The document discusses the revision of International Education Standards (IESs) by the International Accounting Education Standards Board (IAESB). It provides an overview of the IAESB and outlines its mission to strengthen accounting education globally through the development of high-quality standards. The presentation then summarizes the objectives of revising the IESs for clarity and consistency. Key revisions to individual IESs are described, focusing on prescribing learning outcomes and requiring assessment activities to ensure competencies are achieved. The implications of adopting the revised IESs for different stakeholder groups are presented.

1. Revision of IESs –
Implications & Opportunities
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Prof. Peter Wolnizer
IAESB Chair
David McPeak
IAESB Senior Technical Manager
ICMA Pakistan
April 24, 2014

2. Introduction
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Outline of Presentation
1.
• Description of IFAC & IAESB
2.
• Overview of IESs
3.
• Revision of IESs
4.
• Implications of Revised IESs
5.
• Application of IESs

3. Who Is IFAC?
IFAC & IAESB Overview
• Global organization of the accountancy
profession, dedicated to the public interest
• Comprised of 179 member bodies and associates
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in 130 countries
• Represents 2.5 million accountants in public
practice, education, government, service,
industry, and commerce

4. What IFAC Does?
IFAC & IAESB Overview
• Serves the public interest
• Develop high-quality standards & guidance
• Facilitate the adoption & implementation
• Contribute to the development of strong PAOs &
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accounting firms
• Contribute to high-quality practices by
professional accountants
• Promote the value of professional accountants
worldwide
• Speak out on public interest issues

5. IAESB Overview
International Auditing and Assurance
Standards Board
International Ethics Standards Board
for Accountants
International Public Sector
Accounting Standards Board
International Accounting Education
Standards Board
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Four Standard-Setting Boards

6. IAESB Overview
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What Is Our Purpose?
STATEMENT of PURPOSE:
“The IAESB exists, in the public interest, to
raise the level of confidence and trust of
stakeholders in the work of professional
accountants.”

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

8. IAESB Overview
Enhancing Education By:
• Contributing to the ability of the accountancy
profession to meet the needs of decision makers
• Increasing the competence of the global
accountancy profession, contributing to
strengthened public trust
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9. IAESB Overview
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
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the implementation of the IESs
• Advancing international debate on emerging issues
relating to the education, development and
assessment of professional accountants

10. 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
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Board’s activities
• Consultative Advisory Group (CAG) – strategic and
operational advice
• IFAC staff – facilitate structures and processes that
support the operations of the IAESB
IAESB Overview

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

12. IESs Overview
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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..”

13. IESs Overview
A Set of interlinked Standards covering initial &
continuing professional development that:
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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

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

15. IESs Overview
Current International Education Standards
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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
IES 8, Competence Requirements of Audit
Professionals
Initial Professional
Development
Continuing
Professional
Development

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

17. Revision of IESs
IES 1, Entry Requirements To A Program Of
Professional Accounting Education
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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
• Require publically available
information to help individuals
assess their own chances of
completing a professional
accounting education program

18. Revision of IESs
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IES 2, Content of Professional Accounting
IES 2
• Aim is to ensure that candidates
have advanced professional
accountancy knowledge to
function as competent
professional accountants.
• Content of professional
accounting education includes:
• Accounting, finance and
related knowledge
• Organizational and business
knowledge
• IT knowledge and
competences
REVISED IES 2
• Prescribes learning outcomes to
achieve technical competence
• Review education programs to
achieve learning outcomes
• Require assessment activities
that measure the achievement of
technical competence of aspiring
professional accountants
Education Programs

19. Revision of IESs
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Learning Outcome Table
Competence Area
(Proficiency Level)
Learning Outcome
Financial Accounting &
Reporting
(i) Apply accounting principles to transactions and other
events.
(Intermediate) (ii) Apply International Financial Reporting Standards
(IFRSs) or other relevant standards to transactions and
other events.
(iii) Evaluate the appropriateness of accounting policies
used to prepare financial statements.
(iv) Prepare financial statements, including consolidated
financial statements, in accordance with IFRSs or other
relevant standards.
(v) Interpret financial statements and related disclosures.
(vi) Interpret reports that include non-financial data, for
example, sustainability reports and integrated reports.

20. Revision of IESs
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Level of Proficiency
Level of Proficiency Description
Intermediate Typically, learning outcomes in a competence area focus on:
• Independently applying, comparing, and analyzing
underlying principles and theories from relevant areas of
technical competence to complete work assignments and
make decisions;
• Combining technical competence and professional skills to
complete work assignments;
• Applying professional values, ethics, and attitudes to work
assignments;
• Presenting information and explaining ideas in a clear
manner, using oral and written communications, to
accounting and non-accounting stakeholders.
Learning outcomes at the intermediate level relate to work
situations that are characterized by moderate levels of
ambiguity, complexity, and uncertainty.

21. Revision of IESs
IES 3, Professional Skills and General Education
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IES 3
• Aim is to ensure that
candidates are equipped with
the appropriate mix of skills to
function as professional
accountants
• Skills of professional
accounting education include:
• Intellectual
• Technical and functional
• Personal
• Interpersonal &
communication
• Organizational & business
management
REVISED IES 3
• Prescribes learning outcomes
to achieve professional skills
• Review education programs to
achieve learning outcomes
• Require assessment activities
that measure the achievement
of professional skills of
aspiring professional
accountants
• No requirements relating to
general education

22. Revision of IESs
IES 4, Initial Professional Development –
Professional Values, Ethics, and Attitudes
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IES 4
• Aim is to ensure that
candidates are equipped
with the appropriate
professional values, ethics,
and attitudes to function as
professional accountants
• Framework for exercising
professional judgment and
acting in an ethical manner
• Acknowledge different
approaches to reflect
national and cultural
environment
REVISED IES 4
• Prescribes learning
outcomes to achieve
professional values, ethics
& attitudes
• Review education
programs to achieve
learning outcomes
• Require assessment
activities that measure the
achievement of
professional values, ethics
& attitudes of aspiring
professional accountants

23. Revision of IESs
IES 5, Practical Experience Requirements
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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

24. Revision of IESs
IES 6, Assessment of Professional Capabilities and
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IES 6
• Aim is to ensure that
candidate’s professional
capabilities and competence
before qualification is
assessed
• Test of theoretical knowledge
and practical application of
knowledge
REVISED IES 6
• Require a formal assessment
on whether aspiring
professional accountants have
achieved an appropriate level
of professional competence by
the end of IPD
• Ensure that assessment
activities are designed to have
high levels of reliability,
validity, equity, transparency &
sufficiency within professional
accounting education
programs
• Require assessment that is
based on verifiable evidence
Competence

25. Revision of IESs
IES 7, Continuing Professional Development
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IES 7
• Aim is to ensure that
professional accountants
develop and maintain
capabilities to perform
competently within their
professional environments.
• Mandatory CPD for all
professional accountants
• Facilitate access, monitor,
and enforce to CPD
• Ensure relevant, measurable
and verifiable CPD activities
• Input, Output, or Combined
REDRAFTED IES 7
• Clarify the obligations of CPD
while requiring professional
accountants to develop and
maintain professional
competence throughout their
careers

26. Revision of IESs
IES 8, Competence Requirements for Audit Professionals
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IES 8
• Aim is to ensure is to ensure that
professional accountants acquire
and maintain the specific
capabilities required to work as
competent audit professionals.
• Qualify as a professional
accountant
• Hold undergraduate degree or
equivalent
• Advanced level knowledge audit
of historical financial information
financial accounting and
reporting
• Professional skills expected of
audit professionals
PROPOSED IES 8
• Require engagement partners to
undertake CPD that maintains
and further develops
professional competence for this
role

27. Application of IESs
How Standards are Used?
World Bank’s Reports on the Observance of
Standards and Codes (ROSC) initiative –
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IFAC’s Compliance Program – SMO 2
• Support for Section IIC of Questionnaire which is used as a diagnostic tool to
provide an overview of the accounting and auditing environment in the country
USAID BISTA Project – Benchmarking International
Standards of Transparency and Accountability
UNCTAD – Guideline For A Global Accounting
Curriculum And Other Qualification Requirements

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Implication of Revised Standards
IES Status Developed
PAO
Developing
POA
University Regulator
1 Standard M M L L
2 Standard H H H M
3 Standard M H M L
4 Standard M H M M
5 Standard M H 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
www.iaesb.org
THANK YOU
Information