GAE - Global Accountancy Education

Website: www.gae-online.org

The general objective of Global Accountancy Education activities is to promote professional and academic development of accountancy education around the world with its elements of qualification, professional education, practical training and continuing professional development.

GAE Benchmarking

The GAEB Global Accountancy Education 2004/2005 Benchmarking project resulted in a quantitative benchmarking methodology that is transferable throughout the world, identifies gaps and measures improvements, facilitates global trading in accountancy services and is instrumental for setting the priorities that must be addressed to strengthen the accountancy profession in transition and developing countries.

The benchmarking methodology is used to identify gaps between present practice and international standards and to monitor country progress along their transition path to sustainable development for countries in South East Europe. A comparison is made with accountancy education in selected Northern Tier East Europe and European Union countries.

Final results of the GAEB project become available end 2005. Dissemination of the results is promoted in meetings with the World Bank, the IFAC Education Committee, and with the International Association for Accounting Education and Research, IAAER.

The GAEB project is made possible by the United States Agency for International Development (USAID). CARANA Corporation is the contractor for the project and has final responsibility towards USAID as the principle sponsor. CARANA has formed an expert team for the project under the direction of CARANA and supervision of USAID.

GAE Research

Research into the ‘Impact of Globalisation on Accountancy Education’ took place in the period 1999-2002 at the European Institute for Advanced Studies in Management (EIASM), in co-operation with the International Association for Accounting Education and Research (IAAER), major professional bodies and international accountancy firms, the Education Committee of the International Federation of Accountants (IFAC) and international organisations, including the International Accounting Standards Board (IASB).

The project resulted in the classification of accountancy education based on the analysis of professional qualification, education and training of 34 professional bodies in 25 countries. The research participants came from academic and professional institutes and together covered all relevant areas of expertise. The International Accounting Standards Committee Foundation (IASCF) published the research results.

GAE 2002 Classification

The development of a conceptual model for the classification of accountancy education systems in various parts of the world is a key element of the original GAE research project. Classification was chosen as an efficient way of describing and comparing different systems for accountancy education. Major changes in legislation, regulation, world trade and in the accountancy profession during the last decade and results of globalisation to be expected in the next period made it essential to develop a flexible model with well defined parameters, which in themselves are supposed to be constant in time, but allow systems of accountancy education to move from one state to another by changing the values of the parameters. New developments make it essential to review the development of the now existing classification over time.

GAE 2003 - 2006

Clear, reliable and up to date information about the qualification, professional education and practical training of accountants and auditors is necessary for professional applications and for comparative research. IFAC International Education Standards (IES) will succeed the existing International Education Guidelines as mandatory requirements. As a result the available GAE country information will be rearranged in line with the IES benchmarks. In addition a continuous update of the information on the structure, content and recognition of accountancy education must be realised to cover new developments.

GAE Classification Review

In the period 2004 - 2006 updates on accountancy education standards, guidelines and directives and on country developments will be available for the GAE network participants. A review of the GAE classification will be undertaken with specific attention for the effects of globalisation and for international comparability and recognition. The results will be presented at the 2006 IAAER World Congress and shall cover possible changes in the classification system and a comparison of international and country developments during the period 2000 - 2006. The IFAC International Education Standards are to be used as benchmarks and examples of good practice will be presented. Specific attention will be given to the position of organisations that operate on an international scale.

USAID Support of Economic Reform

The United States Agency for International Development (USAID) views the accountancy profession as a critical component for economic growth with accounting reform as a key factor for promoting transparency, accountability, ethics and professional values. Country progress is monitored by USAID along four primary dimensions: (1) economic reforms, (2) democratisation, (3) macroeconomic performance, and (4) social conditions. The Global Accountancy Education Benchmarking (GAEB) project contributes notably to economic reform progress and to institutional integration into the global economy. It promotes effectiveness of assistance activities and sustainable transition to a market-based economy.

GAEB Resources

CARANA Corporation undertakes the GAEB project as part of its activities in the region. Partial funding by USAID is available through present projects. Global relevance requires extension of the scope in order to develop quantitative assessment tools and to obtain an in-depth analysis of the present position of the accountancy profession in the region as basis for controlled and sustainable development.

Members of the CARANA resource team played leadership roles in the original GAE project and have extensive experience in the development of the accountancy profession in both the EU and in Central and East Europe. In addition to USAID requirements the professional relevance and academic quality of the GAEB project is reviewed by the GAE Network Board that monitors GAE follow up activities.

Benchmarking Methodology

The benchmarking tool identifies the subjects necessary for the development of market-based institutional capacity in the accountancy profession in view of compliance with international standards, harmonisation and integration of economics. The main areas of interest are the position and responsibilities of the professional bodies, the qualification requirements for accountants and auditors, professional education and practical experience. For each area multiple indicators are defined and compared with international benchmarks. The use of a self-assessment instrument promotes participatory evaluation of the present position of the participating countries and of the necessary steps towards an international compatible structure. External validation contributes to comparability and relevance. The use of indicators makes it possible to identify priorities and to measure progress through time.

Benchmarking Objectives

The primary objective of the GAEB project is to contribute to measurable progress in the professional qualification, education and training of accountants and auditors as a means to facilitate compliance with international standards and directives and integration into the global economy.

The present development of accountancy qualification, education and training in South East Europe is analysed, using existing international guidelines and directives as benchmarks. Both global IFAC standards and regulation of the European Union are considered as part of the project. Based on the review, recommendations have been developed on how best to reform the programmes of individual countries in order to reduce gaps between the actual situation and international benchmarks. The benchmarking methodology will be described as basis for future progress measurement and for possible uses in other regions.

Intermediate and final reports will be based on a review of international guidelines and on country specific information that is available. Recent international developments will include the IFAC International Education Standards that will be mandatory from 2005 and expected changes in the EU 8th Directive. Professional bodies in the countries that are considered provide data and participate in self-assessment with external validation. For benchmarking purposes a general comparison is given with accountancy education, training and certification in the following countries: Czech Republic, Hungary and Poland; France, Germany and the United Kingdom.

The following elements of accountancy education and training are analysed.

• Professional qualification and licensing requirements, including an examination of professional competence at university final examination level which guarantees that the theoretical knowledge relevant to statutory audit and the ability to apply that knowledge in practice have been obtained

• Professional education requirements, covering the whole range of subjects necessary for professional accountants and auditors to possess, as defined by IFAC and the European Union

• Practical experience requirements, primarily in the accounting and auditing function, in a suitable professional environment, under supervisors providing adequate guarantees regarding the standard and content of training

• General education requirements regarding the development of general knowledge, intellectual skills and communication skills needed by professional accountants and auditors

• Requirements on continuing professional development

In addition to specific regional results a separate report will be made available on the methodology that is used in the benchmarking project.