Section 3: Technical and professional competency areas and learning outcomes

In assessing a degree for professional accreditation, the Professional Bodies expect to see the eight required competency areas (RCAs) as a minimum requirement for entry to a professional accounting program.  Students are also expected to develop skills in key professional competency areas such as ethical principles, business communication, collaboration, problem solving and critical thinking before entering a professional accounting program.

Competency areas and learning outcomes

Listed below are the specific RCAs and professional competency areas that must be covered in an accounting degree program seeking accreditation by the Professional Bodies.

The required competency areas for both Professional Bodies are the same with one exception: CPA Australia will accept accreditation submissions for programs that do not include the competency area of auditing and assurance. However, students must still have the opportunity to study subjects in this area through their institution. This competency area may be completed as part of CPA Program studies.

This list does not represent a list of prescribed subjects. In some cases (for example, financial accounting and reporting), one competency area will extend over more than one subject. Also, coverage of a particular competency area may be integrated with other areas in one or more subjects.

To summarise

The Professional Bodies require the following competency areas to be covered:

A broad definition of each competency area, both technical and professional, is provided in the following paragraphs.

Appendix 2: Required competency areas and learning outcomes and Appendix 3: Professional competencies and learning outcomes provide detailed learning outcomes and content guidance schedules where applicable for both required competency areas and professional competency areas which set out the specific prerequisite competencies that graduates entering the professional programs of either Professional Body will be assumed to have acquired.

Whilst they are intended to be indicative only and not to be tightly prescriptive of program content, they will be used by the Professional Bodies in their review of accounting programs for professional accreditation and membership assessments.

It should be noted that from a student's perspective, covering the contents of competencies identified in the professional accreditation guidelines makes for a smoother and easier transition from the accredited degree to the successful completion of either professional program.

Required Competency Area (RCA)

RCA01 Accounting Fundamentals

This competency area covers foundational understanding of the role and purpose of accounting processes and systems, along with the key requirements for preparing financial statements. It includes the ability to prepare basic journal entries across different business structures and emphasises the importance of ethical behaviour in accounting and financial reporting.

RCA02 Financial Accounting and Reporting

This competency area develops intermediate capability in applying accounting standards to transactions and events, preparing and presenting compliant financial statements, and analysing financial performance through ratio analysis and working capital management. It also emphasises the importance of ethical conduct in producing and communicating reliable accounting information.

RCA03 Audit and assurance

This competency develops an understanding of the auditor’s roles and responsibilities within the regulatory framework, including identifying and assessing risks in financial statement audits. It involves applying International Standards on the audit of general purpose financial statements, recognising the importance of corporate governance and non financial reporting, and applying ethical principles and professional standards to ensure audit engagements are conducted appropriately and in line with regulatory and ethical requirements.

RCA04 Finance

This competency develops an understanding of how businesses operate within the financial environment, including the roles of markets, institutions, and regulators. It covers calculating and interpreting financial and statistical data, applying techniques for investment decisions, recognising the importance of ethics in financial choices, and understanding how emerging technologies enhance data analysis and business decision making.

RCA05 Management Accounting

This competency area builds the capability in understanding the management accounting environment and analysing the economic factors that influence business performance. It involves calculating, analysing and interpreting data for budgeting and costing, applying techniques to support investment decisions, and recognising the essential role of ethical principles in guiding sound management accounting practice.

RCA06 Economics

This competency area provides an understanding of key microeconomic and macroeconomic principles and how they help explain real economic issues. It covers how changes in major macroeconomic indicators influence business activity and examines the characteristics and implications of different market structures, including perfect competition, monopolistic competition, monopoly and oligopoly.

RCA07 Business law

This competency area provides an understanding of the laws that govern business activity, including how key legal principles apply to finance professionals. It covers the local legislative framework, core areas such as corporations law, contract law, negligence, agency, employment, data protection and intellectual property, and emphasises applying ethical guidance when navigating legal obligations in business contexts.

RCA08 Taxation (Australia or New Zealand)

This competency area develops an understanding of the sources of taxation law and the framework governing tax administration. It covers determining income tax and indirect tax consequences of events and transactions, applying the fundamentals of calculating taxable income and tax payable for business entities, and emphasises ethical conduct and best practice standards when working with clients and other professionals.

Professional Competency Area (PCA)

PCA01 Intellectual skills

Intellectual skills enable a professional accountant to evaluate data and information, apply critical thinking to solve problems, make decisions and exercise good judgment in complex organisational situations.

PCA02 Interpersonal and communication skills

Interpersonal and communication skills enable a professional accountant to work with others for the common good of the organisation, receive and transmit information, form reasoned judgments and make decisions effectively.

PCA03 Personal skills

Personal skills relate to the attitudes and behaviour of professional accountants. Developing these skills helps individual learning and personal improvement.

PCA04 Ethical principles, professional values and integrity

An understanding of ethical and professional values and attitudes is an important element in the development of accounting professionals. It is expected that higher education providers will pay attention in their programs to the fundamental ethical values of integrity, objectivity and confidentiality, as well as professional competence and due care.