Accounting Education
a World Wide
Benchmark
Prof. J.P.J. (Hans) Verkruijsse PhD RE RA
Objective of accounting education
Building a sound financial future and restoring the trust
• The qualification, education, training and experience of professional
accountants are of crucial importance for the developing and
functioning of the local and global financial infrastructure.
• A wide range of stakeholders, including regulators and standard
setters, professional accountancy organizations and accountancy
firms as well as issuers of financial reports and users of accounting
services depend on their professional expertise and skills.
• Over the last couple of decades stakeholders lost their trust in the
accountants.
Objective of accounting education
Building a sound financial future and restoring the trust
• A sound financial future is build on trust
• Trust is based on reliable information
• Information is reliable when produced by people with the right
intellectual and professional skills
• Proper accounting education supports the development of
intellectual and professional skills
Core Model of Accountancy Education
Country Characteristics
• Cultural background
• Legal system
• Economic position
• Higher education
International Requirement
• Standards
• Guidelines
• Directives
Core Elements of
Accountancy Education
•
•
•
•
•
Professional qualification
Final examination
Professional education
Practical experience
University level education
Country systems of
education and training
subject to international
codification
Accountancy Education Research
Research area’s:
• specifications of appropriate assessment methods,
• competencies,
• professional attitudes and ethics,
• variations in nationally-imposed requirements,
• supply and demand for accountants and auditors who can
produce and audit transnational accounts.
Background and skills
Cultural
background
Law abiding
Political stability
Social structure
Background and skills
Cultural
background
Law abiding
Political stability
Social structure
Communication
and social
Skills
Reading
Listening
Writing
Speaking
Leadership
Group work
Ethics
Summarizing
Background and skills
Cultural
background
Law abiding
Political stability
Social structure
Communication
and social
Skills
Reading
Listening
Writing
Speaking
Leadership
Group work
Ethics
Summarizing
Knowledge
Skills
General and business
Organizational and IT
Auditing and Finance
Accounting
Economics
Background and skills
Intellectual
Skills
Problem solving
Decision making
Judgemental
Analytic thinking
Critical analysis
Reasoning
Cultural
background
Law abiding
Political stability
Social structure
Communication
and social
Skills
Reading
Listening
Writing
Speaking
Leadership
Group work
Ethics
Summarizing
Knowledge
Skills
General and business
Organizational and IT
Auditing and Finance
Accounting
Economics
Global Accountability Development Institute
Global Accountability Development Institute (GADI), research project:
Global Accountability Transparancy Information(GATI):
Research question:
To what extend can you rely on the work performed by an auditor in
another jurisdiction?
40 countries reviewed
• Asia & Pacific: Australia, Hong Kong, India, Japan, Malaysia, New
Zealand, Pakistan, Singapore and Sri Lanka.
• Middle East, North Africa, Central Europe and Eurasia: Kazakhstan,
Kosovo, Moldova, Saudi Arabia, Serbia and Turkey.
• European Union: Czech Republic, France, Hungary, Ireland, Italy,
Netherlands, Romania, Sweden and United Kingdom.
• Latin America: Argentina, Brazil, Chile, Colombia, Cuba, El
Salvador, Mexico, Peru and Venezuela.
• North America: Canada and USA.
• Sub Saharan Africa: Ghana, Lesotho, South Africa, Tanzania,
Zimbabwe.
More to come
Countries under review on this moment:
• China
• Russia
• Germany
• Panama
• Cameroon
• Kenia
• Senegal
Structure of Accountancy Education
Countries differ with regard to
• Certification Requirements
• Providers: professional accountancy organizations, universities,
others
• Responsibility: government, government with the profession,
profession, universities
• Licensing Requirements
These structural elements are important to developing and applying a
benchmarking framework
Global Accountability Transparancy Information
GATI’s information blocks:
• Pillar 1, Legal, Regulatory and Institutional Framework
• Pillar 2, Audit, Assurance and Quality Control
• Pillar 3, Global Accountancy Education
• Pillar 4, International Public Sector Accounting Standards
• Pillar 5, International Financial Reporting Standards
• Pillar 6, Ethics & Discipline
• Pillar 7, Corporate Governance – Transparency & Disclosure
• Pillar 8, Professional Accountancy Association Institutional Capacity
GATI-Pillar 3, Global Accountancy Education
The Global Accountancy Education pillar:
• Developed a competency framework that includes:
• qualification requirements,
• general and professional education,
• practical training and experience,
• Continuing Professional Development.
• Makes available information about:
• the qualification,
• education and
• training of accountants
GATI is based on earlier research
• 2002 “Impact of Globalization on Accountancy Education”;
global classification study
• 2005 “Global Accounting Education Benchmarking”;
regional benchmarking study of accountancy education
• 2007 “Trends in Global Accounting Education”;
global analysis of trends in development of accountancy education
• 2009 “Accountancy Development Index”;
global benchmarking pilot study of the accountancy environment
• 2011 “Measuring country-level accountancy performance and
achievement”;
accountancy development index, a pilot study funded by USAID
• 2012 “Dynamics of Global Accountancy Education”
GATI research methodology
The benchmarking methodology:
• country experts with up-to-date knowledge of the present
situation conduct the self assessment;
• external and independent assessors validate the results of the
self assessment to achieve internal relevance and external
credibility; and,
• multiple indicators.
GATI research references
References used:
• IES’s issued by the IAESB
• Common Content Initiative12 devised by a group of professional
bodies in the EU and the EU 8th Directive on Statutory Auditors
• Standards issued by Certified Management Accountant (CMA)
• Standards issued by American Institute of Certified Public
Accountants (AICPA)
• Model curriculum of the Intergovernmental Working Group of
Experts on International Standards of Accounting and Reporting
IAESB / IFAC
IAESB:
• developed high quality standards and other guidance to
strengthen accountancy education worldwide;
• focuses on:
• prequalification
• practical experience and training,
• assessment,
• continuing professional education needed by accountants.
IFAC International Education Standards
IES as basis for a competency and benchmarking framework
• IES 1 – Entry Requirements
• IES 2 – Content Professional Accountancy Education
• IES 3 – Professional Skills & General Education
• IES 4 – Professional Values, Ethics & Attitudes
• IES 5 – Practical Experience Requirements
• IES 6 – Assessment of Professional Capabilities
• IES 7 – Continuing Professional Development
• IES 8 – Competence Requirements for Audit Professionals
GATI reseach versus IES’s
General Characteristics
Country Characteristics
Legal system, economic position, region
Professional Characteristics
Professional regulation and recognition
Qualification Characteristics
Practice rights of accountants and auditors
International recognition of qualifications
GATI reseach versus IES’s
General Characteristics
Country Characteristics
Legal system, economic position, region
Professional Characteristics
Professional regulation and recognition
Qualification Characteristics
Personal Development
Practice rights of accountants and auditors
International recognition of qualifications
Competency sub-pillars
University Entrance Level (IES 1)
Professional Skills & General Education (IES 3)
Professional Values, Ethics & Attitudes (IES 4)
Professional Accountancy
Education
Accountancy, Finance, Organizational, Business Information Technology
Knowledge (IES 2)
Professional Development
Practical Experience Requirements (IES 5)
Professional Capabilities & Competence (IES 6)
Continuing Professional Development (IES 7)
Competencies for Audit
Professionals
Advanced Professional Knowledge, Skills, Values, Ethics, Attitudes, Advanced
Practical Experience, Assessment & CPD (IES 8)
GATI research Competency Pillars
Personal development,
• combines elements that are achieved through education; entry
level should be at least equivalent to that for admission into a
recognized university degree program or its equivalent;
Professional accountancy education,
• the theoretical education normally provided by universities
and/or professional accountancy organizations;
Professional development,
• combines practical experience, assessment of professional
competence, and CPD.
Competencies for audit professionals,
• includes higher level requirements for licensed auditors.
GATI research scores by region
Region
Personal
Development
(IES 1,3,4)
Professional
Accountancy
Education
(IES 2)
Professional
Development
(IES 5,6,7)
Competence
for Audit
Professionals
(IES 8)
Adopt
Impl
Adopt
Impl
Adopt
Impl
Adopt
Impl
Asia & Pacific
.91
.81
.98
.97
.98
.89
.91
.95
Central Europe &
Eurasia, Middle East
& North Africa
.93
.61
.80
.61
1.00
.70
.83
.71
European Union
.97
.86
.91
.94
.95
.89
.91
.96
Latin America
.90
.58
.84
.57
.32
.23
.70
.58
North America
.97
.89
.96
.96
.83
.89
.75
.95
Sub Saharan Africa
.97
.76
.96
.95
1.00
.70
.89
.77
Comparison of Qualifications
Sequential steps for comparison of qualifications:
• Step 1: Country Information
• Step 2: Accountancy Profession
• Step 3: Characteristics of Accountancy Education
• Step 4: Compliance with International Education Standards
• Step 5: Specific Requirements
The website
www.tilburguniversity.edu/gadi
Compliance with IES possible outcomes
Adoption
Implementation
Personal
Development
High
High
Professional
Accountancy
Education
Medium
Medium
Professional
Development
Low
Low
Not available
Not available
Competence for
Audit Professional
Compliance with IES USA
Adoption
Implementation
Personal
Development
High
High
Professional
Accountancy
Education
High
High
Professional
Development
Medium
High
High
High
Competence for
Audit Professional
Compliance with IES USA
Sub-Pillar Scores - USA
Personal Development
1.00
0.80
0.60
0.40
0.20
Competence for Audit Professionals
0.00
Professional Accountancy Education
Professional Development
Adoption
Implementation
Compliance with IES El Salvador
Adoption
Implementation
Personal
Development
High
Medium
Professional
Accountancy
Education
High
High
Professional
Development
Low
Low
Competence for
Audit Professional
Low
Medium
Compliance with IES El Salvador
Sub-Pillar Scores - El Salvador
Personal Development
1.00
0.80
0.60
0.40
0.20
Competence for Audit Professionals
0.00
Professional Accountancy Education
Professional Development
Adoption
Implementation
Compliance with IES Saudi Arabia
Adoption
Implementation
Personal
Development
High
Low
Professional
Accountancy
Education
High
Medium
Professional
Development
High
Low
Competence for
Audit Professional
High
Medium
Compliance with IES Saudi Arabia
Sub-Pillar Scores - Saudi Arabia
Personal Development
1.00
0.80
0.60
0.40
0.20
Competence for Audit Professionals
0.00
Professional Accountancy Education
Professional Development
Adoption
Implementation
Compliance with IES Netherlands
Adoption
Implementation
Personal
Development
High
High
Professional
Accountancy
Education
High
High
Professional
Development
High
High
Competence for
Audit Professional
High
High
Compliance with IES Netherlands
Sub-Pillar Scores - Netherlands
Personal Development
1.00
0.80
0.60
0.40
0.20
Competence for Audit Professionals
0.00
Professional Accountancy Education
Professional Development
Adoption
Implementation
Accountancy Education Weaknesses
Prof. Bel Needles (2005) identified the following weaknesses:
• quality of academic education for pre-qualification needs
improvement;
• too much emphasis on bookkeeping
• instructors lack knowledge of international standards and
practices;
• lack of adequate resources for higher education;
• professional ethics is not taught as a separate subject;
• examinations do not always represent good practice;
• continuing education requirements do not always exist.
How we managed to improve
In the Netherlands:
• Post master education 2 – 3 years, one day a week;
• 3 year practical education with a accounting firm;
• Emphasis on reliability of financial accountability reports;
• Professors and instructors with in-depth knowledge of
international standards;
• Professors and instructors with practical experience;
• Making the curricula more flexible without flexibility in the
intended learning outcomes;
• Accounting firms involved in the accountancy education;
• Professional ethics taught integrated in all courses;
• Examinations represent good practice;
How we managed to improve
In the Netherlands:
• Continuing education is mandated
• Professors and instructors are educated continuously;
• All professors are mandated to have a PhD;
• Less formal lectures in large groups (instructor based), more
practical tutorials is small groups (student based);
• New formats like:
– E-learning modules,
– reversing the classroom,
– problem oriented education
• Weekly practical cases to be send in.
• More integration of the theoretical and practical training;
How we managed to improve
In the Netherlands:
• 2007, the IASs gained force of law
• Independent committee responsible for the final attainment level;
• Independent oversight board challenging the quality of the audits;
• Naming and shaming;
• Discussions about the quality of the work of accountants in public
and within the political arena;
• In case of blameworthy mistakes:
• hugh claims
• disqualified as an accountant by the authorities
New challenges for professors / instructors
We have to focus on new challenges as the society moves on, like:
• Continuous monitoring;
• Continuous auditing
• Continuous assurance
• Data level assurance
• Assurance by default
• Cloud computing
• Big data
• Tagged data like XML / XBRL
New challenges for professors / instructors
So we cann’t sit still!!!
We as academic educators have to move on
and do pioneering work,
but first we have to educate ourselves.
Questions?
Don’t hesitate!
Prof. J.P.J. (Hans) Verkruijsse PhD RE RA
Tilburg University
e-mail: J.P.J.Verkruijsse@tilburgunivesity.edu
mobil: +31 6 53 354 957