international education standards and audit...
TRANSCRIPT
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?
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?