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Introducing the Next Generation ACA: Technology

Author: ICAEW

Published: 28 Oct 2024

Technology continues to evolve rapidly – and the flexibility of the Next Generation ACA qualification ensures that trainee accountants will be keeping pace.

It’s easy to think of technology as a relatively recent phenomenon. “You only have to look at the evolution of the profession to realise how it has always been integral to accountancy,” says Ian Pay, ICAEW’s Head of Data Analytics and Tech. “As the world of business gets more and more complicated, the really interesting thing with technology is no one’s really sure what’s driving what. Is the evolution of technology driving the complexity of business, or is the complexity of business driving the evolution of technology?”

More recent developments have certainly been transformative, particularly the age of the internet and now, believes Ian, the advent of artificial intelligence. “People have talked about the ‘next industrial revolution’ for a very long time, and certainly the proliferation of the internet was a big driving force in completely changing the world of business,” he says. “AI feels like another step change, where the capability of the technology is moving on very rapidly and opening up a lot of opportunities – a lot of challenges as well, and a lot of complexities and new risks that people need to think about. But it does feel like this new age of AI is really changing the conversation.”

As technology moves on, so too does the ACA, with annual updates to the syllabus introducing students to key themes and trends as they emerge. In recent years, this has centred around the interrogation of data, with data analytics software being brought into some of the exams in 2021. “Data is absolutely front and centre,” says Ian. “The way we’ve got data analytics in the exams is not so much about the mechanics of being able to manipulate data, it’s about the interpretation. So, we help students understand how to be presented with a dashboard and find the information that they need in it that’s interesting, that’s relevant, that requires further discussion.”

Data is one of the four ‘ABCD’ technology trends introduced in the syllabus, along with AI and automation, blockchain and cyber security. While they’re all important and will play an increasing role over the coming years, the key area that students need to get to grips with is automation. “You need to understand the systems that your clients are using,” Ian says. “You need to understand that there is an interconnectivity between systems and how that works at a high level so that you can have those meaningful conversations about processes and information flow. It’s increasingly going to be system driven, and as an accountant you need to understand how it all fits together.”

The evolution of the syllabus will continue with the launch of the Next Generation ACA, which has technology as one of its three central themes. While it will be evident throughout the core learning – in reimagined exams such as Corporate Reporting, Data and Assurance, and Business and Digital Strategy at Professional Level, for example – there is no dedicated technology module. That’s because it must be embedded throughout, explains Ian. “Technology in isolation doesn’t make sense. It’s such a pervasive part of the world that we live in and the way that accountants work that carving it out doesn’t work. There’s an inevitability of the role of technology in all the modules.”

The team will be looking at further ways to enable students to demonstrate that they know how to work with information. “There’s also going to be more opportunities to build out questioning and case studies that have more of a technology focus,” Ian adds. “The expectation will be that students will address the technology angle in their answers to questions in the exams – because there is always going to be a technology angle now.”

Technology is rapidly changing and evolving. In response, the new Specialised Learning and Development framework is designed to future-proof students’ skills by providing an expanding library of flexible units. Here, new content can be created rapidly to respond to emerging developments. “We needed to find a way to be more agile with technology and how we give students the opportunity to explore it and feel comfortable in that world,” Ian says. While one of the requirements of ACA qualification will be to complete a minimum of 30 of the Specialised Learning units over the course of their training, there is no limit, enabling students to explore areas that interest them.

While the onus is on students and members to keep pace throughout their careers, “You can trust that we are working hard to ensure we’re up to date with what's going on in the world of technology – because that can be different to what it was six months ago and will be different again in another six months’ time,” Ian says. One of the key aims of the Next Generation ACA is to empower students to be the drivers of technological change. “Equipping them with the skills and the exposure to the technology landscape will give them the confidence to be those drivers of change.”