Qualifications guide

History of Certifications & Qualifications

Since the late parts of the 20th century executives round the world and students have been making a shift towards professional qualifications (PQs), such as the Chartered Financial Analyst (CFA), the Association of Chartered Certified Accountants (ACCA), the Certified Internal Auditor (CIA), the Certified Public Accountant (CPA), the Project Management Professional (PMP), the Chartered Institute of Management Accountants (CIMA) and many more. There are numerous reasons justifying this ‘shift’: the practical knowledge offered by these programmes, their global character and their continuous renewal of their syllabus in order to respond to the needs of corporations and each profession. But what is their recognition and their competitive advantage in such a challenging and changing world? How do they differ in comparison to the traditional university studies?

Professional qualifications had not been particularly successful in Europe and Asia until 2000-2005 for four main reasons:

• The option of ‘professional qualification’ was not available in many European, Middle Eastern and Asian countries (with few exceptions).

• In many cases, the Educational Systems of each country granted - and are still granting in some parts of the world - professional rights only through university degrees and not necessarily through professional bodies/associations.

• Because ‘professional rights’ in many countries were only awarded by the national governmental bodies themselves (notaries, chartered certified accountants etc.).

• The national culture and its specific perceptions of studies were focused on academic studies (university bachelors and masters degrees).

Differences Between Professional Qualifications and University Degrees:

A professional qualification is a professional designation obtained in a particular field (Accounting, Audit, Investment, Management, Law, Engineering, Public Relations, Marketing, Banking, etc.). Such a qualification is awarded by internationally recognised bodies/associations (Associations or Institutes) of countries such as the United States of America, Great Britain and others, upon successful completion of studies in a specific field and approved work experience. In Great Britain for example, many renowned multinational business consulting firms (Deloitte, PwC, EY, KPMG etc.) set as a prerequisite for their associates or partners either the CPA (Certified Public Accountant), ACCA (Association of Chartered Certified Accountants - UK), the ACA by the Institute of Chartered Accountants of England and Wales, or CIA (Certified Internal Auditor). In the U.S.A., high-ranking executives working for large banks or investment organisations such as American Express, Bank of America, Goldman Sachs, etc. are usually holders of the CFA (Chartered Financial Analyst, USA).

Nevertheless, the internationalisation of markets, the ever-changing financial environment and the rapid growth of the EU had created a new global reality for graduates and professionals searching for a job with real and substantial career perspectives. The labor markets globally and the requirements of large multinational businesses are far more demanding than they used to be in the previous decades (1980’s-1990’s). Recent (2007 – 2014) unemployment trends globally support the above argument.

University degrees on the other hand are awarded by university institutions throughout the world and include the widely known Higher National Diplomas, Bachelors, Masters and Doctorates of Philosophy or Business (HND, BA, BSc, MA, MSc, MBA, MPhil, PhD, DBA and others). Each university awards its own degree and it is therefore important for a student to enroll/enter a university or school having a ‘good name’ in their selected fields. Exams are held by the universities and degrees are also awarded by them, whereas previous work experience is not a prerequisite.

Summarizing the differences:

As stated previously, during the ’60s and the ’70s a university degree was enough to guarantee a stable job and a career. Today, the reality is very different. The labor market of the 21st century has become extremely demanding. The large and multinational businesses of today have vastly different needs. They are looking for professionals with (a) practical training after their graduate studies that must be certified by internationally recognized professional associations and (b) approved previous work experience, who are ready to undertake leading positions. The combination of worldwide exams and highly relevant work experience is exactly what has made the difference in many countries.

Requirements for Obtaining a Professional Title / Certification

In order to obtain a professional qualification the following are usually required: (a) successful completion of the worldwide exams (held in hundreds of countries world-wide and in many cases through on-line testing) undertaken by the respective professional associations or on-line testing organizations and (b) two to three years of previous work experience (depending on the qualification) in a relevant field. Qualifications are directly awarded by the professional associations and are internationally recognized in most cases. Exams are independent and are evaluated in the country of origin of the respective association.

When someone holds a professional designation, then previous work experience and success in worldwide exams are “given”. A chartered (or ‘certified’) accountant, for example in Prague, is considered to be a ‘stronger’ candidate for multinationals and consulting firms than the holder of a Master’s degree in accounting. Their previous work experience is given, as well as the curriculum of the respective training institute.

The reason why the ACCA has prevailed internationally (people can take the exams in over 170 countries) is because its curriculum, as of 1997, has been based on the internationally predominant International Accounting and Auditing Standards (a requirement for listed companies in many countries globally). Small and medium enterprises are expected to follow gradually according to the EU, although the financial crisis might delay these plans for a few years.

Holders of a qualification such as the ACCA, ACA or CIMA for example are certified as to the following: successful completion of worldwide exams, relevant work experience, familiarisation with the International Accounting and Auditing Standards and very good command of the English language.

Local Recognition - Joint Examination Schemes (JES)

In many countries associations partner with local bodies in order to localize certain parts of their qualifications. As the ACCA site states:

ACCA has a number of partnerships with national accountancy bodies around the world which enables you to sit the exam component of a range of ACCA qualifications and also satisfies the exam criteria for the national accountancy body qualification. We call these joint exam schemes (JES).

If you wish to study for the ACCA Qualification and live in one of the following countries you will need to register under the JES: Barbados, Belize, Botswana, Cambodia, Cyprus, Greece, Guyana, Jamaica, Lesotho, Malawi, Malta, Sierra Leone, Swaziland, Trinidad and Tobago or Vietnam.

http://www.accaglobal.com/gb/en/qualifications/apply-now/jes.html

Many professional qualifications such as ACCA, CIMA, ACA and others offer exemptions to some of their papers (courses) based on previous academic degrees (such as a Masters degree, a bachelors etc.) in an equivalent field of study. You need to check with the association directly and exemptions are only officially awarded by the association itself.

An initial assessment can be made through an enquiry to the association or institute via email and/or through a search engine on the association’s website. Furthermore, you can contact StudySmart (info@StudySmart.gr) for an unofficial assessment.