Frequently Asked Questions - Pace University's Accounting

Lubin School of Business

Department of Accounting

Frequently Asked Questions -

Pace University’s Accounting Programs’ New ACCA Accreditation

For more information, or if you have any questions not covered in the following FAQ, please contact

Dr. Charles Tang, Chair, Department of Accounting, Lubin School of Business (ytang@pace.edu)

What does ACCA accreditation mean to Pace and its students?

Pace University’s Lubin School of Business accounting programs received accreditation from

the Association of Chartered Certified Accountants (ACCA) in Spring 2015. This international

accreditation extends the reputation of Pace’s accounting programs, increases its international profile,

and adds significant value to Pace students in the global marketplace. Before this accreditation,

Lubin had already been nationally recognized for its success in developing leaders in the accounting

profession. The 2015 Public Accounting Report ranks Pace’s undergraduate and graduate accounting

programs in the top 50 in the nation. Lubin, dually accredited in business and accounting by AACSB

International - The Association to Advance Collegiate Schools of Business, the premier accrediting

organization for business schools in the world, is among 2% of business schools in the world who

share this elite distinction.

Starting in Fall 2015, graduate and undergraduate students in Pace’s accounting programs

will be able to complete coursework that will qualify them for specific exemptions from ACCA’s 14

exams; the exemptions will initially include four of the exams for graduate courses and five for

undergraduate courses, and can expand to more exemptions as the two parties continue their

discussion and reach new agreements in the next couple of semesters. A student who successfully

graduates from Pace’s rigorous program will automatically receive exemptions for those specific

exams and be able to use them towards the completion of the ACCA qualification. Students will still

be required to take and earn passing grades on ACCA exams that are not exempted.

What is ACCA?

ACCA (the Association of Chartered Certified Accountants) is the global professional

accounting body offering the ACCA Qualification. The organization is one of six professional

accounting organizations in the United Kingdom that enjoys the Royal Charters, and one of five that

acts as a statutory regulator for the accounting and auditing sector. ACCA now has more than

170,000 members and 436,000 students in 180 countries supported by a network of 91 offices. An

ACCA membership is evidence of proficiency in knowledge and skills in the field of accounting.

What does an ACCA membership entail internationally?

In the United Kingdom, Ireland, Cyprus and Zimbabwe, an ACCA membership enables an

individual to carry out public accounting practices, including expressing an audit opinion on financial

statements of corporations, if the ACCA member holds a practicing certificate issued by ACCA

which permits him or her to do so. Holders of ACCA practicing certificates must comply with

additional regulations such as carrying liability insurance. To qualify for an ACCA practicing

certificate, the ACCA member must complete a three-year practical training, two of which must be

gained after being admitted to membership.

The ACCA Qualification, which is benchmarked as being equivalent to a UK Master’s

degree, is recognized in a large number of countries. Although one must usually become a member of

the national accountancy body to practice, the membership is often granted to ACCA members on

production of evidence that they are ACCA members (e.g., Barbados and Jamaica). Some countries

also require the ACCA member to demonstrate competence in national law and tax (e.g., Zambia),

while other countries do not.

The legal framework in most other countries requires anyone who wishes to practice or sign

audit reports on financial statements of corporations to be members of the national accountancy body

or obtain a license from the governmental regulator. In the United States, for example, an individual

must pass the CPA examination and obtain a CPA license from the state government in order to

practice public accounting service in a particular state.

How to become an ACCA member?

To become a formal ACCA member, a candidate needs to pass 14 sections of examinations,

complete an education module in professional ethics and obtain practical experience in accounting

under supervision. The 14 ACCA exams are divided into Fundamentals and Professional levels and

are listed in detail below:

Fundamentals (9 exams)

Professional (5 exams)

F1 Accounting in Business

Essentials (3 exams)

F2 Management Accounting

P1 Professional Accountant

F3 Financial Accounting

P2 Corporate Reporting

F4 Corporate and Business Law

P3 Business Analysis

F5 Performance Management

Options (Any two)

F6 Taxation

P4 Advanced Financial Management

F7 Financial Reporting

P5 Advanced Performance Management

F8 Audit and Assurance

P6 Advanced Taxation

F9 Financial Management

P7 Advanced Audit and Assurance

Which ACCA exams are exempt for Pace students?

Students in Pace’s BBA Public Accounting and BBA Accounting programs, as well as

students in the BBA / MBA Accounting, BBA Accounting / MS Taxation and BBA Accounting / MS

Finance combined programs are exempt from five ACCA examinations (F1 – F5). Students in MBA

Accounting and MS Accounting programs are exempt from four ACCA examinations (F1 – F4).

Pace’s Accounting Department is working with ACCA to obtain exemptions for ACCA F7 and F8

exams. This process will probably take two to three semesters. Students can claim exemption as

soon as they successfully complete the qualified coursework, as indicated in the following table:

ACCA Exam Exemption

Pace Qualified Courses Required to Obtain Exemption

Undergraduate Course

Graduate Courses

F1 Accounting in Business

ACC 203 Financial Accounting

ACC 204 Managerial Accounting

MBA 640 Accounting for Decision Making

F2 Management Accounting

ACC 204 Managerial Accounting

ACC 319 Cost Accounting

MBA 640 Accounting for Decision Making

ACC 613 Accounting for Planning & Control

F3 Financial Accounting

ACC 203 Financial Accounting

ACC 301 Intermediate Accounting I

MBA 640 Accounting for Decision Making

ACC 615 Financial Reporting I

F4 Corporate and Business Law

LAW 101 Business Law I

LAW 360 Advanced Business Law

LAW 610 Business Law for CPA Majors

F5 Performance Management

ACC 204 Managerial Accounting

ACC 319 Cost Accounting

How and when can Pace students claim exemptions for ACCA exams?

Students should register with ACCA and obtain ACCA student status before they complete

their degree program at Pace. They can claim exam exemptions as soon as they complete the

qualified courses listed previously.

To register and apply for exemptions, students can submit application forms online at the

ACCA website (http://www.accaglobal.com/us/en/qualifications/apply-now.html) and submit official

transcripts, which show appropriate coursework and grades.

How do ACCA exemptions apply to transfer students?

Students can claim exemptions as long as they take qualified courses at Pace, even if they

transfer to other programs at Pace, or to other academic institutions. However, students who transfer

to Pace from programs or institutions not accredited by ACCA may not automatically receive

exemptions if they did not take Pace’s ACCA approved courses due to transfer credits. In such cases,

students may file an application with ACCA for an individual evaluation.

Will passing ACCA examinations qualify students for course waivers at Pace?

Admission applications from those who have registered with ACCA as students and/or have

passed some sections of the ACCA exams will be subject to the same transcript evaluations as other

students. Course waivers are granted based on courses taken at their prior academic institutions.

ACCA student membership, or passing some of ACCA’s exams, will not automatically qualify a

student for any course waiver at Pace.

Pace’s minimum residential credit requirements for undergraduate and graduate degrees

apply to ACCA students as well. An advanced level student who has passed several ACCA exams

would still have to take at least 32 credits at Pace in order to receive an undergraduate degree, or 30

credits for a graduate degree from Pace.

Does Pace offer exam-prep courses for ACCA exams?

At this time, Pace’s Accounting Department does not offer any exam review courses for

ACCA exams. Interested students should contact professional exam prep firms, such as Becker or

Kaplan, for such courses.

What is the format of ACCA Exams?

To learn more about the format of ACCA exams, please visit the ACCA website:

http://www.accaglobal.com/us/en/student/acca-qual-student-journey/exams/computer-based-

exams/exam-format.html.