Various Certification Options for Professional Accountants

The demand for professional accountants in Indonesia is increasingly growing, and relative to globalization in the business world. Professional accountants will be faced with several stages of training and career choices in their professional lifetime.  They are required to certified so that they can be legally recognized in their chosen fields.

The accounting profession certificate also varies, depending on the respective fields. Certifications are issued by institutions such as the National Professional Certification Board and the Indonesian Accounting Association.

Listed below are the most common types of professional accounting certifications in Indonesia,

1. Certified Public Accountant (CPA)

This certificate is intended for the public accounting profession. In Indonesia, the institution entitled to issue a CPA certificate is the Indonesian Institute of Certified Public Accountants.

Under Law No.5 of 2011 concerning Public Accountants, its implementation is regulated through a Decree of the Minister of Finance NUMBER 17 / PMK.01 / 2008. If you already have a CPA, the Accountant can open a public accountant service office. This certificate is only valid in Indonesia.

2. Certified Internal Auditor (CIA)

CIA is awarded for internal audit professionals in accounting and is issued by the Institute of Internal Auditors (IIA), Florida, United States. The test is usually done online. In Indonesia, the institution that issues this type of certificate is the Internal Audit Education Foundation (YPIA).

The certificate to be obtained is Qualified Internal Auditor (QIA). The certificate is valid in Indonesia but is recognized by the IAA. So, people who are QIA certified can go directly to the fourth level to get a CIA certificate.

3. Certified Management Accountant (CMA)

This certificate is given to management accountants who work in a company. It's issued by the Australian Institute for Certified Management Accountants (ICMA). The branch in Indonesia that issues the CMA accounting certification is IPMI International Business School. The CMA certificate is the most commonly held professional certification by Indonesian management accountants.

4. Chartered Management Accountant (CMA)

In addition, there is the Chartered Management Accountants (CMA) certificate issued by the Chartered Institute for Accountant Management (CIMA) in the UK. In general, the Australian CMA and the British CMA are not so different. Both are accepted at many multinational companies. In Indonesia, it is the Australian CMA that opens more doors and career opportunities.

5. Certified Professional Management Accountant (CPMA)

This certificate is the same as the Australian and British CMA. However, it is more local and applies in Indonesia only. The CPMA is issued by the Indonesian Institute of Management Accounting (IAMI).

6. Certified Information System Auditor (CISA)

The CISA certificate serves as proof of the achievement of a professional in the fields of auditing, control and information security. It is issued by the Information System Audit and Control Association (ISACA) since 1978. In Indonesia, CISA can be obtained through tests conducted by the CIA, PPAK UI, and YPIA that have affiliations with ISACA.

7. Chartered Financial Analyst (CFA)

CFA is the most prestigious accountant certification in the scope of financial analysts. Issued by the CFA Institute, the applicant must pass three levels of examinations and have a minimum of four years of experience. In Indonesia, Binus Business School offers a preparation course for the CFA exam.

8. Certified Financial Planner (CFP)

CFPs are issued by the Financial Planning Standards Board (FPSB). To graduate, you must go through four stages. These include Foundation in Financial Planning, Investment Planning, Risk Management & Insurance Planning and Retirement, Income Tax and Estate Planning. FPSB also issues RFP or Registered Financial Planner certificates.

9. Financial Risk Manager (FRM)

This type of accountant certification is intended specifically for a professional who focuses on managing the company's risk management. FRM is issued by the Global Association of Risk Professionals (Garp), with offices in New Jersey and London. Besides FRM, another GARP certificate is Energy Risk Professional (ERP).

10. Certified Fraud Examiners (CFE)

Issued by the Association of Certified Fraud Examiners (ACFE), this certificate is given to someone who has professional understanding and expertise related to corporate fraud. To take this exam, you must have at least an undergraduate education with work experience in a related field for a minimum of two years.

11. Certified Wealth Managers (CWM)

Wealth Management is a profession that is needed in the banking industry. This profession requires a person to have the competence to manage customer's wealth. CWM is issued by the Certified Wealth Managers Association (CWMA). In Indonesia, MM UGM is an institution that organizes preparations for this program.

12. Diploma in International Financial Reporting (DipIFR)

There is a need for harmonization of accounting standards throughout the world, and the International Financial Reporting Standards (IFRS) certification supports this need. The DipIFR is the answer to the professional need for harmonized global accounting. This certificate is issued by the Association of Chartered Certified Accountants (ACCA) Glasgow, United Kingdom. In Indonesia, there are only a few professionals who have this certificate.

13. Certified Tax Consultant (BAP)

BAP is one of the requirements to obtain a license to practice as a tax consultant. This means that you are required to pass the Tax Consultant Certification Exam (USKP) held by the Indonesian Tax Consultants Association (IKPI). This is in accordance with the Minister of Finance Decree No. 485 / KMK.03 / 2003. Those who graduate will be entitled to a BAP degree.

14. Certified PSAK (CPSAK)

CPSAK is a certification issued by the Indonesian Accounting Association (IAI) and is the government's trust in setting Financial Accounting Standards (SAK). CPSAK is open to all majors, but after graduating, participants must take continuing professional education by IAI in accordance with PPL IAI.

15. Sharia Accounting Certificate (SAS)

Although it's a relatively new branch in accounting, Islamic accounting has an important role in Indonesia. SAS is a certificate that sets sharia accounting standards for accountants working in that field. This certificate is local and those who pass this test must take Continuing Professional Education held by IAI.

16. Government Accountant Expert (AAP)

Finally, there is the AAP which measures the standardization of Indonesian government accounting. AAP is held by IAI and is participated by civil servants who usually handle financial problems in government institutions.

Credit:  Bisnis.com