ACCA

System · August 2005

I need a bit of advice please. I'm looking to start studying ACCA in September. After reading the ACCA website in a bit more detail I have come across this - As an ACCA member you may provide payroll, VAT and basic book-keeping services; record basic accounting data; prepare accounting records to trial balance; and offer management consultancy services. However, you are not permitted to undertake work that falls within ACCA's definition of public practice unless you hold an ACCA Practising Certificate *. ACCA's definition of public practice includes accepting appointment as an auditor; signing any report, or certificate on accounts, that a 'third party' may place reliance on; or holding yourself out as being available to undertake these activities. Surely this exactly what I can provide as an AAT member or member in practice??? I'm very confused and cannot see the point in doing ACCA!! Also to be able to offer further accounting services you need to complete 3 years of training with an ACCA Approved Employer AFTER you have completed the ACCA exams. Can anyone shed any light?? Thank you.

System · August 2005

ACCA

Hi Leanne As a member in practice you would be governed by the AAT's Rules and Regulations. I am not a member in practice but am AAT and ACCA qualified and have come across the ACCA rules a couple of times regarding this. Firstly, you quote the extracts for ACCA members, but you are planning to be a student - the rules will be different for students than for members. Students cannot under any circumstances refer themselves to be a member of the ACCA. ACCA do have a very strict policy about "practicising" without one of their certificates. ACCA have been known to impose very large fines and also removing students/members who hold themselves out to be in practice without a certificate. They do this to protect the ACCA reputation as AAT would impose large penalties for students/members contravening their rules. Basically what ACCA are saying is that a member can take accounts up to TB i.e. just do the bookwork. You would not be able to produce final accounts for signature and you would not be able to sign accounts off as this is regarded as being a practising accountant. The AAT give licences for members to do this provided they meet certain criteria but as the AAT and ACCA are two completely separate professional bodies, their rules do not interact. To obtain a practising certificate from ACCA you have to pass the exams, gain membership to the ACCA and then complete a further two year's supervised post qualified experience and then sit further tests before they will consider issuing a practising certificate. It is a very long winded process and can take a student a very long time to obtain a Practising cert. With regards to the 3 year work experience. In order to gain membership after passing the examinations, you have to record your work experience over a period of 36 months, which has to be supervised by either an ACCA qualified person or, failing this, an accountant qualified by another professional body recognised in the UK under the Companies Act e.g. an ICAEW qualified or, if you are the most senior person in the organisation, then perhaps the Auditors of the Company may suffice. I am not 100% sure if you can operate in practice with a license issued by AAT, still study for ACCA but not disclose any connection with the ACCA - I reckon a guy whose alias is Neil H will know more about this as he is very well versed as to the legalities of how each professional body operates. Failing that, the best bet would be to contact ACCA direct or view their rulebook online in the members publications section. Hope that helps a bit, sorry cannot be a bit more definitive with my answer. Kind regards Steve

System · August 2005

ACCA

Thanks for your help and advice Steve. I'm just concerned that if I study ACCA complete the exams and become a member I will be as qualified to do the same accounting work as I am now as an AAT member. Leanne

System · August 2005

ACCA

That's true but you will also have a very extensive knowledge. I'm not belittling the AAT qualification but the tax etc is taken further at ACCA and you will also be a qualified accountant rather than an accounting technician. Annette

System · August 2005

ACCA

Hi Going on from my prompt above <img src="i/expressions/face-icon-small-wink.gif" border="0">, unfortunately the ACCA wont regonise the AAT's regulation for providing services. The ACCA used to recognise other CCAB practicising certificates in place of their own but this has now changed and all practising ACCA members must have the ACCA's certificate I'm assuming those from other bodies may be able to apply for an ACCA certifcate on the basis of the other body certificate, otherwise a lot of ACCA members would have been left out when the rules changed. You can complete the 3 years require experience (a minimum of 2 must be completed after entry to membership), retsospectivly (unless you want an audit certificate). I.e. if the employer wasnt approved at the time then the ACCA may 'back date' the approval, but if you are working self employed this may not be possible. In addition, only employed work experience will count towards the general/minimum experience requirements for membership. Have you considered CIMA? The rules for gaining a practising certificate and the rules of what you can and can't do without one are much more straight forward. You dont have to work for an approved employer but you must have a certain amount of work experience in as a registered self employed member. before you can get the practising certificate and refer to your status etc. Apparently, holding ones self out in public practice without a certificate is the most commonist reason for disiplinary action. Neil

System · August 2005

ACCA

Neil Is there any problem with completing ACCA but practice under the AAT - therefore not holding yourself out as ACCA qualified, only AAT but having the knowledge and confidence that you may get with the extra years of study? Annette

System · August 2005

ACCA

Hi Annette, what you suggest should be ok, providing the person was no longer connected with the ACCA (i.e. had left the students register and had not become an affiliate). Like you say, the person would have extra training etc. Also, they could formally 'cap' this education with the Brookes BSc (Hons), even though awarded for parts 1 and 2 of ACCA it would still be something more 'concrete' than having passed the ACCA exams alone. Neil

System · September 2005

ACCA

Wow, thank you for all your help advice. I think I may look into CIMA, see what my options are there. Thanks again for such good advice. Leanne

System · September 2005

ACCA

CIMA Practising Certificate. Is that not a contradiction in terms? ;-) Do CIMA allow their members sign off on non audited accounts/reports as a CIMA i.e. for banks or the Revenue? I've not heard that ACCA changed their rules regarding sign off if you're a CCAB member and an ACCA without a practicing cert. They must have sneaked that one in.

System · September 2005

ACCA

Hi CIMA will allow practising certificate members to sign off accounts, but obviously not audit reports. In the case of final accounts for companies houes, its the directors who take final responsibilty for the accounts. CIMA members can sign off that they have idependently done/checked the accounts against required standards. ACCA used to alow their members to opt-out from having the ACCA cert providing they had another CCAB's. When ACCA changed their regulations to the new Globa Practising Regulations' they stipulated thatt all practising ACCAs must have the ACCA cert. However, I have noticed conflicting advice on the ACCA home page, some seems to be out of date/relative to the old regs and likewise for some of the downloads. Have a look at <a target=new class=ftalternatingbarlinklarge href="http://www.acca.co.uk/professionalstandards/certificates/practising/?session=fffffffeffffffff0a01213843185fd87333598952ffcfa60c36d57492083f00">www.acca.co.uk/professionalstandards/certificates/practising/?session=fffffffeffffffff0a01213843185fd87333598952ffcfa60c36d57492083f00</a>, the change in opt-out is highlighted in the grey box in the righ top corner. Neil

System · September 2005

ACCA

I see what you mean, Neil. Curious!

System · September 2005

ACCA

Hi Yeah it is curious. Im assuming that they allowed any holders of other CCAB PCs, who had opted out of the ACCA cert, the chance to apply for an ACCA cert on the basis of their existing certificate. Otherwise, there would have been a lot of members left out in the cold. Neil

ACCA

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