The document discusses the revision of the International Education Standards (IESs) by the International Accounting Education Standards Board (IAESB). The objectives of revising the IESs are to improve clarity, ensure consistency with the revised framework, and clarify issues from changes in the environment of accounting education. An overview is provided of the current IESs and the revision process, including examples of revisions made to IES 1 on entry requirements and IES 5 on practical experience. The implications of the revised standards for different stakeholders are also addressed.

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Revision of IESs – Implications &
Opportunities for the JICPA
Peter Wolnizer
IAESB Chair
Japanese Institute of Certified Public
Accountants
34th Annual Research Conference
September 2013

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Introduction
Outline of Presentation
1.
• Description of IAESB
2.
• Overview of IESs
3.
• Revision of IESs
4.
• Implications of Revised IESs

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MISSION STATEMENT:
“ To serve the public interest by
strengthening the worldwide accountancy
profession through the development and
enhancement of education.”
What Is Our Mission?
IAESB Overview

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What Are Our Objectives?
To serve the public interest by
• Establishing a series of high quality standards and
other publications reflecting good practice in the
education, development and assessment of
professional accountants
• Promoting the adoption and implementation of the
International Education Standards (IESs)
• Developing education benchmarks for measuring
the implementation of the IESs
• Advancing international debate on emerging issues
relating to the education, development and
assessment of professional accountants
IAESB Overview

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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
How Do We Operate?
IAESB Overview

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Rigorous due process subject to PIOB review
Expose draft Standards for public comment
Have public members
Receive input through Consultative Advisory
Groups
How Do We Operate? (continued)
IAESB Overview

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IESs Overview
Important Characteristics
International
Education
Standards
Audience
IFAC Member
Bodies
Coverage
Policy &
Professional
Accounting
Education
Programs
Level of Authority
“To Prescribe …”
Scope
“Advancing
accountancy
profession by
establishing
benchmarks..”

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IESs Overview
Prescribe the
knowledge, skills, values, ethics and
attitudes required of a professional;
Develop skills for life-long learning;
Focus on learning outcomes, not inputs;
Promote consistency in accounting
education.
A set of interlinked Standards covering initial &
continuing professional development that:

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IESs Overview
Initial Professional
Development
Entry Requirements for
Professional Accounting
Education
Content of Professional
Accounting Education
Practical Experience
Assessment
Continuing
Professional
Development
Continuing
Professional
Development
Specialization
Initial & Continuing Professional Development

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Current International Education Standards
IES 1, Entry Requirements to a Program of
Professional Accounting Education
IES 2, Content of Professional Accounting
Education Programs
IES 3, Professional Skills & 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 of Audit
Professionals
Initial Professional
Development
Continuing
Professional
Development
IESs Overview

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Revision of IESs
Improving clarity;
Ensuring consistency with concepts of the
revised Framework document; and
Clarifying issues resulting from changes in
the environment of accounting education
and the experience gained from
implementation of the Standards by IFAC
member bodies.
Project Objectives for Revision of IESs:

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Revision of IESs
IES 1, Entry Requirements To A Program Of
Professional Accounting Education
IES 1 prescribes
the principles to be used when setting and
communicating educational requirements for
entry to professional accounting education
programs

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Revision of IESs
IES 1, Entry Requirements To A Program Of
Professional Accounting Education
IES 1, Entry Requirements to
Professional Accounting Education
Programs
IES 2, Initial Professional Development –
Technical Competence
IES 3, Initial Professional Development –
Professional Skills
IES 4, Initial Professional Development –
Professional Values, Ethics, and Attitudes
IES 5, Initial Professional Development –
Practical Experience
IES 6, Initial Professional Development –
Assessment of Professional Competence
Entry to the
Accountancy
Profession
Entry to Professional
Accounting
Education Programs
Development

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Revision of IESs
IES 1, Entry Requirements To A Program Of
Professional Accounting Education
Audience
• Primarily to IFAC Member Bodies
• Helpful to stakeholders who deliver and
support delivery of professional accounting
education programs

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Revision of IESs
IES 1, Entry Requirements To A Program Of
Professional Accounting Education
Principles
• Allowing flexible access to professional
accounting education programs
• Ensuring reasonable chance of successful
completion of professional accounting
education programs

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IES 1
• Aim to ensure students have
background to have reasonable
chance of achieving success
• Requires education at least
equivalent to enter a university
degree program or equivalent
REVISED IES 1
• Prescribe principles for setting
& communicating educational
requirements for entry
• Specify that educational entry
requirements allow entrance
only to those with a reasonable
chance of completing the
program; and
• Require publically available
information to help individuals
assess their own chances of
completing a professional
accounting education program.
Revision of IESs
IES 1, Entry Requirements To A Program Of
Professional Accounting Education

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Revision of IESs
IES 5, Initial Professional Development – Practical
Experience
IES 5 prescribes
the practical experience required of aspiring
professional accountants by the end of Initial
Professional Development

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Revision of IESs
IES 5, Initial Professional Development – Practical
Experience
Requirements
Practical Experience
 Completed by the end of Initial Professional
Development
 Sufficient to perform a role as professional
accountant

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Revision of IESs
IES 5, Initial Professional Development – Practical
Experience
Requirements (continued)
Measurement
 practical experience measured using one of
the following 3 approaches:
 Output-based
 Input-based
 Combination of output and input-based
approaches

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Revision of IESs
IES 5, Initial Professional Development – Practical
Experience
Requirements (continued)
Supervision & Monitoring
 Under the direction of a practical experience
supervisor
 Recorded in a consistent form & supported by
verifiable evidence
 Periodic review of records
 Appropriate assessment activities to assess
sufficient practical experience

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IES 5
• Aim is to ensure that candidates
have acquired the practical
experience considered
appropriate at the time of
qualification to function as
professional accountants.
• Minimum of 3 years’ practical
experience
• Need to record and assess
experience
REVISED IES 5
• Require that practical experience
is measured by using one of the
following approaches: output-
based, input-based; or
combination of these
approaches;
• Require assessment activities
that asses completing sufficient
practical experience by the end
of IPD;
• Ensure that practical experience
is properly recorded, as well as
monitored and periodically
reviewed by a practical
experience supervisor.
Revision of IESs
IES 5, Practical Experience Requirements

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Implication of Revised Standards
IES Status Developed
PAO
Developing
POA
University Regulator
1 Standard M M L L
2 Post-
Exposure
H H H M
3 Post-
Exposure
M H M L
4 Standard M H M M
5 Standard M M L M
6 Standard M M M M
7 Standard H H L M
8 Post-
Exposure
H H L H

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Sources of Information
http://www.ifac.org/education
THANK YOU
Information