International Accounting Education Standards Board Research Articles

Ways ethics education toolkit impacts moral judgment of accounting students

PurposeTo build public trust in the accounting profession, previous research studies have stressed the need for ethics education. This present research aims to investigate the effects of teaching ethics using the ethics education toolkit (EET) developed by the International Accounting Education Standards Board on accounting students’ moral judgment.Design/methodology/approachAn experimental design was used to determine the effects of teaching ethics using the EET on moral judgment. Data were obtained using the multidimensional ethics scale questionnaire and analysed with multiple linear regression. Factor analysis was performed to obtain the four moral philosophies defined in the literature.FindingsThe results confirm that use of the EET improves the moral judgment of accounting students. The influence of utilitarianism and relativism on moral judgment was reduced, while the students’ ability to recognise violating an unwritten contract as an unethical act was improved. Contrary to expectations, the influence of justice on moral judgment decreased.Practical implicationsThe study may benefit academics by showing positive outcomes of EET use. The EET is a well-developed teaching tool, also suitable for educators insufficiently qualified to develop their own ethics courses or facing time constraints.Originality/valueThe EET was developed to support implementation of ethics education in programmes for professional accountants. By investigating the applicability and effects of the tool in higher education, this study aims to develop moral judgment in accounting students before they enter the accounting profession.

The Continuous Professional Development of Accounting Professionals and the Impact on the Valuation of Accounting Information

Abstract In the accounting profession, continuous professional development and lifelong learning are essential if we consider the increasingly advanced demands of internal and external users of financial and accounting information. It is certain that professionals who do not have and do not constantly update their necessary general and specialized knowledge will no longer find their place in an increasingly competitive market. The paper highlights, based on bibliographic resources, the fact that national and international professional bodies implement training and professional development programs in accordance with the “International Education Standards” issued by the “International Accounting Education Standards Board”, an independent organization within the “International Federation of Accountants”. Using the selective research, we analyzed the interest of accounting professionals to develop professionally considering the need for continuous training in the conditions where accounting information is indispensable in the decision making process and the financial – accounting field is one that is constantly changing.

The extent of compatibility of accounting education in Saudi universities with the second standard of the international education standards (IES 2)

This study aims to find out the compatibility of accounting education in Saudi universities with the second standard of international education standards (IES2) issued by the International Accounting Education Standards Board (IAESB). This standard focuses on the technical competencies of a professional accountant at the initial development level. The study population consists of 26 Saudi public universities that offer a Bachelor’s program in accounting. The research is based on a descriptive approach by analyzing the content of learning outcomes in syllabus and course descriptions of courses for the accounting departments in Saudi universities. The learning outcomes of these departments are compared with those required in the IES2, and the level of proficiency required is measured using a table describing the mastery levels for the learning outcomes and the technical competence for the IES2 in order to test the study hypotheses. The results show that accounting education in Saudi universities complies with the IES2 in the courses of accounting and financial reports, management accounting, auditing and assurance, the law of regulations and business, and economics. Moreover, it aligns to some extent with the IES2 in tax courses, information technology, finance and financial management, business management and strategy, governance and risk management, and internal control. However, accounting education in Saudi universities does not comply with the IES2 in the courses of business and regulatory environment.

Impression Management in Public Sector Audit Proposals: Language and Fees

We adapt impression management theory to investigate: (1) whether governmental audit proposals include the values of ‘professionalism’ (i.e. independence and competence) and ‘commercialism’ (i.e. client cooperation, auditor trustworthiness, client satisfaction, commercial interests), and, (2) the relations of audit proposal language and contextual influences on proposed audit fees and proposal success. The results suggest that proposals accord with audit firms’ market strategies. Compared to other firms, proposals from small, non-specialist firms use more commercial language, while proposals from governmental specialist firms use more competence language. The results also suggest that the market for US public sector audits includes many low cost, low quality firms; specifically, the modal proposal (41.2%) includes high use of commercialism language and low proposed audit fees. We also find that audit firms propose higher audit fees in US states with a weak governmental internal auditing office, and, that greater use of commercial language correlates with higher rates of proposal success, but only in US states with weak governmental internal auditing functions. The finding of inter-relations between proposal language, the strength of governmental internal audit functions, and proposed fees suggests the value of considering multiple influences on the quality of the public sector financial controls. Acronyms : American Institute of Certified Public Accountants (AICPA) ; Certified Public Accountant (CPA) ; Corporate social responsibility (CSR) ; European Court of Auditors (ECA) ; European Union (EU) ; fixed effects (FE) ; General Accountability Office (GAO) ; Governmental Financial Officers Association (GFOA) ; Independent Regulatory Board for Auditors (IRBA) ; Institute of Internal Auditors (IIA) ; International Accounting Education Standards Board (IAESB) ; International Federation of Accountants (IFAC) ; International Organization of Supreme Audit Institutions (INTOSAI) ; National Association of State Auditors ; Comptrollers and Treasurers (NASACT) ; not-for-profit (NFP) entities ; natural language processing (NLP) ; Office of Management and Budget (OMB) ; Request for proposal (RFP) ; Two-stage least squares (2SLS) ; United Kingdom (UK) ; United States (US)

Achieving the quality of accounting learning outcomes: an Algerian perspective

This paper aims to demonstrate the efforts made by the International Accounting Education Standards Board (IAESB) in achieving the quality of the accounting learning outcomes and to explore the reality of accounting education in Algerian. We based on the comparative method in order to compare between the content of universities' accounting programs and the International Accounting Education Standard (2). Considering that the accounting educational system in universities should emphasize serving students and ensure that they will be able to practice the accounting profession in the future, and that accounting education should seek to adapt to the trend of professional accounting development. We have concluded that there is almost a perfect match between what Algerian universities apply and what the International Federation of accountant’s committee approved, but the problem lies in achieving the learning outcomes with the required quality as stated in the IES

Accounting Education: a theoretical overview

The main purpose of this paper is to highlight the Accounting Education as a real asset that must continually evolve in order to best prepare future professionals on accounting for the new requirements imposed by technology and globalization. To do this, a descriptive methodological approach has been deployed to present Accounting Education Standards (IESs), which are developed by the International Accounting Education Standards Board (IAESB). These standards are influencing Accounting Education and training worldwide. The goal of the IESs is to ensure that economic decision makers can rely on the competence of professional accountants regardless of the country where the accountants received their education and training.
 Two major lessons emerge from this study. On the one hand, that the organizational structure, globalization and technology impact the skills needs of the accountancy profession and, on the other hand, there is a gap between the training provided and the needs of the profession

Written communication: the professional competency often neglected in auditing courses

ABSTRACT The purpose of this Indonesian-based study is to assess students’ perceptions of their written communication competence and their writing performance. Third-year undergraduate accounting students who had completed an introductory, content-oriented auditing course participated in the study. The analysis included descriptively scoring questionnaires and writing products. Students completed a questionnaire based on the International Accounting Education Standards Board competencies of audit, technology, communication, teamwork, professional scepticism and judgment and ethics. The findings showed that students perceived their competence in written communication to be very low compared with other competencies. The findings from the writing test revealed that students were unable to develop a professional audit document. To support the development of written communication competence necessary for success in the audit profession, accounting educators should address the writing shortcomings by implementing curriculum redesign using a constructive alignment framework.

Inclusion of Ethics in Undergraduate Accounting Programs and a Discussion About its Teaching Ways

Ethics is a core issue for all professions and companies to secure public trust which is one of the steps to continue the existence successfully. As a result of frauds and accounting scandals, ethics gained more importance in accounting profession. It is clearly understood that ethics education should start in early stages of education for future accountants. It is also emphasized in International Education Standard 4 (IES 4) –Initial Professional Development – Professional Values Ethics, and Attitudes issued by the International Accounting Education Standards Board (IAESB). The IAESB also issued Approaches to Developing and Maintaining Professional Values, Ethics, and Attitudes (IEPS 1) as a guide for ethics education continuum that developing professional values, ethics and attitudes be ensured throughout the accounting profession. The aim of this study is to consider ethics education in undergraduate accounting programs in Turkey. Curriculum of these programs are analyzed whether ethics is given as a separate course or/and embedded in other courses. The credit-hour basis and compulsory/elective basis of the courses are also analyzed. The teaching methods are discussed and the new methods in the literature are mentioned. Results show that all of the programs have a separate Ethics course, mostly 3 credit hours and elective basis. Ethics is also included in other courses of some programs mostly in Auditing and Internal Auditing/Control courses.

Propuesta de modelo de evaluación de competencias en el área contable de los estudiantes de Contaduría Pública de la Universidad Santo Tomás mediante rúbricas: autoevaluación

El presente trabajo tiene como propósito diseñar un modelo de autoevaluación de competencias en el área contable de los estudiantes de contaduría pública de la Universidad Santo Tomás mediante rúbricas, a partir de la comprensión que la educación superior debe tener del concepto y evaluación de competencias. Al formar y evaluar por competencias, se hace indispensable considerar la instrumentalización de estas; de allí parte el sentido de la evaluación auténtica, en este caso, mediante rúbricas.La formación por competencias de los contadores públicos se deriva del modelo de desarrollo de competencias de The International Accounting Education Standards Board, que ha formulado las guías básicas en materia de educación contable y sus resultados. Esta propuesta considera una parte teórica-conceptual y desarrolla una propuesta de rúbrica a partir de competencias clave: formulación de hipótesis, trabajo en equipo, elaboración conceptual, liderazgo y análisis, como competencias del quehacer contable.

ULUSLARARASI MUHASEBE EĞİTİM STANDARTLARI NIN GÜNCEL ÇEVİRİSİ VE TÜRKİYE DE DURUM

Intensifying competition, globalization and removal of commercial borders has evolved accounting day-by-day and accounting professionals are required to keep up with this transformation. Accounting education is not only comprised of teaching how to keep book and reporting, but also aims that professionals to gain objective point of view towards current statuses, establishing strong communication, effective usage of technology, and practicing ethical and moral values in their business lives. As a global accounting language has been structured, education of prospect accountants is required to be put in prominence. The proliferation of the IFRS (International Financial Reporting Standards) constitutes the foundation of the standardization in accounting education. Administration of common standards is important as well as setting them across the accounting domain. In our contemporary world, accounting education necessitates developing competency in theoretical knowledge, catching up with updates, training on efficient usage of technology and ethical concepts. In parallel to the efforts for institutionalization of single accounting system as global standard, International Educational Standards (IES) have been published by the International Accounting Education Standards Board (IAESB) to acquire equivalent quality in accounting education around the world. IES issued by the IAESB aims proliferation of accounting education standards. In order to ensure competency on accounting knowledge that could be needed by an accounting professionals, the relevant standards that could be administered by all accounting related organizations have been prepared and published since 2005. Finally, the accounting educationstandards are comprised of eight basic standards and the latest update was introduced in 2007. As the first four of these standards are concerned with education of accounting professionals, the fifth, sixth and seventh are concerned with the education of standards and beyond; the eight and the last standard is about auditing. In the present study, the expanded translation of the version of the International Accounting Education Standards revised in 2017 is considered. Eight of Accounting Education Standards are evaluated individually and current statuses in Turkey and in the world are comparatively assessed. Finally, it is considered that whereas IES 1, IES 5, IES 6, IES 7, and IES 8 are valid, the IES 2, IES 3, and IES 4 are partly valid

Accounting Education for Professional Accountants: Evidence from Italy

In the last years, the worldwide changes in global, political and financial contexts have gradually modified the approaches to the accounting of national governments and international institutions. In this varying scenario, the International Accounting Standard Board (IASB) and consequently national governments have introduced new accounting standards along with related regulatory changes. These issues are of ever-growing importance when considering that the International Accounting Education Standards Board (IAESB) has recently developed “The basis for conclusions document for 2017-2021 IAESB Strategy and 2017-2018 Work Plan” (IAESB, 2017) with the aim of informing the Board’s deliberations on its future strategy and priorities about the future expectations of professional competence. The aim of this paper is to report the findings of an empirical study on this topic and address the following research question: what are professional accountants’ views on quality in accounting education? This primary research question is expanded to consider professional accountants’ beliefs on the present (what is necessary for their workplace) and future (what will be necessary for their workplace) with respect to quality in accounting education. The survey highlights how professional accountants have more expectations than in the past about their skills. The majority of professional accountants have been transforming themselves into business consultants since they are now required to offer more services than accounting and taxation consultancy. Consequently, there is a growing demand for cooperation with the university world in order to broaden the programs of accounting education with new technical competencies for undergraduate and postgraduate degrees.

INTERNATIONAL COOPERATION FOR ACCOUNTANCY QUALIFICATIONS IN ALBANIA;

This paper addresses the complex global environment of accountancy education and focuses on the need for coordination, especially among accounting academics. It enumerates and discusses the forces for change in Accountancy Education in Developing Economies. Attention is paid to benchmark accountancy education and to the factors underlying professional judgment and qualifications. Finally, in addressing the global infrastructure for accountancy education, attention is paid to the efforts of organizations, including the work of the International Association for Accounting Education and Research (IAAER) and the International Accounting Education Standards Board (IAESB). 

Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the International Monitoring Group Consultation,Strengthening the Governance and Oversight of the International Audit-Related Standard-Setting Boards in the Public Interest

SUMMARYOn November 9, 2017, the Monitoring Group (MG) overseeing international auditing standards issued a request for comment on its consultation paper (CP), Strengthening the Governance and Oversight of the International Audit-Related Standard-Setting Boards in the Public Interest. The CP presents a broad array of proposals to reform and restructure the three current auditing standard-setting groups it oversees (International Accounting and Assurance Standards Board [IAASB], International Ethics Standards Board for Accountants [IESBA], and International Accounting Education Standards Board [IAESB]). The CP suggests combining the three boards into a single board, and solicited public comment on the following areas: (1) key areas of overall concern, (2) guiding principles, (3) options for reform of the standard-setting boards, (4) options for the Public Interest Oversight Board (PIOB), (5) role of the monitoring group, (6) administration, including Standard-Setting Board staff, (7) process considerations, and (8) funding. The comment period ended on February 9, 2018. This commentary summarizes the participating committee members' views on selected questions for respondents posed by the MG.Data Availability: The concept release, including questions for respondents, is available at: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD586.pdf

Comments by the European Accounting Association on the International Accounting Education Standards Board Consultation Paper ‘Meeting Future Expectations of Professional Competence: A Consultation on the IAESB’s Future Strategy and Priorities’

On December 2015, the International Accounting Education Standards Board (IAESB) issued a consultation paper entitled ‘Meeting future expectations of professional competence: A consultation on the IAESB’s future strategy and priorities’. Its aim is ‘to obtain public comment on its vision for the next five years and the strategic priorities it believes need to be addressed in serving the public interest’ [International Accounting Education Standards Board [IAESB]. (2015a). Meeting future expectations of professional competence: A consultation on the IAESB’s future strategy and priorities. Consultation paper. Retrieved from https://www.ifac.org/publications-resources/consultation-paper-meeting-future-expectations-professional-competence, p. 3]. This article reports the answers of the European Accounting Association to the questions asked in the consultation paper. The comments suggest a reinforcement of the entry requirements that would include a proper education background, advanced levels of both some technical competences and interpersonal/communication skills as well as a very strong ethical commitment. They also recommend a more thorough development process for the continuous education of accountants, a stronger link between practitioners and academia, insights for new IESs and more effective communication strategies about IAESB activities.

International Accounting Education Standards Board: Organisational legitimacy within the field of professional accountancy education

This research considers the organisational legitimacy of the International Accounting Education Standards Board (IAESB), and whether it is perceived or accepted as the appropriate standard setter for professional accountancy education across the globe. We define the organisational field in which the IAESB operates to influence education practice, and frame the research through the lens of both strategic and institutional traditions of organisational legitimacy. In this context, we examine the extent to which 21 selected professional accountancy bodies, operating in diverse jurisdictions across the globe, disclose compliance with IAESB pronouncements. Our results show that disclosed compliance does not always indicate conformity of practice amongst the professional bodies which have obligated themselves to comply with International Education Standards (IES). We discuss reasons for this varied immunity to IES practice and the impact this has on the IAESB achieving its self-declared objective of developing and influencing globally acceptable and implementable standards for professional accountancy education. This research should be useful to professional accountancy educationalists, and to the IAESB in pursuit of its objective.

Entry requirements to the auditing profession: a need for harmonisation

This paper analyses the current situation as regards entry requirements to the accounting profession from an international perspective. Auditing is a public interest service so it is regulated in different jurisdictions. Our results show that even though this service is dominated by global multinational companies and entry barriers to foreign markets seem to be falling, there is important diversity among entry requirements to the audit profession in the countries analysed. The authors support the need for international harmonization in this field by means of promoting global acceptance of the standards set by the International Accounting Education Standards Board from the International Federation of Accountants. This paper is extremely timely given the fact that the Spanish standard setter is about to make regulatory changes in this regard and has created a discussion group to this end.

The International Accounting Education Standards Board: Influencing Global Accounting Education

ABSTRACTThe purpose of this paper is to make readers aware of Accounting Education Standards (IESs), which are developed by the International Accounting Education Standards Board (IAESB). These standards are influencing accounting education and training worldwide. Less than a decade old, the IESs are enforced through the member bodies of the International Federation of Accountants (IFAC) and professional accountancy organizations throughout the world. The goal of the IESs is to ensure that economic decision makers can rely on the competence of professional accountants regardless of the country where the accountants received their education and training.Differing cultures, languages, and social, educational, and legal systems pose a challenge for developing a globally applicable set of international accounting education standards. Accounting educators can help the IAESB meet this challenge by responding to IAESB exposure drafts, undertaking research relevant to issues being addressed by the IAESB, becoming directly involved in the standard-setting process, and using IAESB standards, practice statements, information papers, and other information on the education and training of professional accountants in developing, assessing, and evolving accounting education programs.

Market relevance of university accounting programs: Evidence from Australia

The quality of university accounting programs has been the subject of discussion and debate among researchers, practicing arms of the accounting profession and international accounting bodies for a long time. More recently, the International Accounting Education Standards Board (IAESB) stated in its Strategic and Operational Plan, 2007–2009 that the development and enhancement of accounting education could largely help strengthen the accounting profession (IFAC, 2007a). This comment was no doubt aimed at the need to regain some of the lost confidence in the accounting profession in recent years. The current study focuses on the issue of whether Australian universities produce accounting graduates with market expected knowledge, skills and competencies. Market expectations were identified by surveying employers of accounting graduates in a major metropolitan area in Australia. Focusing on an analysis of the undergraduate accounting program of a prominent university in Australia, the study provides evidence that the existing university accounting programs may not always be in line with the market expectations due to some inconsistencies of program structure and emphasis. The findings of this study have implications for professional accounting bodies, accounting educators and students, and researchers.

Accounting Education: The Impact of Globalization

This report investigates the impact of globalization on accounting education as set forth by members of a panel at the annual meeting of the American Accounting Association held in New York in August 2009. It addresses the work of the International Federation of Accountants (IFAC) and the International Accounting Education Standards Board (IAESB) in coordinating accounting education globally, research by the International Association for Accounting Education and Research (IAAER) in support of the IAESB, the work of the International Accounting Standards Committee Foundation (IASC Foundation) and its impact on accounting education, and the impact of globalization on accounting education in Japan.

The Role of Cultural Factors in the Learning Style Preferences of Accounting Students: A Comparative Study between Japan and Australia

The purpose of this study is to examine empirically the relationship between cultural factors and students' learning style preferences in the context of the current global convergence in accounting education. Kolb's Learning Style Inventory and Hofstede's Value Survey Model for Young People were administered to 130 undergraduate students studying accounting in Japanese and Australian universities. The findings of this comparative study report that differences in the particular learning styles of doing/watching (AE–RO) between the two nationality groups are significantly associated with individualism (IDV). The supplementary t-test also revealed the mean scores of AE–RO and IDV for Australian accounting students were significantly higher than those of Japanese students, which suggests that Japanese like to learn by watching due to their relatively collective approach to learning. In contrast, Australian students who tended to be more individualistic in their learning were more willing to learn by doing. The results will be of interest to accounting educators to assist them with the smooth introduction of the International Education Standards (IES) prescribed by the International Accounting Education Standards Board (IAESB) of the International Federation of Accountants (IFAC).