Summary of Changes Resulting from IES Revison Project
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The document summarizes changes made to the International Education Standards (IESs) through a revision project. Key changes include making the standards more principles-based and clarifying competence areas, learning outcomes, and assessment requirements. The revisions improve consistency, articulate professional competence, and facilitate global mobility of accountants. Significant changes were made to each IES, focusing on technical competence, skills, experience, assessment, and continuing professional development. Revised standards became effective between 2014 and 2016.
Summary of Changes Resulting from IES Revison Project
- 1. Page 1 | Confidential and Proprietary Information Summary of Changes Resulting from IES Revision Project IESs Implementation Support Material Prepared by: IAESB Staff April 2015
- 2. Page 2 | Confidential and Proprietary Information What Has Been Achieved? Section Title 14pt Arial Regular The revision project has improved consistency and clarity of the principles-based IESs by • Articulating the nature of professional competence in terms of technical competence, professional skills, and professional values, ethics, and attitudes • Delineating the competence areas required to perform a role as a professional accountant; and • Setting the essential learning outcomes required to meet the public’s expectations of the professional competence to be demonstrated by a professional accountant and audit engagement partner
- 3. Page 3 | Confidential and Proprietary Information • Clarifying the obligations of IFAC member bodies and other interested stakeholders involved with the education, development, and assessment of professional accountancy education; • Reducing international differences in the requirements to qualify and work as a professional accountant; • Facilitating of the global mobility of professional accountants; and • Providing international benchmarks against which IFAC member bodies can measure themselves. Other Desirable Outcomes of the IES Revision Project
- 4. Page 4 | Confidential and Proprietary Information Extant IESs Revised IESs Rules-based Principles-based Pre- & Post Qualification IPD & CPD Knowledge Subject Areas & Competences Competence Areas with Proficiency Levels & Learning Outcomes Candidates for Membership Aspiring Professional Accountant Major Conceptual Changes
- 5. Page 5 | Confidential and Proprietary Information Significant Changes to IES 1 IES 1 also requires The rationale of the principles which is used in setting educational entry requirements be explained Relevant information be made publicly available IES 1 continues to prescribe educational requirements for entry to professional accounting education programs
- 6. Page 6 | Confidential and Proprietary Information Significant Changes to IES 2 IES 2 also requires Technical competence be developed & demonstrated by end of Initial Professional Development Knowledge subject areas be replaced with learning outcomes grouped into technical competence areas with each area being assigned a level of proficiency Professional accounting education programs be regularly reviewed & updated Appropriate assessment activities be established to measure the achievement of technical competence IES 2 continues to require that professional knowledge as a component of technical competence be included in a professional accounting education program
- 7. Page 7 | Confidential and Proprietary Information Significant Changes to IES 3 IES 3 also requires Professional skills be demonstrated by end of IPD Learning outcomes be grouped into professional skill areas & each area has been assigned a level of proficiency Professional accounting education programs be regularly reviewed & updated Appropriate assessment activities be established to measure the achievement of professional skills IES 3 does not include general education as a requirement to develop professional skills because it is but one component of IPD IES 3 continues to require professional skills be included in a professional accounting education program
- 8. Page 8 | Confidential and Proprietary Information Significant Changes to IES 4 IES 4 also requires Professional accounting education programs be regularly reviewed & updated Learning & development activities be designed to include reflective activity Appropriate assessment activities be established to measure the achievement of professional values, ethics, & attitudes IES 4 continues to require professional values, ethics, and attitudes be included in a professional accounting education program
- 9. Page 9 | Confidential and Proprietary Information Significant Changes to IES 5 IES 5 also requires practical experience be Completed by end of Initial Professional Development (IPD) Sufficient Measured using one of output-based, input-based or combination approaches Conducted under the direction of a practical experience supervisor Recorded in a consistent form & supported by verifiable evidence Reviewed periodically by practical experience supervisor Assessed that sufficiency has been completed by various assessment activities IES 5 continues to require practical experience
- 10. Page 10 | Confidential and Proprietary Information Significant Changes to IES 6 IES 6 also requires assessment activities be Completed by the end of Initial Professional Development & draws on the outcomes from a range of assessment activities Designed to have high levels of equity, transparency, and sufficiency Recorded in a written or electronic form objective and capable of being proven IES 6 continues to require formal assessment in a recorded form that has high levels of reliability and validity
- 11. Page 11 | Confidential and Proprietary Information Significant Changes to IES 7 IES 7 also requires IFAC member bodies to Establish an approach to measuring CPD activity from output- based, input-based, or a combination of these approaches IES 7 continues to require IFAC member bodies to Promote the importance and commitment to CPD Facilitate access to CPD opportunities & resources Require all professional accountants undertake CPD Monitor CPD and where necessary, apply appropriate sanctions for failure to meet requirements
- 12. Page 12 | Confidential and Proprietary Information Significant Changes to IES 8 IES 8 also requires IFAC member bodies to Focus on Engagement Partners rather than Audit Professionals Require the development and maintenance of professional competence be demonstrated by the achievement of specified learning outcomes IES 8 continues to build from IES 7 requirements requiring development and maintenance of professional competence by CPD
- 13. Page 13 | Confidential and Proprietary Information Effective Dates of Revised IESs International Education Standard Effective Date IES 7, Continuing Professional Development (Redrafted) January 1, 2014 IES 1, Entry Requirements to Professional Accounting Education Programs (Revised) July 1, 2014 IES 2, Initial Professional Development – Technical Competence (Revised) July 1, 2015 IES 3, Initial Professional Development – Professional Skills (Revised) July 1, 2015 IES 4, Initial Professional Development – Professional Values, Ethics, and Attitudes (Revised) July 1, 2015 IES 5, Initial Professional Development – Practical Experience (Revised) July 1, 2015 IES 6, Initial Professional Development – Assessment of Professional Competence (Revised) July 1, 2015 IES 8, Professional Competence for Engagement Partners Responsible for Audits of Financial Statements (Revised) July 1, 2016
Editor's Notes
- #3: What Has Been Achieved? The clarity project has improved consistency and clarity of the principles-based IESs by Articulating the nature of professional competence in terms of technical competence, professional skills, and professional values, ethics, and attitudes Delineating the competence areas required to perform a role as a professional accountant; and Setting the essential learning outcomes required to meet the public’s expectations of the professional competence to be demonstrated by a professional accountant and audit engagement partner
- #4: Other Desirable Outcomes of the IES Revision Project Clarifying the obligations of IFAC member bodies and other interested stakeholders involved with the education, development, and assessment of professional accountancy education; Reducing international differences in the requirements to qualify and work as a professional accountant; Facilitating of the global mobility of professional accountants; and Providing international benchmarks against which IFAC member bodies can measure themselves.
- #5: Major Conceptual Changes Principles-based IPD & CPD Competence Areas, Proficiency levels, & learning Outcomes Aspiring Professional Accountant
- #14: Significant Changes to IES 8 IES 8 continues to build from IES 7 requirements requiring development and maintenance of professional competence by CPD IES 8 now Focuses on Engagement Partners rather than Audit Professionals Requires the development and maintenance of professional competence be demonstrated by the achievement of specified learning outcomes