NEW CPA QUALIFICATION & TRANSITIONAL
ARRANGEMENTS FOR REGISTERED STUDENTS
The Institute, after wide consultation with the CPA training offices and education institutions,
has designed a new examination structure and training programme that focus on training
CPAs as business professionals. The new CPA qualification builds on the profession’s
traditional strengths while focusing on the needs of modern business.
In addition to introducing a new examination structure, the Institute is also introducing a new
qualification, the Professional Certificate in Accountancy.
NEW CPA QUALIFICATION
1.
Structure of the New Examination
The new CPA examination consists of two levels of examinations:

A Professional Stage Examination consisting of six subjects divided into two
modules, which cover the concepts and principles underpinning accountancy in all
its disciplines.

An Advanced Stage Examination consisting of three independent modules of one
paper each, which cover advanced aspects of auditing, financial reporting, taxation
and business management. The emphasis is on equipping new CPAs with
technical and strategic business skills relevant to modern business.
The components of the examinations are:
Professional Stage Examination (PSE)
Module A
Financial Accounting and Taxation
Business and Company Law
Management Information and Control
Module B
Financial Reporting
Auditing and Assurance
Business Finance and Management
Advanced Stage Examination (ASE)
Module C
Advanced Taxation
Module D
Advanced Financial Reporting
Module E
Advanced Business Management & Integrative Case Study
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2.
Assessment
The assessment process is designed to ensure that potential CPAs have gained the
knowledge, skills and professional values fundamental to becoming a CPA. Apart
from the final written examinations, there is continuous assessment throughout each
module at the advanced stage.
The assessment process comprises the following components :

The existing method of assessment, comprising a 3-hour written examination
for each paper, is maintained for the Professional Stage Examination (PSE).
Students will be allowed to sit for the examination by module and to retain the
credit for passes earned in each module.

A new assessment method will be introduced for the Advanced Stage
Examination (ASE). Each of the 3 modules in ASE can be undertaken
separately and a student’s performance in a module will be based on the
following assessment components:
–
–
20 hours of workshop sessions consisting of
discussion, presentation and written assignments
30%
Final Module Examination
(3 – 4 hours written examination)
70%
The new assessment method aims to enhance students’ inquiry and research
capabilities as well as communication skills through participation in workshop
sessions. The final module examination will test students’ mastery and
application of technical knowledge and skills, aimed at enhancing their
problem-solving and intellectual skills.
3.
Entry Requirements
The minimum entry qualification to the CPA examination is a recognised degree or a
diploma in accountancy at the tertiary level. Graduates with a degree in accountancy
will be eligible for exemption from the Professional Stage Examination while those
with a non-relevant degree will be required to undergo a conversion course, to gain
appropriate foundation in accountancy and related subjects, before they are eligible to
join the CPA programme.
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4.
Training Schemes
The various options of training under the current system will be streamlined into two
streams as follows:
Stream I is the traditional route of training where a student works in the office of a
CPA in public practice under a training contract, and sits for the MICPA examinations
at the same time. This stream of training is targeted at students who plan to build a
career in public accountancy practice.
Stream II is designed for students who wish to seek a career in commerce, industry
or the public sector. The students are not required to enter into a training contract but
must maintain a training log book as a record of their practical experience. Practical
training must be obtained in an approved training organisation (ATO) under the
supervision of a member of MICPA or one of the professional bodies approved by
MICPA. The students may undertake the MICPA examinations prior to the
commencement of practical training or during the training period.
5.
Practical Experience Requirements
Practical experience forms a crucial part of a CPA’s qualification process. All
students are required to obtain not less than 3 years of practical experience in
accounting and/or auditing and at least two of the following technical categories :
6.

Taxation

Insolvency

Financial Management

Information Technology
Requirements for Admission as CPA
The following requirements must be satisfied in order to qualify as a CPA:

Completion of the Professional Stage Examination or exemption being granted on
the basis of a recognised degree in accountancy;

Completion of the Advanced Stage Examination; and

Having obtained not less than 3 years of approved practical experience.
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7.
Proposed ASE Programme for
Local Accounting Graduates
To encourage students pursuing a degree in accountancy to join the CPA programme,
Module C and Module D of the Advanced Stage Examination (ASE) will be offered
as optional courses in the final year programme of the Bachelor of Accountancy
degree conducted by approved universities. The bases of assessment for Module C
and Module D will be the same as that set out in paragraph 2 above except that the
workshop sessions will be conducted on campus.
Upon completion of Module C and Module D, the student will be entitled to a
Professional Certificate in Accountancy. The student will be eligible to sit for Module
E after he has obtained the Bachelor of Accountancy degree and completed at least
nine months of approved training.
Students who pursue this pathway will be eligible for admission as a CPA upon
fulfilling the following requirements:
8.

Having obtained the Bachelor of Accountancy degree

Completion of the MICPA Advanced Stage Examination

Having obtained not less than 3 years of approved practical experience
Professional Certificate in Accountancy
A Professional Certificate in Accountancy (PCA) will be awarded to students who
have completed Module C and Module D of the Advanced Stage Examination,
without the requirement for practical experience. The PCA is intended to be a
qualification in its own right to meet the needs of persons who want a qualification
beyond an academic degree or diploma. It also provides flexibility in the attainment of
the CPA qualification. A PCA holder is given the option to start a career in a
commercial, industrial or public sector organisation which is not currently training
CPA students, and continue to study and qualify as a CPA at a later stage of his
career.
9.
Implementation of New Examination
The new CPA examination will be introduced in two stages, as follows:

Professional Stage Examination – with effect from the November 2002
examination

Advanced Stage Examination – with effect from the May 2003 examination
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TRANSITIONAL ARRANGEMENTS FOR REGISTERED STUDENTS
1.
Comparison of Current and New Examination Structures
The new syllabus for the Professional Stage Examination (PSE) will be examined for
the first time in November 2002 and the Advanced Stage Examination (ASE) in May
2003. A comparison of the current and new examination structures is shown in Table
1.
Table 1 : Comparison of Current and New Examination Structures
Current Structure
New Structure
Professional Examination I (PE I)
Professional Stage Examination (PSE)
Module 3
Module A
Audit Fundamentals
Financial Accounting & Reporting I
Information Systems
Financial Accounting and Taxation
Business and Company Law
Management Information and Control
Module 4
Module B
Managerial Planning & Control
Company Law & Practice
Organisational Management
Financial Reporting
Auditing and Assurance
Business Finance and Management
Professional Examination II (PE II)
Advanced Stage Examination (ASE)
Module 5
Module C
Advanced Taxation
Financial Accounting & Reporting II
Advanced Taxation
Module D
Advanced Financial Reporting
Module E
Advanced Business
Management & Integrative
Case Study
Module 6
Audit Practice
Business Finance & Strategy
There will be a certain degree of syllabus mismatch and a knowledge gap for students
who began their examination studies on the current syllabus and have to sit the
examination based on the new syllabus. These students will need to undertake
additional studies on transferring to the new structure.
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2.
Transitional Arrangements
2.1
The arrangements for transition to the new examination structure are based on the
following principles:
(i)
Students who hold exemptions from one or more papers in the current
examination structure will be granted exemption from the equivalent paper(s)
in the new examination structure.
(ii)
Students who have completed any of the modules in the current examination
structure will be given credit for the equivalent papers in the new examination
structure.
(iii)
Students who pass any papers at the last sitting under the current examination
structure (i.e. May 2002 for Professional Examination I and November 2002
for Professional Examination II) will be given credit for the equivalent papers
in the new examination structure while students who fail any papers will be
required to sit the equivalent papers in the new examination structure.
Students at Professional Examination I will receive their conversion statements in
August 2002 while students at Professional Examination II in February 2003. Credit
will be given to the papers passed in the current examination structure as shown in
Table 2.
Table 2 : Conversion Arrangements
Current Structure
Credit Given under New Structure
Professional Examination I (PE I)
Professional Stage Examination (PSE)
Audit Fundamentals
Auditing and Assurance
Financial Accounting & Reporting I
Financial Accounting & Taxation
Financial Reporting
Information Systems
No equivalent
Managerial Planning & Control
Management Information & Control
Company Law & Practice
Business and Company Law
Organisational Management
Business Finance & Management
Professional Examination II (PE II)
Advanced Stage Examination (ASE)
Advanced Taxation
Advanced Taxation
Financial Accounting & Reporting II
Audit Practice
Advanced Financial Reporting
Business Finance & Strategy
Advanced Business Management &
Integrative Case Study
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2.2
Transition from Professional Examination I to PSE
(a)
Students who have completed the current Professional Examination I (PE I)
either at the May 2002 or earlier sitting, will be eligible to proceed to ASE in
the new structure.
(b)
The following conversion arrangements will apply to students who are in the
process of taking the current PE I :
(i)
Students who hold exemptions from one or more papers in the current
PE I will be granted exemption from the equivalent paper(s) in PSE.
Students who have passed Module 3 or Module 4 in the current PE I
will be given credit for the equivalent papers in PSE. In addition, credit
will be given for the equivalent paper(s) in PSE to students who sit the
May 2002 examination and obtain a pass in one or more papers in the
current PE I. No credit will be given to individual papers passed at
examination sittings prior to May 2002.
(ii)
The paper-for-paper exemption or credit will be given according to the
basis shown in Table 2. Students will have to sit the corresponding
outstanding papers in PSE for which exemption or credit has not been
given in the manner set out in the examination regulations.
(iii)
Students who hold a referred or referred again result in the May 2002
examination will sit the equivalent paper in PSE as shown in Table 2
with the exception that a student who is referred Financial Accounting
& Reporting I in the current PE I is required to sit only Financial
Reporting in PSE. The student will be given two opportunities to sit
the referred paper provided that if the student fails at the first
opportunity, he has obtained a marginal fail. If the student obtains a fail
or bad fail at either referral attempt, he must then sit PSE (provided he
has not become time-barred) in the same way as students in (i) above.
(iv)
Students who are at their last attempt at the November 2002 sitting
when the first session of PSE is conducted will be allowed an
additional attempt so that each student is given a minimum of 2
attempts (excluding referral attempts) at PSE, to be taken
consecutively.
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2.3
Transition from Professional Examination II to ASE
The following conversion arrangements will apply to students who are in the process
of taking the current Professional Examination II (PE II):
(i)
(ii)
Students who have passed Module 5 but not Module 6 in the current PE II will
be given credit for Advanced Taxation in ASE. In addition, students who sit
Module 6 at the November 2002 examination and:

who obtains a pass in Audit Practice in Module 6 will be given credit for
Advanced Financial Reporting in ASE; or

who obtains a pass in Business Finance & Strategy in Module 6 will be
given credit for Advanced Business Management & Integrative Case
Study in ASE.
Students who have passed Module 6 but not Module 5 in the current PE II will
be given credit for Advanced Business Management & Integrative Case Study
in ASE. In addition, students who sit Module 5 at the November 2002
examination and:

who obtains a pass in Advanced Taxation in Module 5 will be given
credit for Advanced Taxation in ASE; or

who obtains a pass in Financial Accounting & Reporting II in Module 5
will be given credit for Advanced Financial Reporting in ASE.
(iii)
Students who sit both Module 5 and Module 6 in the current PE II at the
November 2002 examination and who obtains a pass in some of the papers
will be given credit for the equivalent paper(s) in ASE according to the basis
shown in Table 2. No credit will be given to individual papers passed at
examination sittings prior to November 2002.
(iv)
Students who have not completed the current PE II will have to sit the
corresponding outstanding papers in ASE for which credit has not been given
in the manner set out in the examination regulations.
(v)
Students who are at their last attempt at the May 2003 sitting when the first
session of ASE is conducted will be allowed an additional attempt so that each
student is given a minimum of 2 attempts at ASE, to be taken consecutively.
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3.
Time Limit to Complete Examination
The normal time-bar for completing the whole of the MICPA examination will be
extended by the additional attempt(s) granted for completing PSE or ASE as a result
of the transition to the new examination structure.
4.
Transfer of Stream of Student Registration
Effective July 1, 2001, the CPA training programme has been streamlined into two
streams, i.e. Stream I and Stream II as described under the New CPA Qualification.
The following transitional arrangements apply to students registered under the old
Stream II and Special Stream III.
(a)
Students under Old Stream II
Students registered under the old Stream II, who are currently serving a
training contract, are allowed to continue serving the training contract until its
completion. They are not required to transfer their registration to the new
Stream II and to terminate their training contract.
In the case of a student registered under the old Stream II whose principal has
left the employ of the approved training organisation before the completion of
his training contract, the training contract will be allowed to lapse and the
student is required to transfer his registration to the new Stream II. The period
of the training contract that the student has served will be recognised as
forming part of the practical experience requirement for admission to
membership provided it is not less than 12 months or the student continues his
employment with the approved training organisation. The remaining period of
the requisite practical experience is to be met in accordance with the
requirements for students under the new Stream II as described under the New
CPA Qualification.
(b)
Students under Special Stream III
All students registered under Special Stream III (non-articleship stream for
local accounting graduates) who are currently undertaking the MICPA
examination are allowed to remain under this Stream for the unexpired portion
of the 2-year period allowed for such registration, after which they will be
required to transfer their registration to Stream I or the new Stream II. For
students who are currently working in accounting firms, it is to their advantage
to transfer their registration to Stream I as soon as practicable, i.e. to enter into
a training contract with a member of the Institute in practice.
Students under Special Stream III who have completed the MICPA
examination but not the practical experience requirements are required to
apply for admission as a provisional member of the Institute within 6 months
from the date the student is notified that he has passed all of the Institute’s
examinations. Any student who fails to comply with this requirement may be
called upon to show cause why his studentship should not be revoked.
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5.
New Examination Regulations and Syllabus
A copy of the new examination regulations and syllabus is sent to all registered
students. Students who are required to resit the equivalent paper(s) in the new
examination structure should pay particular attention to the changes in syllabus, which
may require additional studies.
6.
Pilot Examination Questions
To assist students gain a clear understanding of the requirements of the new syllabus,
a set of pilot examination questions based on the new syllabus will be sent to students
as follows:

Professional Stage Examination in July 2002

Advanced Stage Examination in January 2003
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