RECRUITING AND RETAINING STAFF IS THE TOP CHALLENGE FOR PUBLIC ACCOUNTING FIRMS

Firms also have difficulty in finding good quality foreign professionals

10 July 2008, Singapore -- Public accounting firms indicated that their top challenge is in recruiting and retaining staff, reveled Institute of Certified Public Accountants of Singapore (ICPAS) in its latest survey.

On audit staff alone, 73% of the firms are operating below the ideal capacity. On the average, the firms are operating at 24% below capacity.

To make up for the shortfall, the firms are looking overseas. Indeed, 67% of the firms indicated that they are sourcing for audit staff from overseas. Their sources for audit professionals are mainly from Malaysia (34%), China (21%), Philippines (16%), Indonesia (9%) and others (20%) like Australia, Hong Kong, India, etc.

Even then, firms point to difficulties in hiring professionals from overseas. The reasons cited are difficulty in getting good quality (37%), language and cultural barrier (33%), wage level is too high (16%), poor responses / no take-ups (8%) and quota contraints set by Ministry of Manpower (7%).

In the next 12 months, 45% of the firms are looking at expanding headcount while 54% of them are looking at maintaining it.

Getting more staff (31%) is currently the second most important initiative to the practice, after increasing number of clients (32%) and increasing service to existing clients (26%).

“The shortage of accountants is not a current phenomenon. The competition for talent will not only be from other sectors but from overseas as well. As it is, some firms are using non-traditional recruiting means by targeting non-accounting graduates. We expect this practice to continue,” says Dr Ernest Kan, Vice-President of ICPAS.

In addressing the shortage, ICPAS has rolled out initiatives to help grow the profession. It’s latest being the offering of Institute of Chartered Accountants in England and Wales’ (ICAEW) internationally recognised Associated Chartered Accountant (ACA) qualification in Singapore. As part of ICPAS strategy to enhance the talent pool in Singapore, ICPAS is pleased to be able to offer this pathway to the accountancy profession. ICPAS will start ACA training from September 2008.

The survey is conducted amongst members of the Institute of Certified Public Accountants of Singapore who are partners or sole proprietors working in public accounting firms.

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About Institute of Certified Public Accountants of Singapore

Established in June 1963, the Institute of Certified Public Accountants of Singapore (ICPAS) is the national accountancy body that develops, supports and enhances the integrity, status and interests of the accountancy profession in Singapore.

The Certified Public Accountant Singapore (CPA Singapore) is a professional in accountancy, finance and business who has the relevant work experience in addition to a recognised accountancy qualification. They are highly versatile and well sought after as business leaders beyond the accountancy, banking and finance industries.

Today, the Institute of Certified Public Accountants of Singapore (ICPAS) has close to 20,000 members and/or CPAs Singapore working and making their mark worldwide, which makes the CPA Singapore a designation with international recognition.

ICPAS’ international outlook and connections are reflected in its membership of

regional and international professional organizations like the ASEAN Federation of Accountants (AFA), the Asia-Oceania Tax Consultants’ Association (AOTCA) and the International Federation of Accountants (IFAC).

The Institute also caters for the training and professional development of its members through regular courses conducted by its training arm, the Singapore Accountancy Academy (SAA).

For more information, please contact:

Ms Catherine Chan

Communications Manager

Institute of Certified Public Accountants of Singapore

Tel: 65 6749 8060 Ext 813

Fax: 65 6749 8061

Email: catherine.chan@icpas.org.sg

Ms Karen Neo

Communications Executive

Institute of Certified Public Accountants of Singapore

Tel: 65 6749 8060 Ext 817

Fax: 65 6749 8061