Sum of all challenges: accountants work to adjust to highly regulated business environment and rapid technological developments

Faced with a steady stream of new regulations and standards to adhere to, certified public accountants (CPAs) need to continually upgrade their skills while meeting the needs of clients or their company’s business operations – without compromising the quality and integrity of their services.

In addition to CPAs adjusting to an increasingly regulated business environment – including greater emphasis on corporate governance, antimoney-laundering, the Hong Kong audit regulatory reform, audit practices on the mainland, and environmental, social and governance (ESG) reporting – the accounting profession is also being affected by technology.

Eunice Chu, head of policy, the Association of Chartered Certified Accountants (ACCA) Hong Kong, says that technology and artificial intelligence (AI) is transforming parts of the accounting industry. Providing a glimpse into the future operations of professional services firms, each of the “Big Four” firms – PwC, Deloitte, EY and KPMG) – have been ramping up the deployment of AI to help with analysing data to provide better insights to meet auditing compliance and reporting requirements.

“We are venturing into a new and largely uncharted future with unknown challenges matched with opportunities,” Chu says, adding that CPAs who stay alert and ready to adapt and exploit the changes could be rewarded. For example, in Hong Kong, Chu says the financial technology and start-up community could provide opportunities for CPAs.

“Accounting professionals can definitely contribute in these areas; given they have sound finance knowledge, they can be the business partners of start-up entrepreneurs,” Chu says, adding that they can also provide traditional services, such as financial planning, budgeting, cash flow management, internal controls and taxation advice.

Meanwhile, Jonathan Ng Tai-sing, Hong Kong Institute of CPAs (HKICPA) executive director (qualification and education), says proposed reforms to the institute’s CPA qualifying process will ensure the qualification remains in step with the continual changes in business and professional markets in Hong Kong as well as international best practices.

“It is important we train professional accountants with the skills, expertise and ethics that can support Hong Kong as an international business and financial centre,” Ng says. The new structure has three progressive levels with 14 modules and a capstone, which integrates technical knowledge across fields of expertise in accounting, business and finance while developing professional skills in analysis and critical thinking, problem-solving and leadership.