The measures to improve professional competence Name:??? Class,Major:Class 2,Accounting Student ID:280604210 The measures to improve professional competence Abstract:Professional competence is one of the fundamental principles of the Code of Ethics for Professional Accountants.
However,more and more firms accept engagements without enough competent professional skills,which turns out that,there are so much problems they can’t figure out or deal with,at last,they have to take the legal liabilities.Along with the expositions of fraud made by listed companies. The public become suspicious about professional competence of the certified public accountants. Because of the indignant denouncement of the investors,their prestige drops to low. For this reason,professional competence of the certified public accountants draw pubic’s attention. Moreover, in some links,such as,the accounting courses in the colleges, follow-up education and practice experience,obstacles which are unfavorable to maintain and improve professional competence still exist.
For example,the colleges consider theories as priority over practice;the content and method of follow-up education are dated;the firms don’t attach importance to assess professional competence of the accountants. The essay is about the measures to improve professional competence. ?. The importance of possessing professional competence Professional competence is the foundation of credibility. In our country,certified public accountants are compared to “economic police” with no salary,which speaks highly of their contribution to the social economy. Credibility is a key feature of the certified public accountant profession.Audit opinion has social credibility. For the purpose of bearing the social function,which is credibility,certified public accountants must possess professional competence.
If one does not have unique method and ideas,he cannot protect the interests of investors and consumers in the market economy. For the certified public accountants,losing credibility is losing chances for survival. In summary,professional competence is the foundation of credibility. Professional competence is one of the requirements of the Risk-Oriented Auditing Model and the Code of Ethics for Professional Accountants.The risk-oriented auditing model requires auditor to understand the audit client and its environment and the risks can lead to material misstatement,consider its economic environment,industry’s situation,management objectives and strategies and risks confronted with at a macro level,and analyse the fraud or errors may exist in economics action.
The certified public accountant should judge the client’s operation ability and project. Thus,higher demands are presented on professional competence. The certified public accountant must possess knowledge of accounting and auditing even the knowledge about operating.In such circumstance, cultivating and improving professional competence have been an urgent demand on the risk-oriented auditing model. The principle of professional competence requires all professional accountants to attain and maintain professional competence through education,cultivation and practice. If one provides professional services in the condition of lacking enough knowledge,skills and experience,it will be a fraud. As a qualified certified public accountant, one should not only realize his ability adequately,have faith in himself, but also know his lack of professional competence.If he does not realize the incompetence of his professional skills and perform the work he can’t finish,it may bring bad effect on the client and even the society.
The maintenance of professional competence requires certified public accountants to be aware of and understand the development of the relevant technical, professional and business for the sake of maintaining professional competence. Continuing professional development enables a certified public accountant to develop and maintain professional competence which helps to be capable of perform work within the professional environment. ?.The measures to cultivate and improve professional competence Professional competence is the knowledge,kills and quality which a certified public accountant should possess.
It includes professional knowledge and professional skills. The former refers to the accounting,auditing and other relevant knowledge,which must be possessed as a certified public accountant before performing the audit work. The latter refers to the intelligent,interpersonal and communication skills. Seeing that the principle of professional competence is increasingly neglected by the firm,some measures must be applied to improve the phenomenon.The colleges should focus on the abilities,bring academic and professional skills education together. In the college phases,professional education is of great importance.
Apart from the basic theories,college should connect the teaching method and actual working needs according to the knowledge of subject area that the principle of professional competence asks. In addition,colleges also need to offer courses in accordance with the requirements mentioned before. More and more colleges in our country have offered courses about specialized certified public accountant since 1994.According to some research report,the firms are satisfied with the graduates whose majors are specialized certified public accountant. They indicate that their comprehensive quality is generally above others majoring in accounting. In the meantime,the graduates give their feedback to their old schools. The feedback is centred on three aspects:offering consistent courses,using consistent textbooks and replacing the old textbooks,and increasing the opportunities to practice in enterprises,firms or banks.
Reforming the course system in colleges. The course system is the concrete expression of education training target and the teaching target.In order to strengthen the preparation of certified public accountants,the accounting courses which colleges offer should comply with the requirements of academic education and professional qualifications education. Furthermore,the courses should involve the content of CPA exam. Accounting and relevant courses should be scheduled reasonably to keep consistency. Reforming the textbooks in colleges.
The development of textbooks is an essential element to achieve the goal of cultivation. Most colleges write textbooks by themselves separately. At the moment,the accounting textbooks used for college education differ from the ones for CPA exam.When the textbooks for core courses are written, the writers should combine the reference books for CPA exam with textbooks. On one hand,the combination helps maintain stability of professional knowledge. On the other hand,the combination is close to practice,graduates will adapt themselves in the work quickly after graduating from college.
Improving the quality of teaching. The measures should be taken in two aspects:teachers and teaching methods. The teachers of the accounting major in colleges are mostly short of practical ability. What cannot be denied is that ,improving the teaching level of accounting is a ong-time and tough work. Besides the prompt action and competition forces created by the colleges,the government,society,especially CPA profession should be part of the work. The colleges are suggested to invite some certified public accountants to give the students a speech with respect to accounting and auditing. As to the method,computers have been used widely in colleges since ten years ago.
Accounting software practice should keep pace with the accounting courses. In addition,the teachers can change unilateral teaching method into a two-way method,which help students fix attention and create active atmosphere.The content and form of follow-up education should be reformed. Follow-up education is the extension of the one received before qualified. Certified public accountants shall maintain and improve professional competence by the means of follow-up education,so that they can provide more high-quality professional services to long-standing clients and prospective clients. Certified public accountants have possessed sufficient and all-sided knowledge,so what they confronted with is how to update and extend the content,as well as how to deal with the complicated external environment and different clients.They should improve the ability to discover problems and solve problems.
Arranging teaching content reasonably. The reasonably scheduled teaching content is the foundation of the success of follow-up education. When great adjustment happens in macropolicy,laws and regulations,some updated teaching content should be added,which is intended for meeting accountants’ demand. Centreing on practicality.
Accounting and auditing are both with great practicality. Theories rooted in practice must be used to direct practice.Features must be summarized in the seemingly-single and accidental phenomenon,which will in turn help deal with the other similar problems. Reforming teaching form.
Under most circumstances, follow-up education is offered in class,and it is still predicted to be the mainstream method. However,this method is limited by the time,location,money,and the scale of audience. Consequently,traditional method is bound to make a change. Some measures are suggested to be taken. For example,collecting the problems which are urgent to cope with from certified public accountants,so the teacher’s instruction will be targeted.There are so many different forms that can be used to warm up the atmosphere in class:debate,experience exchange,extensive training and so on. The firms should build internal mechanism.
Practice experience is the necessary approach to improve and reflect professional competence. Exacting talents introduction mechanism. Recruiting certified public accountants is the foundation to control the level of professional competence. When recruiting employees,a firm should consider professional knowledge,education background,age,working experience,specialty and so on.The employees should be able to meet the needs of the firm’s work and development. Exam and practice can be integrated as a method to recruit employees. Those who are honest and trustworthy,familiar with professional knowledge and have deep love for accounting career will be welcomed.
Strengthening stimulation and elimination mechanism. For the sake of giving full play to the accountant’s initiative and creating vital and energetic atmosphere,the firms should strengthen stimulation and elimination mechanism. Generally,reward and punishment are the powerful stimulation elements.
The rewards are payment,welfare and promotion. The firm should make explicit and concrete rules about rewards and encourage fair competition. On the part of salary rewards allocation,salary should be bound up with the quantity and quality of one’s work and risks he undertakes. Most importantly,equalitarianism is suggested not to be used,for the reason that equalitarianism will have bad effect on faculty’s positivity and creativity.
Promotion is another important method to stimulate. Impeccable promotion mechanism is beneficial to helping faculty set up goals and creating positive working atmosphere.Punishments are laid-off training and laid-off unemployment,demotion,deduction,and terminating labor relations. If someone doesn’t comply with the ethics or he is not competent for the work,punishments must be carried out.
Setting up quality control institutions. The firms should draw up scientific and reasonable human resources policy and specialists construction programme,focus on how to use,arrange and prepare human resources rationally and ensure that the faculty maintains professional quality and competence in the base of the firm’s development strategy and goals.The firms can set up independent quality control institutions,arrange professional persons to be in charge of the formulation and implementation of internal control system,monitoring the quality of work and cultivation of the faculty’s professional competence. The quality control institution is aimed at improving the research and practice ability for specialized fields.
Qualified exam should be reformed and qualifications should be raised. Seeing that the situation of certified public accountants’ professional competence,there is need to add courses to CPA exam to improve qualifications.The added courses should be connected with practice. The CPA exam designers should be consistent of the ones with sufficient working experience and the experts who work in colleges or research institutions.
The time before qualified should be extended. There are so many problems to be dealt with depending on judgements,which come from practice experience. At present,one of the requirements of our country applying for certified public accountants is having two years of audit work experience.However,a considerable part of the people who pass the exam are short of practice experience and good at recitation.
In the circumstance of lacking good professional training,even though they get two year’s practice experience,it is still hard for them to master the quintessence of auditing and possess competent judgements. ?. The professional competence needed to be cultivated essentially at present Professional judgements Analytical ability and judging ability are important skills that a certified public accountant must possess. They run consistently through auditing process.
The level of analytical and judging ability is the comprehensive reflection of the quality of accountants. Professional knowledge,sufficient practice experience and career sensitivity are needed to analyse and judge. Communication and negotiation ability In our country, the circumstances that accountants confronted with are poor. When the responsibilities taken by accountants are not fully understood by the public,the communication between the audited organization’s management and administering authority is particularly important.
So is the communication among management,investors and creditors.When accepting engagements and pronouncing audit opinion, the certified public accountants should balance risks and benefits,hold negotiations with relevant parties to make sure that risks are in acceptable level while gaining benefits. Providing value-added services When the certified public accountant profession has developed to a certain stage,the essential clients in important business areas are carved up out by the original firms. The opportunity of the firms is providing services in new business areas,such as,management consulting,financial position investigation and market environment assessment.The needs in these areas are increasingly raise. The certified public accountants should try to create new added value actively in relevant areas. The first area to be peered is consulting,including financial position consulting and management consulting. 4.
Enhancing international ability The international abilities consist of having a good knowledge about international conventions,foreign languages and information technology. In our country,there is only small part of people who possess those international abilities.The lack of management talents is much severer than that of technical talents,which will go against the development of the certified public accountant profession. The international development of the firm is in the need of international talents. With regard to the cultivation of international talents,the firm can offer opportunities to further education abroad,which cost a lot of time and money. Another approach is allying with the international firms and drawing lessons from those firms and centralizing resources to cultivate talents.
Some small-sized firms which can’t afford the fees abroad are advised to offer international courses and training in the firm or participate in the courses and training classes offered by CICPA and National Accounting Institute. ?. Conclusion The certified public accountant is a high intellectual position. The ones are not competent for the audit work if they don’t reach the standards.
The practice ability and the level of the professional ethics of the certified public accountant is the foundation of the truth and fairness of the accounting information in capital market.Therefore,the measures to improve professional competence and ethics must be pressed on. The formation,maintenance and improvement of professional competence depend on education in college,follow-up education,practice experience and other relevant links.
The colleges,the certified public accountant profession and the firms should make joint effort to reform,which ensure that batch after batch of the certified public accountants possess enough professional competence,fulfil the audit work perfectly,so the public’s expectations can be satisfied and the pubic and national interest can be protected.References Li Jingjing. Wang Yan. The research of the countermeasures to improve professional competence[J].
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