International Education Standards and Audit Competence

Transcription

1 International Education Standards and Audit Competence

2 Overview of IESs 2

3 Learning & Development Initial Professional Development Entry Requirements to Professional Accounting Education Programs Content of Professional Accounting Education Continuing Professional Development Continuing Professional Development Specialization- Audit Competence Practical Experience Assessment 3

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 4

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 5

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 6

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

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 8

9 Question #1 What are the knowledge, skills, and attitudes needed by an auditor to improve audit quality? 9

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. 10

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 11

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? 12

13 GADI Study 13

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

15 Question #3 Who are the stakeholders that should be involved in improving audit quality? What are the roles of these stakeholders? 15