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Rapid adoption showcases increased interest in cyber education and training for individuals looking to enter the field while helping decrease the workforce gap
ALEXANDRIA, Va., Dec. 8, 2022 /PRNewswire/ -- (ISC)² – the world's largest nonprofit association of certified cybersecurity professionals – today announced it has registered more than 110,000 (ISC)² Candidates to help address the global cybersecurity workforce gap of 3.4 million professionals. The recruitment milestone comes within three months of launching (ISC)² Candidates, to help individuals pursue or consider a career in cybersecurity.
(ISC)² Candidates provide those pursuing or building a cybersecurity career with exclusive offerings, including discounts on (ISC)² certification education courses, study materials and events. The initiative encourages Candidates to work toward earning an (ISC)² certification such as the (ISC)² CISSP® or (ISC)² Certified in CybersecuritySM entry-level certification.
"The early success of (ISC)² Candidates underscores the strong global interest in cybersecurity careers and how programs aimed at educating the next generation of professionals can effectively help address the global workforce gap," said Clar Rosso, CEO, (ISC)². "The strong adoption of (ISC)² Candidates demonstrates there is no shortage of interest in joining the profession; the challenge is creating new entry points that remove barriers and embrace the diverse skillsets, experiences and aptitudes necessary for a successful career. (ISC)² is preparing these individuals by providing a new cybersecurity career pathway through (ISC)² Candidates."
The 2022 (ISC)² Cybersecurity Workforce Study reveals there is no single pathway into cybersecurity. The data shows a shift in how people are entering the field, with nearly half of respondents under the age of 30 moving into cybersecurity from a career outside IT. The change highlights the importance of (ISC)² Candidates, as it provides a way for individuals to enter the field through non-traditional methods.
Free Certification Exams and Training for 1 Million
(ISC)² also has launched One Million Certified in Cybersecurity. This initiative pledges to provide free, entry-level cybersecurity certification exams and self-paced educational program courses to one million new professionals starting a career in cybersecurity. More than 98,350 people have enrolled for a free Certified in Cybersecurity course and test in the last three months.
To learn more, visit www.isc2.org/candidate.
About (ISC)²
(ISC)² is an international nonprofit membership association focused on inspiring a safe and secure cyber world. Best known for the acclaimed Certified Information Systems Security Professional (CISSP®) certification, (ISC)² offers a portfolio of credentials that are part of a holistic, pragmatic approach to security. Our association of candidates, associates, and members, nearly 280,000 strong, is made up of certified cyber, information, software, and infrastructure security professionals who are making a difference and helping to advance the industry. Our vision is supported by our commitment to educate and reach the general public through our charitable foundation – The Center for Cyber Safety and Education™. For more information on (ISC)², visit www.isc2.org, follow us on Twitter, or connect with us on Facebook and LinkedIn.
© 2022 (ISC)² Inc., (ISC)², CISSP, SSCP, CCSP, CAP, CSSLP, HCISPP, CISSP-ISSAP, CISSP-ISSEP, CISSP-ISSMP, and CBK are registered marks, and CC is a service mark of (ISC)², Inc.
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SOURCE (ISC)2
Adopting a more collaborative hiring approach, assessing candidates skills and attributes, as well as investing in their career development, are some ways.
Cybersecurity has become an increasingly important issue for most, if not all, industries and organisations of all sizes. However, organisations in the APAC region are facing a common challenge: insufficient talent to join the ranks of their frontliners amidst a cybersecurity workforce gap of 2.2mn in the region.
This prompts hiring managers to turn their radar to fresh graduates and career switchers within organisations, as revealed the APAC Cybersecurity Hiring Managers research report by the nonprofit association of certified cybersecurity professionals (ISC)².
Where to find talent?
In general, hiring managers are increasingly sourcing for cybersecurity candidates from beyond the IT talent pool, both within and outside of their organisations.
While most respondents in Hong Kong (55%) rely on standard job postings in their search for entry- and junior-level cybersecurity talent, organisations have also diversified their recruitment practices when it comes to candidate sourcing, such as hiring directly from colleges and universities (45%), identifying or recruiting talents through staffing recruitment organisations (39%), and turning to existing employees from non-traditional IT departments in their organisations (39%).
When hiring cybersecurity talent within the organisation, Hong Kong hiring managers have recruited from unconventional departments, including customer service (54%), communications (49%), human resources (49%), finance (31%), and marketing (20%).
In Singapore, 48% of respondents said they use apprenticeship or internship programmes at their organisations to identify or recruit candidates, far surpassing the other markets surveyed.
Participants have also reported partnerships with educational programmes to recruit talent. Compared to Singapore and Japan where hiring departments are more likely to partner with computer science, IT and cybersecurity graduate degree programmes, Hong Kong organisations are noticeably more likely to partner with relevant associate degree programmes (69%). Singapore respondents were also most likely to partner with non-relevant associate degree programmes.
What attributes and skills to look for?
Overall, 64% of hiring managers ranked previous professional experience as one of the most important attributes, followed by technical skills (56%) and certifications (51%).
Across the region, close to half of participants (49%) would consider a candidate with no work experience and education in fields that are not computer science, IT and cybersecurity. Singapore respondents are significantly more likely to consider candidates with education in a different field and no work experience.
Nearly two-thirds (62%) of APAC participants would hire a candidate self-taught in IT/cybersecurity despite having no work experience, with those in Hong Kong and Singapore most likely to consider such candidates.
Data security (34%) and security administration (32%), as well as the ability to work effectively in a team (48%) and independently (33%), emerged as the most highly rated technical and non-technical skills hiring managers expect from candidates.
Hiring managers have also highlighted the importance of non-technical skills for well-rounded professionals, and the ability to work independently was cited more frequently by Hong Kong and Singapore respondents (both at 40%), though teamwork is still more important.
Personality-wise, Hong Kong hiring managers think it’s important for candidates to display problem solving (41%) and analytical thinking traits (41%). A similar pattern is observed in APAC, while the desire to learn (26%) and critical thinking (24%) was cited more frequently by Hong Kong respondents.
How to develop talent?
Encouragingly, the vast majority of hiring managers surveyed (97%) indicated their organisations provide some form of professional development for their entry- and junior-level staff. This ranges from certification training and courses to the sponsorship of certification test fees as well as mentorship programmes.
In-house training courses are considered the most effective method of talent development for entry- and junior-level practitioners (60%), which is also ranked the highest by Hong Kong respondents.
Other training approaches cited are external training courses (57%), certifications (47%), conferences (35%), and mentoring (35%), in which Hong Kong and Japan ranked external training courses higher than Singapore and South Korea; conferences ranked higher among Korean respondents; and shadowing is more popular in Singapore and Japan.
In APAC, Hong Kong organisations are most likely to provide entry- and junior-level cybersecurity team members certification test fees sponsorship (56%), as well as career development time during working hours (85%).
Hong Kong organisations are willing to invest more to sufficiently train both entry- and junior-level cybersecurity professionals to the point of competency without supervision, it is twice as likely to cost more than US$10,000 for entry-level, and 1.5 times more likely for junior level compared to other surveyed markets, while the APAC average is standing at US$1,000 to US$4,999.
More than half (58%) of hiring managers surveyed observed that most entry-level cybersecurity practitioners are able to handle assignments independently within or under nine months.
The research findings underscore that adopting a more collaborative hiring approach between HR and cybersecurity teams to searching and recruiting early career cybersecurity professionals, assessing candidates based on both technical and non-technical skills and attributes, as well as investing in their career development, can enable organisations to build more resilient, sustainable cybersecurity teams.
“Our research findings point to the widening cybersecurity workforce gap, which has been driven by geopolitical tensions, macroeconomic instability, as well as growing physical security challenges,” said Clar Rosso, CEO, (ISC)². “With APAC registering the second highest year-on-year rise in shortage globally, organisations in the region need to be creative with their cybersecurity hiring.”
(ISC)² conducted the survey in June 2022, to better understand how 787 hiring managers across Hong Kong, Singapore, Japan and South Korea recruit and support the career development of entry- and junior-level cybersecurity practitioners.
Organisations across the Asia-Pacific (APAC) region are relying on job postings, internships and even candidates from other fields to plug the cyber security talent gap, a study has found.
Those were the key findings of the APAC cybersecurity hiring managers research report by The International Information System Security Certification Consortium, or (ISC)², which polled 787 respondents across Singapore, Hong Kong, Japan and South Korea.
Over half of respondents (58%) in Singapore rely on standard job postings in their search for cyber security talent, while just under half in the city-state have identified or recruited talent through apprenticeship and internship programmes as well as recruitment agencies.
At the regional level, companies have also diversified their recruitment practices when it comes to candidate sourcing, with hiring managers turning to existing employees from non-traditional IT departments such as customer service (43%) and human resources (38%) for entry-level and junior-level staff.
“Our research findings point to the widening cyber security workforce gap, which has been driven by geopolitical tensions, macroeconomic instability, as well as growing physical security challenges,” said Clar Rosso, CEO of (ISC)².
“With APAC registering the second highest year-on-year rise in shortage globally, organisations in the region need to be creative with their cyber security hiring. However, unlike conventional thinking, adopting an innovative approach doesn’t mean organisations have to take on more hiring risks.”
The (ISC)² report noted that adopting a more collaborative hiring approach between HR and cyber security teams, identifying candidates with relevant attributes and skills, as well as investing in their professional development, can help organisations build more resilient and sustainable cyber security teams.
When it comes to skills and experience, 62% of respondents would hire a candidate self-taught in IT or cyber security despite having no work experience, with those in Singapore and Hong Kong most likely to consider such candidates.
Across the region, 64% of hiring managers ranked previous professional experience as one of the most important attributes, followed by technical skills (56%) and certifications (51%).
Data security (34%) and security administration (32%), as well as the ability to work effectively in a team (48%) and independently (33%), emerged as the most highly rated technical and non-technical skills hiring managers expect from candidates.
The vast majority of hiring managers surveyed also indicated that their organisations provide some form of professional development for their entry-level and junior-level staff. This ranges from certification training and courses to the sponsorship of certification test fees, as well as mentorship programmes.
In-house training courses are considered the most effective method of talent development for entry-level and junior-level practitioners (60%), followed by external training courses (57%), certifications (47%), conferences (35%) and mentoring (35%).
But retaining young talent is just as critical, particularly in markets such as Australia and New Zealand (ANZ). A separate study by Lacework in ANZ found that those with less than a year of experience are more likely to leave (64%) than those with one to two years’ experience (44%).
The Net Promoter Score (NPS) – a measure of customer or employee loyalty – for cyber security was also very low at -9.4, putting the industry on par or worse than airline and insurance sectors.
Worryingly, for those in the field for two years or less, the NPS was -32, showing that those new to the industry are having a negative experience and are even less likely to recommend cyber security as a career.
“New, talented individuals are leaving the cyber security industry too fast. To retain crucial talent in a tight market, more needs to be done to reduce the workload and stress on all those in the industry, particularly newcomers. This is especially so given the rapid rate of change in the sector and mounting public pressure from exact high-profile security breaches,” said Richard Davies, area director for ANZ at Lacework.
Opinion editor's note: Editorials represent the opinions of the Star Tribune Editorial Board, which operates independently from the newsroom.
•••
Increasingly, Minnesota voters are encountering ballots with too-few options. They're used to seeing only one candidate in judicial races. Still, there's a bigger problem with a lack of quality competition — or no competition at all — in a growing number of local contests.
The number of uncontested races has gone up, meaning that the electorate has less say in representation. In many cases, the decisions made by political parties and insiders lead to fewer choices. And some would-be candidates have been scared away by divisiveness and what they see as thankless work.
That's not good for voters, for candidates, or for governing bodies such as school and county boards, city councils and the Legislature. Elected bodies need members who are more representative of the variety of people that they serve. And they need members with a range of skills, professional backgrounds and abilities to oversee taxpayer dollars and public policy.
Five of nine seats were open in this year's Minneapolis school board elections, and all went to newcomers with little experience. Of the five, two ran unopposed.
In Ramsey County, both the sheriff and county attorney ran without opposition. And in rural and metro areas, voters in 24 races had just one candidate for a state House or Senate seat. So of the 201 seats in the Legislature, candidates in just under one in eight races were unopposed.
That's the highest number of uncontested races since 2008 — the last year there were no unopposed legislative candidates. It's been more typical in the previous two decades to have about five to seven races with only one candidate.
So why is this happening, and can anything be done about it? According to some party leaders and analysts, the nasty, contentious political environment and late legislative redistricting hindered candidate recruitment in House and Senate races. And the window for campaigning was shorter than usual.
Political expert Larry Jacobs from the University of Minnesota's Humphrey School told a Star Tribune reporter that politics has become an often "horrible process: horrible for the candidates, horrible for their families. It's gotten more and more brutal."
Earlier this month, in an interview with an editorial writer, Jacobs said some of that can be changed by the voting public. "Voters need to demand vastly more coverage of public policy issues. We need to place more value on that," as well as more face-to-face debates and other forums with candidates.
Before the Nov. 8 election, the Star Tribune Editorial Board made a similar case in arguing for higher-quality campaigns. Having more quality candidates willing to run for public office is also critical.
"The polarization in politics generally has made it harder to get people who aren't [already] involved in politics interested in running," Ken Martin, chair of the Minnesota DFL, told the Star Tribune. "Given how toxic the environment has become, it's very difficult to convince people to provide up a job that pays them more to become a member of the Legislature."
Constituents can help by toning down their criticism of elected officials, or at least approaching disagreements without anger and abuse. They should encourage and support more well-qualified candidates to step up for public service. And political parties should work harder to field candidates even in districts they believe the other side will win.
The news media also has a role to play by focusing on issues-based political coverage and giving candidates a forum for constructive disagreement. We all can do better — especially given Minnesota's rich history of civic engagement and good government.
In Brief
For the past decade, declining trends in accounting enrollments and CPA candidates have pointed to the need for bold action to rebuild the pipeline to the profession. The AICPA and NASBA’s Evolution Project represents a major initiative to expand the appeal of the profession and ensures candidates are better prepared for the current environment. This article describes and analyzes the Evolution Project and seeks to answer the question of whether it will successfully reverse the exact decline.
***
January 2024 will be here before you know it. That date signifies lights off for the current model of the Uniform CPA Examination and when the CPA test Evolution makes its formal debut. This joint initiative by the AICPA and the National Association of State Boards of Accountancy (NASBA) represents a new core-plus-discipline CPA licensure model. The AICPA has stated: “We’re trying to embrace what’s changing in the profession and the business environment and the skills a newly licensed CPA will need to possess for licensure (K. Tysiac, “Content for redesigned CPA test takes shape,” Journal of Accountancy, July 7, 2021, https://bit.ly/3CkTsW2).
The CPA Evolution project is rooted in a range of goals and desired outcomes that include the following:
- A strong core of accounting, auditing, tax, and technology
- Deeper knowledge in three primary disciplines [Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP)]
- Reflections of the reality of practice
- An adaptive and flexible model to allow for more disciplines
- One CPA license
- One common core and one of three disciplines to pass
- Enhanced public protection.
The Evolution Project is a bold endeavor not seen since the 150-credit requirement was put in place and when the CPA test moved from the paper-and-pencil to computer-based format. This article describes the path to Evolution and exact developments made to the Evolution Model Curriculum (EMC), the recently released Evolution Practice Analysis, and examines the supply and demand of accounting and non-accounting degree candidates. It concludes with an urgent call to action to mitigate the declining CPA candidate pipeline in New York State.
NASBA and AICPA Initiatives
NASBA and the AICPA began their collaboration by producing updated rules and requirements for the Uniform Accountancy Act (UAA) in October 2020 (NASBA, “UAA Model Rule Requirements—Education,” 2020, https://bit.ly/2VerI2k). The updated act guides students, educators, and regulators on the education needed to enter the evolving CPA profession in the years ahead. The UAA established quality standards for educational institutions: Level 1 requires dual accreditation for the accounting program and business school programs; Level 2 requires accreditation only for the business school; and Level 3 requires accreditation occurs only at the institution level (i.e., neither the business school nor accounting program are accredited). In addition to accounting and business content requirements, the UAA establishes skills for newly licensed CPAs that include critical thinking, professional skepticism, research and communication, ethics, and digital acumen. The UAA includes internships and independent study, which may assist CPA candidates in selecting one of the three disciplines in the Evolution Exam.
The UAA does not address the requirements to sit for the test or to become licensed, leaving those decisions up to the licensing jurisdictions. Education requirements are however promulgated in section 5 of the January 2018 AICPA/NASBA Uniform Accountancy Act Standards for Regulation, which state: “The education requirements for a certificate, which must be met before an applicant is eligible to apply for the examination prescribed in subsection (d), shall be at least 150 semester hours of college education” (NASBA, 2020).
In 2020, the AICPA and NASBA formed task forces comprising 40 volunteers to develop the EMC. The task forces planned to assist educators as they realign existing curriculum to the Evolution model and prepare students to become CPAs. In mid-June 2021, following six months of work and fifty-plus meetings, the task forces revealed the EMC. The curriculum represents only a transition guide that demonstrates how programs may integrate Evolution content; the CPA test Blueprints published by the AICPA determine the exam’s content.
Exhibit 1 compiles what the task forces envisions as the EMC coverage by test part, total estimated teaching hours, and estimated credit hours necessary to deliver the EMC content (J. Taylor and D. Dustin, “AICPA, NASBA publish revised CPA Evolution Model Curriculum,” Nov. 19, 2021, https://bit.ly/3SKrDvJ; updated for minor changes released in November 2021. See https://thiswaytocpa.com/program/modelCPAcurriculum.)
Exhibit 1
CPA Evolution Model Curriculum Coverage
The EMC is an ambitious program, not only for an incoming college student to pursue; an educational institution will also secure the necessary resources to deliver the suggested content. A major challenge for educational institutions is the ability to deliver the core and three disciplines’ courses all within the accountancy unit. For example, according to the EMC, educational institutions that plan to deliver the core plus all three disciplines will need to schedule approximately a minimum of 36 to a maximum of 63 credit hours. (This calculation assumes sufficient enrollment exists for one section of each three-credit course offered over four to five academic years. Total teaching hours for one three-credit course over 14 weeks comprise approximately 42 hours.) The tax discipline seems ambitious, covering 625 learning objectives with 24 (low) to 39 (high) credit hours, including the core. Equally ambitious is BAR plus core, recommending 599 learning objectives that require 24 (low) to 45 (high) credit hours. Finally, ISC plus core appears to require less, with 24 (low) to 39 (high) credit hours to cover 504 learning objectives.
Offering courses that satisfy all the learning objectives for the three disciplines while developing faculty competency is a significant task for any educational institution. The EMC implies that all accounting courses, including those beyond the core, must be offered through the accounting unit. Faculty often specialize their teaching in specific areas, which limits the ability of course offerings. For example, a faculty member who specializes in accounting information systems courses are most likely not readily equipped to teach other specialized areas in taxation and vice versa. Although it remains to be seen which discipline candidates will pursue, it is reasonable to conclude that, given the demand for candidates experienced with audit-related technologies and its seemingly less stringent EMC test content, ISC may prevail as the discipline of choice. It is prudent for educators to acknowledge that the EMC is not the CPA test Blueprint; therefore, institutions should be mindful of utilizing significant resources aligning curriculum to the EMC. The Blueprints also could potentially influence a candidate’s choice in pursuing a specific discipline. Because it is a guide for Evolution content, the EMC should be viewed within the context and capacity in which an institution could deliver it. Lastly, not included in the EMC is the non-accounting test content, which is typically learned outside the accounting unit.
Other considerations for educational institutions include reflection on whom they serve and how they should strategize their program offerings relative to their environment. Depending upon student demand and enrollments, as well as faculty competencies, institutions might choose to only offer educational resources for one discipline. Partnerships with neighboring (and competing) institutions could mitigate some of these resource constraints. Some educational institutions may not offer courses for all three disciplines because doing so will require offering multiple specialized courses with constraints such as student enrollment and faculty experience. Creativity and strategic decisions are necessary because, unlike the current test model, Evolution candidates should enroll in different course programming when preparing for the disciplines.
Concerns about Evolution
Professional organizations and the American Accounting Association (AAA) have voiced the following concerns about the EMC as follows (“Comment Letters with Concerns about the Proposed AICPA CPA Evolution Model Curriculum,” 2021, https://aaahq.org/CPA-Evolution-Model-Curriculum):
- EMC does not require managerial or cost accounting—“The Model Curriculum does a disservice to CPA candidates by failing to cover skills they will need both at the start of their careers as auditors and later in their careers as business advisors and finance leaders.” (IMA Briefing, June 8, 2021, https://bit.ly/3nbvVzY)
- AAA Education Committee—“CPA EMC is skewed toward courses and competencies that the CPA test might assess rather than the body of knowledge and competencies that those entering public accounting might need for their careers.”
- AAA Council—“A model curriculum is not possible and is not advisable for academic institutions of accounting.”
- AAA Financial Accounting and Reporting Section—“The core knowledge plus discipline for [BAR] has an estimate (using the average of the proposed low and high hours for each topic) of 476 hours. With an estimate of 40 contact hours per semester per course, this is approximately 12 courses of [core-plus-BAR] knowledge alone (15 courses at the high end). A BAR faculty member’s dream!”
- AAA Forensic Accounting Section— “These courses tend to be among the most popular for college-going students because ‘fraud examination and forensic accounting’—seen as ‘auditing on steroids’—have an intrinsic appeal … Career opportunities in fraud and forensics are rich and rewarding; without inclusion of these courses in the MC, there is risk of being dropped from an academic program.”
- AAA Government and Nonprofit Section—“GNP accounting is an important part of students’ accounting education because it motivates them to consider their roles, current and future, as a citizen and contributing member of the nonprofit community.” Citing student interest in working in public service and NFPs provides evidence in favor of retaining this content. There is concern, however, that GNP will not survive within the BAR discipline relative to ISC discipline and thus pose the following question: “Will CPAs be able to interpret governmental financial statements when being tested on the [core] knowledge?”
- AAA International Accounting Section—“In addition, we see the document as conveying to the world the mistaken notion that the knowledge base of accountants in the U.S. is devoid of any international context … Accounting for Hedging and Derivatives was removed in the last Practice Analysis but the MC included it in BAR. Why not IFRS? Understanding differences between U.S. GAAP and IFRS reporting entails critical thinking. The importance and magnitude of international trade, $7 trillion market capitalization of foreign private issuers, and 120 countries using IFRS supports test inclusion. Convergence is not complete.”
- AAA Auditing Section—“Accordingly, we believe that students will be better prepared for their careers in accounting if they develop higher-order skills in the classroom, while acquiring incidental accounting knowledge through self-study CPA test review courses. It’s extremely challenging to cover the comprehensive content in the available time during a course or two. Generally external auditing is limited to one course.”
- AAA Management Accounting Section—“The current efforts surrounding the CPA [EMC] suggest that an accounting education’s primary source of value lies in the passing of the CPA exam. However, tightly linking accounting education with a single certification test will likely deter the brightest students from pursuing an undergraduate degree in accounting.”
AICPA Releases the Evolution Practice Analysis
On June 27, 2022, the AICPA released the Evolution Practice Analysis (EPA), which represents the exposure draft for the Evolution CPA test Blueprints (https://bit.ly/3ycAjTS). The EPA is a proposal derived from research, the profession, and other interested stake-holders who advance knowledge expectations for newly licensed CPAs. New content is expressed in the ISC and TCP disciplines, most of which is captured in the EMC. Although nearly 50% of the Business Environment and Concepts (BEC) is now included in BAR, the remaining BEC content (written communication content is excluded) is embedded in Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and ISC; Regulation (REG) and TCP are void of BEC content. Although most BEC knowledge is typically gained through the business disciplines of a curriculum, BEC content residing in certain core and disciplines may imply specific knowledge application to that test section.
New content for data technology concepts is evident throughout the EPA. Candidates will be expected to evaluate outputs for completeness, structure, usefulness, and actions; they will not be expected to create reports or demonstrate competence in use of data analytics software. Applied research skills using source materials is expected of candidates, with the goal of identifying and analyzing to further a response. The comment period for the EPA ended September 30, 2022. The Evolution Blueprints should be finalized by early 2023.
Some might consider the January 2024 launch date means that the transition time is too short. Students currently enrolled in a 150-hour licensure program may be caught in-between exams, needing to take the new Evolution test yet finding themselves unprepared for it. CPA review courses may need to be swift to fill the knowledge gaps until academia catches up.
The transition model allows credit for the current BEC part passed in the pre-evolution test as the substitute for a discipline exam. (There is an 18-month window to pass all four parts of the Evolution model; see https://nasba.org/blog/2022/02/25/transition-policy/.) That transition model might result in a rush to pass BEC, because it traditionally has higher pass rates than the other test parts (https://bit.ly/3EbNPL8). A BEC rush could be exacerbated if candidates perceive the discipline exams to be more Draft Maintaining the Relevance of the Uniform CPA Examination – Aligning the test with the CPA Evolution Licensure Model,” https://bit.ly/3ycAjTS). The same applies to pre-Evolution candidates passing BEC before January 2024; otherwise, candidates would be required to retake the core and/or a discipline.
Re-registration of licensure programs by jurisdictions may be time consuming; candidates with pre-Evolution education may feel pressure to pass the Evolution test before their education no longer meets Evolution jurisdiction requirements. The process of reconciling programs to comply with the EMC as well as the Evolution Blueprints might not proceed as quickly within academic as candidates might hope. Attention could also be given to BEC content embedded in specific exams and its relevant mapping within the accounting and business disciplines. The patience of the academy may also be further tested while jurisdictions complete the arduous task of approving new licensure programs.
The New York CPA Pipeline
According to NASBA, as of August 2022, there are 665,612 licensed CPAs covering 54 jurisdictions (NASBA 2022). As of January 1, 2022, 65,164 are licensed CPAs in New York State (see the New York State Education Department, Office of the Professions, http://www.op.nysed.gov/prof/cpa/cpacounts.htm). Between 2015 and 2020, the number of NYS licenses issued declined by approximately 20%. Licenses issued in 2015 and 2020 were 3,282 and 2,626, respectively; this decline in 2020 may be partially attributed to COVID-19 as well as pipeline decline; in 2019 and 2021, 2,796 and 3,092 licenses were issued, respectively, which each represent decreases of 15% and 6% compared to 2015. The clear conclusion is that there has been a declining trend in the number of accounting degrees awarded in New York over exact years. According to the Integrated Postsecondary Education Data System (IPEDS), for all not-for-profit institutions in New York State, the total number of accounting degrees (both graduate and undergraduate) awarded between 2015 and 2020 decreased by approximately 7% in New York. Master’s degrees awarded in accounting, which are programs that qualify for licensure, declined by 10% over the same period. (According to the NYS Inventory of Registered Program, as of May 6, 2022, there are 204 total licensure programs, of which 183 are at the master’s level, 20 are bachelors, and 1 advanced certificate; see http://www.nysed.gov/heds/IRPSL1.html.)
Conversely, from 2015 to 2020, the total number of computer science completed degrees in New York State increased by 130%. Master’s degree in computer science master’s programs increased 76% during the same period. Although in 2020 total accounting degrees completed exceeded computer science degrees by approximately 27%, this is much less than the 216% excess in 2015. Exhibits 2 and 3 illustrate these trends over time.
Exhibit 2
All Degrees Completed, New York State
Exhibit 3
Master’s Degrees Completed, New York State
A primary reason for these divergent trends in accounting and computer science degrees may be attributed to current salary levels for exact graduates. Computer science graduates earn approximately over $100,000, IT auditors $96,000, and public accounting graduates $66,000 (RobertHalf, “2022 Salary Guide,” 2021, https://www.roberthalf.com/salary-guide). Normally, graduates of public accounting and IT auditors typically will have 150 hours of education upon employment; an undergraduate degree in computer science is generally required for entry-level positions.
The profession has sought to mitigate the declining enrollment trends through partnered programs. Specifically, KPMG, EY, and Deloitte have established programs with academic institutions that provide funding and branding while ensuring a direct and experienced candidate pipeline to public accounting firms (KPMG, “Learn About Participating Universities: KPMG Master of Accounting with Data and Analytics Program,” 2020; A. Gee, “EY and Hult International Business School announce new Masters in Business Analytics, free for all EY people,” Oct. 18, 2021, https://go.ey.com/3SQSE0E; S. McCabe, “Deloitte Foundation partners with Ohio State University for diversity scholarship,” 2021, https://bit.ly/3rsnYaf). In addition, PricewaterhouseCoopers has numerous early to the profession programs to further engage new college students (e.g., see https://accessyourpotential.pwc.com/, https://pwc.to/3e76Dke, and https://bit.ly/3Cazyf0).
Trends in Private versus Public Institutions
Between 2015 and 2020, the total number of accounting degrees issued in New York State fell by 461, or 7%. A deeper perspective shows that the decrease was 10% and 5% for private and public institutions, respectively. The reasons for this discrepancy could be attributed to funding the 150-credit licensing requirements with lower state/city tuition rates due to the availability of Excelsior Scholarships starting in fiscal year 2017 (https://on.ny.gov/3VagIO4). Given the very exact declines in total accounting degrees completed in New York State (Exhibit 2), it is reasonable to conclude that private institutions may absorb most of any future declines. Exhibit 4 illustrates these trends.
Exhibit 4
Total Accounting Degrees, New York State
A primary reason for these divergent trends in accounting and computer science degrees may be attributed to current salary levels for exact graduates.
In the aggregate, computer science degrees increased by 130% from 2015 to 2020. Significant increases were both realized by private (97%) and public (95%) institutions. The difference in computer science degrees between private and public institutions of 31% in 2015 narrowed to 12% in 2020, which suggests that both sectors are benefiting from increased enrollment in computer science majors.
Most of the exact decline in accounting graduates is attributed to the master’s level (10%), which signals a decline in students seeking the degree for licensure. A closer analysis of master’s level degrees completed shows a decrease from 2015 to 2020 by 8% and 13% for private and public institutions, respectively. Bachelor’s level degrees completed at private institutions decreased by 11% from 2015 to 2020. Bachelor’s level degrees completed at public institutions decreased by 2% from 2015 to 2020.
That significant difference in the decline in bachelor’s degrees between private (11%) and public (2%) institutions from 2015 to 2020 suggests that the private institutions will experience fewer candidates progressing into a master’s licensure program than public institutions. This trend signals that fewer candidates will progress to the Evolution Exam, and ultimately a licensure program, unless the enrollment in undergraduate accounting programs significantly improves.
The data also suggest that students in private institutions pursue licen-sure programs significantly more often than students in public institutions do, expressed as a percentage of total degrees completed for a given year. Despite a lower number of total degrees completed, candidates from private institutions that completed master’s degrees represented 39% (1,088) of degrees in 2015 and 40% (998) of degrees in 2020. Significantly different results are found for public institutions. That group represents 24% (894) of master’s degrees completed in 2015 and 22% (779) of master’s degrees completed in 2020. This trend exists despite a significantly higher volume of undergraduate degrees completed at public institutions as compared with private institutions. The result from the public institutions signals that emphasis is placed on completing the bachelor’s degree, not the master’s. Because candidates cannot be licensed unless they pursue a licensure program, in the aggregate, the trends in accounting graduate degrees completed at New York public institutions are discouraging, especially in light of the Evolution Project’s goal to increase the number of CPAs. (See Exhibit 5 for a further breakdown of degrees completed.)
Exhibit 5
Breakdown of Accounting Degrees Completed, New York State
In a startling development, the AICPA 2021 Trends report found a 44% decline in accounting associate degrees awarded over the exact 10 years.
Certificate Programs, the Pipeline Supply, and Employer Demand
IPEDS defines certificates as “a recognized post credentials that is conferred upon the satisfactory completion of a postsecondary education program.” [The AICPA 2021 Trends report uses IPEDS, which represents all institutions participating in federal student aid programs and reports by Classification by Instructional Programs (CIP) for degrees completed. This may include both non-profit and for-profit institutions; the New York data presented excludes for-profit entities for comparison purposes. (Search “Terms”, “C”, and “Certificate” at https://surveys.nces.ed.gov/ipeds/public/glossary.)] In the case of accounting education, a certificate may qualify as meeting a jurisdiction’s education requirement for CPA licensure. Certificates are attractive to candidates who possess a non-accounting degree in another field of business field degree and subsequently decide to pursue accountancy licensure education requirements. Advanced certificates may be offered at a discounted price and delivered in an accelerated time frame than the typical master’s degree [see, e.g., Santa Clara University’s Certificate in Advanced Accounting Proficiency (CAAP), https://www.scu.edu/business/caap/admissions/]. The AICPA 2021 Trends report notes that between 2018 and 2020, certificates in accounting increased 7%; between 2002 and 2020 that increase was 39%, to an astounding total of 18,298 certificates completed in 2020. Although accounting certificates appear to be a popular path to accounting education, caution should be taken to determine that certificate programs qualify for licensure education by a jurisdiction. According to the New York State Education Department Inventory of Registered Programs, the only advanced certificate that qualifies for licensure is offered by the John Jay College of Criminal Justice (see https://bit.ly/3V8M084). Although there are many other New York institutions offering accounting certificate programs that report completion data in IPEDS, only the John Jay certificate is registered as licensure qualifying. It should also be noted that IPEDS reports zero certificates completed at John Jay during the past 10 years.
The AICPA 2021 Trends reports that, from 2010 to 2020, the total employer demand for accounting graduates at both the undergraduate and graduate levels declined by approximately 17%; but the past five years alone saw a decline of approximately 20%. From 2010 to 2020, the supply of total accounting undergraduate and graduate degrees completed dropped by approximately 4%, but the past five years saw a decline of approximately 9%. Although one may surmise that declines in employer demand may be due to absent or changing and preferred skill sets, a significant reason is the decline in the exact supply of accounting graduates. The AICPA further reports that 60% of 2020 new hires into CPA firms had accounting and tax degrees; the remaining 40% of new hires had predominately non-accounting business (23%) and computer science (6%) degrees.
In a startling development, the AICPA 2021 Trends report found a 44% decline in accounting associate degrees awarded over the exact 10 years. These degrees serve as a pipeline of students who intend to complete the accounting major by entering senior colleges. In New York, associate degrees completed in accounting (CIP 52.030) declined 84%, from 126 in 2010 to 20 in 2020. For all other accounting services—dominated by accounting technology, technician, and bookkeeping—associate degrees completed in New York increased by 14%, from 1,001 in 2010 to 1,137 in 2020 (data compiled from IPEDS). The availability of NYS Excelsior scholarships may explain some of the accounting associate degree decline; it may reveal that and if they have the option, accounting students prefer a four-year institution for their study rather than risking a transfer policy. According to the AICPA 2021 Trends report, 90% of those surveyed expected that number of non-CPA professional staff in accounting/finance functions at CPA firms would be higher or remain the same in 2021 compared with 2020.
Based on these findings, the authors conclude that associate degree accounting and business students provide significant value to the profession. Without greater efforts at the community college level, enrollment in accounting programs will further stress efforts to Excellerate enrollment in senior colleges. Further declining enrollments in NYS community colleges that may result from proposed recommendations for education regulations for CPA license is expressed in a 2022 comment letter from the NYSSCPA to the New York State Board of Public Accountancy (https://bit.ly/3RB0oms).
What Can Be Done Next?
There exist significant challenges to growing accounting enrollment and attracting students to the profession. Although there is no magic trick that will reverse declining trends, collective efforts, which include early and targeted intervention to curtail further declines in the number of students choosing the accountancy discipline, are necessary from all those vested in the profession. Demographic shifts in the expected student population, especially in the Northeast, will further shrink the available pool of high school students (S. Jaschik, “Are Prospective Students About to Disappear?” Inside Higher Ed, Jan. 8, 2018, https://bit.ly/3V1Tp97). Given the licensure requirements of passing a seemingly daunting new exam, five years of education, and at least one year of experience, the benefits of an accounting career must exceed the return on education costs provided by other disciplines that require just a four-year college degree.
Existing partnerships between professional societies and academia, at both college and high school levels, require creativity and stability to yield results. Further integration and engagement between accounting firms and college and high school representatives could not only deepen professional ties, but also lead to collaborative efforts to address the Evolution curriculum and its effective delivery. Through impactful programs and early internships, prospective pre-college students would be informed of the public value that the profession provides—along with its career flexibility, diversity, and rewards. Collaborative and creative partnerships within the academy, such as strategic program initiatives with units outside of accounting (e.g., non-accounting business fields, computer science, and related fields), and through professional engagement could further promote the profession. Ongoing efforts at the K-12 level—such as STEM designation, finance academies, and college level programs in accounting—not only provides early exposure to the discipline as a science, but also attracts college level candidates to the pipeline. (For more on the efforts for STEM designation, see https://bit.ly/3RIBDF5 and https://bit.ly/3EnC9Fb.)
Further integration and engagement between accounting firms and college and high school representatives could not only deepen professional ties, but also lead to collaborative efforts to address the Evolution curriculum and its effective delivery.
The cost of education required for CPA licensure is of widespread concern. Public institutions attract many undergraduate students for whom financial aid is available for a net lower tuition cost. It seems, however, that a similar financial model does not persist at the graduate level at public institutions, particularly in New York. Private institutions attempt to compete with public institutions by tuition discounting on the undergraduate level. Private institutions may further grow their graduate pool within capacity limits by providing attractive financial support than public institutions provide to their graduate pool. Creative solutions—such as certificate programs, firm funded programs, scholarship support and other advancement efforts—are needed to defray the cost of an accounting education, and particularly to mitigate declining enrollment trends at the undergraduate level. Extraordinary efforts to promote the profession (e.g., financial, professional engagement, work-life issues, value to the public) should be considered to encourage candidates to pursue the licensure programs. The alarms that have been ringing for at least the past 10 years have become deafening and call for urgent actions, including and beyond the Evolution initiative. Only once changes have been implemented will the profession know whether the students have come back.
Women in CyberSecurity (WiCyS) is partnering with the International Information System Security Certification Consortium (ISC)2 to help others navigate an entry point into cybersecurity learning through its Certified in Cybersecurity Winter Camp.
COOKEVILLE, Tenn., Nov. 17, 2022 /PRNewswire-PRWeb/ -- Women in CyberSecurity (WiCyS) is partnering with the International Information System Security Certification Consortium (ISC)2 to help others navigate an entry point into cybersecurity learning through its ISC2 Certified in Cybersecurity Winter Camp.
WiCyS aims to reduce confusing barriers for women and underrepresented populations in order to acquire and succeed in a cybersecurity career. (ISC)2 is a nonprofit organization that specializes in training and certifications for cybersecurity professionals. This new camp provides entry-level certification for IT professionals, career changers, college students, exact college graduates, advanced high school students and exact high school graduates.
"Creating an inclusive space and entry point for women interested in cybersecurity is one of many areas we focus on. Bringing the enthusiasm of the WiCyS community together to learn and grow in a certification program is the key to successful outcomes. We are excited to partner with (ISC)2 to provide this winter camp to 250 outstanding ladies as they launch themselves into their cybersecurity career journeys," states Lynn Dohm, WiCyS executive director.
Prerequisites, previous cybersecurity work experience and/or formal cybersecurity education is not required to enroll in this program. This Winter Camp will provide participants with evaluating experience across five security domains, including security principles; business continuity; disaster recovery and incident response concepts; access controls concepts; network security; and security operations. Technical mentoring, open office hours, certification, and opportunities to receive WiCyS conference scholarships are included.
"As the cybersecurity threat landscape continues to evolve and become more complex, we need additional hands to help secure assets. Right now, we are facing a workforce gap that is at an all-time high, with 3.4 million more cyber professionals needed in the field. We won't make inroads into closing the workforce gap until we increase the access for new voices to enter the field, said Dwan Jones, Director, Diversity, Equity and Inclusion at (ISC)2. Specifically, we need to embrace greater diversity and work to add additional women to the profession. Community is at our core at (ISC)², and we are thrilled to broaden our community to the WiCyS network. This partnership will enable and amplify stronger efforts to recruit, retain and advance women in the cybersecurity workforce. Additionally, we are thrilled to extend our offering of One Million Certified in Cybersecurity to individuals in the WiCyS community looking to access the free Certified in Cybersecurity (CC) Online Self-Paced Training and exams. These efforts will strengthen the workforce and provide women with the foundational knowledge, skills and abilities to take on entry- and junior-level cybersecurity roles, enabling employers to more confidently build resilient teams across all experience levels."
This program is open to WiCyS members, international members, and those committed to completing the certification, which is a requirement. The deadline to register is Dec. 1.
For more information, visit https://www.wicys.org/benefits/isc2-certified-in-cybersecurity-certification/
Women in CyberSecurity (WiCyS) is a nonprofit organization with international reach dedicated to the recruitment, retention and advancement of women in cybersecurity. WiCyS was founded by Dr. Ambareen Siraj in 2013 through a National Science Foundation grant awarded to Tennessee Tech University. In less than 10 years, it has grown into an organization (est. in 2017) representing a leading alliance between trailblazers from academia, government, and industry. WiCyS offers opportunities, trainings, events, and resources for its members. Strategic partners include Tier 1: Amazon Web Services, Battelle, Bloomberg, Carnegie Mellon University – Software Engineering Institute, Cisco, Fortinet, Google, Intel, Lockheed Martin, Meta, Microsoft, Optum, Sandia National Laboratories, SentinelOne. Tier 2: AbbVie, Aristocrat, Dell Technologies, JPMorgan Chase & Co., LinkedIn, McKesson, NCC Group, Nike, Workday. To partner, visit http://www.wicys.org/support/strategic-partnerships/.
Media Contact
Lynn Dohm, Women in CyberSecurity (WiCyS), 815.530.7307, lynn@wicys.org
SOURCE Women in CyberSecurity (WiCyS)
REGINA, Saskatchewan, Nov. 02, 2022 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISV) (“ISC” or the “Company”) today reported on the Company’s financial results for the third quarter ended September 30, 2022.
2022 Third Quarter Highlights
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Revenue was $48.8 million for the quarter, an increase of 18 per cent compared to the third quarter of 2021. This was due to continued transaction and customer growth in Services, specifically in the Corporate Solutions division, along with $1.6 million of revenue contributed from the UPLevel business that was acquired in February of this year. Registry Operations’ existing division, Property Tax Services, acquired through the Reamined acquisition on June 1, 2022, also contributed to the increased revenue for the quarter in the amount of $3.8 million. This was offset by a $1.0 million decline in Land Registry revenue during the quarter as Saskatchewan real estate levels returned to more normalized, seasonal levels.
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Net income was $7.8 million or $0.44 per basic and $0.43 per diluted share compared to $9.7 million or $0.56 per basic share and $0.54 per diluted share in the third quarter of 2021. The decrease in net income is due to increases in people and technology costs, accompanied by $1.4 million in increased share-based compensation from increases in the Company’s share price during the quarter compared to a quarter over quarter decrease in the prior year. These more than offset increased revenue in Services and Registry Operations overall.
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EBITDA was $15.8 million compared to $17.5 million for the same quarter in 2021, due to increases in people and technology costs and increases in share-based compensation, partially offset by increased revenue overall and in particular, EBITDA contributed from acquisitions made earlier in the year. EBITDA margin was 32.5 per cent for the quarter compared to 42.3 per cent in 2021. The change in margin year-over-year was driven by increased Services revenue, which has a lower margin profile, and by the positive impact of the transition of Services customers to the Registry Complete platform, which drives a change in revenue recognition to accounting on a gross (lower margin) instead of a net (higher margin) basis. While the accounting change has no impact on EBITDA, it does impact the margin.
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Adjusted EBITDA was $17.0 million for the quarter compared to $17.3 million in 2021. Adjustments consist primarily of merger and acquisition and share-based compensation expenses, which when removed, show a stable quarter year-over-year, as the increases in revenue were offset by increased investments in people and technology as we scale the business for further growth and to maintain our customer service standards. As a result, adjusted EBITDA margin was 34.9 per cent compared to 41.8 per cent in 2021, with the change coming from increased Services revenue at a lower margin and lower revenue overall in the Land Registry in the quarter.
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Free cash flow for the quarter was $11.6 million, a decrease of 13 per cent compared to the third quarter of 2021. This was a result of lower results of operations after the increased investments in people and technology, and increase in share-based compensation expense.
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On July 4, 2022, the Company announced the appointment of Susan Bowman as Head of ERS. For more information, please refer to our news release dated July 4, 2022 which is available on our website at company.isc.ca
Financial Position as at September 30, 2022
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Cash of $32.9 million compared to $40.1 million as of December 31, 2021.
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Total debt of $76.5 million compared to $41.0 million as of December 31, 2021.
Commenting on ISC’s results, Shawn Peters, President and CEO stated, “The third quarter of 2022 performed largely as expected, and our business remains robust even in current economic conditions. In our Registry Operations business, as anticipated, we saw a return to normal, as Saskatchewan real estate levels stabilized from more normalized demand and higher interest rates. Our Services business continues to grow slightly faster than expected, driven by continued transaction and customer growth in our Corporate Solutions divisions. In Technology Solutions, we continue to complete active solution implementation projects and are focused on securing new clients from our pipeline of opportunities.” Peters continued, “In consideration of these factors, we are re-iterating our annual guidance for revenue to be between $188.0 million and $193.0 million, net income to be between $29.0 million and $33.0 million, and EBITDA to be between $59.0 million and $64.0 million in 2022 and anticipate that we will finish the year around the middle of these ranges. Overall, the third quarter was one of ongoing operational accomplishments and financial performance that was consistent with our expectations, and which continues to demonstrate the strength and stability of our business and the benefits of the diversification we have achieved.”
Management’s Discussion of ISC’s Summary of 2022 Third Quarter Financial Results
|
(thousands of CAD dollars; |
Three Months |
Three Months |
||||
|
Revenue |
||||||
|
Registry Operations |
$ |
25,025 |
$ |
21,326 |
||
|
Services |
22,248 |
18,273 |
||||
|
Technology Solutions |
1,492 |
1,769 |
||||
|
Consolidated revenue |
$ |
48,768 |
$ |
41,369 |
||
|
Consolidated expenses |
$ |
36,922 |
$ |
27,269 |
||
|
Consolidated EBITDA1 |
$ |
15,829 |
$ |
17,500 |
||
|
Consolidated EBITDA margin1 (% of revenue) |
32.5 |
% |
42.3 |
% |
||
|
Consolidated adjusted EBITDA1 |
$ |
17,034 |
$ |
17,298 |
||
|
Consolidated adjusted EBITDA margin1 |
34.9 |
% |
41.8 |
% |
||
|
Consolidated net income |
$ |
7,756 |
$ |
9,733 |
||
|
Earnings per share (basic)1 |
$ |
0.44 |
$ |
0.56 |
||
|
Earnings per share (diluted)1 |
$ |
0.43 |
$ |
0.54 |
||
|
Free cash flow1 |
$ |
11,591 |
$ |
13,278 |
||
1 EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin and free cash flow are not recognized as measures under IFRS and do not have a standardized meaning prescribed by IFRS and, therefore, they may not be comparable to similar measures reported by other corporations. For more information, please refer to section 8.8 “Non-IFRS Financial Measures”, section 6.1 “Cash Flow” for a reconciliation of free cash flow and section 2 “Consolidated Financial Analysis” for a reconciliation of EBITDA and adjusted EBITDA to net income in Management’s Discussion and Analysis for the three and nine months ended September 30, 2022.
2022 Third Quarter Results of Operations
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Total revenue was $48.8 million, up 18 per cent compared to Q3 2021.
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Registry Operations segment revenue was $25 million, up compared to $21.3 million in Q3 2021:
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Land Registry revenue was $15.2 million, down compared to $16.2 million in Q3 2021.
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Personal Property Registry was $3.1 million, up compared to $2.7 million in Q3 2021.
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Corporate Registry revenue was $2.6 million, up compared to $2.5 million in Q3 2021.
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Three months of new Property Tax Services revenue in Registry Operations totaling $3.8 million contributed by the acquisition of Reamined in the current year.
-
-
Services segment revenue was $22.2 million, up compared to $18.3 million in Q3 2021:
-
Regulatory Solutions was $16.3 million up compared to $14.8 million in Q3 2021
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Recovery Solutions was $2.4 million, up compared to $2.3 million in Q3 2021
-
Corporate Solutions revenue was $3.5 million, up compared to $1.2 million in Q3 2021
-
-
Technology Solutions segment revenue from external parties was $1.5 million, down from $1.8 million in Q3 2021.
-
Consolidated expenses (all segments) were $36.9 million, up $9.6 million compared to $27.3 million in Q3 2021.
-
Net income was $7.8 million or $0.44 per basic share and $0.43 per diluted share, down $1.9 million compared to $9.7 million or $0.56 per basic and $0.54 per diluted share for Q3 2021.
Outlook
The following section includes forward-looking information, including statements related to the industries in which we operate, growth opportunities, our future financial position and results of operations, and capital and operating expectations. Refer to “Cautionary Note Regarding Forward-Looking Information” in Management’s Discussion & Analysis for the three and six months ended September 30, 2022.
Both our Registry Operations and Services segments have performed very well in the first nine months of 2022.
In Registry Operations, as expected, Land Titles transactions appear to be returning towards more normalized pre-pandemic levels. Currently, we expect the resiliency of the Saskatchewan real estate sector, compared to other markets, to continue in the near-term, with milder corrections to pricing due to existing housing supply issues. Based on the performance of the Saskatchewan Land Registry year to date, we would echo comments made by the Saskatchewan Realtors Association that Saskatchewan residents are not immune to the impacts of interest rate increases and ongoing inflationary pressures, but that our housing market continues to fare better than many other regions in the country. Therefore, we expect the Land Registry will continue on its route to pre-pandemic levels during the balance of 2022 but is still expected to finish above 2019 levels. Revenue from Property Tax Services is expected to remain consistent for the last quarter of 2022 and the balance of the contract.
We expect Services to continue to deliver transaction and customer growth for the remainder of 2022, supported by our initiatives to bring all our customers and services onto a single platform. Services has expanded its product offerings through its exact Recovery Solution acquisitions (asset recovery and account receivable management) to support our customers through the back end of the lending life cycle. Following the introduction of Recovery Complete in the third quarter, we expect similar integrated benefits for recovery clients that our search and registration clients have experienced after moving over to our previously launched Registry Complete platform. Consistent with ISC as a whole, Services will continue to focus on investments in people, technology and new opportunities, including potential acquisitions to facilitate the continued growth of our business.
In Technology Solutions, we expect to complete and deliver solution implementation projects that had been deferred from 2021 into 2022 and beyond. Although active projects have lessened during the pandemic, we are seeing a revived and refreshed interest as jurisdictions and authorities are returning to initiatives not previously advanced due to COVID-19. We are optimistic about the current state of the pipeline as we believe we are uniquely positioned to provide solutions that align with our innovative offerings.
With these factors in mind, we are reiterating our annual guidance for revenue to be between $188.0 million and $193.0 million, net income to be between $29.0 million and $33.0 million, and EBITDA1 to be between $59.0 million and $64.0 million in 2022 and anticipate that we will finish the year around the middle of these ranges.
Overall, the third quarter and year-to-date have progressed in line with assumptions factored into our guidance for 2022, as updated in August 2022. We are actively monitoring the impact of interest rates and inflation on our current business as we have begun to see these emerge in salaries and certain other costs, however, the full extent of this impact is not yet known. Regardless, to facilitate our continued organic growth, we will remain focused on offering new products as well as customer-tailored product offerings, coupled with acquisition and partnership opportunities that drive value.
Note to Readers
The Board of Directors (“Board”) carries out its responsibility for review of this disclosure primarily through the Audit Committee, which is comprised exclusively of independent directors. The Audit Committee reviews and approves the fiscal year-end Management’s Discussion and Analysis (“MD&A”) and financial statements and recommends both to the Board for approval. The interim financial statements and MD&A are reviewed and approved by the Audit Committee.
This news release provides a general summary of ISC’s results for the quarters ended September 30, 2022, and 2021. Readers are encouraged to download the Company’s complete financial disclosures. Links to ISC’s financial statements and related notes and MD&A for the period are available on our website in the Investor Relations section at www.company.isc.ca.
Copies can also be obtained at www.sedar.com by searching Information Services Corporation’s profile or by contacting Information Services Corporation at investor.relations@isc.ca
All figures are in Canadian dollars unless otherwise noted.
Conference Call and Webcast
We will hold an investor conference call on Thursday, November 3, 2022 at 11:00 a.m. ET to discuss the results. Those joining the call on a listen-only basis are encouraged to join the live audio webcast which will be available on our website at www.company.isc.ca/investor-relations/events. Participants who wish to ask a question on the live call may do so through the ISC website or by registering through the following live call URL: https://register.vevent.com/register/BI93a8a0533bc5416fa73d2aa25f82cbf8
Once registered, participants will receive the dial-in numbers and their unique PIN number. When dialing in, participants will input their PIN and be placed into the call. The audio file with a replay of the webcast will be available about 24 hours after the event on our website at the link above. We invite media to attend on a listen-only basis.
About ISC
Headquartered in Canada, ISC is the leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC trade on the Toronto Stock Exchange under the symbol ISV.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities laws including, without limitation, those contained in the “Outlook” section hereof and statements related to the industries in which we operate, growth opportunities and our future financial position and results of operations. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause real results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause real results to differ materially from the Company's plans or expectations include risks relating to changes in the condition of the economy, including those arising from public health concerns, reliance on key customers and licences, dependence on key projects and clients, securing new business and fixed-price contracts, identification of viable growth opportunities, implementation of our growth strategy, competition and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended December 31, 2021 and ISC’s unaudited Condensed Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the second quarter ended September 30, 2022, copies of which are filed on SEDAR at www.sedar.com.
The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities laws, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Investor Contact
Jonathan Hackshaw
Senior Director, Investor Relations & Capital Markets
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
investor.relations@isc.ca
Media Contact
Jodi Bosnjak
External Communications Specialist
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
corp.communications@isc.ca
Regarding the editorial "For serious voters, Missouri's ballot offers an array of unacceptable choices." (Oct. 28): I disagree with the Editorial Board's conclusion regarding Democratic U.S. Senate candidate Trudy Busch Valentine. Its disapproval of her was derived from a one-hour interview with her when she did not present the attributes the board deemed necessary to merit a recommendation.
In my opinion, that's not a disqualification but a potential virtue.
The opinion pages have largely ignored Valentine's campaign except to occasionally mention hers as a lost cause. I think she embodies the values the Editorial Board purports to hold and which her opponent and many, if not most, other Missouri politicians do not.
But it appears that the Editorial Board has never gotten over their disapproval of her performance in her interview with them. Republican candidate Eric Schmitt should thank the board. Thomas W. Allen • Chesterfield
