| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.11, No.19, 19.5.05 |
| Publication Date | 19/05/2005 |
| Content Type | News |
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By Anna McLauchlin Date: 19/05/05 Sound training of auditors and accountants might go some way to preventing accounting mistakes or malpractice. The International Federation of Accountants (IFAC), which has member organisations all over the world, has just published a draft international education standard on "competence requirements for audit professionals". IFAC is not alone in devoting more attention and energy to education and training, prompted in part by the need to restore accountancy's reputation after a series of corporate scandals. National laws on accounting qualifications govern accountants and auditors in the EU but national definitions of what constitutes an accountant or auditor vary considerably between member states. Although further rules imposed by professional accounting institutes seek to impose some common standards, those professional institutes are often competing for membership against each other so they are not in favour of complete uniformity. The European Commission's draft 8th company law directive, which will overhaul EU rules on auditor practices, aims to reinforce pre-qualification requirements for accountants, giving a clearer definition of the core subjects to be studied and the standard to be reached. It will also stipulate a minimum of three years' post-qualification training, whereby a fully-fledged auditor oversees the work of a would-be auditor before the latter is permitted to sign off accounts. Eight accounting institutes in Europe have decided that this is not enough. In January, professional institutes in France, Germany, Ireland, Italy, the Netherlands and the UK launched a project that will work towards a common set of professional qualifications for membership of their bodies. At the launch, Peter Wyman, the chairman of the 'Common Content project', said that the result would be a "new generation of European accountants" who would enjoy "improved cross-border career opportunities". The Institute of Chartered Accountants in England and Wales (ICAEW) in which Wyman is a leading light, is undoubtedly trying to retain its cachet status in an international marketplace. The ICAEW this month announced increased membership fees which it said were needed to fund investment in its chartered accountant qualification to "increase the Institute's student base without compromising on quality and help market the ICAEW's portfolio of qualifications more effectively both in the UK and internationally". Under the Common Content scheme, while each institute will retain its national professional entry-level qualifications for membership, potential members will have to prove that they have added capabilities in the areas of tax, insurance, business and financial management and reporting. The institutes involved will deliver their comments on the project by the end of June, and more institutes will be able to join when it is up and running. But some still think that the 8th company directive could go further to promote good training. Alan Blewitt is chief executive of the London-based Association of Chartered Certified Accountants (ACCA), which claims to be the largest international accountancy body with more than 320,000 members and students in more than 160 countries. He argues that the directive should force accountants to continue training into their professional careers. "We don't believe that once qualified means always competent," he says. "No accountant can rest on his laurels if he wants to maintain high standards of auditing. This law could have provided more direction on that." ACCA believes that accountants should have to undergo regular training to keep up to speed with changes in technology, the International Accounting Standards and International Standards on Auditing. As it stands, the 8th company directive requires "appropriate programmes of continuous education in order to maintain sufficient theoretical knowledge, professional skills and values," but it does not say how these should be enforced. Members of ACCA already have to satisfy certain requirements on continuing professional development to keep their membership status. The International Federation of Accountants (IFAC), which has member organisations all over the world, published a draft international education standard on 'competence requirements for audit professionals', 14 April 2005. Article also looks at other attempts - at national and EU levels - to prevent accounting mistakes or malpractice. |
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| Source Link | http://www.european-voice.com/ |
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| Subject Categories | Law |
| Countries / Regions | Europe |
