INTERNATIONAL FEDERATION OF ACCOUNTANTS
PROPOSED INTERNATIONAL EDUCATION PRACTICE STATEMENT FOR THE EDUCATION OF PROFESSIONAL ACCOUNTANTS (IEG):
Practical Experience Requirements – Initial Professional Development for Professional Accountants
CONTENTS
Introduction
Effective Date
Definitions
Scope and Structure of this Practice Statement
SECTION 1: APPROACHES TO IMPLEMENTING IES 5 PRACTICAL EXPERIENCE REQUIREMENTS
Introduction
Period of Practical Experience
Sustained Professional Competence
Relevant Practical Experience
Maximum Period for Gaining Experience
Recognition of Prior Experience Obtained with another IFAC Member Body
Recognition of Part-Time Experience
Linking Practical Experience and Formal Education
Recognition of Graduate Education and Simulation
SECTION 2: ASSESSING INITIAL PROFESSIONAL DEVELOPMENT
Introduction
Role and Responsibilities of Member Bodies
Role and Responsibilities of Mentors
Role and Responsibilities of Employers
Role and Responsibilities of Trainees
Paragraph
Introduction 1 – 10
Definitions 11
Scope and Structure of this IEPS 12 – 19
SECTION 1: PRACTICAL EXPERIENCE REQUIREMENTS
Overview 20 – 21
Period of Practical Experience 22 – 27
Linking Practical Experience and Formal Education 28 – 32
Demonstrating Professional Competence 33 – 39
SECTION 2: MONITORING AND CONTROL
Overview 40 – 41
Role and Responsibilities of Mentors 42 – 44
Establishing a Mentoring Process 45 – 51
Recording Practical Experience 52 – 54
Assessing Practical Experience 55 – 60
Working with Employers 60 – 63
Establishing Approved Employer Schemes 64 – 71
Working with Non-Approved Employers 72 – 76
Appendices
Introduction
Aims of IAESB Practice Statements
1. International Education Practice Statements (IEGIEPSs) assist IFAC member bodies in the implementation of to implement generally accepted “good practice” in the education in educating and development of developing professional accountants by providing advice or guidance on how to achieve “good practice” or current “best practice”this.
2. International Education Standard (IES) 5 –, Practical Experience Requirements prescribesstates the practical experience IFAC member bodies should require their members to obtain before qualificationqualifying as professional accountants. IFAC member bodies determinewill set the detailed experience requirements for their trainees in accordance with this Standard. standard.
3. This Practice StatementIEPS provides guidance for IFAC member bodies on good practice in the implementation of implementing IES 5. Member bodies may also consider this IEPS in the context of their implementation of IES 7, Continuing Professional Development: A Program of Lifelong Learning and Continuing Development of Professional Competence and IES 8, Competence Requirements for Audit Professionals.
34. The International Accounting Education Standards Board (IAESB) recognizes (a) the wide diversity of culture, language, and educational, legal, and social systems in the countries of the their member bodies, (b) the wide variety of functions performed by accountants perform, and (c) that member bodies are at different stages in developing their pre-qualification educationeducational programs.
4. Some member bodies may already have addressed a number or all of the issues consideredAll member bodies are invited to consider the good practice guidance in this Practice Statement. Other member bodies may have yet to consider such issues. It is suggested that all member bodies assess their compliance withIEPS in implementing IES 5 in the light of the recommendations contained in this Practice Statementtheir jurisdiction(s).
Objectives of a Period of Practical Experience
5. The goalobjectives of accounting education anda period of practical experience isare to produce competent professional accountants, able to :
Enable students to develop and demonstrate their sustained ability to perform relevant roles or tasks to the required standard.
i) 6. Students gain the required professional knowledge; professional skills; and professional values, ethics and attitudes for performing , required to perform their work with professional competence; and
ii) Help students develop the skills they need to maintain competence.
6. Students gain the professional knowledge; professional skills; and professional values, ethics and attitudes they require to perform their work with professional competence in two ways: through (a) formal education, and (b) practical experience. Different combinations of formal education and practical experience existare required to achieve qualification in different parts of the world.
7. The objective of a period of practical experience is to enable students to demonstrate they have gainedAlthough the professional knowledge; professional and skills; and professional values, ethics and attitudes required for performing their work with professional competence and for continuingby a professional accountant are likely to grow throughout their careers.
7. 8. A period or practical experience, in conjunction with formal education, is particularly important for the development ofchange as their career develops, the required professional values, ethics and attitudes needed to qualify as a required of professional accountant.s endure. These are first developed in pre-qualification educational programs, and demonstrated through a period of practical experience.
98. A period of supervised practical experience under the guidance of a mentor also enables students to integrate knowledge gained through formal education with experience in real life experience, leadingwork environments. This leads to a deeper understanding of the capabilities and competence required of a professional accountant than could be gained through formal education or practical experience alone.
9. Practical experience benefits others as well as the student:
• The Member body gains members with the professional knowledge; professional skills; and professional values, ethics and attitudes, required to strengthen the profession and protect the public interest;
• Employers gain employees with knowledge; skills; values, ethics, and attitudes that will add value to the employer’s business. They gain assistance from the member body in identifying the employee attributes needed to add that value. Employers that support trainees during their period of practical experience may benefit from greater employee satisfaction and staff retention, and more effective succession planning; and
• Mentors develop their own knowledge and skills (especially interpersonal skills). In many cases, mentoring will count towards mentors’ own CPD requirements.
Initial Professional Development (IPD)
10. The importance of a period of practical experience as part of the education program ofDeveloping professional accountants cannot be underestimated. While the professional knowledge required by a professional accountant is likely to change over the course of the professional accountant’s career, the professional skills; and professional values, ethics and attitudes required of professional accountants endure. Capability and competence in these areas are initially developed through practical experience.
11. The may be thought of as “initial professional development of professional competence through a period of practical experience may be thought of as a period of Initial Professional Development” (IPD).)[1]. This is the first stage of a learning continuum that continues throughout a professional accountant’s career. After qualification, professional development continues through Continuing Professional Development continuing professional development (CPD). There IPD and CPD share a number of common factors between IPD and CPD, including:
• The focus of both IPD and CPD on the development of developing the professional competence required to perform a work role to the expected standard expected of a professional accountant;
• The importance of effective assessment ofeffectively assessing performance outcomes;
• The development by employers of competence frameworks and employee development systems that cover employees both pre- and post-qualification; and
• The importance of students/professional accountants developing habits of reflection and self-review in relation to their learning activities, leading to a high standard of competent behavior.
It is
Member bodies may, therefore recommended, consider developing an integrated system of professional development that member bodies adopt similar approaches to both practical experience requirements and CPD requirements for their membersencompasses both pre- and post-qualification.
Effective Date
12. This IEG is effective from XXXX. It replaces Practical Experience, a discussion paper published by the IFAC Education Committee in September 1998.
Definitions
1311. The following terms used in this Practice StatementIEPS are defined in the Framework tofor International Education Standards:Statements:
Assessment: all forms of tests of professional competence*, whether in writing or otherwise, including examinations, carried out at any time throughout the learning process.
Capabilities: the professional knowledge;* professional skills;* and professional values, ethics and attitudes* required to demonstrate competence*.
Competence: being able to perform a work role to a defined standard, with reference to real working environments.
Continuing Professional Development (CPD): Learning* activities for developing and maintaining the capabilities* of professional accountants to perform competently within their professional environments.
Education: a systematic process aimed at developing knowledge, skills and other capabilities* within individuals. It includes “training”*.
.”
Learning: a broad range of processes whereby an individual acquires capabilities.*
Mentor: professional accountants who are responsible for guiding and assisting trainees* and for assisting in the development of the trainees’* competence.
Post-qualification: the period after qualification* as an individual member of an IFAC member body.
Practical experience: work experience, undertaken by a trainee* or a qualified professional accountant* that is relevant to the work of professional accountants.* The program of experience enables the individuals’ development of professional competence* (including professional behaviour) in the work place and provides a means whereby individuals can demonstrate the achievement of professional competence* in the work place.
Pre-qualification: the period before qualification* as an individual member of an IFAC member body.
Professional accountant: a person who is a member of an IFAC member body.
Professional knowledge: those topics that make up the subject of accountancy as well as other business disciplines that, together, constitute the essential body of knowledge for professional accountants.*
Professional skills: the various types of abilities required to apply professional knowledge*, and professional values, ethics and attitudes* appropriately and effectively in a professional context.
Professional values, ethics and attitudes are the professional behavior and characteristics that identify professional accountants* as members of a profession. They include the principles of conduct (i.e., ethical principles) generally associated with, and considered essential in defining the distinctive characteristics of, professional behavior.
Qualification: qualification as a professional accountant* means, at a given point in time, an individual is considered to have met, and continues to meet, the requirements for recognition as a professional accountant.*
Relevant experience: participation in work activities in an environment appropriate to the application of professional knowledge;* professional skills;* and professional values, ethics and attitudes.*
Student: an individual following a course of study, including a trainee*. In the
context of professional education, a student is an individual undertaking a course or a program of study deemed necessary for the education of professional accountants*, whether general or professional in nature.
Trainee: an individual undertaking pre-qualification* work experience and training* within the work place.
Training: pre- and post-qualification educational activities, within the context of the workplace, aimed at bringing a student* or professional accountant* to an agreed level of professional competence*.
14. This IEGIEPS introduces the following new terms[2]:
Approved Employer: an organization, accreditedaccepted by an IFAC member body, as providing a suitable environment in which trainees* gain relevant experience* prior to before qualification* as professional accountants.*
Initial Professional Development (IPD): Learning Pre-qualification learning activities through which trainees acquire and demonstrate the competence* required of professional accountants.*
Remote Mentor: a mentor* appointed by the IFAC member body to supervise a trainee’s* period of practical experience*, where the organization employing the trainee*trainee’s employer is unable to provide a suitably qualified individual to act as a mentor.*
Scope and Structure of this Practice Statement
IEPS
Scope of this Practice Statement (IEG)IEPS
1512. The aim of this Practice StatementIEPS is to provide implementationgood practice guidance for IFAC member bodies seeking to implement the requirements of IES 5 – Practical Experience. It is recommended that a number of other IAESB pronouncements are read in conjunction with IES 5 and withAlthough IFAC member bodies retain overall responsibility for meeting its requirements, this Practice Statement:
IEPS also provides guidance for employers, mentors and trainees on their roles and responsibilities regarding a period of practical experience.
|IES 7 - Continuing Professional Development: A Program of |Contains relevant discussion on input, output and combination |
|Lifelong Learning and Continuing Development of Professional |based approaches to the measurement of competence. |
|Competence | |
|IES 8 – Competence Requirements for Audit Professionals |Contains specific requirements for a period of relevant practical|
| |experience for audit professionals |
|IEG 10 - Approaches to Developing and Maintaining Professional |Contains guidance for member bodies and employers on the |
|Values, Ethics and Attitudes |importance of a period of practical experience in promoting |
| |ethical judgment and behavior, and developing professional |
| |values, ethics, and attitudes for both students and professional |
| |accountants. |
Structure of this Practice Statement (IEG)
16. Section 1 of this Practice Statement provides guidance to member bodies on meeting the requirements of IES 5.
13. Member bodies may choose to adopt elements of at least three different approaches to meeting the requirements of the StandardIES 5:
a) (a) Input-based approaches — by establishing a set period of practical experience that is considered appropriate for the demonstration ofdemonstrating competence at pointtime of qualification.;
b) (b) Output-based approaches — by requiring professional accountants to demonstrate, by way of outcomes, that they have developed development of an appropriate level of competence at pointtime of qualification.; and
(c) Combination
c) Combined approaches — by effectively and efficiently combining elements of the input- and output -based approaches, setting the amount of learning activity required experience and measuring the outcomes achieved.
17
14. Input-based systems have traditionally have served as a proxy for measuring the been used to measure the development of competence because of the ease of their measurement and verification. One of their advantages is that they may facilitate comparison between systems adopted by different member bodies. Input-based approaches have limitations; for , however. For example, they do not always measure the performance outcomes or developed competence developed. As a result, some trainees and professional accountants may not demonstrate their professional knowledge; professional skills; and professional values, ethics and attitudes to the level required level, and yet still meet the input-based criteria for measurement and verification. This “form over substance” approach
15. Output-based systems are still in the early stages of development in many parts of the world. It can undermine the objective of a period of practical experience which is to enable students to be difficult and time-consuming to set, measure and verify learning outcomes, but doing this allows trainees to demonstrate competence. the professional knowledge; professional skills; and professional values, ethics and attitudes required of professional accountants.
18. IES 5 contains a mixture
16. IES 5’s requirements for a period of practical experience include (a) a variety of input measures, such as including the requirement for completion of a to complete a minimum three -year period of practical experience before qualification as qualifying as a professional accountant (ParagraphIES 5, paragraph 11);), and (b) requirements necessitating measurement of calling for measuring output, such as the requirement forthat trainees to demonstrate the competences achieved (Paragraph(IES 5, paragraph 12).
19. This Practice Statement therefore recommends a number of ways
Structure of this IEPS
17. Section 1 provides guidance to member bodies on good practice in whichmeeting the requirements of IES 5 regarding the period of practical experience (IES 5, paragraphs 10 to 17). It suggests how member bodies maymay (a) meet the requirement for a minimum three -year period of practical experience while adoptingfor trainees to qualify as professional accountants, and (b) use elements of an output-based approach to the assessment ofassess competence developed by trainees during that period (i.e. a combination approach). .
2018. Section 2 of this Practice Statement provides detailed guidance on the roleprovides guidance to member bodies on good practice in meeting the requirements of IES 5 regarding monitoring and control of trainees during the period of practical experience (IES 5, paragraphs 18 to 26), including specific guidance on (a) the roles and responsibilities of the member body, mentor, employee(b) recording and traineeassessing practical experience, and specific guidance on the assessment of competence. The IAESB believes (c) working effectively with employers.
19. Suggested content (for illustrative purposes only) of practical experience requirements and additional guidance that, when assessing competence, output-based approaches concentrating on measuring the development and maintenance of competence achieved member bodies may provide for mentors, employers, and trainees are more effective than input-based approaches. detailed in Appendices 1 and 2 of this IEPS.
21. Section 2 of this Practice Statement also highlights the importance
SECTION 1: PRACTICAL EXPERIENCE REQUIREMENTS
Overview
20. This section of this IEPS provides guidance to IFAC member bodies of regular communication with employers, mentors and trainees to develop effective practical experience programs. All groups gain tangible benefits from the period of practical experience:
|Member body |Gains members with the professional knowledge, professional skills and professional values, |
| |ethics and attitudes required to strengthen the profession and protect the public interest. |
|Employer |Gains employees with the knowledge, skills and values, ethics and attitudes required to add |
| |value to the employer’s business. A period of practical experience may also help employers |
| |retain trained staff, and assist in effective succession planning. |
|Mentor |Develops their own knowledge and skills required (e.g. interpersonal skills) and enhances |
| |their own career development. |
|Trainee |Gains the knowledge, skills and values, ethics and attitudes required to begin their career,|
| |and continue to develop through CPD throughout their career. |
SECTION 1: APPROACHES TO IMPLEMENTING IES 5 PRACTICAL EXPERIENCE REQUIREMENTS
Introduction
22. This section of this Practice Statement provides guidance to member bodies on meeting the IES 5 requirement member bodies on meeting the requirement of IES 5 for a period of practical experience to be long enough and intensive enough to permit candidates to demonstrate they have gained the professional knowledge; professional skills; and professional values, ethics and attitudes required for performing their work with professional competence, and for continuing to grow throughout their careers (IES 5, Paragraphparagraph 10).
23. As discussed above, this Practice Statement recommends member bodies adopt a combination based approach to meeting the requirements of IES 5 21. In meeting the requirements of IES 5, member bodies may consider adopting a combined approach – meeting the requirement for a minimum three -year period of practical experience while adopting elements of an output-based approach to the assessment ofassess competence developed by trainees during that period.
Period of Practical Experience[3]
2422. A period of practical experience is important as it (a) gives trainees exposure to real workplace activities over time, contributing to the development and maintenance ofwhich contributes to developing and maintaining professional competence, and (b) enables trainees to observe and engage in real-life situations requiring the identification of ethical dilemmas, or situations requiring professional judgment. This helps to develop ethical sensitivity and judgment.
2523. IES 5 (Paragraphparagraph 11) requires the period of practical experience to be a minimum ofat least three years. Member bodies may interpret, and to express this requirement in a number of ways, including:
• Setting requirements for trainees to complete a set number of hours or days over a defined period gain experience across a range of specific work-related areas during a minimum three-year period of practical experience;
• Setting requirements for trainees to gain experience in work-related areas directly related to their intended professional specialism(s) during a minimum three-year period of timepractical experience;
• Setting requirements for trainees to complete a set number of hours or days over a defined period to meet the minimum three -year periodrequirement;
• Setting requirements for trainees to complete a set number of hours or a percentage of the overall totalperiod of practical experience in specific work-related areas within an overall, the minimum three -year period; and
• Setting differential requirements of three years or more, depending on the background and intended career path of the trainee.
Member bodies will determine the approach best suited to their environment and the profile of their trainees.
Sustained Professional Competence
26. Simply requiring trainees to gain a total of three years’ practical experience is not sufficient for meeting the requirements of IES 5. For a period of practical experience to be long enough and intensive enough to meet the requirements of IES 5, it is recommended that, as part of the minimum three year period of practical experience, member bodies require that all trainees gain sufficient, relevant experience during that period to enable them to demonstrate sustained professional competence. This will require trainees to gain experience of a broad range of work-related activities, and/or more detailed experience in activities directly related to trainees’ professional specialism(s).
27. This requires the development of competence in a range of areas appropriate to the work of a professional accountant over a period of time, and the ability to repeatedly, and successfully, perform a broad range of work-related activities to an appropriate level. The ability to perform a work-related activity once only does not demonstrate the level of sustained competence required.
Relevant Practical Experience
28. All trainees need to demonstrate sustained professional competence through a period of practical experience that is relevant to their current and anticipated future needs; and to the current and anticipated future needs of the organization in which they undertake their practical experience, the IFAC member body they seek to join, and the needs of the general public for competent professional accountants.
29. IFAC member bodies, working with employers and professional accountants, need to determine what constitutes relevant practical experience for their environment. Member bodies will determine the breadth and depth of competence required in each area, and it is recommended that member bodies develop a competence-based practical experience framework as appropriate for their students and environment.
30. There are a number of areas of professional competence developed through a period of practical experience that are common for all trainees. These are set out in IES 5 (Paragraph 17). This Practice Statement recommends that member bodies, as a minimum, ensure that trainees gain practical experience sufficient to ensure the development of competence in the areas highlighted in Table 1 below:
Table 1: Practical Experience Objectives
|Gaining Responsibility |Business Awareness |Application of Technical Knowledge |Application of Professional |
| | | |Values, Ethics and Attitudes |
|Working at progressive |An understanding of the |The ability to relate accounting work|Recognizing issues, using |
|levels of responsibility |organization, of the |to other business functions and |knowledge and experience to assess|
| |functioning of business, and of|activities |implications, making confident |
| |the environment within which | |decisions and recommendations |
| |services will be provided | | |
| | | |See IES 5, Paragraph 17 (d) |
|See IES 5, Paragraph 17 |See IES 5, Paragraph 17 (a), |See IES 5, Paragraph 17 (b) | |
|(e) |(c) | | |
|Level 1 |Understanding an organization |Understanding the technical basis and|Developing an enquiring mind |
|Gathering Information |and its industry and markets |content for work being undertaken |through asking pertinent |
| | | |questions, raising helpful queries|
| | | |and identifying issues |
|Level 2 |Analyzing an organization’s |Relating theoretical studies to |Identifying key issues and |
|Analysis and Options |environment, structure and |practical work, and understanding how|understanding the implications of |
| |business objectives |the breadth of technical knowledge |different courses of action |
| | |impacts on work | |
|Level 3 |Critically assessing |Applying technical knowledge to add |Exercising sound professional |
|Making Recommendations |performance, making |value to a business |judgment through making |
|and Adding Value |recommendations for improvement| |justifiable recommendations |
| |and giving advice. | | |
|Interpersonal and Managerial Skills |
|Trainees at all levels need to develop a range of managerial and interpersonal skills to a level appropriate for the work being |
|performed |
|Communication Skills |
|Trainees at all levels need to develop the skills required for the successful exchange of information, and for handling |
|communications when there are complex and conflicting expectations |
|IT Skills |
|Trainees at all levels need to develop competence in the areas of IT relevant to their current and anticipated future work[4] |
31. Individuals undertaking specific work roles, will require the development of additional competences relevant to their role. In the case of individuals assuming the role of audit professionals, IES 8 – Competence Requirements for Audit Professionals, contains specific requirements for a period of relevant experience.
Maximum Period for Gaining Experience
32. In order to ensure that professional accountants gain practical experience relevant to their current and future work roles, and that competence developed through practical experience does not become outdated, member bodies may choose to specify a maximum period of time in which the period of required practical experience can be gained.
Recognition of Prior Experience Obtained with another IFAC Member Body
33. It is recommended that member bodies should recognize practical experience gained by a trainee under the practical experience program established by another IFAC member body, where the trainee can demonstrate that prior experience gained is relevant to their current role. Where previous experience is not considered to be relevant to the trainees’ current role, member bodies may choose to recognize only that proportion of experience considered relevant.
Recognition of Part-Time Experience
34. Member bodies may also choose to recognize part-time and/or voluntary work undertaken by trainees as part of their period of practical experience. Member bodies need to determine how a period of part-time and/or voluntary work relates towards the achievement of the minimum three year period of practical experience required by IES 5, based on a demonstration of sustained competence gained in relevant areas rather than simply on the number of hours or days worked by trainees.
Linking Practical Experience and Formal Education
35. In order to successfully develop the required professional knowledge; professional skills; and professional values, ethics and attitudes required for performing their work with professional competence, is vital that a trainee’s period of practical experience is linked to their formal education program. This link may be achieved in three ways, by:
24. Member bodies may consider setting requirements, as illustrated in paragraph 26 below, for recognizing practical experience gained by a trainee under a program established by another institution[5].
25. Member bodies may also consider setting requirements, as illustrated in paragraph 26 below, for recognizing part-time and/or voluntary work as part of a trainee’s period of practical experience.
26. To ensure that experience gained is relevant and still remains valid, in situations such as those described in paragraphs 24 and 25 above, member bodies may set requirements including that:
• Trainees demonstrate that their experience meets the requirements for practical experience set by the member body they wish to join;
• Trainees demonstrate the relevance of their practical experience to their current/future role; and
• Only a portion of the period of practical experience will be recognized by the member body the trainee wishes to join.
27. To ensure that professional accountants gain practical experience relevant to their current and future work roles, and that competence developed through practical experience does not become outdated, member bodies may specify a maximum period in which trainees can gain the required practical experience.
Linking Practical Experience and Formal Education
28. To successfully develop the required professional knowledge; professional skills; and professional values, ethics and attitudes trainees require for performing their work, member bodies may wish to ensure that a trainee’s period of practical experience is linked to their formal education constructively and coherently. For example, it may be necessary for trainees to demonstrate a certain level of technical knowledge before exercising professional judgment on that topic. This link may be achieved in at least three ways, including by:
a) Requiring students to complete their formal education before undertaking a period of practical experience; and/or
b) Requiring students to undertake a period of practical experience concurrent with their formal education; and/or
c) Providing a mapping that links the formal education program and practical experience competences/outcomes.
36. A period of practical experience should, wherever possible, be obtained alongside or after a program of study. Member bodies may choose to recognize experience gained prior to students beginning a program of study, but where this is the case it is recommended they adopt systems and procedures designed to ensure that any such experience is relevant, and that students are able to demonstrate they have achieved and maintained sustained competence in any such areas.
3729. Where formal education programs include substantial internships (periods of practical experience undertaken during the accounting education program)), member bodies may choose to recognize relevant experience as contributing to the overall practical experience requirement, provided that the experience is gained under the supervision ofwas supervised by a mentor.
Recognition of Graduate Education and Simulation
3830. The IAESB recognizes that some systems of accounting education place greater emphasis onemphasize the formal education component, which often containsmay contain a significant proportion of practical accounting applications. IES 5 (Paragraphparagraph 11) allows for such a period of such relevant graduate professional education to contribute count for no more than 12 months totoward the practical experience requirement.
39
31. The IAESB also recognizes that some trainees students may find it difficult to gain practical experience in specific areas. It is recommended that member bodiesTo enable trainees in this situation to demonstrate competence through appropriate simulation of work experience. Appropriatestudents to demonstrate competence in such cases, member bodies may consider developing simulations and/or similar activities that supplement the required period of practical experience. Activities may include:
• Work-based projects;
• “In-Tray” type activities[6];
• Case studies; and
• Role-play.
Simulation should not form a substantial portion of the overall period of practical experience.
40. As discussed in the Introduction to this Practice Statement, students may demonstrate the achievement of the professional knowledge and professional skills required of a professional accountant through formal education and/or simulation. It is not possible, however, for students to demonstrate the development of the professional values, ethics and attitudes required of a professional accountant through formal education and/or simulation only. A period of relevant practical experience together with formal education is required for this purpose.
41. Where a member body places reliance on a period of graduate education and/or simulation as a significant component of the practical experience requirement, the member body needs to be able to demonstrate that trainees have developed professional knowledge; professional skills; and professional values, ethics and attitudes to the level required for qualification as a professional accountant.
SECTION 2: ASSESSING INITIAL PROFESSIONAL DEVELOPMENT
Introduction
42. This section of this Practice Statement provides guidance to member bodies on:
a) meeting the IES 5 requirements for the period of practical experience to be conducted under the direction of a mentor;
b) meeting the IES 5 requirements for the period of practical experience to be reviewed periodically; and
c) meeting the IES 5 requirements for the member body or regulatory body, the trainee, mentor and employer to work together to ensure the period of practical experience is effective.
43. It contains detailed guidance on the respective roles and responsibilities of the member body, mentor, employer and trainee on the establishment of practical experience systems and procedures. Regular and effective communication between the IFAC member body, the Mentor, the employer and the trainee is essential. It is strongly recommended that IFAC member bodies ensure that appropriate mechanisms are in place to facilitate regular communication between these parties.
44. This Practice Statement recommends that, where possible, member bodies adopt output-based or combination approaches to assessing trainees’ development of sustained professional competence. Output-based approaches concentrate on measuring the development of competence achieved during the period of practical experience, rather than measuring the amount of practical experience completed.
45. Assessment of sustained competence needs to be undertaken over a period of time, which highlights the importance of the mentor, a professional accountant ideally employed within the same organization as the trainee, able to track and monitor the development of trainees’ professional competence over the required period of time. Detailed guidance on the role of the mentor is given below in paragraphs 54 to 66.
Role and Responsibilities of the Member Body
Overview
46. This section of this Practice Statement provides guidance to member bodies on meeting their particular responsibilities towards mentors, employers and trainees in order to ensure that trainees undergo a period of relevant practical experience leading to qualification as a professional accountant.
47. It is recommended that member bodies establish systems and procedures to facilitate the planning, recording and regular review (i.e. monitoring) of practical experience being gained by trainees. Member bodies need to establish appropriate quality control and assurance procedures that ensure that trainees gain the relevant practical experience necessary to demonstrate sustained professional competence.
48. As member bodies grow in size and in diversity of membership, it becomes more difficult for them to directly monitor and control practical experience. It becomes more important for member bodies to establish systems and procedures that enable mentors and organizations offering practical experience to monitor the development of trainees’ competence, and for the member body to establish quality assurance over the systems and procedures so developed.
Member Body Responsibilities
49. IES 5 (Paragraph 18) states that: “The member body and/or regulatory authority should ensure that the practical experience candidates have gained is acceptable.” In order to fulfill this requirement, member bodies need to provide essential policy information, guidance and conduct a range of follow-up and monitoring activities as detailed below. These need to cover mentors, employers and trainees.
Practical Experience Requirements and Guidance
50. All IFAC member bodies need to develop and clearly state practical experience requirements that are clear, appropriate to their environment and sensitive to the needs of their members. Member bodies also need to ensure that they review and update their experience and competence requirements at periodic intervals to ensure that the practical experience gained is appropriate.
51. In additional to practical experience requirements, IFAC member bodies need to provide appropriate and effective guidance for mentors, employers and trainees enabling them to successfully implement the member body’s practical experience requirements. Such guidance needs to be accessible and available to these groups in a format that is easily accessible and easy to use.
Monitoring
52. All IFAC member bodies need to ensure they have a monitoring process in place. This needs to ensure that the practical experience gained by trainees is acceptable to fulfill the member body’s practical experience requirements, and that the trainee’s record of practical experience is reviewed periodically by a mentor.
53. It is therefore recommended that IFAC member bodies provide essential information on their practical experience requirements, guidance, and details of follow up and monitoring systems to mentors, employers and trainees as outlined in the Table 2 below:
Table 2: Practical Experience Requirements, Guidance and Monitoring
| Member Body Responsibilities to Mentors |
| Have practical experience requirements in place that: |
| |
|Outline mentor obligations |
|Align with IES5 |
|State any ethical principles and conduct (e.g. they must be completing CPD) |
|Specify who can carry out the mentor role ie experienced member of an IFAC member body |
|Clearly state the practical experience requirements and requirements on periodic review of the trainee’s experience |
|Specify the relationship and proximity of the trainee to mentors – e.g. knowledge of trainee’s work required |
|Specify any training or skills requirements |
|Define where mentors are not qualified accountants the alternative that is the acceptable approach, or method to satisfy any |
|quality concerns – e.g. qualified remote mentor network |
|Identify their role contribution in quality review and in monitoring |
| Provide guidance that sets out: |
| |
|Technical requirements on practical experience – competences |
|Mentor role and responsibilities |
|Qualifications mentors should possess, or what alternatives are in place or permissible |
|Skills required of mentors |
|How reviews of experience may be conducted and the importance of feedback to development |
|How planning can contribute to competence development |
|Advisory services for problem resolution in the mentoring relationship |
|Benefits of mentoring |
|How updating of requirements may occur |
| Follow up and monitoring to involve: |
| |
|Checking credentials of mentors |
|Monitoring the quality of review and sign off of experience |
|Follow up procedures to address non compliance/quality issues |
|Quality assurance regime – e.g. monitoring non qualified mentors or remote mentor network |
|Verification of sign off |
| Member Body Responsibilities to Employers |
| Have practical experience requirements in place that: |
| |
|Are sensitive to employers needs (i.e. be efficient and cost effective for employers) |
|Align with IES5 |
|Reinforce quality of experience and support needed for trainees. Sets criteria for approved employer status, the application |
|processes and monitoring regime |
|State how trainees may gain experience in a non-approved employer environment |
| Provide guidance that sets out: |
| |
|Technical requirements on practical experience – competences, timeframes, recording and mentor involvement |
|Requirements of approved employer status, how and when they will be monitored |
|Mentor responsibilities and frequency of trainee reviews |
|Effective review methods |
|How they may support trainees |
|How updating of requirements may occur |
| |
| Follow up and monitoring to involve: |
| |
|Monitoring of approved employers to ensure fulfilling criteria and provision for feedback on areas to be improved |
|Renewal process so that approvals only last for a set period |
|Removal process if failing to meet with requirements and criteria |
| Member Body Responsibilities to Trainees |
| Have practical experience requirements in place that: |
| |
|Clearly determine the practical experience requirements including records to be maintained |
|Align with IES5 |
|Determine how the mentor and trainee should interact |
|Outline trainee and member obligations |
|State ethical principles and conduct |
|State how monitoring may be conducted |
| Provide guidance that sets out: |
| |
|Technical requirements on practical experience – competences, timeframes and recording experience |
|Who can act as their mentor |
|How the trainee/mentor relationship should work |
|Ways of obtaining experience and gaining employer support |
|Benefits of practical experience |
|Ethical obligations |
|How updating of requirements may occur |
| Follow up and monitoring to involve: |
| |
|Audit of practical experience records |
|Review process before admission to membership |
|Obtaining feedback on quality of experience and environment |
|Disciplinary process as appropriate |
Role and Responsibilities of Mentors
Overview
54. This section of this Practice Statement provides guidance to member bodies on meeting the IES 5 requirement for a period of practical experience leading to qualification as a professional accountant to be conducted under the direction of a Mentor who is an experienced member of an IFAC member body (paragraph 18). It is recommended that all IFAC member bodies should establish a formal “Mentor Process” as described below.
55. Relationships with Mentors help trainees in many ways, including the development and demonstration of the knowledge and skills required of professional accountants, and the development of ethical sensitivity and judgment through observation of, and interaction and discussion with Mentors.
56. The IAESB recognizes that, in some circumstances, it may not be possible for trainees to achieve some or all of the required period of practical experience under the direction of a Mentor who is an experienced member of an IFAC member body. Whilst this is the IAESB’s preferred solution, this section of this Practice Statement also provides guidance for member bodies and trainees on the role of “Remote Mentors” where this is not possible.
32. Although students may demonstrate some of the professional knowledge and skills required of a professional accountant through simulation, simulation alone is not enough. In particular, simulation does not enable students to fully demonstrate the professional values, ethics and attitudes required of professional accountants. Good practice in this area suggests, therefore, that simulation should not form a substantial part of the overall period of practical experience.
Demonstrating Professional Competence[7]
33. IES 5 (paragraph 10) requires trainees to undertake a period of practical experience that permits them to demonstrate their professional knowledge; professional skills; and professional values, ethics and attitudes.
34. Member bodies will determine (a) the specific competences required of trainees, as appropriate for their environment, and (b) the defined standard for competence in one or more work roles. In setting the defined standard for competence in a particular work role, member bodies may require trainees to demonstrate a continued ability to perform relevant roles or tasks to a level appropriate for qualifying as a professional accountant.
35. A number of areas of professional competence developed through a period of practical experience are common for all trainees (IES 5, paragraph 17). Good practice suggests that member bodies ensure that trainees gain practical experience sufficient to ensure competence in each of these areas. Member bodies may therefore develop and implement a framework similar to that presented in Table 1 below:
Table 1: Competence-Based Practical Experience Framework
|AREAS |Gaining Responsibility |Business Awareness |Application of Technical Knowledge |Application of Professional Values, |Information Technology (IT) |Professional Skills |
| | | | |Ethics and Attitudes | | |
| |Working at progressive |An understanding of relevant organizations,|The ability to relate accounting work |Recognizing issues, using knowledge |Trainees need to demonstrate a general | |
| |levels of responsibility |how business works, and work relationships |to other business functions and |and experience to assess implications,|level of knowledge of IT and IT control, |IES 3, Professional Skills, groups|
| | | |activities |making confident decisions and |plus knowledge and understanding of the |the professional skills required |
| | | | |recommendations |competence elements relating to one of the |by professional accountants under |
| | |See IES 5, paragraph 17 (a), (c) | | |three additional roles set out in IEPS |five main headings: |
| | | | | |2.1[8] | |
| |See IES 5, paragraph 17 (e)| |See IES 5, paragraph 17 (b) |See IES 5, paragraph 17 (d) | |Intellectual skills; |
| | | | | | |Technical and functional skills; |
| | | | | | |Personal skills; |
| | | | | | |Interpersonal and communication |
| | | | | | |skills; and |
| | | | | | |Organizational and business |
| | | | | | |management skills. |
| | | | | | | |
| | | | | | |During their period of practical |
| | | | | | |experience, trainees at all levels|
| | | | | | |need to develop these professional|
| | | | | | |skills to a level appropriate for |
| | | | | | |the work being performed. |
|LEVELS |Level 1 |Understanding relevant organizations, |Understanding the technical basis and |Developing an enquiring mind through |Understanding general IT and IT control | |
| |Gathering Information |industries and markets and the business |content for work. |asking pertinent questions, raising |issues as they relate to the work of a | |
| | |risks associated with them; and relevant | |helpful queries and identifying |professional accountant, and their effect | |
| | |work relationships. | |issues. |on the organization and the business | |
| | | | | |environment. | |
| |Level 2 |Analyzing relevant organizations’ |Relating theoretical studies to |Identifying key issues and |Analyzing IT and IT control systems and | |
| |Analysis and Options |environments, structures and business |practical work, and understanding how |understanding the implications of |processes, and understanding the impact of | |
| | |objectives; and relevant work |the breadth of technical knowledge |different courses of action. |changes in these on the organization. | |
| | |relationships. |impacts on work. | | | |
| |Level 3 |Critically assessing performance, making |Applying technical knowledge in real |Exercising ethical sensitivity and |Applying general IT and IT control, and | |
| |Applying Knowledge and |recommendations for improvement, giving |work environments. |judgment and applying professional |user role knowledge and skills to make | |
| |Skills in a Real Work |advice, and applying relevant reporting | |values, ethics and attitudes in real |recommendations for improvement, and giving| |
| |Environment |requirements. | |work environments. |advice. | |
36. Individuals undertaking specific work roles will require competences relevant to their roles. IES 8, Competence Requirements for Audit Professionals, contains specific requirements for a period of relevant experience required of individuals acting as audit professionals.
37. Where trainees are unable to gain the relevant experience required to qualify as professional accountants, member bodies may consider encouraging them to explore opportunities such as secondments, or job swaps, with their current employer.
Updating Practical Experience Requirements
38. Member bodies may regularly review practical experience requirements to ensure that they remain current and relevant. Competences required of trainees during their period of practical experience change over time. Member bodies may therefore (a) consult with others, including employers, and/or (b) conduct periodic studies, to review the competences required of professional accountants and update their practical experience requirements accordingly.
39. Although minor changes to practical experience requirements can be made as and when necessary, good practice suggests that a member body conduct a major review of these requirements when updating syllabus requirements. This needs to take account of changes in the work and competences required of professional accountants. In conducting the review, member bodies may consult a number of stakeholders, including:
• Employers (including members of any Approved Employer scheme, and others);
• Mentors;
• Professional accountants (i.e., members of the member body); and
• The academic community.
SECTION 2: MONITORING AND CONTROL
Overview
40. This section of this IEPS provides guidance to member bodies on good practice in meeting the requirements of IES 5 regarding monitoring and control of a period of practical experience (IES 5, paragraphs 18 to 26).
41. Specific guidance is given in this section on (a) the role and responsibilities of the mentor, (b) recording and assessing practical experience, and (c) working effectively with employers (including establishing Approved Employer schemes for those member bodies that choose to do so).
Role and Responsibilities of Mentors
42. Mentors help trainees in many ways, including helping them develop and demonstrate the professional knowledge; professional skills; and professional values, ethics and attitudes required of professional accountants.
43. Mentor responsibilities may vary with the specific environment in which the mentor and their trainee(s) operate. Good practice suggests, however, that all mentors should:
• Understand trainees’ work, and their need to gain practical experience to qualify as professional accountants;
• Regularly review trainees’ experience;
• Influence the type(s) of trainees’ practical experience;
• Communicate regularly and effectively with trainees, and trainees’ line managers where appropriate;
• Provide trainees with appropriate supervision, mentoring, counseling, and evaluation;
• Provide feedback to trainees on trainees’ practical experience, and assess their achievement of competences; and
• Report to member bodies on trainees’ (a) application of ethical judgment, (b) behavior, and (c) the development of the professional knowledge and skills required to qualify as professional accountants.
44. Member bodies may limit the maximum number of trainees reporting to one mentor, taking into account the need for the mentor to provide each with appropriate supervision, mentoring, counseling, and evaluation.
Establishing a Mentoring Process
57. It is recommended that member bodies establish a formal “Mentor process” supported by appropriate documentation (e.g. process flowcharts) identifying key elements of how to operate a Mentor scheme, including the choice and appointment of Mentors.
Choosing an Mentor
58. It is recommended that IFAC member bodies put in place mechanisms whereby appropriately qualified and experienced Members are encouraged to apply to become Mentors. It is further recommended that member bodies establish appointment and training systems to enable them to select and train the most appropriate applicants. Particular attention should be given to the criteria necessary for becoming a Mentor as outlined below:
Criteria for Becoming a Mentor
59. In order to discharge their important responsibilities, Mentors should meet the following criteria:
|KNOWLEDGE |
Mentor Criteria Knowledge:45. Member bodies may consider establishing a formal “Mentoring Process”, supported by appropriate documentation (e.g., process flowcharts). It will likely identify key elements of such a process, including:
• Identifying potential mentors;
• Appointing and/or approving mentors;
• Monitoring mentors; and
• Removing mentors who are unable to provide the supervision, mentoring, counseling and evaluation trainees require.
Identifying Potential Mentors
46. An important part of the mentoring process is a mechanism by which suitably qualified and experienced members of an IFAC member body are encouraged to apply to become mentors. This could include:
• Member bodies encouraging suitable professional accountants to volunteer to become mentors (member bodies may publish and advertise the advantages of carrying out this role);
• Member bodies encouraging employers to identify potential mentors within their organization;
• Trainees identifying and approaching potential mentors within their organization; and/or
• Regulatory or similar bodies appointing mentors.
Appointing, Approving and Training Mentors
47. Member bodies may also establish appointment/approval and training systems to enable them to select and train the most qualified applicants. In doing so, member bodies may develop formal criteria for becoming a mentor, similar to those set out in Table 2 below:
Table 2: Suggested Criteria for Becoming a Mentor
|Mentors have a current understanding of: |Evidenced by: |
| |Evidenced by: |
|The member body’s Admissions policy |Maintaining the goals and intent of the member body’s admissions policies |
| | |
|Has a current knowledge of the member bodies Admissions policyThe member body’s Code of Ethics |Commitment to upholding the goals and intent of the member bodies’ admissions |
| |policiesMembership in good standing with the member body |
| | |
|Has a current knowledge of the IFAC Code of EthicsThe professional and technological issues relevant to|Commitment to upholding member bodies’ standardsParticipating in continuing professional |
|practical experience |development and associated activities |
|Has a current knowledge of the professional and technological issues that are relevant to practical |Member in good standing with the member body |
|experience, and of the expectations associated with the Mentoring process |Participation |
| |Participating in continuing professional development and associationassociated activities |
|The professional knowledge and skills required of trainees studying to become professional accountants | |
|Has a current knowledge of issues |Member in good standing with the member body |
|Issues facing the profession |Participation |
| |Participating in continuing professional development activities |
|Has a current knowledge of any |Participation |
|Any other specific requirements and responsibilities in relation to Mentoringmentoring set by national |Participating in a regular program of specific Mentormentor training |
|accounting regulatory bodiesregulators or others | |
|SKILLSThe expectations associated with the mentoring process |Participating in a program of mentor training |
|Mentor Criteria Knowledge:The trainee’s work |Evidenced by: Maintaining a close working relationship with the trainee |
Table 2: Suggested Criteria for Becoming a Mentor (continued)
| | |
|Has the ability to advise, counsel, evaluate, |Commitment to providing support to the trainee |
|motivate, and provide direction to the trainee |Ability to seek advice when appropriate and necessary |
|Mentors are: |Evidenced by: |
|Is interested in training future members |Commitment to training and development |
|Able to advise, counsel, evaluate, |Providing support to the trainee |
|motivate, and provide direction to the trainee |Seeking advice when appropriate and necessary |
|Is available for scheduled consultations with trainees |Commitment to engaging in scheduled meetings (which may be face to face or virtual e.g. |
|Interested in training future members |online; video conferencing; teleconference) with the trainee |
| | |
| |Participating in training and development programs for trainees |
|PROFESSIONAL POSITION | |
|Available for scheduled consultations with trainees |Engaging in scheduled meetings (face-to-face or virtual e.g., online; video conferencing; |
| |teleconference) with trainees |
|Mentor Criteria Knowledge: |Evidenced by: |
|Recognized as a role model |Recognition by fellow professionals as exhibiting professionalism |
| | |
|HasOf sufficient professional standing to |Recognition by fellow professionals as exhibiting professionalism |
|undertake the responsibilities as a Mentor | |
| |Personal characteristics and professional stature |
|Is recognised as a role model | |
| |“Closeness to the workplace” |
| | |
|Has a knowledge of the trainees’ work |Access to the trainees performance management reports on a confidential basis and experience |
|mentor | |
60. There is an important distinction to be made between a Mentor and an individual who “signs off” trainees’ practical experience for the purposes of membership admission, often referred to as a “Training Principal” or similar. If an individual does not provide the support and advice expected of a Mentor, they may not meet the criteria for a Mentor outlined above. In these circumstances, the member body is expected to ensure that trainees conduct their practical experience under the guidance of a Mentor in addition to the formal “sign off” of practical experience.
61. It is important that whoever supervises a trainee in the workplace be directly involved in the evaluation of trainees’ experience. If, however this individual is not a qualified professional accountant then a further level of “sign off” by a member of an IFAC member body is recommended to ensure compliance with this the requirements of IES 5.
Appointing a Mentor
62. It is recommended that, once suitably qualified Mentors have been appointed by an IFAC member body, this fact be communicated to the Mentor’s employer. Where possible, employers are encouraged to match Mentors and trainees (following suitable guidance from the relevant IFAC member body). Where this is not possible, Mentors and trainees may be matched by the IFAC member body or appropriate regulatory authority.
63. In order to reflect best practice and the need for the Mentor to provide commitment and support to the trainee, it is recommended that one Mentor be responsible for no more than ten (10) trainees at any one time.
64. It is recommended that IFAC member bodies encourage Mentors to provide feedback on trainees’ ethical judgment and behavior, in addition to feedback on their technical performance.
Absence of a Suitable Mentor
65. The IAESB recognizes that, particularly in small and medium sized enterprises and in the context of the training of professional accountants in business, Mentors who are experienced members of an IFAC member body may not be available to provide the supervision of practical experience required by IES 5. In these circumstances, it is recommended that the following procedures and risk mitigations be implemented:
i) Member bodies could establish a team of trained “Remote Mentors” who meet the criteria for Mentors outlined above and who are available where an employer is unable to provide such expertise within their own organization. In these circumstances, it is essential that the Remote Mentor, the IFAC member body (and/or regulatory authority), the trainee, and the employer work together - e.g. by establishing a “Mentor Charter for Trainees”, detailing the support to be provided and the obligations of all parties involved;
ii) Employers could seek the support of suitably qualified Mentors from those providing professional services - e.g. their accountants, auditors etc.
66. Where Remote Mentors are appointed it is strongly recommended that they endeavor to establish an effective channel of communication with the trainee’s line manager in order to effectively fulfill their responsibilities.
Role and Responsibilities of Employers
Overview
67. This section of this Practice Statement provides guidance to member bodies on the role and responsibilities of employers in the practical experience process. Employers play a key role in providing relevant practical experience that allows trainees to demonstrate the competences necessary to qualify as professional accountants. In many cases, employers also play a key role in matching Mentors and trainees.
68. The IAESB recognizes that in some situations and environments it may be difficult or impossible for IFAC member bodies to gain the co-operation required from employers to implement all of the recommendations below. IFAC member bodies are expected to use their best endeavors to implement as many of the recommendations as possible, however.
Approved Employer Schemes
69. It is recommended that, where possible, IFAC member bodies establish an “Approved Employer” or similarly titled scheme that recognizes employers providing a suitable environment in which trainees gain relevant experience prior to qualification as professional accountants. Member bodies need to use their best endeavors to encourage employers to join such a scheme, though the IAESB recognizes that in some circumstances it may be difficult or impossible to persuade employers of the benefits of participating.
70. It is recommended that an “Approved Employer” or similar scheme recognize employers for a fixed period of time, following an assessment of the ability of the employer to provide relevant practical experience, with a mechanism for renewal following re-assessment. A process for revoking “Approved Employer” status also needs to be established if it becomes clear that an employer is no longer able to provide relevant practical experience, or abide by the principles and rules of a member body’s “Approved Employer” or similar scheme.
71. It is recommended that, in establishing “Approved Employer” or similar schemes, IFAC member bodies require employers to adopt four basic principles for trainees’ initial professional development (IPD) during a period of practical experience, as outlined below:
|EMPLOYER PRINCIPLES FOR INITIAL PROFESSIONAL DEVELOPMENT |
| | |
|Able to influence (at least to an extent) the work assignments received by trainees |Access to the trainee’s line manager(s) and/or personnel manager(s) |
48. There is an important difference between a mentor and an individual who “signs off” trainees’ practical experience for the purposes of membership admission. Mentors are expected to provide an appropriate level of (a) supervision, (b) mentoring, (c) counseling, (d) evaluation, and (e) support and advice to trainees, as outlined in Table 2 above. Other individuals are not necessarily expected to do so.
Monitoring Mentors
49. Member bodies may consider establishing a system of periodic monitoring to help ensure that mentors (a) continue to meet the member body’s criteria regarding knowledge, skills and professional standing, and (b) continue to provide appropriate supervision, mentoring, counseling and evaluation for their trainee(s). Such systems could include:
• Desk-based monitoring of mentors (requiring documentation attesting to mentors’ knowledge, skills, professional standing, and activities);
• Regular (e.g., twice-yearly) training and evaluation sessions for mentors;
• Obtaining feedback from trainees on their mentors’ performance; and
• Site visits to mentors (perhaps as part of an Approved Employer site visit).
Table 3 (see paragraph 66) provides further guidance on possible elements of a monitoring system for mentors.
Removing Mentors
50. Member bodies may establish a process for removing mentors if it becomes clear that a mentor is unable or unwilling to provide the appropriate level of supervision, mentoring, counseling, and evaluation for their trainee(s).
Absence of a Suitable Mentor
51. The IAESB recognizes that mentors who are experienced members of an IFAC member body may not be available, particularly in small- and medium-sized enterprises and for training professional accountants in business. In this case, member bodies may need to establish alternatives, which could include:
a) A team of trained Remote Mentors who meet the above criteria for mentors, and who are available where an employer is unable or unwilling to provide such expertise. In these circumstances, it is essential that the remote mentor, the IFAC member body (and/or regulatory authority), the trainee, and the employer make an extra effort to work together - for example, by establishing a “Mentor Charter for Trainees” that details the required support and the obligations of all parties; and
b) Seeking the support of suitably qualified mentors from those providing professional services to the employer, such as accountants and business advisors. Independence rules may prevent the auditor from undertaking this role.
Recording Practical Experience
52. IES 5 (paragraph 19) requires mentors to periodically review trainees’ records of practical experience. Member bodies may therefore require trainees to periodically record their practical experience in paper or web-based logbooks, potentially in “real-time” for timely control, audit, and feedback. Using these records, mentors can regularly monitor the relevance, depth, and length of experience.
53. Records of practical experience support the mentor’s ability to provide “just in time” feedback to trainees and/or member bodies on any shortcomings well before the end of the training period. The mentor’s approval of these records provides:
• The member body with evidence that the period of practical experience has been properly completed;
• The employer with evidence useful for appraising employees; and
• The trainee with evidence of experience that may be used when seeking future employment.
54. Member bodies may review trainees’ records of practical experience periodically, or using a random or risk-based sampling methodology.
Assessing Practical Experience
55. As illustrated in paragraphs 33 to 35, and Table 1 above, member bodies may develop a competence-based practical experience framework appropriate for their environment that directs mentors, employers and trainees to the areas in which they are expected to gain practical experience.
56. Where this is the case, member bodies may require the mentor to confirm, in writing, that the trainee has demonstrated the required competences. As discussed in paragraph 34 above, member bodies may require trainees to demonstrate a continued ability to perform relevant roles or tasks to a level appropriate for qualifying as a professional accountant.
57. Mentors may assess trainees’ competence in several ways, including:
• By direct observation of trainees’ work;
• Through third party reports on trainees’ work;
• Through discussion with trainees of their work and learning (e.g., as part of an appraisal process); and
• Via a formal interview (in conjunction with or in addition to appraisal and/or a performance review interview).
58. Evidence and documentation mentors require to support their assessment of trainees’ competence could include:
• Student training records;
• Learning logs, trainees’ learner diaries, or similar records;
• Critical incident accounts; and
• Portfolios of evidence (e.g., accounts prepared by the trainee, meeting reports, spreadsheet models, etc).
59. As part of the assessment, member bodies may encourage mentors to provide regular feedback to trainees on their achievement of competences. Good practice suggests that this should take place at least annually (preferably more frequently), rather than only at the end of a period of practical experience.
60. Before admitting a candidate to membership, an IFAC member body may assess the practical experience against its requirements for membership. In these cases, the member body may require candidates and/or mentors to document experience gained and competences achieved, including through:
• Training records signed by the mentor;
• Trainees’ learning logs, or similar records;
• Trainees’ portfolios of evidence;
• Records of appraisals, performance reviews and/or meetings with mentors; and
• A report by the mentor to the member body certifying practical experience gained and competences achieved by the trainee.
Working with Employers
61. Employers, in many cases, play vital roles in (a) working with IFAC member bodies and trainees to ensure the completion of a period of practical experience that satisfies member body requirements, (b) identifying and supporting mentors, and (c) helping to match mentors and trainees.
62. In some cases, IFAC member bodies and employers may choose to enter into formal arrangements to provide relevant practical experience and support to trainees. Such arrangements may be titled “Approved Employer” schemes, or similar. Guidance on establishing these is given in paragraphs 64 to 71 below.
63. In other cases, IFAC member bodies and employers may not choose not to enter into any such formal arrangements. Guidance for member bodies on working effectively with employers in such situations is given in paragraphs 72 to 75 below.
Establishing Approved Employer Schemes
64. IFAC member bodies may consider establishing an Approved Employer (or similarly titled) scheme that recognizes employers that provide an environment in which trainees gain relevant experience before qualifying as professional accountants.
65. Approved Employer or similar schemes may recognize employers for a fixed period of time, after assessing their ability to provide relevant practical experience. They may also include a mechanism for renewing approvals after re-assessment. A process for revoking Approved Employer status may also be needed where it becomes clear that an employer is no longer able either to provide relevant practical experience, or to abide by the principles and rules of a member body’s scheme.
Assessing and Approving the Practical Experience Environment Before Commencement of Experience
66. Member bodies establishing Approved Employer or similar schemes may encourage employers to adopt four basic principles for trainees’ IPD during a period of practical experience, similar to those outlined in Table 3 below:
Table 3: Approved Employer Principles for Initial Professional Development (IPD)
|Employers work with Mentors and trainees to identify trainees’ development needsAPPROVED EMPLOYER PRINCIPLES FOR |
|INITIAL PROFESSIONAL DEVELOPMENT (IPD) |
|Appropriate practical experience is providedEmployers work with mentors and trainees to meetidentify trainees’ |
|development needs, including their need to meet practical experience requirements of the relevant IFAC member body. |
|Practical experience is monitored by the employer, usually via a Mentor appointed by the employer in conjunction with |
|the relevant IFAC member bodyAppropriate practical experience is provided to meet trainees’ development needs, |
|including their need to meet practical experience requirements of the relevant IFAC member body. |
|Trainees are regularly appraised, and their development needs re-assessedPractical experience is monitored by the |
|employer, usually via a mentor appointed by the employer in conjunction with the relevant IFAC member body |
|72Trainees are regularly appraised, at least once per year, and their development needs re-assessed. |
67. IFAC member bodies may need to collect and assess evidence from employers to ensure that they are (a) following the above principles are being followed, and (b) providing a suitable environment for trainees to gain practical experience. Evidence could include:
• Employment contracts;
• Job descriptions and role profiles;
• Employer training policies;
• Specific documents relating to the roles and responsibilities of trainees and mentors;
• Staff handbook;
• Appraisal/performance review documents; and
• Time sheets.
73. It is recommended that member bodies monitor approved employers on a regular basis, to ensure the four principles set out in Paragraph 70 continue to be followed.
74. Member bodies may adopt additional requirements for approved employers preparing trainees for qualification in specialist areas, such as audit. Such employers are often referred to as “Approved Training Practices” or similar.
75. Where it is not possible to include an employer in a member body’s “Approved Employer” scheme, or similar, the IFAC member body, working with the mentor and the trainee need to use their best endeavors to work with the employer to:
a) Plan the trainee’s practical experience in such a way as to meet the employers’ needs, as well as the practical experience requirements of the relevant IFAC member body;
b) Ensure the trainee gains a breadth and depth of practical experience, at increasing levels of complexity and responsibility;
c) Provide evidence that the trainee has gained the competences necessary for qualification as a professional accountant.
Difficulties in Meeting Requirements of IES 5
76. Where it is clear from the start of a potential professional accounting training program that an employer is unable to provide the appropriate practical experience requirements and to meet the requirements of IES 5, it is the responsibility of the IFAC member body to make it clear to both the employer and the potential trainee, prior to registration that such a program would be unacceptable.
77. In order to achieve this, it is recommended that member bodies publish transparent practical experience requirements (as described in Table 2 above) in advance of a trainee registering with the member body, outlining the obligations on the employer and the trainee. The employer and student should ‘sign up’ under these obligations.
78. Trainees are required to regularly record and update their practical experience over the length of the practical experience requirements. As a result, the Mentor and the professional body will be able to monitor the suitability of the relevance, depth and length of experience being acquired on a timely basis, providing the ability to feedback on a ‘just in time’ basis on any shortcoming well in advance of the end of the training period. Records could be kept in logbooks or virtually and potentially in ‘real-time’ for timely control, audit, and feedback.
79. Where it becomes clear to the Mentor and trainee, during the course of a period of practical experience, that an employer has become unable to provide the appropriate practical experience requirements and to meet the requirements of IES 5 then it is recommended that:
i) Employers be encouraged by the IFAC member body to second trainees to suitable employment e.g. with their financial advisors, customers, or supply chain;
ii) Member bodies enable trainees to have the potential to ‘transfer employers’ during the pre-qualification period of practical experience in order to fulfill the practical experience requirements.
Role and Responsibilities of Trainees
Overview
80. This section of this Practice Statement provides guidance to member bodies to ensure that trainees play an active role in the attainment of practical experience. This experience should represent the first stage - Initial Professional Development (IPD) in a professional development continuum which continues throughout their working lives. After qualifying as professional accountants, trainees are expected to maintain and develop competence through Continuing Professional Development (CPD).
81. IES 5 aims to ensure that trainees seeking to qualify as professional accountants have acquired the practical experience considered appropriate at the time of qualification in order for them to function as competent professional accountants.
82. Studying for academic and/or professional qualifications are useful methods of acquiring and demonstrating professional accountancy knowledge gained. However, this studying does not necessarily demonstrate that professional competence in the workplace has been achieved.
83. Practical experience provides a professional environment in which trainees develop competence by:
a) Enhancing their understanding of organizations; of how business works and of relationships in the workplace;
b) Being able to relate accounting work to other business functions and activities;
c) Becoming aware of the environment in which services are provided;
d) Developing the appropriate professional values, ethics and attitudes in practical, real life situations;
e) Having the opportunity to work at progressive levels of responsibility.
Ensuring Quality of Trainees’ Practical Experience
84. A successful period of practical experience requires trainees to work with their employer and Mentor and member body in at least three key areas:
i) Obtaining relevant employment, allowing completion of the period of practical experience;
ii) Planning the period of practical experience to ensure the objectives of both trainee and employer are met;
iii) Obtaining guidance from a suitably qualified mentor.
85. Each area has a number of quality inputs implied in the processes involved in obtaining practical experience, which help ensure the relevance of the period of practical experience. Trainees may derive a number of benefits associated with these, as outlined in Table 3 below:
Table 3: Quality Inputs and Benefits to Trainees in a Period of Practical Experience
68. Member bodies may adopt additional requirements for Approved Employers that prepare trainees for qualification in specialist areas, such as audit. In some jurisdictions, such employers are referred to as “Approved Training Organizations,” or similar.
Monitoring Employers Previously Approved
69. Periodic monitoring of Approved Employers helps to ensure a continuing, suitable environment for gaining practical experience. Member bodies may therefore establish monitoring systems for Approved Employers that include regular site visits. These could include:
• Meetings with employer representative(s) and reviews of employer documentation and training records; and
• Meetings with mentors and trainees to determine employer’s continued adherence to the Approved Employer scheme.
Establishing a System of Periodic Reporting
70. Where it is impractical to regularly visit all Approved Employers, as described in paragraph 69 above, member bodies may establish alternative systems of periodic reporting that monitor employers’ adherence to the Approved Employer scheme, to identify any changes in the nature, scope and content of trainees’ practical experience. Such systems could include:
• Periodic, desk-based monitoring of employer documentation and training records; and
• Obtaining feedback from mentors and trainees (by post, telephone or e-mail) to determine employers’ continued adherence to the requirements of the Approved Employer scheme.
71. In establishing a system of monitoring Approved Employers, member bodies may combine elements of periodic site visits and regular desk-based monitoring/obtaining feedback from mentors and trainees.
Working with Non-Approved Employers
72. Employers that are not members of an Approved Employer or similar scheme may still, in many cases, provide the practical experience required by a member body. This is often the case for students training as accountants in business. In such situations, the member body, together with mentors and trainees, will likely need to work with the employer to:
• Plan the trainee’s practical experience so that it meets the employer’s needs, as well as the practical experience requirements of the member body;
• Ensure that the trainee gains a breadth and depth of practical experience, at increasing levels of complexity and responsibility; and
• Provide evidence that the trainee has gained the competences necessary for qualifying as a professional accountant.
73. Member bodies may consider publishing easily available and understandable practical experience requirements and guidance that detail the employers’ expected roles and responsibilities (such as those outlined in Table 3 above) before a trainee registers with the member body.
74. Sometimes it is clear that an employer is unable or unwilling to provide the required practical experience. In this case, good practice suggests that the member body inform both the employer and the potential trainee, ideally before registration, that alternative arrangements need to be made to meet the member body’s requirements for qualification as a professional accountant.
75. To ensure that the objectives of a period of practical experience are met, regular and effective communication between the member body, the mentor, the employer and the trainee is essential. Good practice suggests that member bodies ensure that appropriate mechanisms are in place to facilitate regular communication between these parties.
76. Member bodies may wish to establish periodic monitoring systems of non-approved employers to ensure that trainees continue to gain the relevant practical experience required to qualify as professional accountants. These could include:
• More frequent/more in-depth monitoring of mentors, to ensure they continue to provide adequate (a) supervision, (b) mentoring, (c) counseling, (d) evaluation, and (e) support and advice to trainees;
• Obtaining feedback from mentors and trainees (in person, or by post, telephone or e-mail) as to the suitability of the practical experience environment; and
• Meetings (if possible) with employer representative(s) to discuss trainees’ progress and the practical experience environment.
APPENDIX 1 - Member Body Guidance for Employers, Mentors and Trainees
Good practice suggests that member bodies may develop easily accessible (a) practical experience requirements and (b) guidance for employers, mentors and trainees, both of which are clear and appropriate to the environment to which they relate. Suggested content (for illustrative purposes only) of such requirements and guidance is provided below:
| |
|AREA (i) - Obtaining Relevant Employment |
| |
|Suggested Content of Practical Experience Requirements Relating to Mentors |
| | |
|QUALITY INPUT |BENEFIT |
|Work environment presents exposure to diverse situations |Enables the trainee to appreciate the variety of workplace challenges and ways to |
|and opportunities, and a variety of challenges |respond to those challenges, whilst being guided in a supportive environment. |
|Have access to suitable mentors to direct and guide |Planning and guidance of experience provided by the mentor enables a better range and|
|experience |depth of experience, and learning thereof from that experience for the trainee. |
|Development opportunities are provided for the trainee |Trainees will be provided with access to learning as a result of exposure to diverse |
| |situations through feedback and possibly further appropriate skills/knowledge |
| |development opportunities. |
|Achieves the practical experience requirement of their |Enables them to meet the member body’s requirements and ensures that they become |
|professional body |competent professional qualified accountants. |
|There is an understanding of what is required to become a |There will be clear understanding of the value of practical experience, and trainees |
|professional accountant |and mentors roles and responsibilities, enabling them to achieve the necessary |
| |requirements in a planned and supported way. |
|Ideally the work role is with an Approved Employer* |Approved Employers represent best practice in the initial professional development of|
| |professional accountants with good quality and planned out experience, and a |
| |supportive environment in which trainees are developed so as to become competent |
| |professional accountants. |
| |There is a full understanding of, and compliance with, member body requirements. |
| |
|AREA (ii) – Planning and Recording Practical Experience |
| |
|State how mentors may be authorized to act as mentors |
|Outline mentor obligations |
|State any ethical principles and conduct (e.g., they must be completing CPD) |
|Specify who can carry out the mentor role (i.e., experienced members of an IFAC member body) |
|Specify knowledge and skills requirements for mentors |
|Clearly state the practical experience requirements and requirements for periodic review of the trainee’s experience |
|Specify the relationship and proximity of the trainee to mentors (e.g., knowledge of trainee’s work required) |
|Specify any training, skills and monitoring requirements for mentors |
|Identify mentor’s role in monitoring and assessing practical experience |
| |
|Suggested Content of Practical Experience Requirements Relating to Employers |
| |
|Ensure efficiency and cost-effectiveness for employers |
|Consider different employer needs (e.g., employers in industry, employers in practice) |
|Reinforce quality of experience and support needed for trainees. |
|Establish criteria for “Approved Employer” status, the application processes, and the monitoring regime |
| |
|Suggested Content of Practical Experience Requirements Relating to Trainees |
| |
|Clearly determine the practical experience requirements including records to be maintained |
|Determine how the mentor and trainee should interact |
|Outline trainee and member body obligations |
|State ethical principles and conduct |
|State how monitoring may be conducted |
|State how trainees may gain experience in a non-approved employer environment |
| |
|Suggested Content of Guidance for Mentors |
| |
|Technical requirements for practical experience |
|Mentor role and responsibilities |
|Qualification requirements for mentors |
|Knowledge and skills required of mentors |
|How to conduct reviews of experience and the importance of feedback to development of trainee |
|How planning can contribute to competence development |
|Advisory services for problem resolution in mentoring |
|Benefits of mentoring to all parties |
|How updating of requirements may occur |
|Training available for mentors |
| |
|Suggested Content of Guidance for Employers |
| | |
|QUALITY INPUT |BENEFIT |
|Alignment of employer objectives and member body |Trainees as they obtain experience and develop, continue to add value to their |
|requirements |employer’s business. This also provides a structure to achieve the competence |
| |required by the member body. |
|Have clear objectives for competence attainment |There is a planned approach to ensuring competences can be demonstrated, and the |
| |member body requirements met. |
|Includes exposure to relevant, up to date and emerging |Experience enables trainees to apply in practice what they have studied. |
|work practices | |
|Competences can be achieved |
| |
| |
| |
|Technical requirements for practical experience – competences, timeframes, recording, and mentor involvement |
|Requirements of “Approved Employer” status, and how and when employers will be monitored |
|Mentor responsibilities and frequency of trainee reviews |
|Effective review methods |
|How they may support trainees |
|How updating of requirements may occur |
|Details of consultative processes to update practical experience requirements |
| |
| |
|Suggested Content of Guidance for Trainees |
| |
|Technical requirements on practical experience – competences, timeframes and recording of experience |
|Who can act as a mentor |
|How the trainee/mentor relationship should work |
|Ways of obtaining experience and gaining employer support |
|Benefits of practical experience |
|Ethical obligations |
|How updating of requirements may occur |
APPENDIX 2 - Additional Member Body Guidance for Trainees
In some circumstances, trainees themselves may play a substantial role in establishing suitable conditions for obtaining the practical experience required by their member body. Where this is the case, member bodies may publish additional guidance for trainees to help them:
a) Obtain employment that will allow them to complete the required period of practical experience;
b) Obtain guidance from a suitably qualified mentor, enabling trainees to demonstrate the professional knowledge; professional skills; and professional values, ethics and attitudes required of professional accountants; and
c) Plan and record the period of practical experience to ensure that the objectives of both the trainee and employer are met.
Suggested content (for illustrative purposes only) of such guidance is provided below:
| |
|AREA (a) - Obtaining Relevant Employment |
| |Experience that has clear outcomes and benefits, motivates trainees and helps to keep|
|Suggested Content of Guidance |them engaged and effective. |
| | |
| |Rationale |
|Progressive levels of responsibility are given |The trainee will be given responsibility as they demonstrate competence. They will |
| |gain broader exposure and increase their reputation with the employer. |
|Work environment presents exposure to diverse situations | |
|and opportunities, and a variety of challenges |Enables trainees to appreciate the variety of workplace challenges and ways to |
| |respond to challenges, while being guided in a supportive environment. |
|Consideration of ethical issues |The trainee will be fulfilling their requirements as outlined in IES4; that |
|Work environment provides trainees with an ethical |Enables trainees to develop the required professional values, ethics and attitudes |
|environment |identify required of professional accountants as members of a profession and should |
| |shape everything they do as professionals. |
|Recording practical experience gained |Assists trainees in planning work activities, understanding and reflecting on how |
|Have access to suitable mentors to direct and guide |they have applied competencies gained at work, and providing evidence to member body |
|experience |of experience gained. |
| |Planning and guidance of experience provided by the mentor enables a better range and|
| |depth of experience and learning. |
| |
|AREA (iii) – Obtaining Guidance from a Suitably Qualified Mentor |
| | |
|Development opportunities are provided for the trainee |Trainees will be provided with access to learning opportunities as a result of |
| |exposure to diverse situations through feedback, and possible further opportunities |
| |for appropriate skills/knowledge development. |
| | |
|QUALITY INPUTAchieves the practical experience requirement|BENEFIT |
|of their professional body |Enables them to meet the member body’s requirements and ensures that they become |
| |competent professional accountants. |
|Is an experienced member of an IFAC body |Mentors |
|There is an understanding of what is required to become a |There will have the knowledge,be clear understanding and of the value of practical |
|professional accountant |experience, and trainees’ and mentors’ roles and responsibilities, enabling them to |
| |support trainee developmentachieve the necessary requirements in a planned and |
| |supported way. |
|Has knowledge and understanding of a trainee’s work |They are aware of the trainee’s work activities and outputs, and can identify the |
| |trainee’s strengths and weaknesses/areas for development. |
| | |
|Ideally the work is with an “Approved Employer” |“Approved Employers” provide a supportive environment in which trainees are developed|
| |and become competent professional accountants. |
| |There is a full understanding of, and compliance with, member body requirements. |
|Is able to provide opportunities for the trainee to gain |Helps with a planned approach to experience to ensure that the trainee progresses |
|relevant experience |his/her level of responsibility and achieves the required experience and competence |
| |in an effective way. |
|Has an understanding of the member body requirements |
| |
| |
| |
| |
|AREA (b) – Obtaining Guidance from a Suitably Qualified Mentor |
| |Is aware of what the member body requires of the trainee and can help incorporate |
|Suggested Content of Guidance |those requirements within the workplace. This provides an efficient way of obtaining |
| |experience and demonstrating competence that will meet the body’s requirements. |
| | |
| |Rationale |
|Is able to provide guidance and support to the trainee |The trainee is given feedback and coached to achieve the appropriate level of |
|Mentor is an experienced member of an IFAC body |competence. Trainee’s skills are developed and improved. |
| |Mentors will have the knowledge, understanding and experience to support trainee |
| |development. |
|Is an experienced member of an IFAC body |Mentors will have the knowledge, understanding and experience to support trainee |
|Mentor has knowledge and understanding of a trainee’s work|development. |
| |They are aware of the trainee’s work activities and outputs, and can identify the |
| |trainee’s strengths and weaknesses/areas for development. |
| | |
|Mentor is able to provide opportunities for the trainee to|Help with a planned approach to experience to ensure that the trainee increases |
|gain relevant experience |his/her level of responsibility and achieves the required experience and competence |
| |in an effective way. |
| | |
|Mentor has an understanding of the member body |Is aware of what the member body requires of the trainee, and can help incorporate |
|requirements |those requirements within the workplace. This provides an efficient way of obtaining |
| |experience and demonstrating competence that will meet the member body’s |
| |requirements. |
| | |
|Mentor is able to provide guidance and support to the |The trainee is given feedback and coached to achieve the appropriate level of |
|trainee |competence. Trainee’s skills are developed and improved. |
| |
|AREA (c) – Planning and Recording Practical Experience |
| | |
|Suggested Content of Guidance |Rationale |
| | |
|Alignment of employer objectives and member body |As trainees obtain experience and develop, they continue to add value to their |
|requirements |employer’s business. This also provides a structure to achieve the competence |
| |required by the member body. |
| | |
|Have clear objectives for attaining competence |There is a planned approach to ensuring demonstration of competences, and |
| |satisfaction of the member body’s requirements. |
| | |
|Includes exposure to relevant, up-to-date and emerging |Experience enables trainees to apply in practice what they have studied. |
|work practices | |
| | |
|Competences can be achieved |Experience that has clear outcomes and benefits, motivates trainees, and helps to |
| |keep them engaged and effective. |
| | |
| | |
|Progressive levels of responsibility are given |Trainees will be given responsibility as they demonstrate competence. They will gain |
| |broader exposure and increase their reputation with the employer. |
| | |
|Consideration of ethical issues |Trainees will be fulfilling requirements set out in IES4; prescribing the |
| |professional values, ethics and attitudes professional accountants should acquire |
| |during the education program leading to qualification. |
| | |
|Recording practical experience gained |Assists trainees in planning work activities, understanding and reflecting on how |
| |they have applied competence gained at work, and providing evidence to member body of|
| |experience gained. |
-----------------------
[1] This term is defined in paragraph 11 below.
[2] These terms will be added to the Framework for International Education Statements when it is next updated.
[3] Note – all items in this subsection relate to input measures.
[4] IEG 11 – Information Technology for Professional Accountants provides guidance for member bodies on the development of IT competences.
[5] These may include other IFAC member bodies.
[6] Practical simulations of day-to-day, real work situations (e.g., reviewing and actioning material presented in an in-tray).
[7] Note – all items in this subsection relate to output measures.
[8] IEPS 2.1, Information Technology for Professional Accountants provides additional guidance for member bodies on the development of IT competences.
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