1. 1 International Education Standards for Professional Accountants Mark Allison, Executive Director Institute of Chartered Accountants of Scotland and Technical Advisor to IFAC Education Committee 1998 - 2005

2. 2 Harmonisation of International Standards Harmonisation key issue for profession Solid foundation to support application of international standards Education provides foundation

3. 3 Education Board (IAESB) 2006 Develops standards and guidance for education and development of professional accountants Transparency in standard-setting process Members include practicing accountants, academics, representatives from business and the public Observers from international accounting academic community and UNCTAD

4. 4 International Education Standards (1) Set benchmarks for education of worldwide accountancy profession Ensure quality and consistency in accounting education Foundation to achieve convergence of international accounting, auditing, public sector standards Different approaches around the world

5. 5 International Education Standards (2) Prescribe the range of professional knowledge, professional skills, professional values, ethics and attitudes required Develop an attitude of lifelong learning

6. 6 Standards Development Decision to develop Education Standards November 2001 Exposure drafts released July 2002 Consideration of comments International Education Standards (1 -6) issued October 2003 Support of academics, employers IES7 issued May 2004

7. 7 Framework and Introduction Framework – objectives and operating procedures of Board Introduction – purpose, scope and development of IES – discussion about way standards may be adopted and applied

8. 8 IES 1, Entry Requirements Requirements for entry to a programme of professional accounting education and practical experience Aim to ensure students have background to have reasonable chance of achieving success Must be at level which would allow entry to a university degree

9. 9 IES 2, Content of Professional Accounting Education Programs Prescribes knowledge and competences candidates require to function as a professional accountant – Accounting, finance and related knowledge – Organisational and business knowledge – IT knowledge and competences Degree or professional qualification At least two years full time study

10. 10 IES 3, Professional Skills Prescribes the mix of professional skills required – Intellectual skills – Technical and functional skills – Personal skills – Interpersonal and communication skills – Organisational and business management skills General education helps to develop these skills

11. 11 IES 4, Professional Values, Ethics and Attitudes Prescribes the professional values, ethics and attitudes required Prescribes minimum subject areas Acknowledge different approaches will reflect national and cultural environment

12. 12 IES 5, Practical Experience Requirements Aims to ensure candidates have the necessary practical experience to become a professional accountant Minimum of 3 years’ practical experience Guidance of experienced professional accountant Record of experience and review

13. 13 IES 6, Assessment of Professional Capabilities and Competence Final assessment before qualification as a professional accountant Test of theoretical knowledge and practical application of knowledge Reliable and valid

14. 14 IES 7, Continuing Professional Development Mandatory CPD for all professional accountants Foster commitment to lifelong learning Facilitate access to CPD opportunities Establish benchmarks for development and competence of professional accountants Monitor and enforce CPD

15. 15 IES 7, Continuing Professional Development Three approaches Input approach – 120 hours, three year rolling period Output approach Combination approach

16. 16 IES8 (Draft) Competence for Audit Professionals Audit of historic financial information All IES1-7 and additional advanced knowledge Graduate level Audit specific skills Application of ethics in an audit context Specific work experience To be issued July 2006/Applies January 2008

17. 17 Implementation of Education Standards Compliance required by all IFAC member bodies – January 2005, IES 1 – 6 – January 2006, IES 7 Recognise different education systems and processes Acknowledge stages of development