1. Accountancy Education Research Prof. J.P.J. (Hans) Verkruijsse PhD RE RA

2. Objective of accounting education Building a sound financial future and restoring the trust The qualification, education, training and experience of professional accountants and auditors are of crucial importance for the functioning of the global financial infrastructure. A wide range of stakeholders, including regulators and standard setters, professional accountancy organizations and accountancy firms as well as issuers of financial reports and users of accounting services depend on their professional expertise and skills.

3. Objective of accounting education Building a sound financial future and restoring the trust A sound financial future is build on trust Trust is based on reliable information Information is reliable when produced by people with the right professional skills Proper accounting education supports the development of professional skills

4. Accountancy Education Research Research area’s: specifications of appropriate assessment methods, competencies, professional attitudes and ethics, variations in nationally-imposed requirements, supply and demand for accountants and auditors who can produce and audit transnational accounts. 4

5. Global Accountability Development Institute Global Accountability Development Institute (GADI), research project: Global Accountability Transparancy Index (GATI): Research question: To what extend can you rely on the work performed by an auditor in another jurisdiction? 5

6. 43 countries reviewed Asia & Pacific: Australia, Hong Kong, India, Japan, Malaysia, New Zealand, Pakistan, Singapore and Sri Lanka. Middle East, North Africa, Central Europe and Eurasia: Kazakhstan, Kosovo, Moldova, Saudi Arabia, Serbia and Turkey. European Union: Czech Republic, France, Hungary, Ireland, Italy, Netherlands, Romania, Sweden and United Kingdom. Latin America: Argentina, Brazil, Chili, Colombia, Cuba, El Salvador, Mexico, Peru and Venezuela. North America: Canada and USA. Sub Saharan Africa: Cameroon, Ghana, Kenya, Lesotho, Senegal, South Africa, Tanzania, Zimbabwe. 6

7. More to come Countries under review on this moment China Russia Germany Panama 7

8. Global Accountability Transparancy Index (GATI) GATI’s information blocks: Pillar 1, Legal, Regulatory and Institutional Framework Pillar 2, Audit, Assurance and Quality Control Pillar 3, Global Accountancy Education Pillar 4, International Public Sector Accounting Standards Pillar 5, International Financial Reporting Standards Pillar 6, Ethics & Discipline Pillar 7, Corporate Governance – Transparency & Disclosure Pillar 8, Professional Accountancy Association Institutional Capacity 8

9. GATI-Pillar 3, Global Accountancy Education The Global Accountancy Education pillar (GAE 2012): developed a competency framework that includes:  qualification requirements,  general and professional education,  practical training and experience,  Continuing Professional Development. makes available information about:  the qualification,  education and  training of accountants and auditors 9

10. GAE 2012 based on earlier research 2002 “Impact of Globalization on Accountancy Education”; global classification study 2005 “Global Accounting Education Benchmarking”; regional benchmarking study of accountancy education 2007 “Trends in Global Accounting Education”; global analysis of trends in development of accountancy education 2009 “Accountancy Development Index”; global benchmarking pilot study of the accountancy environment 2011 “Measuring country-level accountancy performance and achievement”; accountancy development index, a pilot study funded by USAID 10

11. Accountancy Educational programs Accountancy educational programs: operate in a very complex environment:  rooted in local concerns  affected by outside influences and international movements  sensitive to the educational requirements for qualification factors influencing qualifications are;  regulation set by law and/or by professional bodies,  criteria set by academic organizations  standards set by professional accounting firms. 11

12. Accountancy Education in Developing Economies Bel Needles (2005) identified the following weaknesses: quality of academic education for pre-qualification needs improvement; too much emphasis on bookkeeping instructors lack knowledge of international standards and practices; lack of adequate resources for higher education; professional ethics is not taught as a separate subject; examinations do not always represent good practice; continuing education requirements do not always exist. 12

13. GAE 2012 research methodology The benchmarking methodology may be summarized as follows: country experts with up-to-date knowledge of the present situation conduct the self assessment; external and independent assessors validate the results of the self assessment to achieve internal relevance and external credibility; and, multiple indicators. 13

14. GAE 2012 research references References used: IES’s issued by the IAESB model curriculum of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting Common Content Initiative12 devised by a group of professional bodies in the EU and the EU 8th Directive on Statutory Auditors standards issued by Certified Management Accountant (CMA) Standards issued by American Institute of Certified Public Accountants (AICPA) 14

15. IAESB / IFAC 15 IAESB: developed high quality standards and other guidance to strengthen accountancy education worldwide; focuses on:  prequalification  practical experience and training,  assessment,  continuing professional education needed by accountants.

16. International Education Standards The IAESB has issued the following standards: IES 1: Entry Requirements for Professional Accounting Education Program; IES 2: Content of Professional Accounting Education; IES 3: Professional Skills and General Education; IES 4: Professional Values, Ethics and Attitudes; IES 5: Practical Experience Requirements for Aspiring Professional Accountants; IES 6: Assessment of Professional Capabilities and Competence; IES 7: Continuing Professional Development; IES 8: Competence Requirements for Audit Professionals. 16

17. GAE 2012 reseach vs IES’s 17 General Characteristics Country CharacteristicsLegal system, economic position, region Professional CharacteristicsProfessional regulation and recognition Qualification Characteristics Practice rights of accountants and auditors International recognition of qualifications Competency Pillars Personal Development University Entrance & Exit Level (IES 1 & IES 2) Professional Skills & General Education (IES 3) Professional Values, Ethics & Attitudes (IES 4) Professional Accountancy Education Accountancy, Finance, Organizational, Business Information Technology Knowledge (IES 2) Professional Development Practical Experience Requirements (IES 5) Professional Capabilities & Competence (IES 6) Continuing Professional Development (IES 7) Competence for Auditors Professionals Advanced Professional Knowledge, Skills, Values, Ethics, Attitudes, advanced Practical Experience, Assessment & CPD (IES 8)

18. GAE 2012 research Competency Pillars Competency pillars: personal development, combines elements that in many countries are achieved through university education; entry level should be at least equivalent to that for admission into a recognized university degree program or its equivalent ; professional accountancy education, the theoretical education normally provided by universities and/or professional accountancy organizations; professional development, combines practical experience, assessment of professional competence, and CPD. Normally the accountancy profession is leading in these areas. competency for audit professionals, includes higher level requirements for licensed accountants and auditors. 18

19. GEA 2012 research scores by region RegionPersonal Development Professional Accountancy Education Professional Development Competence for Audit Professionals AdoptImplAdoptImplAdoptImplAdoptImpl Asia & Pacific.91.81.98.97.98.89.91.95 Central Europe & Eurasia, Middle East & North Africa.93.61.80.611.00.70.83.71 European Union.97.86.91.94.95.89.91.96 Latin America.90.58.84.57.32.23.70.58 North America.97.89.96.83.89.75.95 Sub Saharan Africa.97.76.96.951.00.70.89.77 19

20. GEA 2012 research scores by country 20

21. GEA 2012 research scores aggregated Region AggregateAdoptionImplementation Asia & Pacific.93.95.91 Central Europe & Eurasia, Middle East & North Africa.79.88.70 European Union.92.93.91 Latin America.60.69.51 North America.90.88.92 Sub Saharan Africa.88.95.80 21

22. Conclusions The IES’s are a comprehensive set of consistent, high-quality standards for educating professional accountants. Educational programs in compliance with IES, financial reporting and auditing standards will produce high quality professional accountants. Studies by Karreman and Needles (Karreman, 2002, 2006, 2007; Needles 1994, 2005, 2008, 2010, 2011) has identified numerous occasions of internationally compatible development. GEA 2012 research results indicates a difference between adoption and implementation on country level. GEA 2012 research results will support the users of auditors reports in validating them. GEA 2012 research will contribute to the GATI research project. 22

23. Questions? Don’t hesitate! Prof. J.P.J. (Hans) Verkruijsse PhD RE RA Tilburg University e-mail: J.P.J.Verkruijsse@tilburgunivesity.edu mobil: +31 6 53 354 957