Registered Practicing Accountant
The Registered Practising Accountant (RPA) is the professional designation awarded by the Canadian Chartered Institute of Finance and Accountancy (CCIFA) to signify that the person possesses the knowledge in strategic management accounting.
Strategic management accounting is the body of management accounting concerned with strategic decision-making for value creation.
The rules by which the game of business has conventionally been played are disappearing. Competitive advantages built on large-scale plants, cost leadership, high relative market share and vertical integration, frequently become today’s weaknesses. Traditional management accountants who used the techniques of cash-flow management, product costing operational budgeting and variance analysis, can no longer apply to the new competitive postures.
In the new competitive environment, quality speed, flexibility, innovation and social responsibility are all prerequisites for business success and value creation.
Strategic management accounting involves providing value-added information to the organization by:
Assessing the organization’s competitive position in terms of quality, innovation, and speed;
Providing financial and non-financial information to help managers with strategic planning and decision-making;
Measuring performance not only for the entire organization, as in financial accounting but also for processes and impact;
Assisting in directing and control, including analyzing and comparing actual performance to budget plans and directing attention to non-value-added activities.
The Registered Practicing Accountants are not trained to provide public accounting services and external auditing, they are not subject to the regulations and licensing requirements of CPA Canada .
Registered Practicing Accounts are different from the financial accountant because they do not need to prepare financial statements and balance sheets. The Responsibilities of a Registered Practicing Accountant are as follows:
Make strategic planning and resource allocation recommendations:
Provide detailed cost analysis and reports that track budget trends and forecast future needs
Set up the performance management system
Identify opportunities for value creation
Holders of the Registered Practicing Accountant (RPA) designation must pass the RPA examination, those who pass the RPA Exam with more than 5 years of work experience can apply for the Associate Member of CCIFA, and are entitled to use the designation of “ACFA”.
Admission Requirements
- A recognized associate degree or
- A recognized 2- years diploma;
- 2 years of work experience
Recongnized Associate Degree or Diploma + 2 years work experience
RPA Exam
Registered Practising Accountant
5 Years Work Experience
Associate Membership (ACFA)
RPA Exam Content
Part 1: Strategic Cost Management
Strategic planning
Cost driver analysis
Value chain analysis
Strategic decision
Part 2: Performance Management
The balanced scorecard
Key performance indicators
Strategic objectives and budgets
Performance evaluation
Part 3: Total Cost Management
Activity -based costing
Target costing and life cycle costing
Process value analysis
Pricing decision and profitability analysis
Part 4: Strategic Analysis of Investment Project
Strategic and economic analysis
Investment criteria and appraisal
Multi – Attribute decision-making
Strategic value of investment projects
Essential Reading
Drury, C (2015): Management and Cost Accounting, Cengage, 7th Edition
Bhimani , A and Horngren, C. (2015) : Management and Cost Accounting, Prentice Hall, 6th Edition
Fee
Examination Fee: USD 300.00
Workshop Fee: USD3,500.00 (8 sessions, each session is 3 hours)
Work-based Assessment: Candidates who have more than 5 years of work experience are eligible for the work-based assessment, and the fee is USD 4,000.00 (there is no need is pay for the Exam Fee)
However, those who fail in the work-based assessment are required to pay USD2,000.00 for the re-assessment.
Performance Requirements of RPA
Part 1: Strategic Cost Management
Determine the strategic positioning and critical success factors of the company;
Use the Value Chain analysis to determine the cost drivers;
Plan for the cost reduction strategies with reference to value analysis;
Reconfigure the value chain and align it with the strategic objectives
Part 2: Performance Management
Develop the strategic objectives and measures for financial, customers, internal processes and development perspectives;
Identify and align strategic initiatives with the strategic objectives;
Align unit and individual goals with strategy ;
Set up the performance measurement system for the corporate, units and individuals
Part 3: Total Cost Management
Provide an activity -based costing example to form a more appropriate pricing strategy;
Use value engineering to maximize customer value while reducing costs to achieve target cost of a product.
Select a process and list out its value -added and non-value-added activities, and set up a plan to reduce the non-value-added activities and costs.
Critically evaluate the role of activity -based costing and target costing in pricing decisions and profitability.
Part 4: Strategic Analysis of Investment Project
Determine the strategic goals
Based on the financial factors (e.g. NPV) and non-financial factors (e.g. quality, lead time, environmental protection), set up the investment criteria
State the available investment alternatives of the capital projects;
Rank the investment criteria to establish the overall value or importance. Select the project based on the strategic objectives.
Disclaimer: The information contained in this website is for general information purpose only. All information is subject to change at any time without prior notice and at the discretion of CCIFA. CCIFA is registered as the self – governing and professional body under the Letters Patent of Canadian Law. CCIFA is an independent professional body, which is not associated with any other accounting bodies, such as CA, CGA and CMA. Since all the members of CCIFA do not provide public accounting services and external auditing, there are not subject to the regulations and licensing requirements of the CPA Canada.