Standards & Guidelines - IFAC
IFAC
Education
Committee |June 2002
Exposure Draft
Response Due Date December 31, 2002 | |
| | |
| |Continuing Professional Education and Development |
| |Proposed International Education Guideline for Professional Accountants |
| | |
| | |
| | |
| | |
| | |
|Issued for Comment by the |[pic] |
|International Federation of | |
|Accountants | |
This Exposure Draft was approved for publication in May 2002 by the Education Committee of IFAC.
The mission of IFAC is the worldwide development and enhancement of an accountancy profession with harmonized standards, able to provide services of consistently high quality in the public interest. The Education Committee’s mission is to serve the public interest by the worldwide advancement of education and development for professional accountants leading to harmonized standards.
The Education Committee requests comments on this Exposure Draft. Respondents are encouraged to comment on the specific questions attached at the end of this document and any other issues related to this Exposure Draft. Comments sent by email are preferred but they may also be submitted by computer disk or in hard copy.
Comments should be received by 31 December 2002.
Comments received by the due date will be reviewed by the Education Committee and may influence the final Guideline. Comments received before 15 October 2002 will be reviewed by the Education Committee at its November 2002 meeting. Comments received after that date will be reviewed by the Committee in March 2003.Notwithstanding this, comments received after the due date and on an ongoing basis are also welcome. Respondents should note that comments are considered a matter of public record.
Comments on this publication should be sent to:
Technical Director
International Federation of Accountants
535 Fifth Avenue, 26th Floor
New York, NY 10017, USA
Fax + 1 212-856 9420
E-mail responses should be sent to: EDComments@
Information about the International Federation of Accountants can be found at its website, . Copies of this publication may be downloaded free of charge from the site.
Copyright © June 2002 by the International Federation of Accountants. All rights reserved.
contents
page
Preface 2
International Education Guidelines for Professional Accountants 2
Purpose of the Guideline 2
Scope of the Guideline 2
Background 3
Definitions 3
Foreword 9
Acknowledgements 11
Availability of CPD 12
Appropriate subject areas 13
Minimum level of CPD 15
Input- and Output-based Systems 17
Compliance Process and Responses to Non-Compliance 19
CONTENTS
PAGE
PREFACE 4
INTERNATIONAL EDUCATION GUIDELINES FOR
PROFESSIONAL ACCOUNTANTS 4
PURPOSE OF THIS GUIDELINE 4
SCOPE OF THIS GUIDELINE 4
BACKGROUND 5
DEFINITIONS 5
FOREWORD 10
ACKNOWLEDGEMENTS 11
AVAILABILITY OF CPD 12
APPROPRIATE SUBJECT AREAS 13
MINIMUM LEVEL OF CPD 14
INPUT AND OUTPUT–BASED SYSTEMS 16
COMPLIANCE PROCESS AND RESPONSES TO NON-COMPLIANCE 18
Preface
International Education Guidelines for Professional Accountants
1. 1. International Education Guidelines for Professional Accountants (IEG) assist in the implementation of generally accepted good practice in the education of professional accountants by providing advice or guidance on how to achieve good practice or current best practice.
2. 2. International Education Guidelines for Professional Accountants may interpret, illustrate, elaborate, or expand on matters related to International Education Standards for Professional Accountants. In this function, the Guidelines assist member bodies to implement and achieve ‘good practice’ as prescribed in International Education Standards for Professional Accountants. The Guidelines may also recommend practice that is wider or deeper than the practice prescribed in a Standard. Alternatively, they may outline exemplary methods or practices, including those that are recognized as current ‘best practice’, which member bodies may wish to adopt.
Purpose of the Guideline
3. 3. This Guideline is intended to assist member bodies in establishing a requirement for an effective program of continuing professional education and development (hereafter referred to as continuing professional development or CPD) for members, as prescribed in the proposed International Education Standard, “Continuing Professional Education and Development”.
Scope of the Guideline
4. This guideline:
• addresses the objectives of CPD; the subject areas that should be viewed as consistent with those objectives; and the extent of the CPD commitment appropriate for professional accountants in public practice, industry, commerce, education and the public sector;
• explains the importance of mandatory CPD for all member bodies on a worldwide basis;
• explains the necessity of appropriate corrective and disciplinary mechanisms to assure compliance with CPD requirements;
• assists in the implementation of the proposed International Education Standard, “Continuing Professional Education and Development”.
Background
4. 5. The IFAC Education Committee has for many years issued guidelines and other papers on education issues. Previously, the Committee released IEG 2, “Continuing Professional Education” (February 1982, revised May 1998). The Committee considers that it is now appropriate to issue individual Standards building on this framework, by dealing with each major topic in a separate Standard. In addition, Guidelines will also be developed to support the Standards where necessary, providing advice, guidance and examples to assist member bodies in implementing good practice as prescribed by the Standards.
6. This Guideline supports the proposed International Education Standard, “Continuing Professional Education and Development”, released as an Exposure Draft in July 2002, providing further elaboration and interpretation of the standards.
Definitions
7. Terms marked with an asterisk x (*) indicate terms that are defined elsewhere in this glossary.
|Best practice |Refers to practices considered to be exemplary, of the highest |
| |order, the most advanced, or leading in a particular area in the |
| |education* of professional accountants. |
| |Explanation |
| |“Best practice” refers to the best examples of established |
| |practice in the preparation of professional accountants. “Best |
| |practice” will often go beyond “good practice” and, as such, is at|
| |a higher level than the considered minimum requirements. |
| |Statements and examples of “best practice” are essential for the |
| |advancement of accounting education and provide useful guidance to|
| |member bodies for the continual improvement of their education |
| |programs. |
|Capabilities |Are the professional knowledge, * skills* and professional values*|
| |required to demonstrate competence*. |
| |Explanation |
| |Capabilities include content knowledge, technical and functional |
| |skills, behavioral skills, intellectual abilities, and |
| |professional values and attitudes. |
|Competence |Is being able to perform a work role to a defined standard, with |
| |reference to real working environments. |
| |Explanation |
| |Competence may be assessed by a variety of means, including work |
| |place performance, work place simulations, written tests of |
| |various types and self-assessment. |
|Continuing |Refers to learning* activities for developing the capabilities* of|
|professional |individuals to perform competently within their professional |
|development (CPD) |environments. |
| |Explanation |
| |Continuing professional development is aimed at the |
| |post-qualification maintenance or enhancement of professional |
| |competence. It involves the development of capabilities through |
| |either formal, structured and verifiable learning programs |
| |(sometimes referred to as ‘continuing professional education’ – |
| |CPE) or informal, unstructured learning activity. |
|Development |Is the acquisition of capabilities* which contribute to |
| |competence.* |
| |Explanation |
| |Development refers to the growth of attributes that contribute to |
| |competence, however achieved. Individuals may develop their |
| |abilities through a wide range of processes such as learning, |
| |including education and training; experience; reflection; |
| |observation or receipt of information; other structured and |
| |unstructured learning activities; or through natural growth over |
| |time. |
|Education |Refers to a systematic act or process aimed at developing |
| |knowledge, skills*, character, or other abilities and attributes |
| |within individuals. It includes developmental activities commonly |
| |referred to as training*. |
| |Explanation |
| |Education is a formal, structured learning process whereby |
| |individuals develop attributes considered desirable by society. |
| |Education is usually characterized by the growth of an |
| |individual’s mental and practical abilities, as well as maturing |
| |in attitude, resulting in an enhanced ability of the individual to|
| |function and contribute to society, in either specific or |
| |non-specific contexts. While often conducted in academic |
| |environments, education also includes formal learning processes in|
| |other environments, such as on-the-job and off-the-job training. |
| |Education is, by nature, formal and therefore excludes informal, |
| |unstructured learning and developmental processes. Valuable |
| |learning, training, and development can also take place in less |
| |formal environments through processes that are not formal or |
| |structured enough to be considered ‘education’. |
|Ethics |Refers to the professional values* and principles of conduct |
| |applying to professional accountants* as well as to students* and |
| |trainees* associated with the IFAC member bodies. |
|Good Practice |Refers to those elements considered essential to the education* |
| |and development* of professional accountants* and performed at a |
| |standard necessary to the achievement of competence. * |
| |Explanation |
| |“Good practice” relates not only to the range of content and |
| |processes of education and development programs, but also to the |
| |level or standard at which they are performed (i.e. the depth and |
| |quality of the programs). The IFAC Education Committee is |
| |conscious of the wide diversity of culture; language; and |
| |educational, legal, and social systems in the countries of the |
| |member bodies and of the variety of functions performed by |
| |accountants. Different factors within these environments may vary |
| |the ability of member bodies to adopt some aspects of “good |
| |practice”. Nevertheless, member bodies should continuously aspire |
| |to “good practice” and achieve it wherever possible. |
|Information |Refers to hardware and software products, information system |
|technology |operations and management processes, and the human resources and |
| |skills* required to apply those products and processes to the task|
| |of information production and information system development, |
| |management and control. |
|Learning |Refers to a broad range of processes whereby an individual |
| |develops capabilities,* including skills* and attitudes in the |
| |application of knowledge. |
| |Explanation |
| |Learning can be achieved by formal processes such as education |
| |(including training) or informal processes such as day-to-day work|
| |experience, reading published material, passive observation, and |
| |reflection |
|Learning Plan |Refers to structured processes that help professional accountants |
| |guide their professional development.* Plans include a |
| |self-assessment of the gap between current and needed knowledge, |
| |skills,* and abilities, a set of learning objectives arising from |
| |this assessment, and learning activities to be undertaken to |
| |fulfill the learning plan. |
|Post-qualification |Refers to a broad range of processes whereby an individual |
| |develops capabilities,* including skills* and attitudes in the |
| |application of knowledge. |
| |Explanation |
| |The term ‘post-qualification’ is usually associated with |
| |activities and requirements relating to the professional |
| |development of those who have already obtained a professional |
| |qualification. It is often associated with action relating to the |
| |maintenance or further development of professional competence. |
|Professional |Refers to those individuals, whether they be in public practice |
|accountant |(including a sole practitioner, partnership or corporate body), |
| |industry, commerce, the public sector or education, who are |
| |members of an IFAC member body. |
|Professional |Refers to those topics that make up the subject of accountancy as |
|knowledge |well as other business disciplines that, together, constitute the |
| |essential body of knowledge for professional accountants.* |
|Professional values |Are the attitudes that identify professional accountants* as |
| |members of a profession. They comprise principles of conduct |
| |generally associated with, and deemed essential in defining the |
| |distinctive characteristics of, professional behavior. |
| |Explanation |
| |Professional values include technical competence, ethical behavior|
| |(e.g. independence, objectivity, confidentiality, and integrity), |
| |professional demeanor (e.g. due care, timeliness, courteousness, |
| |respect, responsibility, and reliability), pursuit of excellence |
| |(e.g. commitment to continual improvement and life-long learning),|
| |and social responsibility (e.g. awareness and consideration of the|
| |public interest). |
|Skills |Refer to the various types of abilities required to apply |
| |knowledge and values appropriately and effectively in a |
| |professional context. |
| |Explanation |
| |Professional accountants are required to possess a range of |
| |skills, including technical and functional skills, organizational |
| |and business management skills, personal skills, interpersonal and|
| |communication skills, a variety of intellectual skills, and skills|
| |in forming professional judgments. |
|Specialization |Is the formal recognition by a member body of a group of its |
| |members possessing distinctive competence* in a field, or fields, |
| |of activity related to the work of the professional accountant. |
|Structured learning |Is measurable, verifiable activity designed to impart specific |
| |knowledge and skills.* |
| |Explanation |
| |Examples of structured learning include courses and presentations;|
| |individual study programs that require some completion by the |
| |individual; and participation in formal conferences, briefing |
| |sessions, or discussion groups. Structured learning is usually, in|
| |some respects, not totally within the control of the individual |
| |undertaking the learning. For example, a third party may determine|
| |the scope or design of the activity, or when or how the learning |
| |takes place. |
|Training |Refers to pre- and post-qualification* developmental activities, |
| |within the context of the work place, aimed at bringing a student*|
| |or professional accountant* to an agreed level of professional |
| |competence.* |
| |Explanation |
| |Training includes work place-based education and experience |
| |activities for developing an individual’s competence to perform |
| |tasks relevant to the role of the professional accountant. |
| |Training may be undertaken while performing actual tasks |
| |(on-the-job training) or indirectly through instruction or |
| |work-place simulation (off-the-job training). Training is |
| |conducted within the context of the work place, with reference to |
| |the specific roles or tasks performed by professional accountants.|
| |It can include any activity purposefully designed to improve the |
| |ability of an individual to fulfill the practical experience |
| |requirements for qualification as a professional accountant. |
Explanation
“Best practice” refers to the best examples of established practice in the preparation of professional accountants. “Best practice” will often go beyond “good practice” and, as such, is at a higher level than the considered minimum requirements. Statements and examples of “best practice” are essential for the advancement of accounting education and provide useful guidance to member bodies for the continual improvement of their education programs.
Explanation
Capabilities include content knowledge, technical and functional skills, behavioral skills, intellectual abilities, and professional values and attitudes.
Explanation
Competence may be assessed by a variety of means, including work place performance, work place simulations, written tests of various types and self-assessment.
Explanation
Continuing professional development is aimed at the post- qualification maintenance or enhancement of professional competence. It involves the development of capabilities through either formal, structured and verifiable learning programs (sometimes referred to as ‘continuing professional education’ – CPE) or informal, unstructured learning activity.
Explanation
Development refers to the growth of attributes that contribute to competence, however achieved. Individuals may develop their abilities through a wide range of processes such as learning, including education and training; experience; reflection; observation or receipt of information; other structured and unstructured learning activities; or through natural growth over time.
Explanation
Education is a formal, structured learning process whereby individuals develop attributes considered desirable by society. Education is usually characterized by the growth of an individual’s mental and practical abilities, as well as maturing in attitude, resulting in an enhanced ability of the individual to function and contribute to society, in either specific or non-specific contexts. While often conducted in academic environments, education also includes formal learning processes in other environments, such as on-the- job and off-the-job training. Education is, by nature, formal and therefore excludes informal, unstructured learning and developmental processes. Valuable learning, training, and development can also take place in less formal environments through processes that are not formal or structured enough to be considered ‘education’.
Explanation
“Good practice” relates not only to the range of content and processes of education and development programs, but also to the level or standard at which they are performed (i.e. the depth and quality of the programs). The IFAC Education Committee is conscious of the wide diversity of culture; language; and educational, legal, and social systems in the countries of the member bodies and of the variety of functions performed by accountants. Different factors within these environments may vary the ability of member bodies to adopt some aspects of “good practice”. Nevertheless, member bodies should continuously aspire to “good practice” and achieve it wherever possible.
Explanation
Learning can be achieved by formal processes such as education (including training) or informal processes such as day-to-day work experience, reading published material, passive observation, and reflection.
Explanation
Professional values include technical competence, ethical behavior (e.g. independence, objectivity, confidentiality, and integrity), professional demeanor (e.g. due care, timeliness, courteousness, respect, responsibility, and reliability), pursuit of excellence (e.g. commitment to continual improvement and life-long learning), and social responsibility (e.g. awareness and consideration of the public interest).
Explanation
Professional accountants are required to possess a range of skills, including technical and functional skills, organizational and business management skills, personal skills, interpersonal and communication skills, a variety of intellectual skills, and skills in forming professional judgments.
Explanation
Examples of structured learning include courses and presentations; individual study programs that require some completion by the individual; and participation in formal conferences, briefing sessions, or discussion groups. Structured learning is usually, in some respects, not totally within the control of the individual undertaking the learning. For example, a third party may determine the scope or design of the activity, or when or how the learning takes place.
Explanation
Training includes work place-based education and experience activities for developing an individual’s competence to perform tasks relevant to the role of the professional accountant. Training may be undertaken while performing actual tasks (on-the-job training) or indirectly through instruction or work-place simulation (off-the-job training). Training is conducted within the context of the work place, with reference to the specific roles or tasks performed by professional accountants. It can include any activity purposefully designed to improve the ability of an individual to fulfill the practical experience requirements for qualification as a professional accountant.
Foreword
8. 8. 8. Readers are referred to the proposed International Education Standard “Continuing Professional Education and Development”. Member bodies are expected to consider that Standard in establishing CPD requirements. If CPD is a legislated matter, member bodies are expected to advise legislators of the international standard and strive for full compliance.
8. 9. 9. This pronouncement provides guidelines for the establishment and enforcement by member bodies of an effective program of CPD.
9. 10. 10. The knowledge needed to function effectively as an accountant in public practice, industry, commerce, education and the public sector continues to expand and change at a rapid rate. This trend is certain to continue. For example, there have been significant changes in the environment in which accountants operate. These include changes in accounting and auditing standards, new legislation and regulation affecting the profession and the people and organizations it serves, increasingly complex tax systems and rules, and the ongoing development and greater use of sophisticated financial instruments. These changes have been accompanied by the widespread use of technology, Internet services and the everyday use of quantitative methods.
10. 11. 11. Not only are accountants facing increased knowledge requirements, but they and their professional associations are also facing increased public expectations about the quality of financial statements and independent audits. Related pressures for disclosure of more information, some assurance on interim financial statements and greater use of forecasts have had an impact on management accountants and independent auditors alike. In addition, the need to be competitive in a worldwide economy has prompted a more intense focus on the role and responsibilities of the management accountant in entities of all types. Finally, there is an increasing interest around the world in achieving greater public accountability by the business and financial communities, as well as the public sector, and accountants in all sectors have important contributions to make to that process. All of this places a special responsibility on accounting educators. The effectiveness of national CPD programs is and will continue to be a significant factor in any discussions related to international reciprocity.
Acknowledgements
The Education Committee thanks the Task Force members who have contributed to the development of this Guideline:
|Country |Name |
|Canada |Shirley Reilly, Steven J Glover, Robert W |
| |Dye |
|China |Shuang Li, WeiHua Liu |
|Malaysia |Dato Abdul Halim Mohyiddin, Tan Shook Kheng |
| |and Albert Wong Mun Sum |
|United States |Gary Holstrum Beatrice Sanders, Charles H |
| |Calhoun III |
|Transnational Auditors Committee |Melvin Berg (observer to the Education |
| |Committee) |
Canada Shirley Reilly, Steven J Glover, Robert W Dye
China Shuang Li, WeiHua Liu
Malaysia Dato Abdul Halim Mohyiddin, Albert Wong Mun Sum, Tan Shook Kheng
United States Gary Holstrum Beatrice Sanders, Charles H Calhoun III
Transnational Auditors Committee Melvin Berg (observer to the Education Committee)
Membership of the IFAC Education Committee
The following were members of the Education Committee when this Guideline was approved:
|Country |Name |
|New Zealand |Warren Allen (Chair) |
|Argentina |Hector Carlos Ostengo |
|Canada |Shirley Reilly |
|China |Shuang Li |
|Czech Republic |Bohumil Král |
|France |Alain Burlaud |
|Hungary |József Rooz |
|Israel |Yoram Eden |
|Malaysia |Abdul Halim Mohyiddin |
|Pakistan |S.M. Zafarullah |
|South Africa |Steve McGregor |
|Thailand |Usana Patramontree |
|Turkey |Masum Türker |
|United Kingdom |David Hunt |
|United States |Gary Holstrum. |
Country Name
Argentina Hector Carlos Ostengo
Canada Shirley Reilly
China Shuang Li
Czech Rep. Bohumil Kral
France Alain Burlaud
Hungary Joszef Rooz
Israel Yoram Eden
Malaysia Dato Abdul Halim Mohyiddin
New Zealand Warren Allen (Chair)
Pakistan S.M. Zafarullah
South Africa Steve McGregor
Thailand Usana Patramontree
Turkey Masum Turker
United Kingdom David Hunt
United States Gary Holstrum
Availability of CPD
12. 12. IFAC member bodies should help their members meet the CPD requirement prescribed by the proposed International Education Standard, “Continuing Professional Education and Development”, by facilitating access to CPD activities that maintain and improve members’ technical and professional skills.
13.
13. 13. Member bodies should either directly provide relevant CPD programs for their members or facilitate access to programs offered by others (e.g., commercial providers, other professional bodies, other member bodies, universities and colleges, etc.).
Relevant CPD
3. 14. 14. Relevant CPD:
a) (a) maintains or enhances current professional competences for their members;
(b) assists members of the profession to apply new techniques, understand economic developments and evaluate their impact on their clients or employers and on their own work, and to meet changing responsibilities and expectations; and
b)
a) (c) serves the public interest by providing reasonable assurance that members of the profession are competent to perform the services they undertake to provide.
c)
Objective of CPD
15.
The Code of Ethics states that it is the professional duty of the individual members not only to maintain professional competence, but also to strive continually to improve their competence. Thus, the objective of CPD programs should be continual improvement, not merely maintaining some minimum knowledge level.
16.
5. 16. Although maintaining and improving technical knowledge is one objective of CPD, CPD should go beyond technical knowledge. Appropriate subject areas for CPD are addressed later in this Guideline.
17.
17. Clients and employers not only expect expert technical knowledge from professional accountants but also that accountants should be able to advise them on the impact of changes in the economic and business environment. Such changes may well affect the judgments and estimates accountants make in the process of preparing financial statements or performing other professional tasks. They may also affect the nature, timing and extent of an auditor’s procedures. Therefore, the business plans and strategies of clients or employers may need to be revised when there are changes in the economic and business environment. A professional accountant is expected to constantly monitor business risks, threats and opportunities. For these reasons, a program of CPD established and operated by a member body or other parties should give appropriate consideration to educational needs that go beyond basic technical knowledge.
Appropriate subject areas
18.
18. CPD should contribute to the professional ability of individual members. Therefore, acceptable CPD activities should be relevant to the professional work of each member. Some member bodies may choose to mandate specific topics for a program of CPD. Others may choose to rely on their individual members to select subject areas that are appropriate for them. In some circumstances (e.g. for licensing purposes or for specialists) a member body may establish some minimum requirements for specified areas of CPD.
Members’ Responsibility
19.
19. Continuing professional education carries a cost to members in terms of both time and money. The majority of members, trained in accountancy and schooled in business matters, are unlikely to select CPD activities where the costs exceed the benefits.
20.
20. Moreover, given the diverse activities that members of the accountancy profession perform, it would be difficult to define a common CPD curriculum that all members should be required to follow. Any attempt to do so is likely to result in too rigid an approach and might serve as a disincentive to many members. A preferable approach is to establish, as a general rule, that the subjects selected by members should be relevant to their work.
21.
20. In considering whether a CPD course or activity is relevant to the work of a member, member bodies are encouraged to recognize the changing nature of the environment and not to inhibit participation in courses simply because they do not have an immediate application to the member’s daily work (e.g., programs dealing with social, economic and environmental trends should be recognized).
22.
22. It is recognized that a member body may need to be more prescriptive in some circumstances ( e.g., licensed auditors or certified specialists). Specific competences may need to be developed for particular specialties (e.g. transnational auditors) and these may require particular technical knowledge and professional skills. IFAC's Transnational Auditors Committee, for example, provides guidance for member bodies and members active in transnational audits.
Knowledge and Professional Skills
23.
23. Accounting professionals in any field of employment need to maintain competence in all matters related to fulfilling their role as professionals. A person performing professional services needs to have a broad range of capabilities. Thus, the concept of professional competence should be interpreted broadly. Accordingly, acceptable CPD encompasses programs contributing to the development and maintenance of both technical and non-technical professional skills.
24.
24. Technical skills include CPD in financial accounting, management accounting, public sector accounting, auditing, governance, consulting services, information technology, social responsibility and environmental protection, management, taxation, and ethics. Non-technical professional skills are equally important (e.g., communication skills, leadership, knowledge of different cultures when performing transnational work).
25.
25. To help guide their professional development, individuals may find it useful to develop a learning plan. The learning plan can be used to evaluate learning and competency development. It should be reviewed periodically and modified as competency needs change.
Minimum level of CPD
26. 26. The proposed International Education Standard, “Continuing Professional Education and Development”, requires member bodies to establish minimum levels of CPD that their members should obtain within a specified period on either an input-based standard or an output-based standard.
Flexibility in the timing of CPD
27.
27. Spreading the CPD requirement over a three-year period permits greater flexibility in the application of the guidelines and enables members to adapt their CPD activities to their particular circumstances.
Structured learning
28.
1. It is for each member body to determine what activities would qualify for recognition as structured learning. Member bodies should focus on the need for an activity to be measurable and verifiable, as well as the need to meet appropriate learning objectives.
29.
29. Examples of structured learning include:
• courses presented by educational institutions, member bodies or employers;
• individual study programs (correspondence courses, audiotape or videotape packages, computerized learning programs) that require some evidence of successful completion by the member;
• participation as a speaker or attendee in conferences, briefing sessions or discussion groups;
• acting as a lecturer, instructor or discussion leader on a structured course but repeat presentations of the course should not be considered for this purpose;
• service as a member of a technical committee of a professional body or individual firm as long as a specific portion of the committee meeting is formally designed to impart specific knowledge in preparation for committee debate or discussion;
• writing technical articles, papers or books, within reasonable limits, because the output is clearly verifiable;
• “on the job” experience for a finite period of time when the member can produce reliable, objectively verifiable evidence that a specific new competence has been developed.
30.
30. In general, however, one single, repetitive activity, for example, teaching introductory accounting to multiple audiences, should not constitute a member’s total CPD activity.
31.
31. The recommended hours of structured learning need not be taken in one block of time. They can be made up by participation in a number of shorter programs throughout the period.
Unstructured learning
32.
32. Apart from their participation in structured learning, accountants need to keep abreast of a wide range of developments affecting their profession, clients and employers. This is done through unstructured learning, such as regularly reading professional journals and the financial and business press, discussing current developments with colleagues, accessing relevant databases on the Internet and other activities. Some member bodies may wish to emphasize the importance of unstructured learning activities by establishing requirements. Unless the enhancement in knowledge, skills, or competences related to unstructured learning can be assessed by objectively verifiable and reliable measurements, any requirement for unstructured learning should be an addition to, not a substitute for, the requirement set for structured learning from input-based requirements.
33.
33. There are several reasons for this, and they are all related to the need of providing reasonable assurance to the public that the objectives of the member body’s CPD program are being achieved:
a) Structured learning (especially the inputs in an input-based system) can be efficiently monitored and measured, while unstructured learning normally cannot.
b) Structured learning is usually designed to achieve specific learning objectives, while unstructured learning is typically general and unplanned in nature.
c) Structured learning usually depends on approved instructors or instructional materials, while unstructured learning depends on the individual accountant.
34. 34. Member bodies will be justified in recognizing unstructured learning for satisfying CPD requirements if their members can substantiate that learning occurred through objectively verifiable and reliable measurement.
Input- and Output-based Systems
35.
35. Input-based systems traditionally have served as a proxy for measuring competence. Because input hours of CPD are so easily measured, hours have been recommended as the measurement criterion.
36. 36. The effectiveness of CPD is, however, ideally measured in terms of output; i.e., the knowledge, skills or competences that have been acquired. Output-based assessments may not be practicable in most situations. Member bodies are encouraged to experiment with innovative approaches for measuring knowledge, skills, and competences. With experimentation, eventually some workable models may evolve. Readers and member bodies are referred to the International Education Paper, Competence-Based Approaches to the Preparation and Work of Professional Accountants, which discusses these issues and profiles a competence-referenced model.
37.
36. Some options for output-based approaches include periodic re-examination, practice inspections or peer reviews. For certain sectors, a member body may be able to rely on mechanisms within employer or specialty associations, for example, publication of articles in refereed journals for academic members or government reviews of licensed bankruptcy trustees. For members in remote locations, there may be organized and monitored discussion groups (either face-to-face or through the Internet) which discuss current topics and which the member body could utilize to develop reliable, objectively verifiable measurements to substantiate unstructured learning.
Members in Industry, Government and other Non-Public Accounting Sectors
38.
38. The minimum requirement should apply to all active accounting professionals, including those in public accounting, industry, commerce, education and the public service.
39.
39. There are several reasons for this:
a) (a) The public interest arguments for minimum CPD for public accounting are, in many cases equally valid for members in these other sectors as they hold positions of importance involving quality financial reporting, public accountability and maintaining the public trust.
b) (b) A member in industry, commerce, education or government carries the professional designation, and any incompetence or unethical behavior has the same consequences to the reputation and standing of the profession as by someone in public practice.
c) (c) Member bodies should not create an impression of a two-tier profession by imposing lower or different standards on those not in public accounting.
d) (d) The arguments for CPD to cope with a rapidly changing environment, and the consequential need to adapt the strategic or business plans of those organizations relying on the member's professional competence, are equally valid for these sectors.
e) (e) Employers hiring members in these sectors rely, at least to some extent, on the professional membership as proof of professional competence and therefore would expect the member body to impose equal professional standards, including mandatory CPD, on these members.
40. Member bodies should consider what specific or additional CPD should be obtained by members working in areas of high risk to the public, such as auditing, work with securities or the preparation of financial reports of publicly-held companies.
Need for Continual Review of CPD Requirements and Arrangements
41.
41. The accounting profession is a dynamic one, operating in an environment of change. Guidelines developed today are unlikely to meet the needs of tomorrow. Every member body should make formal arrangements to regularly review its CPD arrangements to ensure that they continue to meet the needs of the profession at any particular time.
Stepped (or Phased) Implementation Plan
42.
42. Some member bodies may find that adequate educational resources are not yet available to meet the needs of members wishing to comply with the proposed CPD requirements as outlined above. For them, it may be necessary to adopt a CPD program that is commensurate with immediately available resources and increases gradually (in steps or phases) to the recommended minimum requirement over a reasonable period. Such a gradual, but firm, schedule of requirements is preferable to one in which the requirements are contingent upon the development of educational resources. The gradual, but firm, schedule is likely to stimulate the development of necessary educational resources. Making a requirement contingent on the development of those resources is likely to delay implementation of the plan.
Compliance Process and Responses to Non-Compliance
43.
43. In developing CPD programs, member bodies should implement systems to effectively monitor the extent to which members are complying with the CPD requirement prescribed in the proposed International Education Standard, “Continuing Professional Education and Development”.
44.
44. Member bodies should establish appropriate mechanisms for dealing with non-compliance with CPD requirements. Such mechanisms should focus on bringing a member into compliance, and should explicitly provide for disciplinary action when necessary.
System and Staffing
45.
45. A member body would need to set up its own system for monitoring participation by individual members in structured learning and for evaluating the quality of those activities. It is suggested that a member body ensure that sufficient staff with appropriate training administer the program or consider setting up a board or committee under its control that would be charged with oversight responsibilities.
Reporting
46.
46. Participation in structured learning can be monitored in several ways. The following are some options, which are not mutually exclusive:
OPTION 1
• Require members to submit an annual report of CPD activities.
• Individual reports submitted by a representative sample of members would be checked against the attendance or completion documents that the CPD provider gives to a member body.
• It would be desirable to require these annual reports to identify the specific structured learning that a member has undertaken, rather than accept a simple representation on compliance with the requirement.
• This allows the member body to review the reports for overall reasonableness and facilitates checking reports to supporting information.
OPTION 2
• Require members to maintain documentation on their CPD activities, which the member body “audits” on a selective sampling basis.
OPTION 3
• Build the review of learning plans or CPD documents into practice
inspection programs.
• Member bodies may require that public accounting employers impose CPD programs and effective monitoring systems into their quality assurance programs and track CPD activities within their time recording systems.
• Practice inspection or peer review programs would include a component that tests this element of quality assurance.
Discipline
47.
47. The sanctions initially applied for non-compliance should focus on bringing the member into compliance within a reasonable period of time. Care should be taken to strike a balance between a sanction that in substance amounts to permitting a member to defer or avoid compliance with the CPD requirement and one that is excessively punitive.
48.
48. Member bodies should develop punitive sanctions based on the legal and environmental conditions in their countries (in some countries they might include expulsion from membership or denial of the right to practice). Such sanctions should be reserved for members who have made it clear, through a pattern of non-compliance or through their response to the member body’s inquiries, that they are likely to continue to disregard the importance of complying with the CPD requirements.
49.
49. Imposing sanctions is not an action that should be taken lightly. A professional accountant’s willful failure to maintain and improve his or her professional competence is, however, a violation of a significant professional duty that justifies disciplinary action. Moreover, it is unfair to the majority of members who do and will continue to participate in required CPD programs, at a cost of time and money, to allow others who do not do so to escape any penalty.
Providers
50.
50. The quality of structured learning offered to members of the profession, and the CPD credit to be granted for participation, can be evaluated by approving the providers of those programs or by approving individual programs. Approving program providers is often more efficient and would focus on the procedures and controls instituted by the providers to ensure that programs are prepared, reviewed and conducted by qualified individuals, that the learning objectives are appropriate for the intended participants and achievable within the time allotted for the program, and that the instructional materials are sufficiently comprehensive and properly designed. Whichever approach is taken, the member body should subsequently monitor offerings of programs on a test basis. Member bodies have a right to expect that the providers reimburse them for any costs incurred in making these evaluations.
51.
51. Member bodies are referred to the International Education Paper "Recognition of Pre-certification Education Providers" (to be released July 2002). That Paper does not specifically address CPD providers, but the principles and issues may be equally applicable.
52.
52. CPD from other providers not previously approved may be acceptable. Members reporting such should be prepared to provide the necessary support to show quality if requested by the member body. This might include providing copies of the course outline, copies of learning materials, credentials of the teaching staff, etc.
53.
53. The quality of structured learning offered by accounting firms or other employers should be evaluated on the same basis as that of other external education providers. Generally, member bodies should recognize in-house programs of employers, provided there is reasonable assurance of quality.
Other Activities
54.
54. It should not be difficult to evaluate the CPD content of activities such as service on technical committees and writing articles. The journals or magazines a member writes for should be well recognized, making it possible to rely on the quality control of the publisher. The member body should be familiar with the work of the technical committees and thus able to recognize the appropriate learning activity. The member body may request and evaluate copies of outlines or other available materials from the individual member claiming credit for participation.
55.
55. Member bodies may prescribe limits to the quantity of CPD that might be allowed in each of the categories. For example, a member body may decide that no more than 10 per cent of the minimum CPD requirement may be allowable for work with technical committees or no more than 20 per cent may be allowable for technical writing.
Regulators
56.
56. Professional accountants must demonstrate to regulators or other authoritative bodies that learning has occurred and that the type and quality of learning is appropriate for their professional responsibilities. Regulatory or other authoritative requirements may mandate that professional accountants document their learning activities.
Retention of Documentation
57.
57. Members should be required to maintain sufficient documentation to support their annual CPD report to their member body. CPD is an individual responsibility, and members should be encouraged to maintain a lifetime record of CPD, which may be useful to show to employers or potential employers. In the absence of legal or other requirements, a reasonable policy is to retain documentation for a minimum of five years from the end of the year in which the learning activities were completed.
Members in Remote Locations or Working out of the Country
58.
58. Member bodies should be prepared to provide extended periods for compliance or greater flexibility in recognition of distance learning or other unstructured learning for members in remote locations or working out of the country. A member body may make special provisions for out of country members who are members of a member body with a CPD requirement in that country.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- annual report of the publications board
- client name resume world
- idaho financial accounting reporting management
- national accounting centre panui
- la société canadienne pour les traditions musicales
- university of georgia
- welcome to your first isu
- standards guidelines ifac
- social responsibility and the company
Related searches
- joint commission standards time out
- standards for the teaching profession
- birth to five standards louisiana
- hud minimum property standards 2019
- highest standards synonym
- third grade ela standards california
- set high standards synonyms
- common core standards ela 3rd grade
- cms standards for verbal orders
- high standards synonym
- early learning standards louisiana
- having high standards meaning