PS Literature Review Taskforce - IFAC · 2017. 11. 9. · Action #1: Complete an analysis of the PS competencies, skills and behaviors identified in the literature review and stakeholder

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PS Literature Review Task Force update

CAG/IAESB meetings

Mexico City

Oct 30 and Nov 2


Agenda

• Literature review overview from academics– Dr. Sridhar Ramamoorti, University of Dayton– Dr. Audrey Gramling, Colorado State University

• Update on PS survey outreach• Discussion of TF recommendations


PS stakeholder engagement activities

PS Survey


Respondents

• Worked with the Global Accounting Alliance (GAA) Education Directors, Professional Accountants in Business (PAIBC), and the Forum of Firms (FOF) to complete a short survey

• Survey responses to date are as follows:– GAA – 10 responses– PAIBC – 9 responses– FOF – responses due Oct. 31


PAIBC


0

1

2

3

4

5

6

7

8

Relevant accountingstandards

Relevant auditing/assurancestandards

Entity's industry Entity's business/operations

Strongly Agree Agree Neither Disagree Strongly Disagree

PAIB

Knowledge


0

1

2

3

4

5

6

7

8

Critical thinking Challenging mindset Courage Awareness of unconsciousbias affecting decision

makingStrongly Agree Agree Neither Disagree Strongly Disagree

PAIB

Behavioral Factors


0123456789


PAIB

Competence Factors


0123456789

Messaging from or tone ofleadership/ team/

management/ department

A commitment to the publicinterest

Timely supervision andreview

Sufficient time to meetdeadlines


PAIB

Environmental Factors


01234567

Amend existing IES content Create a new standaloneIES on PS

Provide guidance on PS Other

Strongly Agree Agree Disagree Strongly Disagree Don't Know

PAIB

IAESB Other Actions


• The ability to report findings/issues anonymously if necessary• Implementation of an anti-retaliation policy for reporting potential issues• Emotional Intelligence, diplomacy skills, interpersonal skills, leadership skills • Professional skepticism must be applied within the context that the PAIB is part of the

management and decision making team • Professional skepticism must be applied in a positive, solution oriented manner

consistent with the organization's risk appetite and competitive situation• Error risk / Lack of knowledge / Lack of due diligence / Control risk / Detection risk • Professional education environment

PAIB

Are there other factors that are critical to the application of professional skepticism that have not been included in the list above?


GAA Education Directors


0123456789

10

Relevant accountingstandards

Relevant auditing/assurancestandards

Entity's industry Entity's business/operations



Knowledge


0

2

4

6

8

10

12

Critical thinking Challenging mindset Courage Awareness of unconsciousbias affecting decision

makingStrongly Agree Agree Neither Disagree Strongly Disagree


Behavioral Factors


0123456789

10



Competence Factors


01234567

Messaging from or tone ofleadership/ team/

management/ department

A commitment to the publicinterest

Timely supervision andreview

Sufficient time to meetdeadlines



Environmental Factors


01234567

Amend existing IES content Create a new standaloneIES on PS

Provide guidance on PS Other

Strongly Agree Agree Disagree Strongly Disagree Don't Know


IAESB Other Actions



Are there other factors that are critical to the application of professional skepticism that have not been included in the list above?

• Professional skepticism should only be directed to audit professionals• Skepticism is relevant to accountants preparing tax returns, undertaking due diligence, in reporting

roles in group organizations in fact in virtually all roles of professional accountants• Ability to engage with experts other than professional accountants • Ability to synthesize and evaluate information from a variety of sources including other experts• Interpersonal skills, including influencing and conflict resolution skills • Ability to use data analytics tools and interpret data to enable further investigation• Over confidence or lack of confidence • Fee / budget pressures • Concerns over importance of client to firm and / or general assessment of client satisfaction • Lack of consideration of contradictory evidence


Question for the CAG/IAESB

• Are there other stakeholder groups that you recommend be surveyed?

• Should we consider a general request on the IFAC Knowledge Gateway with a link to the survey?


PS Literature Review TF recommendations


Action #1: Complete an analysis of the PS competencies, skills and behaviors identified in the literature review and stakeholder surveys against the competence areas and learning outcomes in the extant IESs. Propose updates for next maintenance process.

• Does the CAG/Board agree we should evaluate opportunities to improve or expand the references to competence areas and/or learning outcomes in the current IESs to better support the application of PS?

• Does the CAG/Board agree that any proposed changes to the IESs should be addressed as part of the next maintenance cycle? If not, what timing would you suggest?


Action #2: Develop thought leadership or personal perspectives to promote knowledge sharing and excellence in accounting education

• Proposed topics and priorities:• Tier 1: How skepticism applies to a broader range of professional accountants,

not just auditors

• Tier 1: How to become a better skeptic?

• Tier 2: What we can learn from other professions on enhancing skepticism

• Tier 2: Discuss the role of bias on the application of PS

• Tier 3: Discuss the effect of innovation and automation on the application of PS

• Tier 3: Address the concept of situational awareness as a means to improve the application of PS


Action #2: Develop thought leadership and personal perspectives to promote knowledge sharing and excellence in accounting education

• Does the CAG/Board agree with the proposed topics for the publication of thought leadership? Any to add? Any to remove?

• Does the CAG/Board agree with the relative priority (sequence) to addressing the proposed publications? If not, what would you change?


Action #3: Request additional primary research on the skills, traits, good practices necessary to improve the application of PS

• Work with the SEC team to request, collect, and evaluate examples of good practices by member bodies or accounting firms to develop and enhance the application of PS

• Engage researchers to survey universities or education providers on what they are doing or plan on doing to develop a questioning mindset and other relevant skills in aspiring professional accountants by the end of IPD


Action #3: Request additional primary research on the skills, traits, good practices necessary to improve the application of PS

• Does the CAG/Board agree that we should with the SEC team to extend our outreach to identify education and training good practices?

• Does the CAG/Board agree that we should engage researchers to survey universities on current practices to develop a questioning mindset and other relevant skills in aspiring professional accountants by the end of IPD?


Next steps

• Develop a timeline for completing the activities approved by the Board

• Establish teams, identify team leads and team members to execute the agreed-upon activities


Thank you!

Documents

PS Literature Review Taskforce - IFAC · 2017. 11. 9. · Action #1: Complete an analysis of the PS competencies, skills and behaviors identified in the literature review and stakeholder