1 A New Yorker Cartoon (In Reverse)

2 Introduction – the IAESB (International Accounting Education Standards Board) - Formally the IFAC Education Committee - Develops standards and guidance for education and development of professional accountants - Members include practicing accountants, academics, representatives from business, the Forum of Firms and public members - A Consultative Advisory Group (CAG) provides comments and perspectives - Public Interest Oversight Board reviews the IAESB work products

3 Purpose of International Education Standards (IESs) -Establish essential elements for accounting education -Prescribe the range of professional knowledge, professional skills, professional values, ethics and attitudes required -Develop an attitude of lifelong learning -Promote consistency and convergence in accounting education

4 Eight Standards* Issued - IES 1: Entry Requirements to a Program of Professional Accounting Education - IES 2: Content of Professional Accounting Education - IES 3: Professional Skills - 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 for Audit Professionals * Standards were initially guidance. Changed officially to Standards after 2001 discussions.

5 First, whats the link? Why should you care? IFAC (International Federation of Accountants) – Supported by AICPA as a Member Body - Their Mission Statement - Strategic Theme 1* Be recognized as the International Standard Setter in the Areas of Auditing and Assurance, Education, Ethics, and Governmental Financial Reporting. IAESB – Standards are equal to accounting and auditing standards. We will have to comply! When? - Sooner than we might expect! IFRS is coming! *IFAC Strategic Plan

6 So whats the issue? An Example IES 1 ENTRY REQUIREMENTS TO A PROGRAM OF PROFESSIONAL ACCOUNTING EDUCATION –6. For an individual seeking to begin a program of professional accounting education leading to membership of an IFAC member body; the entry requirement should be at least equivalent to that for admission into a recognized university degree program or its equivalent. IES 5 PRACTICAL EXPERIENCE REQUIRMENTS – 11. The period of practical experience should be a minimum of three years. A period of relevant graduate (beyond undergraduate, e.g., Masters) professional education with a strong element of practical accounting application may contribute no more than 12 months to the practial experience requirement.

7 The Scenario ( Maybe?) We are out of compliance now! We are out of compliance now! Growing attention to education at the national level – e.g., Treasury Panel Growing attention to education at the national level – e.g., Treasury Panel PCAOB has the authority to get involved in education and become the enforcement arm PCAOB has the authority to get involved in education and become the enforcement arm Result: a very rapidly moving train? Result: a very rapidly moving train?

8 IAESB: The Way Forward Ongoing review of Framework Ongoing review of Framework -Seeking input via survey now until Feb. 29 Thanks to APLG and FSA for getting the word out -December meeting: issue new exposure draft -Early 2009: public comment period Upcoming Revision of Standards Project Upcoming Revision of Standards Project - See discussion paper for Agenda Item 4-1 of February meeting

9 Four Key Questions How broad should the definition of professional accountant be? How broad should the definition of professional accountant be? Should standards be at a minimum threshold or aspirational? Should standards be at a minimum threshold or aspirational? Should standards focus on input requirements, outputs or a mix? Should standards focus on input requirements, outputs or a mix? Should IAESB seek convergence to a single set of education standards leading to one point of qualification as a professional accountant? Should IAESB seek convergence to a single set of education standards leading to one point of qualification as a professional accountant?

10 More Information -IAESB Karen Pincus - Chair of the ISEAB framework revision task force Karen Pincus - Chair of the ISEAB framework revision task force - AICPA Mary Stone – Chair, PCEEC Mary Stone – Chair, PCEEC George Krull – Immediate Post Chair, PCEEC George Krull – Immediate Post Chair, PCEEC

11 Why I AM Here? Describe whats happening Describe whats happening Sensitize you to issues Sensitize you to issues Motivate you to discuss this with others who should be watching Motivate you to discuss this with others who should be watching Guide you to more information Guide you to more information Answer questions, maybe Answer questions, maybe