Needles Global Edu Ifac

The Global Coordination of Accounting Education

Presented By

Belverd E. Needles, Jr., Ph.D, CPA

Past-President-IAAERErnst & Young Distinguished Professor of AccountingDePaul University

Objectives of Presentation To show the need for global coordination of

accounting education to summarize efforts of organizations globally to

achieve this objective to highlight the work of IAAER in coordinating

accounting education globally to propose a plan for achieving coordination by

focusing on education of accounting professors in International Education Standards (IES)

“While the accounting standards used must be high quality, they also must be supported by an infrastructure that ensures that the standards are rigorously interpreted and applied, and that issues and problematic practices are identified and resolved in a timely fashion.” (SEC, 2000, p 2, emphasis added)

Importance of Infrastructure

Elements of a Global Infrastructure

Effective, Independent and High-Quality Accounting and Auditing Standard Setters

High-Quality Auditing Standards Audit Firms with Effective Quality Controls

Worldwide Profession-Wide Quality Assurance Active Regulatory Oversight (SEC,2000

p2)

WHERE IS ACCOUNTING EDUCATION IN THIS STRUCTURE?

Accounting Education and Professional Accountants

Factors Affecting the Judgment of Professional Accountants

Factors Affecting the Qualifications of Professional Accountants

Global Coordination of Accounting Education

Factors Affecting Judgment in the Application of International Auditing Standards

InternationalAccounting/Auditing

Standards

Education

Experience

Culture

Factors Influencing the Qualifications of Professional Accountants

RegulationAcademics

Professional Alliances

Qualifications

Global Coordination of Accounting Education

Academic Coordination

Regional

National

International

Global Forces for Change Unrelenting Competitive Pressure Impact of Information and Communication

Technologies Globalization of Business Focus on Value Accounting Demand for New Knowledge and Skills Demand for improvements in corporate

governance and ethics (Source: Karraman, 2004)

Global Assumptions A Profession’s Only Real Capital is its Human

Capital Nationally-Based Education Systems Must Reflect

the Global Dimension The Modern Professional Needs Both Broad

Knowledge and Specialized Skills Professionals Must Continually Acquire New

Knowledge and Skills Future Accountants Need Training in Ethics and

Objectivity(Source: Karreman, 2004)

Emerging Economies - Students

Entering Students are not Adequately Prepared

Accounting Students do not Always Reflect Diversity of the Population

Economic and Health Issues among Students

Emerging Economies – Prequalification Education

The Quality of Academic Education for Pre-qualification Needs to be Improved

Too Much Emphasis on Bookkeeping in the Accounting Curriculum

Instructors Lack Knowledge of International Standards and Practices

Lack of Adequate Resources for Higher Education

Professional Ethics is not Taught as a Separate Subject

Emerging Economies – Post Graduate

Professional Examinations do not Always Represent Good International Practice

Practice Training Requirements do not Always Exist

Continuing Education Requirements do not Always Exist

The Value Chain of Accounting Education--Traditional View

I II III IV V VIEconomic Data Transformation Information Analysis Decisions Events and Data Base

STAGESSTAGES

Low valueLow valueskillsskills

High valueHigh valueskillsskills

The Value Chain of Accounting Education--Future View

I II III IV V VIEconomic Data Transformation Information Analysis Decisions Events and Data Base

STAGESSTAGES

Increasingly performed by Increasingly performed by technologytechnology

Emphasis of Accounting Emphasis of Accounting EducationEducation

Global Movements in Accounting Education

UNCTAD United Nations Conference on Trade and

Development Guidelines on National Requirement for

Qualification of Professional Accountants Global Curriculum Draws heavily on IFAC International Education

Guidelines and Standards Benchmark for Qualifications for Professional

Organizations Assist with Mutual Recognition of Qualifications

Global Accountancy Education Network (GAEN)

Promoting Accountancy Reform by Quantitative Assessment and Progress Monitoring of Professional Associations and Qualifications Requirements

Accountancy Profession as Critical Component for Economic Growth

Accountancy Reform as a Key Factor for Promoting Transparency, Accountability, Ethics and Professional Values

DePaul University Center Global Accountancy Education

Benchmarking Quantitative Benchmarking Methodology Transferable Identifies Gaps Measures Improvements Facilitates Global Trading in Accountancy

Services

Common Curriculum Project

Eight European Accountancy Institutes have Developed Proposals to Unify Their Respective National Professional Entry-Level Qualifications while, at the Same Time, Ensuring that those Qualifications Remain of High-Quality and Meet Changing Expectations.

Common Curriculum Project

The Institutes will Agree to a Common Content that Covers the Greater Part of the Curricula of their National Professional Entry-Level Qualifications.

Common Content will be International. Each Institute will Identify a National

Content for its National Qualification.

International Accounting Education Standard Board (IAESB)

Develops standards and other guidance to Strengthen Accountancy Education Worldwide and Focuses on: Prequalification Accounting Education Practical Experience and Training Assessment; and Continuing Professional Education Needed

by Accountants

IFAC IAESB

Global Perspective on Education Due Process Public Interest Oversight

IAAER Mission

MISSION STATEMENT:

The mission of the IAAER is to promote excellence in accounting education and research on a worldwide basis and to maximize the contribution of accounting academics to the development and maintenance of high quality, globally recognized standards of accounting practice.

IAAER History

1984: Founded in advance of Kyoto Congress

1989: Institutional Membership Grows 1992: Representation on the IFAC

Education Committee 1995: Consultancy Group of IASC

IAAER Coordinating Activities World Congresses of Accounting Education Accounting Education for the 21st century: The

Global Challenges (Needles/Burns, 1993) Regional Conferences on Accounting Education

and Research Institutional Member Meetings Cooperative Conferences for Education and

Research Directors of Professional Associations Implementation Guide for IEG No. 9 Global Code of Ethics of Accounting Educators

IAAER Structure

IAAERStructure

Academic Associations

Individual Members

Professional Associations

IAAER Initiatives

IAAERInitiatives

Conferences and Congresses

Standard Setting Bodies-Research

and Representation

Communication

IAAER Communication

IAAERActivities

Web Site COSMOS

JIFMA and AE:AIJ

IAAER Conferences/Congresses

IAAERConferences

Research Conferences

World Congresses

Specialized Conferences

Future Role of IAAER in Global Accounting Education

Voice of Accounting Academics Coordination of Accounting Education Academic Research on Standards Faculty Development

Major Issues Raised by the Standards

How to Instill the Characteristics of Lifelong Learning in Future Professional Accountants through Accounting Education

How to Design and Implement a Program of Accounting Education that Achieves the Objectives of the Prequalification Education

How to Develop Awareness Of The Need for Improvement in Accounting Education and Encourage the Development of Accounting Education

Other Issues in Global Accounting Education: Research into

Specifications of Appropriate Assessment Methods

Competencies Professional Attitudes and Ethics Variations in Nationally-Imposed Requirements Supply/Demand for Accountants/Auditors who

can Produce/Audit Transnational Accounts

How will these issues be addressed?

IAESB working through member bodies IAESB obtaining endorsement by key regulators Volunteer self-development on the part faculty Focused global efforts of faculty development

A Proposal: IAAER Project Athena

What is it? A Targeted Global Faculty Development

Program What is its purpose?

To educate accounting faculty in developing and emerging economies in International Education Standards (IES) and their implementation

IAAER Project Athena: Quality Control

Country follow-up and consultancy by IAAER-trained educators

Assessment and Benchmarking Periodic Reporting

Conclusion

What questions do you have?