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4 cOntents

dispatch
06 GRAPHIC NEWS Hiring’s renewed optimism and risk threats
08 NEWS ROUNDUP Global accounting and finance news

features
30 the business of risk We take a look at the
role of an internal auditor, and how to get into
the internal audit area
32 beyond numbers Communication
skills are vital for professional accountants,
so we take a look at the ways to develop
your speaking skills

learning centre
10 3 things you should know about Temping
10 problem solved Restoring a reputation
11 PER Setting and meeting performance objectives 14 Football competition Predict the winner of the
2010 FIFA World Cup
12 my working life Ebad Zaigham

services directory download article pdfs

Click here to find out about the services offered Wherever you see the download icon , click on it
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subscribers to the ACCA Tuition Provider directory read offline and printed off to help you with your studies
 Welcome to Issue 13/2010 of student accountant
Brendan Murtagh
Please email studentaccountant@accaglobal.com with your feedback on this issue President
Mark Gold
Deputy President
Dean Westcott
Vice President
Helen Brand
fia Chief Executive

Editorial Team
foundations in
Victoria Morgan
accountancy
Editor
ACCA’s new suite
of entry-level Jamie Ambler
awards Editorial Consultant
16 introduction Jackie Dollar
to fia Art Editor
18 a flexible Richard Gooding
range of awards Designer
20 links to Rhian Lewis
the acca Editorial Executive
qualification
21 foundations in www.accaglobal.com
professionalism Glen Patterson
Online Editor
22 conversion
arrangements
29 Lincoln’s Inn Fields London
24 Key dates WC2A 3EE
26 advanced United Kingdom
diploma in tel: +44 (0)20 7059 5700
accounting and email: info@accaglobal.com
business www.accaglobal.com
28 self-check
modules publishing and Advertising
Adam Williams
29 practical Head of Publishing
experience
Anthony Kay
student Production Manager
accountant
technical article
archive For all advertising-related matters please
contact Lisa Peake:
Visit www.accaglobal. tel: +44 (0)20 7902 1224
com/students/student_ email: lisa@educate-direct.com
accountant/archive/
Published by the Certified Accountants
RESOURCES Educational Trust in cooperation
with ACCA.

35 noticeboard The Council of ACCA and the publishers

Essential do not guarantee the accuracy of
information statements made by contributors or
advertisers, or accept any responsibility
about ACCA and
for any statement which they may make in
your studies this publication.
ACCA Connect
contact details, annual No part of this publication may be
subscription and exam reproduced, stored in a retrieval system,
fees, exam timetables or transmitted in any form or by any means,
for December 2010 electronic, mechanical, photocopying
and June 2011, exam or otherwise, without prior written
what’s your story? results and other permission of the publishers. © CAET 2010
Why did you want to become an accountant, and important information ISSN 1473‑0979
what do you hope to be in the future? Email your
story to us at studentaccountant@accaglobal.com
graphic news 0–2 years 55,000–70,000 0–2 years 55,000–70,000

TAX
3–5 years 75,000–100,000 3–5 years 75,000–100,000

5–7 years 90,000–120,000 5–7 years 90,000–120,000

7–10 years 110,000–160,000 7–10 years 110,000–160,000

local currencies.

Australia
+10 years 160,000+ +10 years 160,000+

0–2 years 6,000,000–8,000,000 0–2 years 6,000,000–8,000,000

6 dispatch

3–5 years 9,000,000–12,000,000 3–5 years

financial control
9,000,000–12,000,000

5–7 years 12,000,000–14,000,000 5–7 years 12,000,000–14,000,000

7–10 years 14,000,000–19,000,000 7–10 years 14,000,000–19,000,000

japan
+10 years 19,000,000+ +10 years 19,000,000+

0–2 years 180,000–360,000 0–2 years

Hopeful but cautious

180,000–360,000

3–5 years 300,000–540,000 3–5 years 300,000–540,000

5–7 years 360,000–720,000 5–7 years 360,000–720,000

7–10 years 480,000–960,000 7–10 years 480,000–960,000

hong kong
+10 years 600,000+ +10 years 600,000+

0–2 years 38,400–48,000 0–2 years 36,000–54,000

3–5 years 48,000–75,000 3–5 years 48,000–96,000

5–7 years 70,000–102,000 5–7 years 84,000–120,000

in 2010. The survey, which was conducted between January and March this

7–10 years 90,000–120,000 7–10 years 102,000–160,000

singapore
Robert Half’s Q1 workplace survey shows there is renewed optimism about hiring

year, showed that companies are ramping up their hiring. The figures below are in

+10 years 120,000+ +10 years 120,000+

Operational Compliance

period.
risk

the earlier
Strategic and

many internal
of the internal
financial ones,
compliance, or
greater threats
to share prices

the methods of
5%

past, relying on

Sarbanes–Oxley
audit profession
year’s PwC state
60%
20%
15%

according to this
threats

than operational,

still rooted in the

audit functions are
business risks pose

survey. But it shows

Strategic and business Financial
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 8 dispatch
01 iasb seeks
investor input
The International Accounting
Standards Board’s (IASB’s)
Standards Advisory Council has
news roundup
been reconstituted to increase
investor involvement. It now
includes representatives from eight
leading investor organisations,
with a new subgroup of these
members. Three analysts sitting
on the IASB – Patrick Finnegan,
Patricia McConnell and Stephen
Cooper – will publish updates
on financial reporting for investors,
called Investor Perspectives.
02 sustainability
agreement
The International Federation
of Accountants (IFAC) has
signed a memorandum of
understanding on sustainability
with the Prince of Wales’s
Accounting for Sustainability
Project (A4S), supporting the
global accountancy profession’s
role in developing sustainable
organisations. The memorandum
specifies that sustainable
reporting practices must be
embedded. Measures to be
adopted include the development
of a community website for
professional accountancy
organisations to collaborate
on sustainable practices;
establishing an international
integrated reporting committee
to develop an improved reporting
model; and incorporating
accounting for sustainability
within professional training
and education.
03 deloitte acquires
swiss firm
Deloitte has continued its
programme of strategic
expansion with the acquisition of
Swiss management consultancy
Exsigno. The firm specialises in
public sector and healthcare
consultancy, employing more
access to finance
A survey conducted by ACCA Russia and Finansoviy Director
(Finance Director) magazine has revealed that access to finance for
small and medium‑sized enterprises (SMEs) in Russia continues to
be as difficult as it was two years ago. The research was carried
out following claims made by Russia’s financial authorities in the
second half of 2009 that the prospects for obtaining loans had
improved significantly since the wake of the financial crisis in
2008. A total of 130 ACCA members, students or ACCA DipIFR
qualification holders employed as either financial directors or
specialists – 44% at firms with annual revenues below RUR500m –
were polled. The survey findings revealed:
¤ Most SMEs (55% of respondents) badly needed credits for their
working capital replenishment and 25% were seeking loans to
cover their short-term cash deficiency. 
¤ Compared to 2008, all companies encountered more difficulty in
obtaining working capital loans, investment credits or overdrafts.
Larger companies, however, found their situation had improved.
¤ A total of 57% of respondents from SMEs and 48% from large
enterprises believe that loans in the first half of 2009 became
significantly less available.
¤ In the first six months of 2009, the volume of credits provided
to SMEs in Russia fell by 36% compared to the same period in
2008. But in the third quarter of 2009, loans for SMEs had already
shown a growth of 4%. 
¤ Only 36% of respondents who applied for a short-term bank
loan in 2009 were able to receive financing in full.
¤ Almost 40% of SME respondents and 52% of respondents from
large companies (over RUR500m annual revenue) believe that
credits in 2010 will become more widely available.
Commenting on the findings, Dmitry Kouznetsov, ACCA Russia
information specialist, said: ‘The results of the survey show that
SMEs in Russia are in a disadvantageous position compared
to large companies when it comes to bank loans. Through this
research, ACCA Russia has tried to highlight the problems facing
SMEs in Russia, which we hope will contribute to a greater
accessibility of finance.’
 student accountant issue 13/2010
than 150 staff. It will be
integrated into Deloitte’s existing
Swiss consulting practices,
which will double in size and are
expected to generate annual
revenues of CHF85m.
04 ireland fails
to comply
The European Court of Justice
(ECJ) has declared that Ireland
failed to comply with the
Accounting Directive of 2006
by not fully implementing it
within domestic legislation.
The Directive required member
states to harmonise high-level
statutory audit requirements.
It also established the basis
for mutual recognition of
statutory auditors, a means of
international cooperation for
the regulation of auditors, fixed
rules on professional ethics
and independence, defined
auditing standards, provided a
basis for quality assurance and
of systems for investigations,
penalties and public supervision.
05 E&Y opens
africa centre
Ernst & Young has launched
an Africa Business Centre,
following publication of research
by the firm that found 40% of
companies were considering
diversifying geographically and
18% were considering buying
up weak competitors and
expanding market share in new
geographies. But, says E&Y, many
global companies underestimate
the challenge of Africa’s size,
infrastructure underdevelopment,
shortage of skilled resources
and unreliable telephony and
technology systems on their
business models. The centre
aims to assist making business
in Africa more cost-effective
and provide a single point
of  contact for the firm for the
whole continent.
The latest on the global economy
9
www.accaglobal.com/economy
06 irish bank than being
collapse review geared
Ernst & Young has been hired by to Islamic
Irish Nationwide to investigate principles, it
events prior to the building warns. Islamic banks should
society’s collapse. The society also concentrate on ensuring the
has been effectively nationalised interests of clients and advisers
as part of the Irish government’s are brought together. The report
rescue of the country’s financial claims banks often generate
system. A spokeswoman for income from transaction fees,
Irish Nationwide said: ‘We can without worrying whether they
confirm that Ernst & Young are serving clients’ interests
is conducting some work for in strengthening their financial
the Irish Nationwide Building position.
Society, including undertaking
specific investigations as and 08 recovery
when required.’ A spokeswoman gains momentum
for Ireland’s Financial Regulator The World Bank expects
said it was aware of the sub‑Saharan Africa to expand
appointment of E&Y, but ‘was not by 4.2% this year, following
involved in their engagement’. growth of 1.7% in 2009. Further
accelerated growth is possible,
07 better advice needed believes the World Bank, if
Islamic banks should do governments reform key areas
more to support rich clients of economic activity, including
with wealth‑management and agriculture, energy, transport and
estate‑planning advice, according financial services, and further
to a report from Bank Sarasin. deregulate economies. The
Too often advice is given to World Bank will invest $1bn in
wealthy clients that mimics sub‑Saharan Africa this year, down
conventional approaches, rather from $1.5bn last year.
greece crisis highlights fast facts
tax avoidance €111bn –
Tax evasion of €31bn a year is Support
the root cause of Greece’s fiscal package for
crisis, claims prime minister Greece
George Papandreou (left). Greece’s
tax revenues are 4.7% of GDP, €295bn –
compared with an EU average Value of
of 8%, with the difference Greek
reflecting a culture of tax refusal government
that is endemic. In the period of
economic growth – from 2000 to €600bn –
2007 – GDP rose by 29%, yet tax Value of EU
receipts fell by 2.5%. Some 95% government
of residents claim to earn less bonds due
than €30,000pa. Tax increases for issue
designed to help plug the in 2010
deficit have been disregarded
by EU officials as unlikely
to be collected.