A.J.

SILICON

Information Technology Skills for the Digital Accountant

BY ALH. RAZAK JAIYEOLA CHIEF CONSULTANT

A.J.SILICON
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Presentation Outline
Introduction Traditional Accounting Functions Evolution of IT Usage in Accounting IFAC & Curriculum Business Applications of IT Changing Role of the Accountant Career Opportunities in IT Relevant IT/Accounting Certification Recommendations & Conclusions Questions & Comments

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Objectives

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To address IT requirements for the Accountant of today. To highlight importance of International Federation of Accountants (IFAC) and International Education Practice Statements (IEPS) To address IT training requirements, certifications and career opportunities for digital accountants.
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Introduction

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Information Age is Here IT Tools , Techniques & systems in use by all businesses individuals, corporate bodies, businesses, government and educational institutions

IT deployment
Improves efficiency Lowers costs Achieves higher productivity and ensures Optimal deployment of human and material resources. IT affects every profession and daily living. IT affects business, operations and entertainment. Accounting Practice dependent on IT Systems
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Definition of Accounting

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Accounting is the record keeping process by which property and transactions connected to a business are controlled. Generally, it is the systematic and regular recording, classifying, sorting, analyzing, and interpretation of business data to produce information for decision making

Traditional Accounting Functions

Accounting enables businesses to determine the profitability or otherwise of an enterprise Accounting enables the proper control of resources put into the business. Accounting also facilitates decision making

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Accounting ensures proper accountability to the owners of the business.

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Evolution of IT Usage in Accounting

Manual records kept in paper-based folios and ledgers Electronic Data Processing has replaced manual records Computers networked over LAN & WAN encourages Information and resource sharing (e.g. printers) and Provide Internet connections for access to global information. Accounts information and balances kept in computer databases Businesses dependent on IT Information has become a strategic resource. Todays accountant must have requisite IT skills to remain relevant.
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IFACs Role

IFAC
IFAC celebrated its 30th anniversary in November, 2007 Membership -1977: 63 professional bodies today:155 members and associates in 118 countries Represents 2.5 million accountants in public practice, education, government service, industry and commerce

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IFACs Role

IFACs Mission
Establish and promote adherence to high quality professional standards
Further the international convergence of such standards Speak out on public interest issues where the professions voice is most relevant

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IFACs Role

IFAC Serves the International Profession

Accountancy organizations worldwide Large, medium and small firms

Developed and developing countries

Professionals in business, public practice, and government

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IFACs Role

What IFAC Does

Supports the global development of the profession Develops international standards Encourages compliance and convergence Provides guidance for professional accountants in business and small and medium practices Promotes values of integrity, transparency and expertise Shares in regulation of the profession
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IFAC Standard Setting

IFAC Standard Setting

International Auditing and Assurance Standards Board (IAASB)
International Ethics Standards Board for Accountants (IESBA) International Public Sector Accounting Standards Board (IPSASB)

International Accounting Education Standards Board (IAESB)

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IFAC

Other Boards and Committees

Member Body Compliance Program
Developing Nations Committee Professional Accountants in Business Committee Small and Medium Practices Committee

Forum of Firms
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International Education Standards (IES) Prescribe the range of professional knowledge, professional skills, professional values, ethics and attitudes required; Develop an attitude of lifelong learning; Focus on learning outcomes, not inputs; Promote consistency and convergence in accounting education.

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International Education Standards

IES 1, Entry Requirements IES 2, Content of Professional Accounting Education Programs IES 3, Professional Skills IES 4, Professional Values, Ethics and Attitudes IES 5, Practical Experience IES 6, Assessment of Professional Capabilities and Competence IES 7, Continuing Professional Development IES 8, Competence Requirements for Audit Professionals
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IES 1, Entry Requirements

Requirements for entry to a program of professional accounting education and practical experience Aim to ensure students have background to have reasonable chance of achieving success Requires education at least equivalent to enter a university degree program or equivalent

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IES 2, Content of Professional Accounting Education Programs

Prescribes knowledge and competences candidates require to function competently
Accounting, finance and related knowledge Organizational and business knowledge IT knowledge and competences

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IES 2 Subject Areas

Accounting, finance and related knowledge
Financial accounting and reporting Management accounting and control Taxation Business and commercial law Audit and assurance Finance and financial management Professional values and ethics
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IES 2 Subject Areas

Organizational and business knowledge
Economics Business environment Corporate governance Business ethics Financial markets Quantitative methods Organizational behavior Management and strategic decision making Marketing International business and globalization
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IES 2 Subject Areas

Information Technology
General knowledge of IT IT control knowledge IT control competences IT user competences One of, or a mixture of, competences for the role of
Manager Evaluator/Assurance Provider Designer of Information Systems

Further guidance provided in IEPS 2.1

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IEPS 2.1
Titled : Information Technology for Professional Accountants. Divided into three sections Section 1 Pre-qualification IT Knowledge and Competency Requirements Section 2 Post-Qualification IT Knowledge and Competency requirements Section 3 IT Knowledge and Competence for Audit Professionals
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CONTENTS OF IEPS 2.1

Demonstration of the standard

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Business Applications of IT
Office Automation Tools Accounting Packages Modules in Accounting Packages Other Application Software

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Office Automation Tools

Microsoft Office Suite of Programs
Microsoft WORD Microsoft Excel Microsoft PowerPoint Microsoft Publisher Microsoft Access Microsoft Groove Microsoft Onenote Microsoft Outlook for email/contact mgt

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CorelDraw, PageMaker Microsoft Project Microsoft Visio Internet Electronic Commerce

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Accounting Packages
Small & medium scale
DacEasy PeachTree QuickBooks Sage

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Large Scale (ERP)

ORACLE e Business Suite SAP JD Edwards
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Modules in Accounting Packages

General Ledger Cash Management Accounts Payable/Receivable Fixed Assets Management Stock/Inventory Control Bank Accounts Reconciliation Integrated HR and Payroll Job Costing/Project Accounting & Management Warehouse Management Customer Relationship Management (CRM) Supply Chain Management (SCM) Production Planning/Plant Maintenance Financial Report Generation & Analyses Interface for import/export of data (e.g to Excel) Audit Trail

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Other Application Software

Stock Broking Tax Software Public sector accounting
Federal Government State Government Local government

Insurance and e-Payment Systems Pension Administration Systems Manufacturing Systems Microfinance Systems
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 Traditionally, accountants are expected to be well versed in all things business. Accountants should be seen as a valuable source of advice as IT and E-Commerce specialists

A.J.SILICON Are the skills of the Accountant out of date ?

Accountants have to work fast to convince their clients and organizations that they can provide the advice they need
IT does not introduce new audit objectives.It introduces new levels of risk and forms of business records .
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A.J.SILICON Tomorrow's environment has major implications for Accountants

The source of most transactions will be external to the organization. Information will be updated at break-neck speed and will reside mainly in the business unit rather than finance. Only summaries of transactions will be available in the financial system , Scope of current reporting unrealistically excludes important intangible assets and value drivers.
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Tomorrow's environment has major implications for Accountants [contd]

The rapid developments in information technology where changes typically proceed faster than the professions capability to react . Change of focus from historic review to active participant Understanding of the language of technology and asking the right questions.
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Tomorrow's environment has major implications for Accountants [contd]

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Involvement in defining e-Commerce strategies, from strategic pricing to understanding the cost/benefits of each piece of IT and knowing how to hire good people. Involvement with customer resource management database, which involves leveraging data and slicing into content for different market segments.

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Digital Accountant.. Defining new structure[contd]

Act as a bridge between the worlds of technology and finance. Focus on internal processes and applications that cut across departments to link customers, suppliers, and other business partners electronically Look beyond their own walls for successful eCommerce models
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Career Opportunities in IT
Information Systems Manager Information Systems Designer Information Systems Auditor Data Centre Manager Financial Control & Strategy Manager Business Systems Consultant Internal Control/Inspection Managers IS Audit Managers E governance managers Revenue Assurance Analyst Chief Information Officer IT Security Consulting Disaster Recovery Specialist Bank Examiner/Supervision with CBN/NDIC

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Relevant IT/Accounting Certification ICAN TCI Programme Auditing Applications & Certifications Other IT Certification for Accountants

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ICAN TCI Programme

There are 3 Modules in all.
Module 1: Computer Fundamentals Module 2: Use of Accounting Packages Module 3: Use of Audit Software

Module 1 & 2 are Compulsory for ICAN Induction Modules 3 is not compulsory but very necessary
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Auditing Applications and Certifications Auditing Applications Audit Software

Team Mate Pentana CaseWare

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Audit Extraction and Analysis Software

Idea ACL SQL MS Excel

Auditing Certifications
CISA CISM CISSP ITIL
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Other IT Certification for Accountants

Institute of Internal Auditors (CIA) ORACLE e-Business Suite Certified Fraud Examiner (CFE) Certified Fraud Analyst (CFA) MCDBA MCSE MCSD CCNA

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Conclusion

IT offers great benefits to any economy. As it continues to gain acceptance in Nigeria, the initial divide with the rest of the global market will be bridged. IT training has become a priority for professional development for Accountants. Organizations will seek only professionals who have relevant IT skills
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Conclusion[contd]

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Every accountant must ensure that he is IT compliant by getting HANDS-ON training on Accounting & auditing packages after undergoing training on Computer Fundamentals. It is hoped that we will ALL embrace ICAN TCI program to guarantee IT compliance as required by the Institute to ensure a rewarding career in this information age.
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RAZAK JAIYEOLA CHIEF CONSULTANT

A.J.SILICON
08034020754,08055272046 info@ajsilicon.com

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