June 2002
Response Due Date December 31, 2002
Issued for Comment by the International
Federation of Accountants

This Exposure Draft was approved for publication in June 2002 by the
Education Committee of IFAC.
The mission of IFAC is the worldwide development and enhancement of an accountancy profession with harmonized standards, able to provide services of consistently high quality in the public interest. The Education
Committee’s mission is to serve the public interest by the worldwide advancement of education and development for professional accountants leading to harmonized standards.
The Education Committee requests comments on this Exposure Draft.
Respondents are encouraged to comment on the specific questions attached at the end of this document and any other issues related to this
Exposure Draft. Comments sent by e-mail are preferred but they may also be submitted by computer disk or in hard copy.
Comments should be received by 31 December 2002.
Comments received by the due date will be reviewed by the Education
Committee and may influence the final Standard. Comments received before 15 October 2002 will be reviewed by the Education Committee at its meeting in November 2002. Comments recevied after that date will be reviewed by the Committee in March 2003. Comments received after the due date, and on an ongoing basis, are also welcome. Respondents should note that comments are considered a matter of public record.
Comments on this publication should be sent to:
Technical Director
International Federation of Accountants
535 Fifth Avenue, 26th Floor
New York, NY 10017, USA
Fax + 1 212-856 9420
E-mail responses should be sent to: EDComments@ifac.org
Information about the International Federation of Accountants can be found at its web site, www.ifac.org
. Copies of this publication may be downloaded free of charge from the site.
Copyright © June 2002 by the International Federation of Accountants.
All rights reserved.

CONTENTS
PAGE
P REFACE .............................................................................................. 2
I NTERNATIONAL E DUCATION S TANDARDS FOR P ROFESSIONAL
A CCOUNTANTS ............................................................................ 2
P URPOSE OF THIS S TANDARD .................................................... 2
S COPE OF THE S TANDARD .......................................................... 3
B ACKGROUND ............................................................................. 3
D EFINITIONS ....................................................................................... 4
E FFECTIVE D ATE ............................................................................. 11
F OREWORD ....................................................................................... 11
A CKNOWLEDGEMENTS ................................................................... 12
M EMBERSHIP OF THE IFAC E DUCATION C OMMITTEE .......... 12
E XPERIENCE R EQUIREMENTS ....................................................... 13
M ONITORING AND CONTROL ................................................... 14
D ISCUSSION Q UESTIONS ................................................................. 17

Experience Requirements
International Education Standards for Professional Accountants
1. International Education Standards for Professional
Accountants (IES) prescribe standards of generally accepted
“good practice”' in the education and development of professional accountants. IES express the benchmarks that member bodies are expected to meet in the preparation and continual development for professional accountants. They establish the essential elements of the education process at a level that is aimed at gaining international recognition, acceptance and application of the education process. Hence, member bodies must consider these prescriptions.
2.
3.
International Education Standards for Professional
Accountants cannot legally override local laws and regulations but will provide an authoritative reference for informing and influencing local regulators regarding generally accepted “good practice.”
International Education Standards are the paragraphs in bold typeface in this Standard. Commentary paragraphs, which may elaborate on and assist in the interpretation of the standard paragraphs, appear in plain typeface.
4. The individual Standards need to be read in conjunction with the Guiding Principles for International Education
Statements and the related commentary and implementation material contained in the Introduction to International
Education Standards for Professional Accountants .
Purpose of this Standard
5. This Standard prescribes the practical experience and training member bodies should require their members to obtain to qualify as professional accountants.
6. The aim of this Standard is to ensure that candidates for membership of an IFAC member body have acquired the practical experience considered appropriate at the time of
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qualification to function as competent professional accountants.
7. Further training may be required after qualification to bring a candidate up to the level of a statutory auditor or some other form of specialization. In any event, life-long learning will be required to renew professional competence and keep it up to date (see also proposed International Education
Standard Continuing Professional Education and
Development ).
8. Practical experience, gained by working as accountants, in addition to academic study, is considered necessary before candidates can present themselves to the public as professional accountants. Given the variety of circumstances surrounding professional accountancy bodies throughout the world, the requirement for relevant experience may vary from one body to another.
Scope of the Standard
9. This Standard prescribes the practical experience candidates normally require before being admitted to membership of an
IFAC member body. It also prescribes monitoring and control systems to ensure the experience gained is acceptable.
Background
10. This Standard draws on IEG 9, “Prequalification Education,
Assessment of Professional Competence and Experience
Requirements” (first issued 1991, revised 1996) and
Competence-based Approaches to the Preparation and
Work of Professional Accountants, Discussion Paper (first issued 1998, revised 2001). Further suggestions are contained in Practical Experience, Discussion Paper (issued
1998) and Specialization in the Accounting Profession,
Discussion Paper (issued 1992).
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Experience Requirements
11. Definitions and explanations of the key terms used in the
Standards are set out in the Guiding Principles for
International Education Statements . The terms used in this
Standard are defined as follows. Words marked with an asterisk (*) indicate terms that are defined elsewhere in this glossary.
Candidate
Competence
Development
Refers to any individual who is presenting themselves for assessment as part of an education program in preparation to become a professional accountant.*
Is being able to perform a work role to a defined standard, with reference to real working environments .
Explanation
Competence may be assessed by a variety of means, including work-place performance, work-place simulations, written tests of various types and selfassessment.
[Competence-based Approaches to the
Preparation and Work of Professional
Accountants, 2001]
Is the acquisition of capabilities which contribute to competence.*
Explanation
Development refers to the growth of attributes that contribute to competence, however achieved. Individuals may develop their abilities through a wide range of processes such as learning, including education and training; experience; reflection; observation or receipt of information; other structured and unstructured learning activities; or through natural growth over time.
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Education Refers to a systematic act or process aimed at developing knowledge, skills, character or other abilities and attributes within individuals. It includes developmental activities commonly referred to as training.*
Explanation
Education is a formal, structured learning process whereby individuals develop attributes considered desirable by society.
Education is usually characterized by the growth of an individual’s mental and practical abilities, as well as maturing in
Ethics
General Education attitude, resulting in an enhanced ability of the individual to function and contribute to society, in either specific or non-specific contexts. While often conducted in academic environments, education also includes formal learning processes in other environments, such as on-the-job and offthe-job training. Education is, by nature, formal and therefore excludes informal, unstructured learning and developmental processes. Valuable learning, training, and development can also take place in less formal environments through processes that are not formal or structured enough to be considered “education.”
Refers to the professional values* and principles of conduct applying to professional accountants,* as well as to students and trainees,* associated with
IFAC member bodies.
Consists of subjects drawn from the arts, sciences, social sciences and humanities that are outside the discipline areas of accounting and business.
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Good practice
Experience Requirements
Explanation
General education covers a broad range of subjects of which the content is not primarily concerned with business matters.
The knowledge gained from general education underpins a professional education, although it is not directly related to, or required for, conducting business activity. It contributes to professional competence by imparting knowledge of the world, broadening the candidate’s mind, and providing a more rounded education than that gained by business study alone.
Refers to those elements considered essential to the education* and development* of professional accountants* and performed at a standard necessary to the achievement of competence.*
Explanation
“Good practice” relates not only to the range of content and processes of education and development programs, but also to the level or standard at which they are performed (i.e., the depth and quality of the programs). The IFAC Education
Committee is conscious of the wide diversity of culture language and educational, legal and social systems in the countries of the member bodies and of the variety of functions performed by accountants. Different factors within these environments may vary the ability of member bodies to adopt some aspects of
“good practice.” Nevertheless, member bodies should continuously aspire to “good practice” and achieve it wherever possible.
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Is work experience, undertaken by a Practical experience
(or professional experience) trainee* that is relevant to the work of professional accountants.* The program of experience is aimed at developing professional competence* (including values) within trainees and provides a means whereby trainees can demonstrate the achievement of professional competence.
Explanation
Practical experience refers to the on-thejob execution of tasks that are relevant to the field of accountancy. The practical experience component of the qualifying
Pre-qualification process is intended to develop candidates through the direct application of knowledge, skills and professional values.
Ultimately, it is through practical experience that trainees will demonstrate their competence to perform the roles of professional accountants. Practical experience is sometimes referred to as
“professional experience” and is synonymous with that term.
[By reference to the Discussion Paper
Practical Experience, 1998]
Refers to the period before qualification* as an individual member of an IFAC member body.
Explanation
The term “pre-qualification” is usually associated with activities and requirements relating to the development of those who have not yet obtained a professional qualification. It refers to the developmental period, or any part of the developmental period, between the time at which an
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Experience Requirements individual begins their professional development and the time at which they achieve initial professional competence, as recognized by qualification.
Professional accountant Refers to those individuals, whether they be in public practice (including a sole practitioner, partnership or corporate body), industry, commerce, the public sector or education, who are members of an IFAC member body.
[IFAC Code of Ethics for Professional
Accountants, 2001]
Professional knowledge Refers to those topics that make up the subject of accountancy as well as other business disciplines that, together, constitute the essential body of knowledge for professional accountants.*
Professional values
Qualification
Are the attitudes that identify professional accountants* as members of a profession.
They comprise principles of conduct generally associated with, and deemed essential in defining the distinctive characteristics of, professional behavior.
Explanation
Professional values include technical competence, ethical behavior (e.g., independence, objectivity, confidentiality and integrity), professional demeanor (e.g., due care, timeliness, courteousness, respect, responsibility and reliability), pursuit of excellence (e.g., commitment to continual improvement and life-long learning) and social responsibility (e.g., awareness and consideration of the public interest).
Qualification as a professional accountant* is recognition that, at a given point in time,
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an individual is deemed to have met the requirements for recognition as a professional accountant.
Explanation
Qualification is the formal recognition of an individual as having attained a professional designation, or having been admitted to a class of professional membership, that signifies the individual is a professional accountant. Qualification implies that the individual has been deemed competent in terms of meeting the requirements prescribed for obtaining professional accountant status. While the term “qualification” can be applied to various stages of professional development and classes of membership, its usage in
IFAC Education Committee documents
(unless otherwise indicated) relates to the benchmark for recognition as a professional accountant.
[Based on IEG-9, “Pre-qualification
Education, Assessment of Professional
Skills
Competence and Experience Requirements of Professional Accountants,” 1998]
Refer to the various types of abilities required to apply knowledge and values appropriately and effectively in a professional context.
Explanation
Professional accountants are required to possess a range of skills, including technical and functional skills, organizational and business management skills, personal skills, interpersonal and communication skills, a variety of intellectual skills, and skills in forming professional judgments.
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Specialization
Trainee
Training
Experience Requirements
Is the formal recognition by a member body of a group of its members possessing distinctive competence* in a field, or fields, of activity related to the work of the professional accountant.*
[Discussion Paper Specialization in the
Accounting Profession, 1992]
Is an individual undertaking prequalification* professional development* within the work place.
Explanation
A trainee is an individual who is undertaking a practical experience or work-place training program for qualification as a professional accountant.
Refers to pre- and post-qualification developmental activities, within the context of the work place, aimed at bringing a student or professional accountant* to an agreed level of professional competence.*
Explanation
Training includes work-place-based education and experience activities for developing an individual’s competence to perform tasks relevant to the role of the professional accountant. Training may be undertaken while performing actual tasks
(on-the-job training) or indirectly through instruction or work-place simulation (offthe-job training). Training is conducted within the context of the work place, with reference to the specific roles or tasks performed by professional accountants. It can include any activity purposefully designed to improve the ability of an individual to fulfill the practical experience
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requirements for qualification as a professional accountant.
12. Member bodies should aim to comply with this standard by
1 January 2005. Earlier application is encouraged.
13. The balance between experience and academic study may vary from one qualification to another. Practical experience is more likely to be gained in a work environment, while knowledge of theory is more likely to be gained in an academic environment. Professional values and ethics may be gained through a combination of both types of environments. It is a matter for IFAC member bodies to adapt their practical experience requirements to meet their own needs and requirements and to meet the requirements of the relevant regulatory authorities as well as public expectations that professional accountants can apply their knowledge in practice.
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Experience Requirements
The Education Committee thanks the Task Force members who have contributed to the development of this Exposure Draft:
Country
Czech Republic
Hungary
Israel
Malaysia
Name
Bohumil Král and Jaroslav Louka
József Roóz and Ferenc Eperjesi
Yoram Eden
Dato Abdul Halim Mohyiddin, Tan
Shook Kheng and Albert Wong
Turkey
Mun Sum
Ercan Bayazitli, Recep Pekdemir and Masum Türker
David Hunt, Mark Allison, and United Kingdom
Michael Walsh.
Transnational Auditors Committee Hans Verkruijsse ( observer to the
Education Committee)
Membership of the IFAC Education Committee
The following were members of the Education Committee when this
Exposure Draft was approved:
Country
New Zealand
Argentina
Canada
China
Name
Warren Allen (Chair)
Hector Carlos Ostengo
Shirley Reilly
Czech Republic
France
Hungary
Israel
Shuang Li
Bohumil Král
Alain Burlaud
József Rooz
Yoram Eden
Malaysia
Pakistan
Abdul Halim Mohyiddin
S.M. Zafarullah
South Africa
Thailand
Turkey
United Kingdom
United States
Steve McGregor
Usana Patramontree
Masum Türker
David Hunt
Gary Holstrum.
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14. An appropriate period of practical experience in performing the work of professional accountants should be a component of the pre-qualification program. This period should be long enough to permit candidates to demonstrate they have gained the knowledge, skills and professional values required for performing their work with professional competence and for continuing to grow throughout their careers. The period of practical experience should be three years. A period of professional education with a strong element of practical application can contribute to part of this overall requirement.
15.
16.
17.
The overall goal is to produce competent professional accountants by giving them an appropriate mix of general education, professional education and practical experience.
The exact combination may vary as long as the ultimate goal is achieved. Demonstrable achievement of competence is more important than simply spending the amount of time necessary to meet the practical experience requirement.
Accounting degree programs may take four years or more and, in the later years, can place a strong emphasis on relevant professional education and applications. Other education programs may consist of non-accounting degrees followed by three intensive years of combined relevant professional education and experience.
Practical experience provides a professional environment in which accountants:
 enhance their understanding of organizations and how business functions;
 are able to relate accounting work to other business functions and activities;
 become aware of the environment in which services are provided;
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18.



Experience Requirements develop the appropriate professional values and ethics in practical, real-life situations (see also proposed International
Education Standard, “Professional Values and Ethics”); have an opportunity to work at progressive levels of responsibility; and obtain the specialized accountancy training needed to ensure professional competence.
Trainees need to gain their practical experience in accounting positions deemed appropriate by the professional body to which they are applying. Experience may be obtained before a program of study, after a program of study, at the same time as a program of study or by some combination of these methods, subject to the controls below.
Monitoring and control
19. The member body or regulatory authority needs to ensure that the experience candidates have gained is acceptable. Experience leading to qualification should mainly be conducted under the direction and supervision of an experienced member of one of IFAC’s member bodies. For a program of practical experience to be effective, close collaboration is necessary among the professional body or regulatory authority, the trainee and the employer providing the experience. The program of practical experience should be mutually beneficial to both the candidate and the employer. The employer should keep, and periodically review, a record of the actual experience a trainee has obtained, while the professional body should periodically review samples of such records.
20. The program of practical experience should be designed and implemented to meet the experience requirements set by the professional body. At the same time, it should be costeffective for the employer, whether that employer is in industry, commerce, government or public practice. IFAC member bodies whose members are eligible for an audit license at the point of qualification should ensure that appropriate audit experience is acquired during the pre-
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qualification period. If the license is granted by an external agency, or after qualification, that agency will formulate the necessary requirements for qualification. Those requirements might also be fulfilled during the postqualification period.
21. Either the employer or the trainee should keep a record of the actual work experience, which will then be reviewed by the professional body at the point of application for membership. The record should also be regularly compared with the overall program established for the trainee to ensure that the requirements established by the professional body or regulatory authority are being met. If progress within the program does not match the anticipated development rate, the trainee should be counseled to discover the reasons why and what can be done to improve the situation. This will also provide an opportunity for the trainee to comment on the work experience and contribute to the trainee's future development.
22. Among the steps that professional bodies should take are the following:
 establish a monitoring system, normally on a sampling basis, that provides for monitoring and reporting of the experience actually obtained by trainees;

 provide detailed written guidance for employers and trainees; establish a mechanism for approving employers as suitable for providing the appropriate experience for the trainees;
 assess and approve the work experience environment before commencement of experience. (To this end, the nature and scope of relevant experience and the organizational structure of employers should be considered to ensure that trainees receive proper direction, supervision, counseling and evaluation.);
 assess the experience gained on the basis of a written or oral submission made by trainees at the point of application for membership, appropriately supported by supervisors;
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16



Experience Requirements review employers previously approved. The review may advise employers on areas that need improvement or may recommend that approval be withdrawn if conditions have changed to the extent that relevant experience criteria are not being met; establish a system of periodic reporting to cover changes, if any, in the nature, scope and content of the trainees’ practical experience where it may be impractical to visit all approved employers; undertake a periodic competence study to help to ensure that the experience gained is relevant and appropriate.

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Please reference comments to the relevant paragraph numbers and provide alternative proposals where applicable.
1. Do you agree with the amount of practical experience prescribed in paragraph 14?
2.
3.
Do you consider the criteria prescribed for the acceptability of practical experience are achievable (refer paragraph 19)?
Comment on the proposed effective date of 1 January 2005.
4. Please comment on any other issues.
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