International Education Standards (IESs) for professional accountants

IFAC's International Accounting Standards Board (IAESB) identified the following as the most important parts of these standards:

– Introduction to international education standards (Introduction to International Education standards)

– IAESB Framework for International Education Pronunciations (IAESB Framework for International Education Pronunciations)

– International Education Standards for Professional Accountants (IES)

–The introductory part describes the scope of international education standards that are binding for all IFAC members.

These standards are considered generally accepted as the best practice in education and continuous professional development, which is internationally recognized, accepted and applied.

– The goal of introducing these standards is to create competent professional accountants, who will be able to actively contribute to the profession and society during their lifetime.

– The framework for international documents and publications on education describes the guidelines for the application of international accounting education standards (IEPSs), statements (Information Papers) and other documents that provide information on the education of candidates prior to inclusion in professional education, as well as documents on continuing professional education.

According to this framework, IFAC members should direct their efforts towards the inclusion of key elements of the content, process of education and development on which IES are based in their national education and development needs of the accounting profession.

IFAC members are also expected to assist national educational and development requirements in incorporating international accounting education standards and their implementation.

In accordance with the Decree of the Government of Montenegro (Official Gazette 44/07 and 33/10), our Institute is authorized to determine the certification program for accounting professions and accordingly, the Montenegrin Educational Accounting Standard (CORS-1) was published in 2007, which is aligned with IES 1-8.

There are 8 international education standards (IES) for professional accountants:

• IES-1 Entry requirements for the education program for professional accountants

• IES-2 Content of the program for the education of professional accountants

• IES-3 Professional Skills and General Education

• IES-4 Professional values, ethics and attitudes

• IES-5 Practical experience required

• IES-6 Assessment of professional abilities and competence

• IES-7 Continuing professional education

• IES-8 Required Competency Level for Professional Auditors

– IES-1 The entry requirements of IFAC members for the professional accountant education program are equivalent to the programs required for admission to University education. At the same time, it must be taken into account that the lower the criterion at the very entrance to the education program, the more comprehensive the education program will have to be.

– IES-2 The content of the education program must include the following areas:

a) accounting, finance and related subjects

b) knowledge of organization and business

c) knowledge of information technologies

The part related to accounting, finance and related subjects of IFAC members must contain:

1) Financial accounting and financial reporting

2) Management accounting and control

3) Tax system

4) Finances and financial management

5) Business law

6) Audit and assurance engagements

7) Code of ethics

The part related to organization and business must contain:

1) Corporate governance

2) Economy

3) Business environment and business ethics

4) Organizational behavior

5) Financial markets

6) Quantitative methods in economics

7) Management and strategic decision-making

8) Marketing

9) International business and globalization

The part related to information technology (IT) must contain:

1) General knowledge of IT

2) Knowledge of IT controls

3) Competencies of both users and IT controls

4) Competences of designers of information systems

According to the Montenegrin Educational Accounting Standard (CORS-1), the programs/contents of education for three accounting professions are determined:

1) Bookkeeper

2) Authorized Accountant

3) Certified Accountant

* Knowledge and competences for these three professions are defined in the standard.

Regarding IES-3 Vocational Skills and General Education is based on the following skills:

1) Intellectual skills

2) Technical and functional skills

3) Personal skills

4) Interpersonal and communication skills

5) Organizational and managerial skills

Regarding IES-4 Professional Values, Ethics and Attitudes are based on IFAC's Code of Ethics for Professional Accountants. The aspiration is that the behavior of accountants is based on ethics that are in the best interest of society and the profession.

In IES-5 The required practical experience for IFAC members is at least 3 years before the start of the education process for the professional title. The IFAC member conducting this education program must determine the credibility of the applicant's acquired practical experience.

In recent years, in Montenegro, you have had the case that in the training of unemployed persons, the Employmend Fond of Montenegro issued a certificate with the title "Accountant", and that these persons do not have the required 3-year experience in accounting work. Such certificates are not considered valid, because the Institute that issues them does not respect this international standard.

In IES-6 Assessment of Professional Abilities and Competence, an IFAC member is required to formally assess professional ability prior to commencement of education. The final assessment of the candidate's competencies and professional abilities should be recorded in writing, to be reliable and valid, to cover the scope of the professional title.

When it comes to IES-7 Continuing professional education, members should emphasize the importance of continuous lifelong education and professional development. IFAC members should facilitate access to opportunities and resources for continuing education or directly organize education programs, in order to facilitate professional accountants in fulfilling their responsibilities regarding this form of education.

Measuring the fulfillment of continuing education requirements (minimum of 40 hours per year) can be done using at least three different approaches:

1) Approaches based on input - in terms of defining the way and scope of learning through holding seminars, issuing publications in order to achieve the minimum required for continuous education.

2) Approaches based on output – in the sense of demonstrating knowledge through a quality program and applying knowledge in practice

3) By combining the previous two approaches

According to Article 1.42. CORS professional accountant who does not complete continuous education in the required number of points in three years, has the obligation to take a special exam according to the program determined by the examination commission.

If he does not pass the prescribed exam, the member loses the rights of the holder of the professional title and is deleted from the Directory of professional accountants.

When it comes to IES-8, the required level of competence for professional auditors refers to the minimum competences that IFAC members require from candidates for the title of auditor. The minimum requirements are that the candidate must have:

* Certificate of the highest accounting title – Certified Accountant (CA)

* High school education

* Fulfillment of other legal requirements

Auditor education program (Certified accountants) must contain:

• Advanced level of auditing of financial statements

• Advanced level of financial accounting and reporting

• Advanced information technology

• International auditing standards

• Best audit practice, including relevant trends

• IAS and IFRS

• All other applicable laws, regulations, etc.

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