IFAC-IAI Indonesia Education workshop

IFAC-IAI Indonesia Education workshop

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  AFA IFAC SMOWorkshop 2 SMO 2: International Education Standards November 8, 2021 Professor Sidharta Utama PhD CA CFA Council Member, IAI
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  OVERVIEW • Action planobjective: To ensure IAI’s professional accountancy education requirements comply with the requirements of SMO 2. • Current SMO status: Review and Improve. • Current IES adoption status per 2020: Fully adopted in CA syllabus and in accounting education curriculum. • Shared responsibility: IAI shared the responsibility of setting up pre and post qualification requirements for professional accountants in Indonesia, together with key stakeholders in Indonesia (e.g., Ministry of Finance, Ministry of Education, Culture, Research & Technology, and IAPI): • Ministry of Education, Culture, Research & Technology as the ultimate regulator approves the qualification requirements (overall in line with IES). • IAI, through its Certification Board for Professional Accountants performs the functions—ensure quality of the certification for professional accountants, assess and monitor the education and practical experience. IAI 2021 2
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  BECOMING AN ACCOUNTANTIN INDONESIA IAI 2021 3 PTN: State University PTS: Private University PPAk: Professional Accountancy Education Program ACCOUNTANT 2014 – NOW 2002 – 2014 CA EXAM PRACTICAL EXPERIENCE PPAk PTN/PTS IAI MEMBER PTN/PTS 2002 – 2014 • Academic-based pathway. Curriculum of PPAk was not compliant with IES 2-4. • No CA: No working experience & CPD requirements. • Assessment conducted by individual universities. 2014 – NOW • Based on IES requirements.
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  MOF Rule 25 (2014) IAI2021 4 State Registered Accountant • Education background • Examination • Professional experience • CPD requirement • Membership with a recognised PAO CA INDONESIA PROFESSIONAL LEVEL CHARTERED ACCOUNTANT (CA) IAI PROFESSIONAL EXPERIENCE 3 YEARS Corporate Reporting Strategic Management & Leadership Audit & Assurance Adv. Management Accounting Management Taxation Adv. Financial Management Information System & Internal Control STATE REGISTER ACCOUNTANT FOUNDATION LEVEL CERTIFICATE IN ACCOUNTING, FINANCE & BUSINESS (CAFB) IAI Financial Accounting Cost Accounting and Management Business Law and Tax Assurans & Information System Financial Management Business & Economy
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  OVERALL APPROACH • Strategy:In year 2020, IAI established its 6.1 Initiative, which includes a focus on “Updating the accounting education and professional education curriculum to accommodate technological developments and business disruptions”. • Legal backup and recognition: IAI actively coordinating with relevant regulators to ensure accounting education in Indonesia is in line with international standards and best practices. • Stakeholders’ support and awareness: IAI recognised the importance of building stakeholders’ awareness towards the importance of adopting IES and secure their support (buy-in). This is done through coordination, information sharing, and collaboration on events and activities. • Focus on accounting students: IAI recognises the importance of promoting and encouraging entry into the profession and introduced the following initiatives:  Aspiring Professional Accountant Festival (APA Fest) since 2017, the largest and most prestigious annual festival for IAI Student Members and outstanding accounting students in Indonesia.  Affiliated Campus program, a collaborative program that facilitates (among others) updating of accounting education curriculum and syllabus development. IAI 2021 5
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  OVERALL APPROACH • Organisationalinfrastructure: IAI established the following infrastructures to focus on strengthening of accounting education in Indonesia (and contribute to adoption of IES):  IAI Accounting Educators Compartment, an important platform to promote IES to accounting educators.  Certification Board for Professional Accountants, to ensure quality of certification for professional accountants, and assess and monitor their education and practical experience.  Management restructuring that includes establishment of a Member and Partnership Division (functions include IPD and CPD assessment and monitor compliance) and Certification and Development of Competence Division (functions include adoption of IES into syllabus and curriculum). • Supporting infrastructures and resources: IAI actively built and update supporting infrastructures and resources for the CA qualification, including but not limited to periodical update of curriculum and syllabus, and references and textbooks, preparation of a pool of trainers (i.e., train-the-trainer activities), and socialisation of the professional accounting education based on IES. IAI 2021 6
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  OVERALL APPROACH • Leveragetechnology: Technology can provide cost-effective and efficient platform(s) to facilitate IPD, CPD, and other initiatives to support implementation of IES. IAI developed its e-Knowledge Center to:  Facilitate IPD and CPD activities.  Assess members’ professional competence and monitor their CPD compliance.  Provide access to self-study module, computer-based exams, and training and education materials (all prepared according to IES). • International benchmarking: IAI actively exploring collaboration with international partners to conduct benchmarking and comparative study of accounting curriculum and education best practices. IAI signed an MRA or MOU with (among others) ACCA, CIMA, CPA Australia, and ICAEW. IAI is also an Associate Member of the Chartered Accountants Worldwide (CAW). IAI 2021 7
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  Entry Requirements toProfessional Accounting Education Programs IAI 2021 8 IES 1 • CA Indonesia: The CA requirements, syllabus and curriculum are adopting IES. Entry requirements for the CA program is as follows (in line with IES 1):  having at least Diploma (D-IV) or bachelor’s degree (S-1) in the field of accounting from an Indonesian higher education provider, or overseas higher education provider;  master’s degree (S-2) or doctorate (S-3) graduates that emphasises the practices of accounting application from an Indonesian higher education provider, or overseas higher education provider;  taking the professional accounting education program; or  having a certificate of level 6 (six) accounting technician based on the framework of the Indonesian national qualification. Foundation level: IAI introduced the Certificate in Accounting, Finance & Business (CAFB) IAI as a foundation level for the CA program. This also serves as a pathway for non-accountants to enter the profession. INTERNAL
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  IAI 2021 9 •IAI through its Accounting Educators Compartment is working with relevant stakeholders to update the learning outcomes for the CA, Bachelor and Diploma (accounting) degree syllabus and curriculum to be in line with IES 2-4. • Maintain quality: IAI together with the Indonesian Bachelor of Economics Association and the Economics and Business Faculties Association established the Indonesian Accreditation Board of Economic, Business Management, and Accountancy Education to monitor quality of accounting higher education. This includes incorporation of IES into IPD requirements in the accounting education syllabus and curriculum. INTERNAL EXTERNAL Initial Professional Development: Technical Competence, Professional Skills, and Professional Values, Ethics, and Attitudes IES 2 – 4
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  IAI 2021 10 •Assessment: • IAI through its Certification Board for Professional Accountants is conducting assessment for both practical experience and professional competence. • IAI in coordination with its Accounting Educators Compartment to include assessment of IES 2-4 at the Professional Accounting Education Program and at the Bachelor degree level. • IAI is working towards implementing workplace assessment of competence by employers and review of a portfolio of evidence on completion of workplace activities. • Practical experience: IAI established the Corporate Partner initiative, among of which includes mentoring opportunity to gain relevant (and monitored) practical experience. INTERNAL EXTERNAL Initial Professional Development: Practical Experience and Assessment of Professional Competence IES 5 - 6
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  IAI 2021 11 •Facilitate CPD activities: IAI facilitates members’ CPD through:  A combination of commercial, complimentary, virtual, and/or face-to-face CPD activities (e.g., webinars, workshops, seminars, etc).  Its 5 Knowledge Centers and 34 Branch Offices. • Pool resources: Identify trainers and resources and/or leverage partners’ network and resources (through collaboration) to deliver CPD activities. INTERNAL Continuing Professional Development IES 7
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  IAI 2021 12 •Legal recognition: Mandatory CPD is required under the Minister of Finance Regulation Number 216/PMK.01/2017 on Registered Accountants (PMK). • Work with key stakeholders: IAI maintains close coordination with key stakeholders such as:  The Ministry of Finance, IAPI and IAMI to regularly assess CPD requirements for Practicing Accountants in Indonesia.  International PAOs (members of IFAC) to organise CPD activities aim to update IAI members with the latest international development. • Contribute to (and leverage) relevant stakeholders’ initiative: IAI as part of its collaboration with IAPI and IAMI actively contributes to the Ministry of Finance e-Learning Center, developed to facilitate CPD activities and monitor Practicing Accountants’ CPD compliance. EXTERNAL Continuing Professional Development IES 7
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  IAI 2021 13 •CA syllabus update: IAI updated its CA syllabus in 2019 to:  Introduce an Audit and Assurance module as a compulsory unit of the CA Professional level.  Embed Ethics & Corporate Governance into (as part of their components) the seven CA subjects. • Coordination with practitioners: IAI is working with the large firms and seek their inputs as part of alignment of the CA curriculum and syllabus with IES 8. This also includes seeking practitioners’ contribution in developing examination resources (i.e., questions) for the CA audit and assurance module. Professional Competence for Engagement Partners Responsible for Audits of Financial Statements IES 8 INTERNAL EXTERNAL
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  KEY TAKEAWAYS • Understandthe requirements of the SMO: Engage with IFAC and/or your fellow PAO to understand the requirements for compliance with the SMO. • Know your stakeholders: Identify the key relevant stakeholders in your jurisdiction and their respective role and authority in contributing to compliance of the SMO. • Understand your responsibility: Assess whether you have a full, shared (with who?), or no direct responsibility to comply with the SMO. • Establish a clear action plan: Prepare a clear action plan with a clear objective (e.g., to move from “execute” to “review and improve”), timeline, identification of resources needed, and measurable deliverables. Consider alignment of the plan with your strategies, priorities, capacity, and resources. • Ask for help: Do not hesitate to contact IFAC to seek clarification and/or your fellow PAO to share their experience in dealing with common/similar challenges to comply with the SMO. IAI 2021 14
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  IAI 2021 15 IKATANAKUNTAN INDONESIA Grha Akuntan, Jl. Sindanglaya No. 1 Menteng, Jakarta Pusat Tel. 021-319 04232 Instagram: @ikatanakuntanindonesia Fan Page: Ikatan Akuntan Indonesia LinkedIn: Ikatan Akuntan Indonesia Twitter: @IAINews Web: www.iaiglobal.or.id
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  Entry Requirements toProfessional Accounting Education Programs IAI 2021 16 IES 1 • Pathways: Pathways to become a professional accountant under CA Indonesia qualification program are in line with the requirements of IES. It includes recognition of minimum level of technical competence and professional skills through relevant education degree, abidance to professional values, ethics and attitudes as prescribe under the different standards of the profession issued by IAI, proven practical experience through self-assessment mechanism, and assessment of professional competence by the institute. IAI continues to work on establishing and/or recognising different pathways (that meet IES requirements) into the profession:  Professional Accounting Education Program, updated to meet CA requirements (based on latest IES).  Signing of MOUs with international partners (IES adopters) to establish CA as an internationally recognised pathway into the profession, including with ACCA, CIMA, CPA Australia, and ICAEW. IAI is also an Associate Member of the Chartered Accountants Worldwide (CAW). EXTERNAL
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  IES 2: BroadTechnical Competences Financial Accounting & Reporting Management Accounting Audit and Assurance Taxation Information Technology Finance and Financial Management Governance, Risk Management and Internal Control Business Law and Regulations Business and Organizational Environment Economics Business Strategy and Environment
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  IES 3: ComprehensiveProfessional Skills Intellectual • Evaluate information from a variety of sources and perspectives • Recommend solutions to unstructured multi-faceted problems Interpersonal and Communication • Demonstrate awareness of cultural and language differences in all communication Personal • Demonstrate a commitment to lifelong learning • Apply an open mind to new opportunities
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  IES 4: FarReaching Professional Values, Ethics and Attitudes Professional Values • Identify and evaluate reasonableness alternatives to reach well-reasoned conclusion based on all relevant facts and alternatives. Ethical Principles • Apply the fundamental ethical principles