The Regulation of Professional
Accounting Education
Professor Peter Wolnizer
IAESB Chair
Professor Emeritus , University of
Sydney
Page 1 | Confidential and Proprietary Information
IFAC Today
• 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.
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4 Standard-Setting Boards
International Auditing and Assurance
Standards Board
International Ethics Standards Board for
Accountants
International Public Sector Reporting
Standards Board
International Accounting Education
Standards Board
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Our raison d’être
"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
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Our mission
“ to serve the public interest by
strengthening the worldwide
accountancy profession through the
development and enhancement of
education.”
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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.
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How Do We Operate?
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
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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
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IAESB pronouncements
• International Education Standards
• International Education Practice Statements
• International Education Information Papers
• Other Support Materials (toolkits, Q&As )
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International Education Standards (IESs)
• 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.
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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
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International Education Standards (IESs)
Pre-Qualification
Entry Requirements for
Professional Accounting
Education Program(IES 1)
Content of Professional
Accounting Education (IESs
2,3,4)
Post-Qualification
Continuing Professional
Development (IES 7)
Specialization (IES 8)
Practical Experience (IES 5)
Assessment (IES 6)
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International Education Standards (IESs)
• 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
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Aim of the IES Revision Project
• 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
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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
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Impact of Revised Standards- Selected Stakeholders
IES
Status
Developed
PAO
Developing
PAO
University Regulator
1
Standard
M
M
L
L
2
Exposure
H
H
H
M
3
Exposure
M
H
M
L
4
ReExposure
M
H
M
M
5
PostExposure
M
M
L
M
6
Standard
M
M
M
M
7
Standard
H
H
L
M
8
Exposure
H
H
L
H
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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
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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
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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
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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)
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Information
Sources of Information
http://www.ifac.org/education
Survey URL:
at https://www.surveymonkey.com/s/IAESBStrategySurvey.
THANK YOU
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