Needles Global Edu Ifac


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  • Needles Global Edu Ifac

    1. 1. The Global Coordination of Accounting Education Presented By Belverd E. Needles, Jr., Ph.D, CPA Past-President-IAAER Ernst & Young Distinguished Professor of Accounting DePaul University
    2. 2. Objectives of Presentation <ul><li>To show the need for global coordination of accounting education </li></ul><ul><li>to summarize efforts of organizations globally to achieve this objective </li></ul><ul><li>to highlight the work of IAAER in coordinating accounting education globally </li></ul><ul><li>to propose a plan for achieving coordination by focusing on education of accounting professors in International Education Standards (IES) </li></ul>
    3. 3. <ul><ul><ul><li>“ While the accounting standards used must be high quality, they also must be supported by an infrastructure that ensures that the standards are rigorously interpreted and applied, and that issues and problematic practices are identified and resolved in a timely fashion.” (SEC, 2000, p 2, emphasis added) </li></ul></ul></ul>Importance of Infrastructure
    4. 4. Elements of a Global Infrastructure <ul><li>Effective, Independent and High-Quality Accounting and Auditing Standard Setters </li></ul><ul><li>High-Quality Auditing Standards </li></ul><ul><li>Audit Firms with Effective Quality Controls Worldwide </li></ul><ul><li>Profession-Wide Quality Assurance </li></ul><ul><li>Active Regulatory Oversight (SEC,2000 p2) </li></ul>
    5. 5. <ul><ul><ul><li>WHERE IS </li></ul></ul></ul><ul><ul><ul><li>ACCOUNTING EDUCATION </li></ul></ul></ul><ul><ul><ul><li>IN THIS STRUCTURE? </li></ul></ul></ul>
    6. 6. Accounting Education and Professional Accountants <ul><li>Factors Affecting the Judgment of Professional Accountants </li></ul><ul><li>Factors Affecting the Qualifications of Professional Accountants </li></ul><ul><li>Global Coordination of Accounting Education </li></ul>
    7. 7. Factors Affecting Judgment in the Application of International Auditing Standards International Accounting/Auditing Standards Education Experience Culture
    8. 8. Factors Influencing the Qualifications of Professional Accountants Regulation Academics Professional Alliances Qualifications
    9. 9. Global Coordination of Accounting Education Academic Coordination Regional National International
    10. 10. Global Forces for Change <ul><li>Unrelenting Competitive Pressure </li></ul><ul><li>Impact of Information and Communication Technologies </li></ul><ul><li>Globalization of Business </li></ul><ul><li>Focus on Value Accounting </li></ul><ul><li>Demand for New Knowledge and Skills </li></ul><ul><li>Demand for improvements in corporate governance and ethics </li></ul><ul><li>(Source: Karraman, 2004) </li></ul>
    11. 11. Global Assumptions <ul><li>A Profession’s Only Real Capital is its Human Capital </li></ul><ul><li>Nationally-Based Education Systems Must Reflect the Global Dimension </li></ul><ul><li>The Modern Professional Needs Both Broad Knowledge and Specialized Skills </li></ul><ul><li>Professionals Must Continually Acquire New Knowledge and Skills </li></ul><ul><li>Future Accountants Need Training in Ethics and Objectivity </li></ul><ul><li>(Source: Karr e man, 2004) </li></ul>
    12. 12. Emerging Economies - Students <ul><li>Entering Students are not Adequately Prepared </li></ul><ul><li>Accounting Students do not Always Reflect Diversity of the Population </li></ul><ul><li>Economic and Health Issues among Students </li></ul>
    13. 13. Emerging Economies – Prequalification Education <ul><li>The Quality of Academic Education for Pre-qualification Needs to be Improved </li></ul><ul><li>Too Much Emphasis on Bookkeeping in the Accounting Curriculum </li></ul><ul><li>Instructors Lack Knowledge of International Standards and Practices </li></ul><ul><li>Lack of Adequate Resources for Higher Education </li></ul><ul><li>Professional Ethics is not Taught as a Separate Subject </li></ul>
    14. 14. Emerging Economies – Post Graduate <ul><li>Professional Examinations do not Always Represent Good International Practice </li></ul><ul><li>Practice Training Requirements do not Always Exist </li></ul><ul><li>Continuing Education Requirements do not Always Exist </li></ul>
    15. 15. The Value Chain of Accounting Education--Traditional View <ul><li> </li></ul><ul><li> I II III IV V VI </li></ul><ul><li>Economic Data Transformation Information Analysis Decisions </li></ul><ul><li> Events and Data Base </li></ul>STAGES Low value skills High value skills
    16. 16. The Value Chain of Accounting Education--Future View <ul><li> </li></ul><ul><li> I II III IV V VI </li></ul><ul><li>Economic Data Transformation Information Analysis Decisions </li></ul><ul><li> Events and Data Base </li></ul>STAGES Increasingly performed by technology Emphasis of Accounting Education
    17. 17. Global Movements in Accounting Education
    18. 18. UNCTAD <ul><li>United Nations Conference on Trade and Development </li></ul><ul><li>Guidelines on National Requirement for Qualification of Professional Accountants </li></ul><ul><li>Global Curriculum </li></ul><ul><li>Draws heavily on IFAC International Education Guidelines and Standards </li></ul><ul><li>Benchmark for Qualifications for Professional Organizations </li></ul><ul><li>Assist with Mutual Recognition of Qualifications </li></ul>
    19. 19. Global Accountancy Education Network ( GAEN) <ul><li>Promoting Accountancy Reform by Quantitative Assessment and Progress Monitoring of Professional Associations and Qualifications Requirements </li></ul><ul><li>Accountancy Profession as Critical Component for Economic Growth </li></ul><ul><li>Accountancy Reform as a Key Factor for Promoting Transparency, Accountability, Ethics and Professional Values </li></ul>
    20. 20. DePaul University Center <ul><li>Global Accountancy Education Benchmarking </li></ul><ul><li>Quantitative Benchmarking Methodology </li></ul><ul><li>Transferable </li></ul><ul><li>Identifies Gaps </li></ul><ul><li>Measures Improvements </li></ul><ul><li>Facilitates Global Trading in Accountancy Services </li></ul>
    21. 21. Common Curriculum Project <ul><li>Eight European Accountancy Institutes have Developed Proposals to Unify Their Respective National Professional Entry-Level Qualifications while, at the Same Time, Ensuring that those Qualifications Remain of High-Quality and Meet Changing Expectations. </li></ul>
    22. 22. Common Curriculum Project <ul><li>The Institutes will Agree to a Common Content that Covers the Greater Part of the Curricula of their National Professional Entry-Level Qualifications. </li></ul><ul><li>Common Content will be International. </li></ul><ul><li>Each Institute will Identify a National Content for its National Qualification. </li></ul>
    23. 23. International Accounting Education Standard Board (IAESB) <ul><li>Develops standards and other guidance to Strengthen Accountancy Education Worldwide and Focuses on: </li></ul><ul><ul><li>Prequalification Accounting Education </li></ul></ul><ul><ul><li>Practical Experience and Training </li></ul></ul><ul><ul><li>Assessment; and </li></ul></ul><ul><ul><li>Continuing Professional Education Needed by Accountants </li></ul></ul>
    24. 24. IFAC IAESB <ul><li>Global Perspective on Education </li></ul><ul><li>Due Process </li></ul><ul><li>Public Interest Oversight </li></ul>
    25. 25. IAAER Mission MISSION STATEMENT: The mission of the IAAER is to promote excellence in accounting education and research on a worldwide basis and to maximize the contribution of accounting academics to the development and maintenance of high quality, globally recognized standards of accounting practice.
    26. 26. IAAER History <ul><li>1984: Founded in advance of Kyoto Congress </li></ul><ul><li>1989: Institutional Membership Grows </li></ul><ul><li>1992: Representation on the IFAC Education Committee </li></ul><ul><li>1995: Consultancy Group of IASC </li></ul>
    27. 27. IAAER Coordinating Activities <ul><li>World Congresses of Accounting Education </li></ul><ul><li>Accounting Education for the 21st century: The Global Challenges (Needles/Burns, 1993) </li></ul><ul><li>Regional Conferences on Accounting Education and Research </li></ul><ul><li>Institutional Member Meetings </li></ul><ul><li>Cooperative Conferences for Education and Research Directors of Professional Associations </li></ul><ul><li>Implementation Guide for IEG No. 9 </li></ul><ul><li>Global Code of Ethics of Accounting Educators </li></ul>
    28. 28. IAAER Structure IAAER Structure Academic Associations Individual Members Professional Associations
    29. 29. IAAER Initiatives IAAER Initiatives Conferences and Congresses Standard Setting Bodies-Research and Representation Communication
    30. 30. IAAER Communication IAAER Activities Web Site COSMOS JIFMA and AE:AIJ
    31. 31. IAAER Conferences/Congresses IAAER Conferences Research Conferences World Congresses Specialized Conferences
    32. 32. Future Role of IAAER in Global Accounting Education <ul><li>Voice of Accounting Academics </li></ul><ul><li>Coordination of Accounting Education </li></ul><ul><li>Academic Research on Standards </li></ul><ul><li>Faculty Development </li></ul>
    33. 33. Major Issues Raised by the Standards <ul><li>How to Instill the Characteristics of Lifelong Learning in Future Professional Accountants through Accounting Education </li></ul><ul><li>How to Design and Implement a Program of Accounting Education that Achieves the Objectives of the Prequalification Education </li></ul><ul><li>How to Develop Awareness Of The Need for Improvement in Accounting Education and Encourage the Development of Accounting Education </li></ul>
    34. 34. Other Issues in Global Accounting Education: Research into <ul><li>Specifications of Appropriate Assessment Methods </li></ul><ul><li>Competencies </li></ul><ul><li>Professional Attitudes and Ethics </li></ul><ul><li>Variations in Nationally-Imposed Requirements </li></ul><ul><li>Supply/Demand for Accountants/Auditors who can Produce/Audit Transnational Accounts </li></ul>
    35. 35. How will these issues be addressed? <ul><li>IAESB working through member bodies </li></ul><ul><li>IAESB obtaining endorsement by key regulators </li></ul><ul><li>Volunteer self-development on the part faculty </li></ul><ul><li>Focused global efforts of faculty development </li></ul>
    36. 36. A Proposal: IAAER Project Athena <ul><li>What is it? </li></ul><ul><ul><li>A Targeted Global Faculty Development Program </li></ul></ul><ul><li>What is its purpose? </li></ul><ul><ul><li>To educate accounting faculty in developing and emerging economies in International Education Standards (IES) and their implementation </li></ul></ul>
    37. 37. IAAER Project Athena: Quality Control <ul><li>Country follow-up and consultancy by IAAER-trained educators </li></ul><ul><li>Assessment and Benchmarking </li></ul><ul><li>Periodic Reporting </li></ul>
    38. 38. Conclusion <ul><li>What questions do you have? </li></ul>