IESs Implementation Support Presentation by IAESB Staff, April 2015

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Summary of Changes Resulting
from IES Revision Project
IESs Implementation
Support Material
Prepared by: IAESB Staff
April 2015

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What Has Been Achieved?
Section Title 14pt Arial Regular
The revision project has improved consistency and
clarity of the principles-based IESs by
• Articulating the nature of professional competence in
terms of technical competence, professional skills,
and professional values, ethics, and attitudes
• Delineating the competence areas required to perform
a role as a professional accountant; and
• Setting the essential learning outcomes required to
meet the public’s expectations of the professional
competence to be demonstrated by a professional
accountant and audit engagement partner

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• Clarifying the obligations of IFAC member bodies and
other interested stakeholders involved with the
education, development, and assessment of
professional accountancy education;
• Reducing international differences in the requirements
to qualify and work as a professional accountant;
• Facilitating of the global mobility of professional
accountants; and
• Providing international benchmarks against which
IFAC member bodies can measure themselves.
Other Desirable Outcomes of the IES Revision Project

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Extant IESs Revised IESs
Rules-based Principles-based
Pre- & Post
Qualification
IPD & CPD
Knowledge Subject
Areas & Competences
Competence Areas
with Proficiency
Levels & Learning
Outcomes
Candidates for
Membership
Aspiring Professional
Accountant
Major Conceptual Changes

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Significant Changes to IES 1
IES 1 also requires
 The rationale of the principles which is used in setting
educational entry requirements be explained
 Relevant information be made publicly available
IES 1 continues to prescribe educational requirements for entry to
professional accounting education programs

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Significant Changes to IES 2
IES 2 also requires
 Technical competence be developed & demonstrated by end of
Initial Professional Development
 Knowledge subject areas be replaced with learning outcomes
grouped into technical competence areas with each area being
assigned a level of proficiency
 Professional accounting education programs be regularly
reviewed & updated
 Appropriate assessment activities be established to measure the
achievement of technical competence
IES 2 continues to require that professional knowledge as a
component of technical competence be included in a professional
accounting education program

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Significant Changes to IES 3
IES 3 also requires
 Professional skills be demonstrated by end of IPD
 Learning outcomes be grouped into professional skill areas &
each area has been assigned a level of proficiency
 Professional accounting education programs be regularly
reviewed & updated
 Appropriate assessment activities be established to measure the
achievement of professional skills
IES 3 does not include general education as a requirement to
develop professional skills because it is but one component of IPD
IES 3 continues to require professional skills be included in a
professional accounting education program

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Significant Changes to IES 4
IES 4 also requires
 Professional accounting education programs be regularly
reviewed & updated
 Learning & development activities be designed to include
reflective activity
 Appropriate assessment activities be established to measure
the achievement of professional values, ethics, & attitudes
IES 4 continues to require professional values, ethics, and attitudes
be included in a professional accounting education program

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Significant Changes to IES 5
IES 5 also requires practical experience be
 Completed by end of Initial Professional Development (IPD)
 Sufficient
 Measured using one of output-based, input-based or combination
approaches
 Conducted under the direction of a practical experience
supervisor
 Recorded in a consistent form & supported by verifiable evidence
 Reviewed periodically by practical experience supervisor
 Assessed that sufficiency has been completed by various
assessment activities
IES 5 continues to require practical experience

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Significant Changes to IES 6
IES 6 also requires assessment activities be
 Completed by the end of Initial Professional Development &
draws on the outcomes from a range of assessment
activities
 Designed to have high levels of equity, transparency, and
sufficiency
 Recorded in a written or electronic form objective and
capable of being proven
IES 6 continues to require formal assessment in a recorded
form that has high levels of reliability and validity

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Significant Changes to IES 7
IES 7 also requires IFAC member bodies to
 Establish an approach to measuring CPD activity from output-
based, input-based, or a combination of these approaches
IES 7 continues to require IFAC member bodies to
 Promote the importance and commitment to CPD
 Facilitate access to CPD opportunities & resources
 Require all professional accountants undertake CPD
 Monitor CPD and where necessary, apply appropriate sanctions for
failure to meet requirements

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Significant Changes to IES 8
IES 8 also requires IFAC member bodies to
 Focus on Engagement Partners rather than Audit
Professionals
 Require the development and maintenance of professional
competence be demonstrated by the achievement of
specified learning outcomes
IES 8 continues to build from IES 7 requirements requiring
development and maintenance of professional competence by
CPD

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Effective Dates of Revised IESs
International Education Standard Effective Date
IES 7, Continuing Professional Development (Redrafted) January 1,
2014
IES 1, Entry Requirements to Professional Accounting Education
Programs (Revised)
July 1, 2014
IES 2, Initial Professional Development – Technical Competence
(Revised)
July 1, 2015
IES 3, Initial Professional Development – Professional Skills
(Revised)
July 1, 2015
IES 4, Initial Professional Development – Professional Values, Ethics,
and Attitudes (Revised)
July 1, 2015
IES 5, Initial Professional Development – Practical Experience
(Revised)
July 1, 2015
IES 6, Initial Professional Development – Assessment of Professional
Competence (Revised)
July 1, 2015
IES 8, Professional Competence for Engagement Partners
Responsible for Audits of Financial Statements (Revised)
July 1, 2016