international education standards and audit...

International Education

Standards and Audit

Competence

2

Overview of IESs

3

Learning & Development

Initial Professional Development

Entry Requirements to Professional Accounting Education Programs

Content of Professional Accounting Education

Practical Experience

Assessment

Continuing Professional Development

Continuing Professional Development

Specialization- Audit Competence

4

International Education Standards

IES 1, Entry Requirements to Professional Accounting

Education Programs

IES 2, Initial Professional Development – Technical

Competence

IES 3, Initial Professional Development – Professional

Skills

IES 4, Initial Professional Development – Professional

Values, Ethics, and Attitudes

IES 5, Initial Professional Development – Practical

Experience

IES 6, Initial Professional Development – Assessment

of Professional Competence

IES 7, Continuing Professional Development

IES 8, Professional Competence for Engagement

Partners Responsible for Audits of Financial

Statements

Initial Professional

Development

Continuing

Professional

Development

5

Overview of IES 8

• Engagement Partner

– Addresses professional accountants who perform the role of

engagement partner

• Professional Competence

– Identifies technical competence, professional skills, and professional

values, ethics, and attitudes

• Member Bodies

– Targets IFAC member bodies, but recognizes other stakehoders (e.g.,

firms & regulators) who have shared responsibility

6

Overview of IES 8 (continued)

• Continuing Professional Development

– Requires professional accountants to undertake CPD including

practical experience

• Output-based Standard

– Identifies competence areas and learning outcomes

7

Elements of Audit Quality

Quality Audits Involve Auditors:

• Exhibiting appropriate values, ethics and attitudes; and

• Being sufficiently knowledgeable, skilled, experienced, and having

sufficient time allocated to them to perform the audit work.

A Framework for Audit Quality, IAASB 2014

8

Professional Competence

• Professional Competence is the

ability to perform a role to a

defined standard

• Professional Competence

Requires the Integration &

Application of

– Technical competence

– Professional skills

– Professional values, ethics,

and attitudes

Professional Competence Areas

9

Question #1

What are the knowledge, skills, and attitudes needed by an auditor to

improve audit quality?

10

Benchmarking

• Over 125 countries around the world are implementing IFRSs and

ISAs

• Educational Background of Auditors

– Is a key component of the quality of auditors and, consequently, the

quality of audits

• Different Cultures, Legal, and Education Systems

– Comparing audit quality from country to country through mutual

recognition (one to one comparison) is extremely difficult.

11

Benchmarking (continued)

• Member Bodies & Countries Need International Education

Benchmarks

– Demonstrate to investors and other interested stakeholders that they

have a competent workforce in the area of accounting and reporting.

• Education Standards Provide Benchmarking Capability

– IESs provide the elements of a competency framework for the

education of auditors, which provides a basis for an alternative

benchmarking methodology

12

Question #2

How can International Education Standards improve the quality of

education and training of auditors in performing audits and achieving

high-quality financial and non-financial reporting globally?

13

www.tilburguniversity.edu/gadi

GADI Study

14

Financial Reporting Supply Chain

“Quality audits involve auditors interacting properly with the stakeholders

in the financial reporting supply chain.”

A Framework for Audit Quality, IAASB 2014

15

Question #3

• Who are the stakeholders that should be involved in improving audit

quality?

• What are the roles of these stakeholders?