Brazilian Congress of Accountants - August 2012


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Presentation given to the Brazilian Congress of Accountants in August 2012 by Peter Wolnizer, chair of the International Accounting Education Standards Board.

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  • IFAC is aGlobal organization of the accountancy profession, Committed to the public interestComprised of 159 member bodies and associates in 124 countries and Represents 2.5 million accountants in public practice, education, government, service, industry, and commerceHow does it discharge these responsibilities?As well as its main tasks of standard setting and representing the profession at all levelsIt Supports professional accountants in business and small and medium practices, where sometimes the teams of professionals can be small, so that they need more help, itSpeaks out on public interest issues where the profession’s voice is most relevant and Promotes values of integrity, transparency and expertise
  • IFAC Standard Setting BoardsThere are the 4 standard setting Boards, dealing with Auditing Standards, Education standards, Ethics and the Public sector They are: International Auditing and Assurance Standards Board;International Ethics Standards Board for AccountantsInternational Public Sector Reporting Standards Board; and International Accounting Education Standards Board
  • IAESB Mission Statement is: to serve the public interest by strengthening the worldwide accountancy profession through the development and enhancement of education.”
  • The IAESB operates under a shared standard-setting process involving IAESB membersThe IAESB consists of a chairman, a deputy chairman, and 16 members – all volunteers from around the world, comprising accounting academics, practitioners in public practice, accountants in business, the public, and other individuals with an interest in its work. These members are equally balanced between practicing auditors and accountants and those not in practice, along with three public members. Public Interest Oversight BoardThe PIOB oversees the IAESB and the IAESB Consultative Advisory Group to ensure that their activities respond properly to the public interest. There are 10 PIOB members; they are nominated by the International Organization of Securities Commissions, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, the World Bank, and the European Commission. The Public Interest Oversight Board, which oversees the activities of the IAESB, and the IAESB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAESB are facilitated by IFAC.IAESB Consultative Advisory GroupThe IAESB Consultative Advisory Group (CAG) engages in active consultation with the IAESB to ensure that the public’s interest is represented in the development and maintenance of the IAESB’s standards, agenda, project timetable, and priorities. The CAG is made up of regulators, preparers of financial information, and others with an interest in international auditing and assurance. A list of the CAG member organizations can be found on the IFAC website. IFACThe structures and processes that support the operations of the IAESB are facilitated by IFAC.
  • The following table shows the expected impact of the revised standards on four important stakeholders. I draw your attention to the 2nd column which identifies the current status of the eight education standards. There are three standards that have been approved completed: IESs 1, 6, and 7. The rest of the standards are either at the exposure or post-exposure level.The next four columns represent the following stakeholders and the expected impact in terms of high, medium, and low:Developed IFAC Member Bodes and Professional Accounting OrganizationsDeveloping IFAC Member Bodes and Professional Accounting OrganizationsUniversityRegulatorsWe expect that IESs 2, 7 and 8 will have the greatest impact on the four stakeholders.
  • Brazilian Congress of Accountants - August 2012

    1. 1. The Regulation of ProfessionalAccounting EducationPeter WolnizerIAESB ChairProfessor Emeritus , University ofSydney Page 1 | Confidential and Proprietary Information
    2. 2. 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. Page 2 | Confidential and Proprietary Information
    3. 3. 4 Standard-Setting Boards International Auditing and Assurance Standards Board International Ethics Standards Board for Accountants International Public Sector Accounting Standards Board International Accounting Education Standards Board Page 3 | Confidential and Proprietary Information
    4. 4. Our raison d’être"The foundation of every state is the education of itsyouth." Diagenes Laertius, 3rd Century"The foundation of the accounting profession is theeducation of its current and prospective members." IAESB adaptation, 2012 Page 4 | Confidential and Proprietary Information
    5. 5. Our mission “ to serve the public interest by strengthening the worldwide accountancy profession through the development and enhancement of education.” Page 5 | Confidential and Proprietary Information
    6. 6. 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. Page 6 | Confidential and Proprietary Information
    7. 7. 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 Page 7 | Confidential and Proprietary Information
    8. 8. 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 Page 8 | Confidential and Proprietary Information
    9. 9. IAESB pronouncements• International Education Standards• International Education Practice Statements• International Education Information Papers• Other Support Materials (toolkits, Q&As ) Page 9 | Confidential and Proprietary Information
    10. 10. 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. Page 10 | Confidential and Proprietary Information
    11. 11. 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 Page 11 | Confidential and Proprietary Information
    12. 12. International Education Standards (IESs) Pre-Qualification Post-Qualification Entry Requirements for Continuing Professional Professional Accounting Development (IES 7) Education Program(IES 1) Specialization (IES 8) Content of Professional Accounting Education (IESs 2,3,4) Practical Experience (IES 5) Assessment (IES 6) Page 12 | Confidential and Proprietary Information
    13. 13. 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 Page 13 | Confidential and Proprietary Information
    14. 14. 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 Page 14 | Confidential and Proprietary Information
    15. 15. 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 Page 15 | Confidential and Proprietary Information
    16. 16. Impact of Revised Standards- Selected Stakeholders IES Status Developed Developing University Regulator PAO PAO 1 Standard M M L L 2 Exposure H H H M 3 Exposure M H M L 4 Re- M H M M Exposure 5 Post- M M L M Exposure 6 Standard M M M M 7 Standard H H L M 8 Exposure H H L H Page 16 | Confidential and Proprietary Information
    17. 17. 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 Page 17 | Confidential and Proprietary Information
    18. 18. 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 Page 18 | Confidential and Proprietary Information
    19. 19. IES 2, Initial Professional Development – TechnicalCompetence New Requirements • Learning Outcomes Approach to demonstrate professional competence • Regular Review of Professional Accounting Education Programs • Assessment activities Page 19 | Confidential and Proprietary Information
    20. 20. 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) Page 20 | Confidential and Proprietary Information
    21. 21. InformationSources of Information URL:at THANK YOU Page 21 | Confidential and Proprietary Information