Preface - Confederation of Asian and Pacific Accountants

Preface
The practice of accounting in its most basic form has a history of at least several thousand
years. The reference to scribes in the Quoran and in the Old Testament of both the Christian
and Jewish faith is clear evidence that Father Luca Pacioli, the father of modern double entry
bookkeeping, was only updating the methods of a long history of people whom we could today
call accountants or perhaps even accounting technicians.
In the twentieth century, accounting has experienced greater and faster development than most
other professions, with the possible exception of medical science.
With the more recent developments in the worldwide accountancy profession to accommodate
a more highly educated, more sophisticated client or employer, it has become increasingly
necessary to provide for more formal training for those who assist the professional
accountants, i.e. the para-professional accountant, or accounting technician.
The Competency Based Guidelines which are the subject of this publication are a classic
demonstration of a profession, recognising that the stipulation of “outcomes” is far superior to
blindly adhering to the old custom of prescribing the “inputs” and assuming that, as a result, a
suitably educated and trained accounting technician will automatically emerge from the
process.
The development of a set of competency guidelines and ultimately a comprehensive set of
competency standards to guide educators, employers and professional or para-professional
bodies in their roles has not met with universal acceptance in all professions. The accounting
profession appears to be one of the few professions which seems comfortable with continuing
to support the competency based standards approach.
All professional disciplines and most support role technicians require a mixture of formal
academic study to acquire the necessary body of knowledge followed by, or sometimes
simultaneously, undertaking a programme of supervised “on the job” skills training to learn
and be able to demonstrate the competencies relevant to their calling.
On behalf of the Executive Committee of CAPA, I must congratulate the New Zealand
Institute of Chartered Accountants for their valuable contribution to the training and education
of accounting technicians in the developing nations in our region. In particular I wish to pay
tribute to the personal contribution of Mr Gill Cox for both this work and for an ongoing
contribution to the work of CAPA over a number of years.
It is my sincere hope that this publication will be of considerable use to our member bodies
and that in a subsequent planned extension of this project we can publish a comprehensive set
of “competency standards” for use by professional and technician bodies, by colleges and by
employers to enhance the education and skills training of future generations of accounting
technicians.
ROBERT J.C. JEFFERY
President
Confederation of Asian and Pacific Accountants
Kuala Lumpur, Malaysia
July 1998
Competency Guidelines for Accounting Technicians 1

Overview
The syllabus is intended (in the preparer’s words) to provide “a high level syllabus for the
education and training of Accounting Technicians”. It is anticipated that CAPA members (and
others) could use the syllabus as a guide to developing their own more detailed prescriptions.
The competency guidelines should assist in encouraging a higher level of consistency in
education and training at this level. The author stressed the need for the guidelines to be useful
to a wide range of possible users. While the report does not address the issue of assessing
whether an individual has achieved a particular competency, it does provide some guidance on
where the achievement of competencies is undertaken (workplace or class room).
Note that the consultant has indicated that many of the competencies relating to specific
applications of accounting knowledge and selected business related knowledge areas such as
Tax, financial management and computing could be achieved within the workplace. This will
have implications for measuring (confirming achievement) such competencies and
documenting achievement within the workplace. Supervising staff will need to be adequately
prepared for this role.
The consultant acknowledged the difficulty in identifying general pre-requisite knowledge
requirements for entry into an Accounting Technicians course. Clearly these requirements will
vary from country to country and will reflect general education systems and the needs of the
likely major employment areas for Accounting Technicians.
The guidelines address both accounting and general business knowledge areas and are
structured into five areas:
1. Introductory.
2. The Environment of Business.
3. The Accounting Process.
4. Specific Applications of Accounting Knowledge.
5. Business Related Knowledge.
The consultant recommends that the first four areas should be attempted sequentially, with
Business Related Knowledge aspects being considered at various times, depending on the
requirement for judgement and/or particular accounting skills. Generic competencies relating
to communications are included, with achievement within the workplace being suggested as
appropriate.
The required levels of competency are identified at three levels:
• Level 1 (Awareness).
• Level 2 (Knowledge).
• Level 3 (Skill).
Each level builds on competencies developed at lower levels.
Specific Comments
The emphasis on understanding small business operations in the Introductory area is
particularly appropriate for Accounting Technicians in developing countries where such
enterprises are likely to represent a significant proportion of economic activity. This
importance is also reflected in the emphasis (in The Environment of Business) on
understanding the legal and economic environment within which businesses operate.
Competency Guidelines for Accounting Technicians 2

The inclusion of competency in understanding the ethical requirements of business and
professional activity is appropriate. However, I would have considered that specific elements
relating to the relevant professional accounting body would have been linked to membership
of that body. If the education program is to be offered through post-secondary school
educational institutions, it may not be appropriate to include that specific element.
In developing countries, there may be resource constraints which limit the achievement of
level 3 competency (skill) in the application of accounting software packages. This may also
limit the development of competencies in the use of generic software packages such as word
processing, spreadsheets, databases and accounting information systems.
In general, the specific areas of accounting knowledge, business related knowledge and
business environment are very similar to those areas in TAFE Accounting (Diploma) courses
in Australia.
JAN CHAMBERLAIN
National Education Manager
Australian Society of Certified Practising Accountants
Melbourne, Australia
29 May 1998
Competency Guidelines for Accounting Technicians 3

Foreword
Recent history has seen massive change in ideology in many countries.
Recent history has seen the rapid and sustained development of many economies that have
previously been described as “undeveloped”.
Recent history has seen the emergence of information technology as a principal driver of
organisations whether they be “for profit” or “not for profit”.
The accounting profession has had, and continues to have, a major role in these changes.
An important part of the profession’s own development has been the encouragement that it has
provided to those who have education and training to accounting technician or “middle level”.
Both developing economies and those that have already reach the “developed” stage can
benefit greatly by the recognition and growth of accounting technicians. The first group
because of the need to provide emerging industry with basic financial management support;
the second group because of the cost effectiveness that accounting technicians provide in the
operation of financial management systems, and the performance of accounting functions
specified and controlled by accounting professionals qualified to a higher level.
The Confederation of Asian and Pacific Accountants (CAPA) has recognised the need, and the
value that can be achieved from the development of the accounting technician group. The
International Federation of Accountants has also recognised the need and value of this group
as is evidenced in its recent and ongoing work.
The competency guidelines produced by CAPA are intended to provide a framework for use
by various countries/accounting bodies in establishing the educational base for accounting
technicians. They are intended therefore to be flexible and to be interpreted according to the
environment in which a particular education initiative is being undertaken. To this extent they
do not prescribe the specific education and training model to be used.
It is important for users to recognise that knowledge is but one of three requirements for entry
to a profession – the others being workplace experience, and development of professional
awareness and understanding. These latter two areas are not specifically addressed in these
guidelines although inevitably there are clear linkages to these requirements.
The Guidelines produced focus on the “what” in terms of a framework – a separate issue is the
“how”. This relates to the manner in which the competencies set out in the framework are
both developed and assessed. This will vary between countries/professional bodies according
to their education philosophy, culture, experience etc.
As a foundation step the Guidelines produced by CAPA are commended to any
country/professional body embarking on the initial design, or review, of the knowledge
requirements for Accounting Technicians or “middle level” accountants.
W. GILL COX
The Institute of Chartered Accountants of New Zealand
Christchurch, New Zealand
3 June 1998
Competency Guidelines for Accounting Technicians 4