the regulation of professional accounting education

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The Regulation of Professional Accounting Education

Professor Peter WolnizerIAESB ChairProfessor Emeritus , University of Sydney


• Expanding network of 167 member bodies in 127 countries, representing 2.5 million accountants.

• IFAC is committed to protecting the public interest by developing high-quality international standards.

IFAC Today


International Auditing and Assurance Standards Board

International Ethics Standards Board for Accountants

International Public Sector Reporting Standards Board

International Accounting Education Standards Board

4 Standard-Setting Boards


"The foundation of every state is the education of its youth."

Diagenes Laertius, 3rd Century

"The foundation of the accounting profession is the education of its current and prospective members."

Wolnizer, adaptation 2012

Our raison d’être


“ to serve the public interest by strengthening the worldwide accountancy profession through the development and enhancement of education.”

Our mission


More competent accountants

• Strengthen the ability of the accountancy profession to provide more competent services in an increasingly complex, globally inter-connected and rapidly changing commercial world.

• Enhance public trust in the global accountancy profession.


A shared standard-setting process involving • Volunteer members - including practicing

accountants, academics, representatives from business, the forum of firms and the public

• Public Interest Oversight Board (PIOB) - oversight of Board’s activities

• Consultative Advisory Group (CAG) – strategic and operational advice

• IFAC staff – facilitate structures and processes that support the operations of the IAESB

How Do We Operate?


The IAESB serves the public interest

• By promulgating high quality standards and guidance statements that are designed to enhance the education, development and assessment of professional accountants

• By promoting the adoption and implementation of the International Education Standards (IESs)

• By developing education benchmarks for measuring the implementation of the IESs

• By advancing international debate on emerging issues relating to the education, development and assessment of professional accountants


IAESB pronouncements

• International Education Standards

• International Education Practice Statements

• International Education Information Papers

• Other Support Materials (toolkits, Q&As )


• Prescribe the professional knowledge, skills, values, ethics and attitudes required of professional accountants.

• Act as benchmarks for professional accounting education.

• Promote lifelong learning through continuous professional development and education.

International Education Standards (IESs)


International Education Standards (IESs) aim to• Reduce international differences in the

requirements to qualify and work as a professional accountant

• Facilitate global mobility of professional accountants

• Provide international benchmarks against which

IFAC member bodies can measure themselves



Pre-Qualification

Entry Requirements for Professional Accounting Education Program(IES 1)

Content of Professional Accounting Education (IESs 2,3,4)

Practical Experience (IES 5)

Assessment (IES 6)

Post-Qualification

Continuing Professional Development (IES 7)

Specialization (IES 8)



• IES 1, Entry Requirements to a Program of Professional Accounting Education

• IES 2, Content of Professional Accounting Education Programs

• IES 3, Professional Skills and General Education • IES 4, Professional Values, Ethics and Attitudes • IES 5, Practical Experience Requirements • IES 6, Assessment of Professional Capabilities and

Competence • IES 7, Continuing Professional Development: A Program of

Lifelong Learning and Continuing Development of Professional Competence

• IES 8, Competence Requirements for Audit Professionals


• Improve clarity • Ensure consistency with new Framework (2009)

document• Clarify issues resulting from environment and

experience• Recast in terms of learning outcomes• Ensure wide and sufficient consultation

Aim of the IES Revision Project


Consequences

• Ensure consistent application by reducing ambiguity about the requirements imposed on an IFAC member body.

• Draw attention to the important obligations of IFAC member bodies

• Follow up to revision project with implementation guidance

• Promote consistency in practice and share good practices in learning and development


Impact of Revised Standards- Selected Stakeholders

IES Status Developed PAO

Developing PAO

University Regulator

1 Standard M M L L2 Exposure H H H M3 Exposure M H M L4 Re-

ExposureM H M M

5 Post-Exposure

M M L M

6 Standard M M M M7 Standard H H L M8 Exposure H H L H


Clarified IES 7, Continuing Professional Development

Redrafting of Standard• Clarify wording of requirements

• Re-organize the presentation of explanatory material

• Ensure consistency with concepts of new Framework (2009) document and terminology of other Standards


IES 7, Continuing Professional Development (CPD)

Requirements: IFAC Member Bodies shall• Promote CPD• Facilitate CPD• Require mandatory CPD• Establish a preferred approach to measure

CPD (e.g., Input-based, output-based, combined approaches)

• Monitor CPD & provide appropriate sanctions


IES 2, Initial Professional Development – Technical Competence

New Requirements• Learning Outcomes Approach to demonstrate

professional competence

• Regular Review of Professional Accounting Education Programs

• Assessment activities


Current Exposure Drafts:

• IES 2, Initial Professional Development – Technical Competence (November 1, 2012)

• IES 3, Initial Professional Development – Professional Skills (November 1, 2012)

• IES 4, Initial Professional Development – Professional Values, Ethics, and Attitudes (October 11, 2012)

• IES 8, Professional Development for Engagement Partners Responsible For Audits of Financial Statements (December 11, 2012)


Sources of Information

http://www.ifac.org/education

Survey URL:at https://www.surveymonkey.com/s/IAESBStrategySurvey.

THANK YOU

Information

https://www.surveymonkey.com/s/IAESBStrategySurvey

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