Firms' training costs on the rise
New legislation governing accounting and auditing, and a more sophisticated, demanding client base are pushing up training costs at accountancy firms.
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The Sarbanes-Oxley Act, passed in the US in 2002 following the corporate scandals of Enron and WorldCom, coupled with the introduction of international accounting standards in Europe, are all contributing to increased training for accountants from graduate level upwards.
ACCA, which recently completed a study of 500 firms around the world, said that more than half the industry has increased the emphasis on training and development.
Most of the UK’s accountancy institutes have, over recent years, introduced requirements for members to carry out continuous professional development as a prerequisite to retaining their qualification.
KPMG said it invests 50% more man hours on training its staff than it did five years ago, while Ernst & Young said it has spent 400,000 man hours this year alone on training and education on section 404 of the Sarbanes-Oxley Act, The Times reported.