countries and members based out of Singapore are supported through 12 overseas chapters in 10 countries.
Established in 1963, ISCA is an advocate of the interests of the profession. Complementing its global mindset with Asian insights, ISCA leverages its regional expertise, knowledge, and networks with diverse stakeholders to contribute towards the advancement of the accountancy profession.
ISCA administers the Singapore Chartered Accountant Qualification programme and is the Designated Entity to confer the Chartered Accountant of Singapore – CA (Singapore) – designation.
ISCA is a member of Chartered Accountants Worldwide, a global family that brings together the members of leading institutes to create a community of over 1.8 million Chartered Accountants and students in more than 190 countries.
For more information, visit www.isca.org.sg.