Some of the emerging professional issues we face are closely linked to the global environmental factors listed above. They are:
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Increased oversight
As policy makers move to regain public trust we can expect a more aggressive trend toward independent oversight in general, and stricter compliance regimes for the professions in particular. The need for high ethical standards and transparency within the professions will be greater than ever. Additional training will be required for professional accountants at a time when there is a shortage of resources in the profession. This will likely increase service costs to members and the public.
Litigation
Legal actions against public practice firms will continue to be an important professional factor to consider within a strategic planning context. As well, the growing issue of director liability will continue to play a role. IFAC has identified these two trends as significant issues and has pledged to support member organizations in initiatives which address professional liability reform.
Concentration of firms
Independence rules are now in place for the accounting profession as a whole. It is likely that there will be an increase in the concentration of public company audits within large accounting firms, and a restructuring of those firms to ensure the separation of consulting services and accounting/auditing services. Small and medium sized accounting practices will face unique challenges in meeting the new independence standards while continuing to serve their traditional client bases.
Changing demographics
The changing demographic makeup of the accounting profession is another key issue affecting the accounting profession as a whole and more specifically, CGA-Canada. Demographic and value changes, including the impact of age, sex, ethnicity, skill shortages, immigration, and wealth management, will have a critical impact on CGA membership. The need to conduct research and develop new programs and services to cater to the needs of these evolving demographic segments will be a key issue for the association in the years to come.
The association must acknowledge that a “one size fits all” approach no longer works to address the needs of CGAs. We must invest the resources required to ensure our designation is attractive to many different segments of the population.
An aging membership suggests that senior CGAs will be leaving positions for retirement, with a resulting impact on association revenues. Concurrently the profession must adapt to the changing values and attitudes of younger generations. We can expect the composition of the membership to change as the proportion of new members entering the profession continues to shift from male to female and as growing ethnic diversity continues to reshape the population. At the same time, more CGAs will find themselves working outside Canada.
The evolution of accounting
The role of accountants is evolving. Individuals whose traditional role was primarily technical accounting are increasingly taking on managerial and leadership responsibilities. Risk management and fraud examination are examples where the role of accounting has evolved and which are presenting new leadership and compliance opportunities for professionally designated accountants.
Increased competition
Professional competition within and external to the accounting profession will become a major factor. As public accounting reforms are implemented across Canada, opportunities previously limited to certain designations will be open to all accounting designations. As the legitimacy of various training regimes are embraced and as the number of professionals vying for top jobs increases, competition will be stiffer and more aggressive than in the past.
In addition there will be higher educational expectations for professional accountants, an increase in global opportunities and greater value being placed on them. Smart systems will have an impact on the role of accountants as will increased demand for regulation and public accountability. Brand recognition will play an important role in the success of all accounting designations.
Technology
Fuelled by a continuous stream of new technological innovations designed to dissolve borders and geographical boundaries, Canadian business professionals will see more individuals from abroad competing for the same jobs. Yet Canadians can also expect to enjoy greater opportunities to work for and with offshore organizations. Increased globalization opens new opportunities for potential CGA partnerships with individuals and practitioners who live and work abroad.
Less encouraging though, new technology will continue to encroach on or even erode some of the traditional fields of practice in accounting and financial management. The World Wide Web, as well as protocols like XBRL (extensible business reporting language) will allow users of financial information to easily manipulate data. These and other technology innovations will continue to present a particular challenge to the assurance (audit) function and to the evolution of global auditing and assurance standards.
Taking on risk
It is vitally important that we become more adaptable and ultimately less risk averse. Change is inevitable, and those who are able to evolve accordingly will be the ones to achieve success. CGA-Canada’s strategy for the future will be flexible and able to respond rapidly to change.
Becoming proactive instead of reactive is the key to addressing this last challenge. It will be essential to focus on CGAs and what they want to achieve. It will also be more important to shape strategy around the needs of members and clients than to focus exclusively on the external environment. We must clearly define and brand CGA products/services relative to members’ wants and needs.
Promoting and branding CGAs
The lifeblood of CGA-Canada and our provincial affiliates is new members entering the profession. The same holds true for other accounting designations in Canada, all of whom are vying for their share of the same potential student population. Possible professional mergers may have a major impact in the future, and all professional educational bodies will be re-evaluating their product offerings and branding programs to remain competitive. It will be increasingly important for the CGA designation to stand out from, rather than blend in with, the other professional programs.
Re-branding the CGA designation so that it can be easily differentiated from
the competition will be a key priority in addressing this particular challenge. Promoting the CGA designation as “the” standard to reach for when it comes to an accounting designation, will help achieve this goal.
Dissemination of information
Distance learning, flexibility of education programs and many other changes are impacting the way information is disseminated. We must adapt our education programs to today’s business realities. This will require re-thinking and possibly re-tooling education programs so they can be geared to all management streams and not just as an entree into the accounting profession. We must position the CGA designation as a core program that can be leveraged for further career growth.
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Time constraints and other commitments
In addition to shifting demographics, it is important to note that people are busier than ever. Accounting professionals are no exception. Balancing ever-increasing workloads with family and other commitments, means that finding time to actively participate in professional associations is a growing challenge. As a result, stiff competition for members’ time and energy can be expected.
A more educated client base
As the role of accounting evolves, so too does the role of the end user. Clients are becoming more sophisticated and more educated in their knowledge of business and accounting matters. This trend will persist.
Staying current
CGA-Canada must always be prepared to modify its programs and services to respond to continuous change and shifting market forces. Professional development programs must stay current if they are to be relevant.
It will be important to realign methods of delivering information and education to address the changing needs of our target market segments. Overall, CGA-Canada must be responsible for guiding change within our profession. CGAs must be at the table influencing regulation and public policy as it affects our members in the years to come.
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