ISCA- ICAEW Report: Creativity, Predictive Analytics, Coding are Among Skills Required of Future Accountants

• Multi-disciplinary skills, knowledge and attributes such as technological know-how, critical thinking, interpersonal skills and creativity are vital for accountants to thrive in tomorrow’s workplace
• The accountancy curriculum should incorporate basic understanding of computer coding
• Employers and students will benefit from longer and more structured internships, as well as apprenticeships
• Education is only part of the solution in developing enterprising individuals

Singapore, 4 April, 2017 – In today’s volatile, uncertain, complex, and ambiguous workplace, accountants need to possess knowledge and skills across multiple disciplines. These include technological know-how, interpersonal and communication skills, critical thinking and creativity. Longer and more structured internships, as well as apprenticeships are welcomed by the accountancy profession to enable accountancy students to understand real-world problems and determine where their passion lies.  

These are some of the findings from a report produced by the Institute of Singapore Chartered Accountants (ISCA), and the Institute of Chartered Accountants in England and Wales (ICAEW), with the Singapore Management University (SMU) School of Accountancy coming on board as knowledge partner. The report, entitled “Industry Perspectives: Future of Professional Learning and Entrepreneurship”, is the second “Our Future Together” collaboration between ISCA and ICAEW, which aims to discuss how education, training and professional learning could be redefined to better develop and prepare professional accountants for the future economy.

The findings were announced today at the ‘Our Future Together: Future of Professional Learning and Entrepreneurship’ event, co-organised by ISCA and ICAEW and supported by Chartered Accountants Worldwide (CAW), held at Marina Bay Sands. The event was officiated by Senior Minister of State for Law and Finance Indranee Rajah, who also shared her views on the future economy in a dialogue session with attendees.

Future Accountants Rated Soft Skills above Technical Knowledge in Importance

Focus group discussions and interviews with senior leaders, employers and young professionals were undertaken as part of the project. The young professionals emphasised the importance of soft skills in the workplace. They found themselves lacking in essential soft skills such as interpersonal and communication skills when they entered the workplace. 

The report highlighted the need for accountants to be multi-disciplinary, and to acquire and develop skills and knowledge such as psychology, leadership, negotiation, critical thinking, creativity, predictive analytics, understanding of computer coding / programming, economics, risks, project management, business writing and persuasion skills. Such skills and knowledge will enable accountants to make better decisions as well as facilitate their role as business advisers.

The young professionals today are driven to learn new skills and are keen to have a broader spectrum of knowledge so as to be more versatile in today’s VUCA environment. This is in line with the government’s narrative to broaden the breadth and depth of one’s skills and knowledge.

Respondents mentioned that attributes such as intellectual curiosity, resilience, adaptability, professional scepticism and good emotional intelligence are vital for accountants to address challenges in the fast-changing environment.

Longer and More Structured Internships and Apprenticeships

Internships and apprenticeships were viewed as critical components in enabling students to better understand real-world problems and the skills required of them in the workplace as well as discover where their passion lies. Such programmes also provided employers the opportunity to find and identify talent. However, employers noted that a 10-week internship would be too short to realise these benefits.

To enable students to learn and apply skills, a more structured internship with longer duration was recommended. This will enable students to have a more meaningful internship. Students stand to gain practical industry experience, while employers stand to gain from the work done.

Apprenticeship was welcomed by both employers and students.  Through apprenticeship, students can get a head start in determining if they like the course and pursue a career in their chosen field.

However, there were concerns, such as the potential increase in the period of study, as well as whether or not subsidies will be made available for willing students. Traditionally, parents will want their children to finish school as soon as possible before joining the job market.

Education is only Part of the Solution to Fostering Entrepreneurial Spirit

The report mentioned that education only counts as part of the solution to developing enterprising individuals. The whole ecosystem, including the environment, upbringing and peer influence, has a role to play in shaping the individual’s mindset.

Respondents including senior leaders, employers and young professionals shared that as the world becomes a more globalised market, young accountants should consider pursuing overseas exposure and opportunities. In particular, they should venture into emerging markets like ASEAN, where growth is immense. This will help them foster a more enterprising and adventurous spirit. This is in line with the CFE’s recommendation to deepen and diversify international connections.          

Poll Results with Accountancy and Business Universities and Polytechnics Students

As part of the report, a poll was conducted in January 2017 with accountancy and business students from local universities and polytechnics regarding their thoughts on the skill sets needed in the future.

Of the 1,168 respondents, 53% ranked soft skills such as interpersonal and communication skills as the most important skill to stay relevant in the future workplace; followed by 24% for content knowledge and 23% for creative thinking.

Only 34% indicated that the current education system has cultivated an entrepreneurial spirit in them, with 44% being neutral. 74% of students indicated that they do not expect to start their own business upon graduation.

79% of the respondents indicated willingness to undergo apprenticeship, concurrently studying for their diploma/degrees and taking on jobs.

Mr Lee Fook Chiew, ISCA’s Chief Executive Officer, said: “As highlighted by Committee on the Future Economy (CFE), there is a need for Singaporeans to acquire deep skills and be inspired to learn throughout their lives.  Technology disruption continues to change many businesses and professions.  As our report shows, accountants of the future must be multi-disciplinary and possess a spectrum of skills, from technology to soft skills. As the national accountancy body, ISCA is committed to equipping the profession to be future-ready through continuous professional education. This is to ensure that accountants, who are also called to be strategic business advisers, can stay relevant and add value to their employers or businesses.”

Mark Billington, ICAEW South East Asia Regional Director, shared, “Today’s business world has never been more dynamic and new technology is constantly driving change. The accountancy profession has always underpinned trust and confidence in business, and some aspects of this – like professional judgement and the highest ethical standards – will never change. However, today’s Chartered Accountants must also have the right skills and aptitudes to ensure they remain relevant to the changing needs of business. This is why ICAEW believes that that in addition to critical thinking and financial know-how, soft skills, creativity, and technological skills are also vital in order to continue to support the needs of the modern global economy.”

Professor Cheng Qiang, Lee Kong Chian Chair, Professor of Accounting, Dean, School of Accountancy, Singapore Management University, said: “In today’s fast-paced business environment, employers look not only for technical competencies when hiring or promoting, they also look for skilled, articulate, career-savvy and confident workers who can make a positive and long-term impact on their organisation. SMU provides a holistic broad-based education which allows students exposure to a wide range of courses, which inculcate attributes such as analytical and creative abilities, a broad perspective to think across disciplines and geographical or political boundaries, and a confident mastery of today's technology.”

Quotes on the Future of Professional Learning and Entrepreneurship by various participants, as well as an infographic on the poll results can be found in the Annex

About the “Industry Perspectives: Future of Professional Learning and Entrepreneurship”

The “Industry Perspectives: Future of Professional Learning and Entrepreneurship” report captures industry perspectives on the future of professional learning and entrepreneurship through:

1. Insights from thought leaders of the profession: A series of interviews with thought leaders of the profession, both in Singapore and United Kingdom, was conducted to gather thoughts and ideas on the future of professional learning in today’s accountancy landscape.
2. Perspectives from the learning journey: Employers, young professionals and educators provided their perspectives with regard to the future of professional learning, the practicality and challenges of an apprenticeship and how we can cultivate an enterprising mindset in accountants. 
3. Poll findings: A poll was conducted with students on what the future generation has to say about future skill sets needed, apprenticeship programmes and their preferred modes of learning. The poll was conducted in January 2017 and attracted 1,168 respondents (accountancy and business students) across local universities and polytechnics. Please refer to annex for students poll results.

-End-

 For key findings of the report, please click here and here.

For media queries, please contact:

Institute of Singapore Chartered Accountants

Betsy Tan, Senior Communications Manager

Tel: 6597 5608 / 9641 6920 Email: betsy.tan@isca.org.sg 

Shaun Tay, Communications Executive

Tel: 6597 5613 / 9147 7633 Email: shaun.tay@isca.org.sg 

Institute of Chartered Accountants in England and Wales

Amy Tee, Head of Marketing, South East Asia

Tel: 6407 1527 Email: amy.tee@icaew.com

Rachel Lok, Account Manager, Ketchum Singapore

Tel: 6220 2623, Email: icaew@ketchum.com 

Note to editors:

About the Institute of Singapore Chartered Accountants

The Institute of Singapore Chartered Accountants (ISCA) is the national accountancy body of Singapore. ISCA’s vision is to be a globally recognised professional accountancy body, bringing value to our members, the profession and wider community. There are over 32, 000ISCA members making their stride in businesses across industries in Singapore and around the world.

Established in 1963, ISCA is an advocate of the interests of the profession. Possessing a Global Mindset, with Asian Insights, ISCA leverages its regional expertise, knowledge, and networks with diverse stakeholders to contribute towards Singapore’s transformation into a global accountancy hub.

ISCA is the Administrator of the Singapore CA Qualification and the Designated Entity to confer the Chartered Accountant of Singapore - CA (Singapore) - designation.

ISCA is an Associate of Chartered Accountants Worldwide (CAW). CAW brings together 11 chartered accountancy bodies connecting and representing the interests of over 1.6 million members and students globally.

For more information, visit www.isca.org.sg.

About the Institute of Chartered Accountants in England and Wales

ICAEW connects over 147,000 chartered accountants worldwide, providing this community of professionals with the power to build and sustain strong economies.

Training, developing and supporting accountants throughout their career, we ensure that they have the expertise and values to meet the needs of tomorrow’s businesses.

Our profession is right at the heart of the decisions that will define the future, and we contribute by sharing our knowledge, insight and capabilities with others. That way, we can be sure that we are building robust, accountable and fair economies across the globe.

ICAEW is a member of Chartered Accountants Worldwide (CAW), which brings together 11 chartered accountancy bodies, representing over 1.6m members and students globally.

About SMU School of Accountancy

Established in 2001, the School of Accountancy (SoA) is the second largest school in the Singapore Management University.

SoA began with a cohort of 90 Bachelor of Accountancy (BAcc) students and eight faculty. The BAcc programme became the first American-styled broad-based accountancy programme in Singapore, with a curriculum that met the accreditation requirements of the major accounting regulatory bodies. Currently, SoA has a faculty of close to 50 and offers three distinctive programmes; the Bachelor of Accountancy, Master of Professional Accounting, and Master of Science in CFO Leadership. These three programmes are designed in line with the development of Singapore as a leading global hub for accounting services and professionals for the Asia Pacific.

SoA aims to develop future global citizens who are competent accounting professionals and responsible business leaders, through pertinent knowledge creation, holistic education programmes, and collaborative engagements with the business community. The SoA faculty comes with strong credentials in research, teaching and industry practice and the SoA community shares a sense of professionalism, personal integrity, social responsibility, as well as an aspiration for exemplary leadership in the field of accounting. SoA’s programmes are accredited by various reputable professional bodies and are internationally recognised.

ANNEX

Quotes from Industry Leaders on the Future of Professional Learning and Entrepreneurship

“My message to young accountants as they look at the profession is to take the opportunity to think about “what can I do to make the profession a lot more exciting? What can I do to help the profession improve and to do things better and faster?”

Mr Chaly Mah, Chairman, Singapore Accountancy Commission

“Existing internship programme will need to be well-structured, with clear accountabilities and outcomes clarified from the start in order for students to benefit from the internships.”

Mrs Chng Sok Hui, Chief Financial Officer, DBS Group

“We need to help them build their experience and exposure in different areas. This will enable them to gain different insights which they can share with their clients and be their valued business advisors. This boils down to how we support our young auditors and motivate them to learn and grow, while recognising their need for work-life balance.”

Ms Karen Loon, Banking & Capital Markets Leader and Territory Diversity Leader, PwC Singapore

“Innovation happens when one is hungry for a change. A contented and complacent person will not see a need to improvise, let alone innovate. One must therefore be hungry to pursue betterment and constantly seeking to challenge themselves further.”

Ms Susan Chong, Chief Executive Officer, Greenpac (S) Pte Ltd and President of Enterprise 50 Association