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In this Issue:
1. Proposed Standard Focuses on Competence of Audit Professionals
In April, IFAC's Education Committee released a proposed International Education Standard (IES), Competence Requirements for Audit Professionals, which requires professional accountants to acquire the specific capabilities (i.e., the professional knowledge, professional skills and professional values, ethics, and attitudes) necessary to work as competent audit professionals. The proposed standard, which is the first specialist standard developed by the Education Committee as a follow-up to IESs 1 to 7, will apply both to the auditor and to those who have a substantial involvement in the audit assignment and who are responsible for making significant judgment decisions contributing to the overall audit opinion.
The exposure draft can be viewed at http://www.ifac.org/EDs. Comments are requested by July 15, 2005.
2. International Public Interest Oversight Board Formed
On February 28, the Public Interest Oversight Board (PIOB) was formally established to oversee IFAC's auditing, ethics and education standard-setting committees and its Member Body Compliance Program. As one of IFAC's Public Interest Activity Committees (PIACs), the Education Committee now comes under the oversight of the PIOB. The PIOB will evaluate the due process of IFAC's standard-setting committees and report publicly on them, approve the membership of the PIACs, and may request that matters be added to the work programs of those committees.
The establishment of the PIOB is one of a number of IFAC reforms unanimously approved by IFAC's Council and supported by international regulators to boost confidence in IFAC's standard-setting processes. A further update on IFAC's reform activities is also available.
3. Consultative Advisory Group for the Education Committee Established
A Consultative Advisory Group (CAG) for the Education Committee was established to provide input on the committee's agenda, project timetable and priorities. The CAG, which held its first meeting in New York on March 1, is comprised of representatives of regulators, accounting academics, accounting examination and accreditation bodies, international development agencies and other international organizations who are interested in the development of high quality international standards on accountancy education and continuing professional development. The CAG's next meeting is planned for early October 2005.
4. Education Committee Works with UNCTAD
The Education Committee has agreed to work with UNCTAD (the United Nations Conference on Trade and Development) to conduct a review comparing UNCTAD's Model Curriculum with International Education Standard 2, Content of Professional Accounting Education Programs. The objective of this work is to determine how IFAC and UNCTAD can best address curriculum issues in the future. This joint initiative follows the signing of a Memorandum of Understanding between IFAC and UNCTAD in November 2004.
5. Implementing Continuing Professional Development Programs
Member bodies are making significant advances in introducing compulsory Continuing Professional Development (CPD) programs following the release of International Education Standard 7, Continuing Professional Development: A Program of Lifelong Learning and Continuing Development of Professional Competence, in May 2004. The Education Committee is compiling a range of guidance materials to assist member bodies as they implement CPD programs for all members of their organizations, including examples of different approaches to CPD being adopted by member bodies. These guidance materials will be posted on the committee's website in the coming months.
6. Education Committee Focuses on Ethics
Recognizing the critical role of professional values and ethics in the practice of accountancy, the Education Committee is continuing work to develop guidance and materials to assist member bodies, academic institutions and others to develop the professional skills, professional values, ethics and attitudes in current and future members of the profession. The guidance will help IFAC member bodies in complying with the requirements in International Education Standard 4, Professional Values, Ethics and Attitudes. The research phase of the project will be completed by October 2005, and the committee plans to release draft guidance by late 2005 and an exposure draft in early 2006.
7. Electronic Guidance Available to Help Member Bodies Assess Perspective Accountants
International Education Paper (IEP) 3, Assessment Methods, can assist IFAC member bodies and other relevant organizations in developing suitable procedures to ensure that candidates admitted as members in their organizations are appropriately qualified. The guidance also assists member bodies in complying with the requirements prescribed in International Education Standard 6, Assessment of Professional Capabilities and Competence. The paper provides key concepts, a summarized evaluation of relevant assessment methods, and an appendix with questions designed to assist in evaluating an organization's assessment methods and in determining the appropriate mix of methods suitable to its environment and circumstances.
Accompanying this paper, the Education Committee has made available on its website electronic reference materials on assessment methods and links to websites dealing with the theory and practice of assessment as well as new developments in the field of assessment. These materials can be accessed at http://www.ifac.org/education.
8. Future Projects
Looking ahead, the Education Committee plans to develop the following:
9. Upcoming Meetings
In an effort to advance its work program, the Education Committee has increased the number of its meetings per year from two to three. The committee's next meetings will be held in DŸsseldorf, Germany on June 13-14, 2005, and in Kuala Lumpur, Malaysia on October 24-26, 2005. For more information or to register as a public observer, please visit the Education Committee's website at http://www.ifac.org/Education/Meetings.php.
For more information about any of the items mentioned above or other information about IFAC's Education Committee, please contact Claire Egan, Technical Manager, at claireegan@ifac.org.
About IFAC
IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. Its current membership consists of 163 professional accountancy bodies in 119 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization sets international standards of ethics, auditing and assurance, education and public sector accounting and issues guidance to encourage high quality performance by professional accountants in business