Pat O’Neill outlines his priorities for the year ahead, including the need to increase the supply of accounting talent nationwide and reach out to members globally post-pandemic.
As Pat O’Neill begins his term as President of Chartered Accountants Ireland, his driving focus will be on tackling the ongoing capacity constraints facing the profession.
Speaking at his election by members at the Institute’s 134th AGM in Dublin recently, O’Neill pointed to the urgent need to address the ongoing shortage of critical accountancy skills in the Irish labour market.
“Despite the recent and current challenges of the pandemic and the re-emergence of significant inflationary pressures, the economy continues to grow,” O’Neill told attendees at the AGM on Friday, 20 May.
“Our economic pillars of large-scale foreign direct investment and successful domestic business require appropriate levels of accounting talent, both within their organisations and also in the accounting profession upon which they rely for their transactional and regulatory compliance needs.”
Despite this fundamental need, however, the reliable supply of accounting talent continued to be disrupted by structural issues requiring urgent action, O’Neill said.
“If we don’t work hard to tackle significant issues facing accounting supply in this country relating to education, qualifications and permits, this ongoing shortage could have a significant impact on businesses here, both indigenous and FDI, potentially harming the wider economy in the future.”
Second-level syllabus
One of the primary factors impeding the supply of accounting talent nationwide is the accounting syllabus at secondary level. “The syllabus was introduced over 25 years ago,” said O’Neill.
“Not only does this mean that our students are being taught material and concepts, which are now somewhat obsolete, but the syllabus also does little to introduce our young people to the breadth of what the modern accountant’s role actually is—and how they add value to businesses, the economy, and society as a whole.”
It is crucial that the syllabus be reviewed, refreshed, and made “truly fit for purpose” in the 21st century, O’Neill said.
“Without this, students will be deterred from pursuing further studies and a career in accounting due to a fundamental misunderstanding of what accountancy involves and the career opportunities and choices it provides,” he said.
“Another consequence is that we have an insufficient number of students emerging from second level through third level and into professional qualifications. Ultimately, this means Ireland won’t have enough ‘bench-strength’ to support Irish businesses—but, thankfully, it is within our power to create positive change now.”
Departmental submission
The Institute, under the auspices of the Consultative Committee of Accountancy Bodies-Ireland, last year made a submission on this matter to the Department of Education, including the findings of its accounting syllabus review.
“The National Council for Curriculum and Assessment has published its Report on its Senior Cycle Review and, whilst we are heartened that reform of the senior cycle is now recognised as necessary, the pace of change is just too slow,” O’Neill said.
“It has taken four years to reach this stage and it will likely be 2027 by the time we see changes coming through in the first tranche of subjects, which are still to be determined.
“Unfortunately, during this time, the issues facing Irish businesses in terms of the lack of supply of accounting talent are only likely to worsen.”
As it stands, the accountancy profession is already included on the Government’s Critical Skills Occupations List.
Compiled by the Department of Enterprise, Trade and Employment, the list catalogues professions required for the proper functioning of the economy, which are being impacted by a shortage of qualifications, experience or skills. The Northern Ireland Executive has also listed accountancy as an in-demand skill north of the border.
Recognition of qualifications
In addressing the capacity issue, O’Neill also referenced the need to ensure that the needs of business and the profession are met through the adequate recognition of qualifications.
With more than 30 years’ experience as an audit partner with EY, he has significant involvement at board level with many plcs, providing insight and best practice guidance regarding boards’ risk and corporate governance agendas.
“In the Republic, a substantial amount of the work required for the audit qualification must be statutory audit work,” O’Neill said.
“This means that, despite students spending a significant amount of their training supporting US FDI businesses with their US reporting requirements—and with much of this controls work also used in the statutory audits of Irish subsidiaries—it will not count towards qualification.
“The same goes for experience gained in auditing UK subsidiaries by students based in the Republic. The Department of Enterprise Trade and Employment and the Irish Auditing and Accounting Supervisory Authority (IAASA) must be involved in finding a solution to this situation.”
Sourcing overseas talent
O’Neill noted that, as a growing economy, if Ireland cannot source sufficient accounting capacity at home, we must ensure that we do all we can to attract candidates with the necessary skills from other countries.
“It is my steadfast belief that people and businesses achieve great things when they come together and that diversity of background and thought is key to any profession,” he said.
“I benefited from my own upbringing from an early age in Shannon, Co. Clare, which was at the time perhaps a uniquely multinational community in the regions.
“Early in my career in audit, I moved from Dublin to the UAE where I spent some time working in Dubai in the early nineties. I was thrown in at the deep end and had the opportunity to work with some companies over there that followed US accounting rules.
“That experience turned out to be incredibly useful for me professionally for many reasons, not least because—when I returned to Dublin in 1995—Ireland’s tech boom had begun and indigenous companies like CBT, Smartforce, Iona, and Trintech, were listing on the Nasdaq.
“The experience I had gained working with those companies in Dubai following US accounting rules was suddenly invaluable, so I know first-hand just how important experience gained in other jurisdictions can be in our career.”
Chartered Accountants Ireland has been working closely with the government in recent months to promote the need to reduce application processing times for Critical Skills Employment Permits granted to accountants from outside the European Economic Area who have been hired to work here.
“The improvement now coming through in the processing time for such permits as a result has seen wait times reduced to six to eight weeks from as high as four months,” said O’Neill.
“Now, however, we must retain—and even improve upon—these shorter processing times to attract the right talent.”
Northern Ireland Protocol
O’Neill highlighted the need for certainty and stability in the wake of the most recent Assembly Elections amid ongoing disagreement on the Northern Ireland Protocol.
“The Protocol remains a subject of debate now more than ever, and there is no doubt that challenges exist, but predictability and certainty are key for business and the economy in Northern Ireland,” he said.
“The Institute was an early advocate for the unique benefits of the Protocol for businesses located in Northern Ireland.
“We have almost 5,000 members there, and it is incumbent upon us to convey the positive feedback the Institute has received regarding the unique market access they have into both Britain and the EU.”
Power of connection
Now that the worst of the COVID-19 restrictions are behind us, O’Neill stressed the need for greater connection and acknowledged the crucial role played by the Institute in supporting a global network and helping to forge valuable professional and personal connections among members the world over.
“The benefit of networking to our 30,000+ members, and the critical importance of the physical interaction of our students, cannot be understated,” he said.
“We will continue to work towards a return of our networking events to pre-pandemic levels to the extent we can over the coming year. We have been highly successful in our innovations in training, and ability to shift to examining our students remotely through the pandemic.
“Through the Institute’s Education Department, and in conjunction with our training firms, we will be looking at how to achieve a balanced blend of online and physical learning delivery in the future to facilitate this interaction.”
O’Neill is a longstanding member of the Institute who has served on the Council of Chartered Accountants Ireland since 2014. He is a former Chair of the Institute’s Audit, Risk and Finance Board, and a former Chair of its Leinster Society.
“The importance of the Institute and our District Societies both here, across the Island of Ireland, and abroad in connecting—and now reconnecting—our members is not lost on me,” said O’Neill.
“I have benefited enormously from my membership over the years, and during my Presidency, my hope is that I can give back to the Institute and to all of our members whose commitment is so highly valued.”
Global membership
Established in 1888, Chartered Accountants Ireland today represents more than 30,000 members in over 90 countries and has responsibility for educating 7,000 students.
The Institute’s objective is to create opportunities for members and students, and ethical, sustainable prosperity for society.
It is a founding member of Chartered Accountants Worldwide, the international network of over one million Chartered Accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe, and the International Federation of Accountants.
“The Institute is here to serve our members and students and I feel privileged to be able to support this effort in my role as President,” said O’Neill.
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