Report on the Observance of Standards & Codes (ROSC) Accounting & Auditing (A&A) MODULE B: INSTITUTIONAL FRAMEWORK FOR CORPORATE FINANCIAL REPORTING B.6 Accountancy Education TABLE OF CONTENTS INTRODUCTION TO THE QUESTIONNAIRE 3 A. INSTITUTIONAL ENVIRONMENT FOR ACCOUNTANCY EDUCATION 4 B. ADMISSION CRITERIA 6 C. ACCOUNTANCY CURRICULUM 8 D. POST-UNIVERSITY CAREER 14 Additional information 15 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org 2 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION INTRODUCTION TO THE QUESTIONNAIRE The purpose of this questionnaire is to gain an understanding of the institutional environment underpinning accountancy education at the tertiary level as well as the practices followed by leading universities in the teaching of accountancy. Questions are based on examples of international good practice for the education of aspiring accounting professionals and auditors such as the International Education Standards (IESs) issued by the International Accounting Education Standards Board (IAESB).The questionnaire is structured as follows: A. Institutional environment for accountancy education B. Admission criteria C. Accountancy curriculum D. Post-university career How should the questionnaire be completed? • Section A should be completed by counterparts from the body with overarching responsibility for higher education (or tertiary-level education) in the jurisdiction (e.g., Ministry of Education). • Sections B, C and D, should be completed by individual universities or tertiary-level institutions. 3 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION [For completion by counterparts from the Ministry of Education or equivalent. Where applicable, please state the legal instrument or code that establishes a requirement and the date of enactment.] Please provide the following information when completing this questionnaire. Country Organization Date of preparation Telephone number Individual(s) responsible for preparation Address Job Title(s) Email A. INSTITUTIONAL ENVIRONMENT FOR ACCOUNTANCY EDUCATION 1. Please indicate how many of the universities/ tertiary-level institutions in the jurisdiction offer programs in accountancy. Provide an approximation of the proportion of these that are public and private institutions. 2. Is accountancy more commonly taught as a stand-alone discipline/degree program or as part of another discipline such as business, economics, finance and law? 3. Is there a national curriculum/minimum requirements for accountancy programs which applies to all universities/tertiary-level institutions? If so, please indicate the body responsible for setting the curriculum/ minimum requirements. 4 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION 4. To what extent do individual universities/tertiary-level institutions have autonomy to determine the structure and content of curricula? 5. Is there a formal process for evaluating and revising the curricula? If so, please briefly describe. 5 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION [For completion by individual universities/ tertiary-level institutions] Please provide the following information when completing this questionnaire. Country Organization Date of preparation Telephone number Individual(s) responsible for preparation Address Job Title(s) Email B. ADMISSION CRITERIA 6. Does the university have an entrance examination? If so, please provide the minimum entrance grades for admission to the accountancy program and to at least three other programs/disciplines (e.g. business, economics, finance and law) 7. Please indicate the number of years that the university has been offering programs in accountancy. 8. Please provide the following information for the university for each of the last three years, including a breakdown by male/female candidates where data is available. Current year Prior year Two years prior a. Total number of applications to enroll in Male accountancy/auditing programs, of which: Female b. Total number of students admitted on Male accountancy/audit programs, of which: Female c. Total number of international students admitted Male on accountancy/audit programs, of which: Female 6 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION 9. Please indicate the types of courses, diplomas or degree programs the university offers in accountancy, noting the following: (i) course name; (ii) the number of students enrolled (iii) percentages of male and female students (where data is available) and (iv) length of the program (use the ‘Additional Information’ page at the end of this questionnaire if necessary). a. Undergraduate degree in accountancy Full-time Part-time Evening program Distance-learning b. Undergraduate degree in another discipline (please indicate which) with concentration in accountancy Full-time Part-time Evening program Distance-learning c. Master’s degree in accountancy Full-time Part-time Evening program Distance-learning d. PhD in accountancy Full-time Part-time Evening program Distance-learning 7 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION e. Accountancy Diplomas Full-time Part-time Evening program Distance-learning f. Other (please specify) Full-time Part-time Evening program Distance-learning 10. Please indicate the source(s) of funding for the university. C. ACCOUNTANCY CURRICULUM 11. Please indicate which of the following competence areas and learning outcomes1 are covered in the accountancy curriculum and provide the name(s) of the relevant course(s) (use the ‘Additional Information’ page at the end of this questionnaire if necessary). Select all that apply. Competence area/ Course name Learning outcomes Financial accounting and reporting i. Apply accounting principles to transactions and other events. 1 According to IES 2, Initial Professional Development – Technical Competence, the content of accounting education should cover these areas. Students should attain ‘intermediate’ level proficiency for all areas except for Economics where ‘foundation’ level of proficiency is sufficient. ‘Intermediate’ proficiency is defined as the level where the learning outcomes in a competence area focus on: • Independently applying, comparing, and analyzing underlying principles and theories from relevant areas of technical competence to complete work assignments and make decisions; • Combining technical competence and professional skills to complete work assignments; • Applying professional values, ethics, and attitudes to work assignments; and • Presenting information and explaining ideas in a clear manner, using oral and written communications, to accounting and non-accounting stakeholders. Learning outcomes at the intermediate level relate to work situations that are characterized by moderate levels of ambiguity, complexity, and uncertainty. 8 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION Competence area/ Course name Learning outcomes ii. Apply International Financial Reporting Standards (IFRSs) or other relevant standards to transactions and other events. iii. Evaluate the appropriateness of accounting policies used to prepare financial statements. iv. Prepare financial statements, including consolidated financial statements, in accordance with IFRSs or other relevant standards. vi. Interpret reports that include non-financial data, for example Management accounting i. Apply techniques to support management decision making, including product costing, variance analysis, inventory management, and budgeting and forecasting. ii. Apply appropriate quantitative techniques to analyze cost behavior and the drivers of costs. iii. Analyze financial and non-financial data to provide relevant information for management decision-making. iv. Prepare reports to support management decision making, including reports that focus on planning and budgeting, cost management, quality control, performance measurement, and benchmarking. v. Evaluate the performance of products and business segments. Finance and financial management i. Compare the various sources of financing available to an organization, including bank financing, financial instruments, and bond, equity and treasury markets. ii. Analyze an organization’s cash flow and working capital requirements. 9 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION Competence area/ Course name Learning outcomes iii. Analyze the current and future financial position of an organization, using techniques including ratio analysis, trend analysis, and cash flow analysis. iv. Evaluate the appropriateness of the components used to calculate an organization’s cost of capital. v. Apply capital budgeting techniques in the evaluation of capital investment decisions. vi. Explain income, asset-based, and market valuation approaches used for investment decisions, business planning, and long-term financial management. Taxation i. Explain national taxation compliance and filing requirements. ii. Prepare direct and indirect tax calculations for individuals and organizations. iii. Analyze the taxation issues associated with non-complex international transactions. iv. Explain the differences between tax planning, tax avoidance, and tax evasion. Audit and assurance i. Describe the objectives and stages involved in performing an audit of financial statements. ii. Apply relevant auditing standards (for example, International Standards on Auditing), and applicable laws and regulations to an audit of financial statements. iii. Assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy. iv. Apply quantitative methods that are used in audit engagements. Explain the key elements of assurance engagements and applicable standards that are relevant to such engagements. 10 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION Competence area/ Course name Learning outcomes Governance, risk management and internal control i. Explain the principles of good governance, including the rights and responsibilities of owners, investors, and those charged with governance; and explain the role of stakeholders in governance, disclosure, and transparency requirements. ii. Analyze the components of an organization’s governance framework. iii. Analyze an organization’s risks and opportunities using a risk management framework. iv. Analyze the components of internal control related to financial reporting. Business laws and regulations i. Explain the laws and regulations that govern the different forms of legal entities. ii. Explain the laws and regulations applicable to the environment in which professional accountants operate. Information technology i. Analyze the adequacy of general information technology controls and relevant application controls ii. Explain how information technology contributes to data analysis and decision making. iii. Use information technology to support decision making through business analytics. Business and organizational environment i. Describe the environment in which an organization operates, including the main economic, legal, political, social, technical, international, and cultural forces. 11 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION Competence area/ Course name Learning outcomes ii. Analyze aspects of the global environment that affect international trade and finance. iii. Identify the features of globalization, including the role of multinationals Economics i. Describe the fundamental principles of microeconomics and macroeconomics. ii. Describe the effect of changes in macroeconomic indicators on business activity. iii. Explain the different types of market structures, including perfect competition, monopolistic competition, monopoly, and oligopoly. Business strategy and management i. Explain the various ways that organizations may be designed and structured. ii. Describe the effect of changes in macroeconomic indicators on business activity. iii. Analyze the external and internal factors that may influence the strategy of an organization. iv. Explain the processes that may be used to implement the strategy of an organization. v. Explain how theories of organizational behavior may be used to enhance the performance of the individual, teams, and the organization. 12 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION 12. Please indicate the language(s) in which accountancy programs are taught. 13. In which languages are the textbooks and other teaching materials available? 14. Please indicate how often the accountancy curriculum is subject to review. 15. Does the completion of certain accountancy courses at the university provide accreditation for exemptions for a professional accountancy qualification offered by a professional accountancy organization (PAO)? If so, please indicate the exemptions and the PAO(s) (local and/or international). 16. Provide the following information for the university for each of the last three years. Current year Prior year Two years prior a. Number of teaching staff of accounting/ Full Time auditing programs, of which (include male/ female ratio if data is available): Part Time b. Number of international teaching staff of Full Time accounting/auditing programs (include male/ female ratio if data is available) Part Time 13 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION D. POST-UNIVERSITY CAREER 17. Please provide the following information for the university for each of the last three years: Current year Prior year Two years prior a. Graduation rates for students on Accountancy/ Male Audit programs Female b. Average alumnus salary three years after Male graduation (if data is available): Female 18. To the best of your knowledge, indicate the percentage of university alumni employed in the following (and provide percentages for male and female graduates if possible): Percentage a. Local audit & assurance companies b. International network audit & assurance companies (e.g., ‘Big 4’) c. Financial sector (banking, insurance, etc.) d. Non-Financial sector i. Domestic small and medium sized enterprises (SMEs) ii. Large domestic companies iii. Multinationals e. Government bodies or other public sector organizations f. Non-governmental organizations g. Academia h. Other (please specify) 14 ROSC Accounting & Auditing Module B: Institutional Framework – B.6 ACCOUNTANCY EDUCATION Additional information Please indicate the corresponding section and question number if using this page to provide additional information. 15