Top 6 certifications for accountants in Malaysia
Accountants review a company's finances to create financial records. These records include balance sheets, profit and loss statements, and cash flow statements. Accountants can also analyse financial transactions to provide expert recommendations. They play a crucial role in ensuring businesses' financial health and stability.
Whether you are already in the accounting profession, considering a career change, or studying accounting - pursuing accounting courses can significantly enhance your career prospects. These certifications cover advanced topics, enriching your knowledge and honing your skills. They cover areas like forensic accounting, management, tax, and financial accounting.
In this article, we will take you through the diverse landscape of accounting certifications.
Here is what we will cover:
- What are the certifications for accountants?
- Top accounting certifications in Malaysia
- Benefits of having an accounting certification
- Certifications for specific accounting skills
- Conclusion
- FAQs
What are the certifications for accountants?
Accounting certifications are special credentials that validate expertise in the field. They impart a wide range of skills and competencies, empowering you to excel in your careers and adapt to evolving industry demands.
Some of these skills include:
- Analytical skills: Applying logic to the information you receive can better help you check financial data.
- Technical skills: Using various accounting software and tools is crucial for working as an accountant.
- Adaptability: Staying up to date on changes to regulatory standards and compliance requirements is necessary.
- Strategic thinking: Focusing on critical factors means providing better financial planning and advice.
- Attention to detail: Being detail-oriented can help ensure accuracy in your financial reporting.
- Organisational skills: Organising your time and priorities can help you manage many tasks.
Earning accounting certifications offers numerous benefits that can take your career to new heights. A Monash University study found that accounting, banking, and financial professionals are among Malaysia's highly compensated roles. Accountants enjoy significant demand and lucrative pay. Earning relevant certifications can validate your expertise and credibility in the field.
They also open doors to a multitude of job opportunities, higher salaries, and increased job security. With knowledge and skills gained through certifications, you will be better equipped to navigate the complexities of the profession and excel in your chosen career path.
Top accounting certifications in Malaysia
Here is a list of the top six accredited accounting certifications. The programme you choose will depend on your specialisation.
CERTIFICATION | ISSUING ORGANISATION | WHO IS IT FOR? | DURATION OF THE COURSE | ELIGIBILITY CRITERIA |
Certified Public Accountant | The Malaysian Institute of Certified Public Accountants (MICPA) | Auditors, tax advisors, and financial analysts | One year with full-time study and 2 or more years with part-time study | Bachelor's degree in accounting or a related field from a recognised university or an accounting diploma, plus 3 years of work experience with an Approved Training Employer (ATE) |
Chartered Certified Accountant | Association of Chartered Certified Accountants (ACCA) | Financial accountants, management accountants, auditors, and investment bankers | 6-7 years after the SPM/ IGCSE O-levels, to complete | Bachelor's degree in accounting, finance or finance from a recognised university, plus 3 years of work experience |
Certified Fraud Examiner | Association of Certified Fraud Examiners (ACFE) | Compliance officers, law enforcement, and financial professionals working in the banking sector | 3 to 12 months for preparation | Bachelor's degree and 2 years of fraud-related experience, and an ACFE membership |
Chartered Financial Analyst | CFA Institute | Investment professionals, financial analysts, credit analysts, and auditors | 3 to 5 years to complete | Bachelor's degree (or final year) or four years of professional work experience |
Certified Internal Auditor | Institute of Internal Auditors (IIA) | Auditors and risk professionals | 3 years to complete | Master's or bachelor's degree or Active Internal Auditor Practitioner designation, plus one, 2, or 5 years' internal auditing experience respectively |
Chartered Global Management Accountant | Chartered Institute of Management Accountants (CIMA) and Association of International Certified Professional Accountants (AICPA) | Management accountants, business leaders, and finance professionals | 4 years to complete | Bachelor's degree or higher in finance, business, or accounting, plus a minimum of 3 years of experience in management or financial accounting |
1. Certified Public Accountant (CPA)
The Certified Public Accountant certification aims to provide an understanding of financial regulations and accounting practices. The Malaysian Institute of Certified Public Accountants conducts the CPA licensure examination in Malaysia. It is known as the MICPA x CA ANZ Qualifying Programme.
To become a CPA, you must pass the Advanced Stage Examination (ASE). This makes you eligible for memberships to both MICPA and Chartered Accountants Australia and New Zealand (CA ANZ). You can thus use titles – Certified Public Accountant, Malaysia or CPA (M), and Chartered Accountant, Australia & New Zealand, or CA (ANZ).
- Relevancy
The CPA certification can be valuable for you if you aim to become an auditor, a tax advisor, or a financial analyst. CPAs commonly secure roles in public accounting firms, corporate finance departments, or government agencies, or establish their practices.
- Eligibility criteria
You are required to have a bachelor's degree in accounting or a related field from an accredited MICPA or CAANZ university.
Non accounting graduates must undergo a conversion course. This is known as the MICPA Conversion Programme. It is a prerequisite requirement before admission into the Advanced Stage Examination.
Additionally, if you hold an accredited diploma in accounting, you must appear for the Professional Stage Examination (PSE). This way you can obtain a professional qualification and become eligible to appear for the ASE.
In addition to a degree (Accounting and non-accounting) or an accounting diploma, you also need 3 years of mentored approved work experience with an Approved Training Employer (ATE).
- Duration of the course
You are required to complete 6 core subjects and one elective. The subjects covering concepts and principles underpinning accounting in all its disciplines.
You can either opt for part-time or full-time study. You can complete all subjects within one year for full-time study, or within 2 or more years by studying part-time.
You are given 8 years from the time of registration to complete the MICPA x CA ANZ Qualifying Programme.
- Cost of certification
The registration fee is RM 300. You can find the fees for MICPA Conversion Programme, for PSE examination and ASE examination here.
2. Chartered Certified Accountant
The Malaysian Institute of Accountants (MIA) is the regulatory body for accountants in Malaysia. You must become a member of this institute to be a registered chartered accountant in Malaysia. You will then be recognised as a Registered Accountant RA(M) or a Public Accountant PA(M).
Here are some additional details:
- Relevancy
This certification prepares students for a broad range of roles, including management accountants, financial analysts, tax specialists, auditors, and chief financial officers.
- Eligibility criteria
You should be an accounting, business or a finance graduate from universities recognised by MIA. Then, you should pass the MIA Qualifying Examination (MIA QE).
Additionally, you must also have 3 years of relevant work experience.
Alternatively, you could be a member of one or more MIA recognised accountancy bodies and apply for a membership to MIA.
- Duration of the course
The course can take about 6-7 years to complete after SPM or IGCSE/O-Levels.
Adding the degree program and relevant work experience required, it can take about 6-7 years to become a CA in Malaysia.
- Cost of certification
Depending on the institution, the total cost of completing the ACCA programme ranges from RM 20,000 to RM 30,000.
3. Certified Fraud Examiner (CFE)
The Association of Certified Fraud Examiners conducts this examination. According to recent data, certified fraud examiners around the world earn approximately 17% more than their non-certified colleagues. It aims to check your skills in forensic accounting and compliance.
Here are the additional details:
- Relevancy
This certification benefits you if you aim to who work in areas susceptible to financial fraud. This can include banks, government agencies, and law enforcement.
- Eligibility criteria
The minimum requirement is a bachelor's degree in any field and 2 years of experience in fraud-related projects or areas (optional). You can take the CFE exam as long as you have 40 qualifying points (without any experience). But you will need 50 qualifying points and 2 years of experience to get the CFE credential.
- Duration of the course
The duration depends on how you choose to study. There is a self-study option, or you can opt for an instructor-led course to prepare for the examination. In general, it takes between 3 to 12 months to prepare.
- Cost of certification
The cost of accreditation includes preparation, examination, and membership fees. The exam fee is USD 450 (about RM 2,133).
4. Chartered Financial Analyst (CFA)
The CFA Institute conducts this three-part examination to test your knowledge and skills in various areas. These include investment tools, asset valuation, portfolio management, and wealth planning. It also assesses your skills in investment management, ethics, and financial analysis. Upon completing this examination, you become a CFA charter holder.
CFA Society Malaysia serves as the professional association that promotes ethical and professional standards within the investment industry in Malaysia. It also offers professional development through the CFA Program.
Here are some details about the examination:
- Relevance
This certification is beneficial for investment professionals. It can also benefit people with backgrounds in finance, accounting, business, or economics.
- Eligibility criteria
To enroll in the CFA Program and register for the Level I CFA exam, you must have a bachelor's degree or be in the final year of your undergraduate studies.
Alternatively, you can qualify if you have at least 3 years of professional work experience or have completed 4,000 hours of work in a relevant field, along with higher education.
This experience or education should be completed before registering for the Level I exam and should not overlap with any educational periods.
- Duration of the course
This is a three-level examination held once a year. Becoming a charter holder takes at least 3 years but may take as many as 5 years.
- Cost of certification
There is an initial enrolment fee and additional registration fees for each level. You will also need to buy the course material, CFA Institute textbooks, and online resources.
You are required to pay an enrolment fee of USD 350 (about RM 1,650) for registration and the Level 1 exam. Subsequent exams cost extra.Â
5. Certified Internal Auditor (CIA)
The Institute of Internal Auditors is the international professional association that issues this certificate. The examination validates a professional's knowledge of internal audit, risk management, and control.
It also enhances your ability to identify risks and effective solutions. The examination comprises 3 parts: the essentials of internal auditing, the practice of internal auditing, and business knowledge of internal auditing.
Here are some details about the certification:
- Relevancy
This certification is beneficial for auditors and risk professionals or people looking to transition into these roles.
- Eligibility criteria
Candidates must have a bachelor's degree from an accredited university. Additionally, those without a bachelor's degree can qualify with 5 years of verified experience in internal audit or its equivalent.
The required work experience varies based on the candidate's education level:
- 12 months for a master's degree
- 24 months for a bachelor's degree
- 60 months for non-degree holders
You also become eligible if you hold the Active Internal Auditor Practitioner designation and have 5 years of auditing experience.
- Duration of the course
The course is flexible, and you can take the exams in any order. You have 3 years to complete the certification.
- Cost of certification
The costs include membership fees, CIA exam fees, and additional costs associated with study materials, review courses, and online resources.
Registration fee is USD 115 (RM 539) for members or USD 230 (RM1,087) for non-members. The total cost for taking all three exams is USD 825 (RM 3,859) for members or USD 1,215 (RM 5,745) for non-members.
6. Chartered Global Management Accountant (CGMA)
The Chartered Institute of Management Accountants and the Association of International Certified Professional Accountants award this certification after validating your knowledge in finance, operations, strategy, and management. This is a certification for accountants with strong technology, people, digital, business, and leadership skills.
Here are some additional details you can refer to:
- Relevancy
The CGMA designation is globally recognised. It empowers finance professionals to serve as strategic advisors by bridging business and finance. They possess commercial skills, strategic ability, and a transformational mindset. This enables them to drive organisational sustainability.
- Eligibility criteria
You must have a bachelor's degree or higher in finance, business, or accounting and at least 3 years of experience in financial or management accounting.
- Duration of the course
The time to complete the CGMA certification can vary but generally takes around 4 years. Candidates have the flexibility to choose between self-learning or enrolling in the Finance Leadership Program for guided learning.
- Cost of certification
The costs associated with the accreditation include examination fees and study materials. The costs are lower if you're a member of the Chartered Institute of Management Accountants. If you enrol in the Finance Leadership Program, you will incur additional costs.
Benefits of having an accounting certification
There are many advantages to having an accredited accounting certification. Here are some of the benefits to consider:
- Improves your career prospects
Organisations and businesses understand and recognise the value of accredited accounting certifications. These programmes often demand rigorous effort and commitment. Completion of these programmes can translate to promotions in the workplace, opportunities from other companies, and increased pay.
- Makes it easier to transition to another job
The certification evaluates multiple areas, including finance, accounting, business, and strategic planning. Once you have a firm grasp of these topics, it becomes easier for you to transition to different roles in finance and accounting.
- Leads to higher compensation and benefits
Employers are willing to pay higher salaries and benefits to certified accounting professionals. There's a higher demand for people with strong financial skills, accounting knowledge, and strategic decision-making skills.
- Improves your decision-making abilities
Technical knowledge and skills are not the only capabilities you should have. The certifications also aim to improve your financial decision-making abilities. This is because the coursework comprises financial analysis, risk management, accounting principles, and other topics cemented on practicality and real-world scenarios.
- Enhances your network
The globally recognised accounting certifications listed above have a strong community presence. This enables you to connect with like-minded professionals to grow your network.
Certifications for specific accounting skills
Here's a list of additional certifications that you can take to improve specific accounting skills:
Certification name | Awarded by | What it evaluates |
Certified Business Analysis Professional | International Institute of Business Analysis | Business analysis experience |
Certified Regulatory Compliance Specialist | International Compliance Association | Compliance process, legal obligations, and organisational therapy |
Certified Information Systems Auditor | Information Systems Audit and Control Association | Information systems control, security, and auditing |
Chartered Tax Practitioner | Chartered Tax Institute of Malaysia | Taxation |
Quality Auditor Certification | American Society for Quality | Quality systems assessment and compliance |
Conclusion
Being a certified accountant in Malaysia can lead to enhanced credibility, better job opportunities, a higher salary, and a larger professional network. Employers look for professionals who have additional certifications in accounting. This is due to the global recognition of these accounting certifications and the prestige they carry.
The certification exams require rigorous preparation and can be very demanding. To become certified, you will need to put in hard work and effort to complete these examinations. Some of these certifications may also require you to renew your certifications periodically. This emphasises continuous learning and development.
Several accounting certifications are available in Malaysia. While you can take some of them online, you may have to attend physical testing centres for exams. You will need to choose one that aligns with your work experience and interests.
CPA is ideal for auditors and financial analysts, CMA suits managerial roles, and CFE targets fraud prevention. CFA is for investment professionals and CIA benefits auditors and risk professionals. CGMA is designed for management accountants and finance leaders. Make sure to contact the respective institutes organising these certifications or visit their websites to learn more. They can provide more information about the fee structure, curriculum, and course duration.
FAQs
Here are some FAQs related to accredited certifications for accountants:
- What certificate should an accountant have?
In Malaysia accountants should consider obtaining the CPA certification. It is one of the most widely recognised certifications. Many accounting positions need this certification.
- What is the most popular accounting certification?
The most popular accounting certification is the CPA certification. It shows expertise in areas such as tax, risk management, compliance, and forensic accounting. Certified public accountants can work in public accounting and financial advisory. They may also work in taxation, staff-tax accounting, and forensic services.
- How do I become a certified chartered accountant in Malaysia?
To become a Chartered Accountant (CA) in Malaysia, you can qualify with a recognised degree in accounting, business or finance.
Additionally, you must also have 3 years of relevant work experience.
You also have to pass the MIA Qualifying Examination.
Alternatively, you could be a member of one or more MIA recognised accountancy bodies and apply for a membership to MIA to become a CA in Malaysia.
- What is the difference between a CFA and a CPA?
The main differences between a CFA and a CPA are their focuses and responsibilities. CFAs typically focus on wealth planning and investment analysis. They may also analyse financial data and stock prices. CPAs focus on compiling financial reports, accounting, audits, and taxes.
CFAs analyse financial data to guide investment choices. On the other hand, CPAs often prepare and audit the financial statements for CFAs to use for analysis.
- Is it more challenging to become a CPA or CGMA?
In Malaysia, becoming a CGMA is usually more challenging than becoming a CPA. These two certifications have about the same eligibility requirements. However, a CGMA programme takes about four years to complete. In contrast, the duration of a CPA course ranges from six months to a year.
It's essential to consider your area of focus and preference. If you want to work as a management accountant in public or private companies, you may consider having a CGMA certification. If you wish to work in compliance, tax, and auditing in public companies, consider gaining a CPA licence.
- Is an MBA worth it after I get an accounting certification?
Pursuing an MBA after obtaining CPA certification can be beneficial for your career. It can help you align your career goals with additional accounting courses and open new career pathways. An MBA can also prepare you for leadership positions and help you negotiate better in the accounting field.
- What sections are the easiest and most difficult on the CPA exam?
Financial Accounting and Reporting is the most difficult section of the CPA exam, often resulting in the lowest pass rate. Many people consider Auditing and Attestation to be one of the easiest sections of the exam. Passing the CPA exam can be challenging, yet it can open up new career paths to work in a highly specialised field.
