Description
The purpose of this paper is to examine the accounting education systems in three
countries – Australia, Japan and Sri Lanka – to inform the development and testing (by application)
of a Global Model of Accounting Education.
Accounting Research Journal
Towards a Global Model of Accounting Education
Kim Watty Satoshi Sugahara Nadana Abayadeera Luckmika Perera J ade McKay
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To cite this document:
Kim Watty Satoshi Sugahara Nadana Abayadeera Luckmika Perera J ade McKay , (2014),"Towards a Global
Model of Accounting Education ", Accounting Research J ournal, Vol. 27 Iss 3 pp. 286 - 300
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Towards a Global Model of
Accounting Education
Kim Watty
Faculty of Business and Law, Deakin University, Melbourne, Australia
Satoshi Sugahara
Hiroshima Shudo University, Hiroshima, Japan, and
Nadana Abayadeera, Luckmika Perera and Jade McKay
Faculty of Business and Law, Deakin University, Melbourne, Australia
Abstract
Purpose – The purpose of this paper is to examine the accounting education systems in three
countries – Australia, Japan and Sri Lanka – to informthe development and testing (by application)
of a Global Model of Accounting Education.
Design/methodology/approach – An action research methodology is applied with a case study and
model development approach.
Findings – The case studies reveal variations in accounting education systems, which exist across the
three countries examined in this research. Key differences (some signifcant and others nuanced) were
found between accounting education systems and include: entry requirements to professional
programs; accreditation processes; and benchmark discipline standards. These differences are
provided for in the questions that underpin the model developed and applied as a key part of the
research.
Practical implications – This model is presented as a tool to assist interested parties in any country
to take initial steps to identify their own unique system of accounting education. It may also be of
particular use in those countries in the early stages of developing an accounting education system. This
understanding of accounting education systems enhances the opportunity for global convergence of
accounting education.
Originality/value – The model, informed by the case studies, is an original contribution to the
literature and discussions around global convergence in accounting education. The model is designed
for practical application and the value is that it provides an important starting point for considering
issues of importance in the development of a system of accounting education, and/or, better
understanding the similarities and differences across existing systems.
Keywords Global convergence, International education standards (IES),
Models of accounting education
Paper type Research paper
1. Introduction
Since the 1980s, accounting education has been through some notably “turbulent times”
(Campbell et al., 2013, p. 70) and there have been increasing calls for improvement in
relation to its focus, standards and overall quality (Accounting Education Change
Commission, 1990; Albrecht and Sack, 2000; Boyd et al., 2000; Campbell et al., 2013;
Evans et al., 2010). It is against the backdrop of these calls for improvement that the
International Accounting Education Standards Board (IAESB) introduced International
Education Standards (IES) to develop high-quality standards and guidelines to
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1030-9616.htm
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Accounting Research Journal
Vol. 27 No. 3, 2014
pp. 286-300
©Emerald Group Publishing Limited
1030-9616
DOI 10.1108/ARJ-08-2013-0054
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strengthen accounting education on a global level (Karreman et al., 2007)[1]. Karreman
et al. (2007, p. 473) claim, “The need for upgrading of accounting education in many parts
of the world has been clearly demonstrated”.
As delineated by Saville (2007) and, more recently, Needles (2008), there are eight IES
which have been under continual refnement since their development in 2001. These
standards relate to: entry requirements; content; professional skills; professional values,
ethics and attitudes; practical experience requirements; requirements for assessment;
continuing professional development and competence for auditing professionals.
Karreman (2011) suggests that the introduction of IES indicate the International
Federation of Accountants (IFACs) commitment to improving accountancy as a global
profession. The GAE, 2007 study identifed fve key areas of development in terms of
qualifcation, education and training. These elements are: global coordination of
accounting education; standards and regulation; globalization and convergence;
programme development and competence education in professional accounting
(Karreman et al., 2007). The work of the IAESBin seeking to introduce a global approach
to accounting education has a rich history, and thus may be of interest to other
disciplines seeking to develop graduate global mobility.
The move towards global convergence of accounting education standards is neither
simple nor straightforward. Countries, after all, have diverse cultural, political, social
and regulatory environments (Hove, 1986; Osiegbu, 1987; Perera, 1975; Wallace, 1990;
Wijewardena and Yapa, 1998). They also have unique systems of accounting education
and traditions (Carmona and Trombetta, 2008), and this diversity in systems necessarily
problematizes the implementation of a single set of international standards applicable to
all countries (see Sawani, 2009). McPeak et al. (2012) point to the challenge of
convergence, given the variety of accounting education systems around the globe. It is
this challenge that motivates the development of the Global Model of Accounting
Education presented in this paper. This is not a one-size-fts-all model of accounting
education. It is designed as a tool to assist countries, particularly those who are less
advanced in the development of their accounting education system, to consider some of
the important elements of the system as identifed by other more developed countries.
Educating accounting graduates for a global world is a partnership between higher
education institutions, professional bodies, employers and regulatory bodies. The level
of infuence on the design and operation of an accounting education system differs,
according to the different contexts of each country. A model that identifes the links
between these key stakeholders may assist those seeking to develop their own unique
accounting education system. Understanding these systems acts to better inform key
decision-makers, such as the IAESB, on matters of global convergence of accounting
education.
As part of a larger study exploring IES awareness and adoption[2], case studies of
three countries – Australia, Japan and Sri Lanka – were undertaken to inform the
development and subsequent testing of the Global Model of Accounting Education
presented in this paper. These countries were seen as representing diversity across
many elements, thus providing opportunity for interesting insights into how countries
differ in their accounting education models, and how specifc variances in national
context may impact the adoption of IES.
Each country represents a unique cultural sub-context. For example, Australia could
be considered as a developed country with a westernised culture. Similarly, Japan is a
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country with strong Asian values, but unlike many other Asian countries, Japan falls
under the category of a developed economy. Sri Lanka, on the other hand, is a developing
country with Asian values. Larson and Kenny (1995) state that efforts to converge are
made even more controversial when considering developing countries, and this is a view
shared by others (Larson and Street, 2004; Rezaee et al., 2010).
The case studies both informed the development of a Global Model of Accounting
Education and then provided a test bed for the model. This paper provides an overview
of the literature surrounding IES and establishes the link between accounting education
systems and global convergence of accounting education using IES. The succeeding
section will defne the parameters of the research design and methodology. Following
this, the Global Model of Accounting Education is presented and then testing of the
model is provided by applying the model to each of the case study countries – Australia,
Japan and Sri Lanka. Findings of similarities and differences across the three countries
are followed by the conclusion.
2. Prior literature
Global convergence of accounting education is a contested issue, in a similar manner to
the debate that surrounded the global implementation of International Financial
Reporting Standards (Barth, 2008; Munter and Reckers, 2009; Thomas, 2009). There is
limited literature surrounding IES and the issue of global convergence of accounting
education standards with few exceptions (Needles, 2008; Saville, 2007; Stocks, 2009;
Sugahara, 2013; Sugahara and Boland, 2011; Sugahara and Wilson, 2013; Watty et al.,
2012). In their study, Sugahara and Wilson (2013) found that there is, in fact, little
awareness and recognition of IES among academics and that it is, therefore, not
surprising that the research surrounding IES is so sparse. While Sugahara and Wilson
(2013) focused on academic discourse around IES in published academic articles, others
have argued the same (see Watty et al., 2012), suggesting that the lack of scholarly
research on IES may be a direct result of this lack of awareness and interest on behalf of
academics.
Relevant to this study, Sugahara (2013) found that cultural differences were a
distinctive driver in the formation of educators’ views about convergence. Attitudes
towards convergence and adoption of IES are necessarily impacted by these cultural
differences. Other points of difference include: differing expectations in terms of
perceptions about the types and levels of competencies and skills expected of
accountants (Sugahara, 2013); the degree of infuence/importance of stakeholders, for
example, professional accounting bodies (Sugahara, 2013); and certifcation and
licensing requirements (Peek et al., 2007; Sugahara, 2013). While not always focused on
IES specifcally, the research highlights several global challenges to the implementation
of global standards which include: the diversity of accounting programs internationally
(Needles, 2005); the struggle that developing nations face (for example, lack of resources,
accessibility to technology) (Amenkhienan, 1986; Briston, 1990; Briston and Wallace,
1990; Collins, 1989; Goeltz, 1991; Hoarau, 1995; Hove, 1989; Perera, 1989; Wallace, 1990)
and signifcantly, an overall lack of awareness of IES (Sugahara and Wilson, 2013;
Watty et al., 2012). The former Chair of the IAESB, Professor Mark Allison, attributes
the variation in accounting education systems to culture, law, economics and
technology, and views these contextual factors as more signifcant than “the variation in
approaches found in technical accounting matters” (Sugahara, 2013, p. 5).
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Hofstede (1980) identifed four cultural dimensions:
(1) individualism versus collectivism, which is described as the relationship
between the individual and the group;
(2) power distance, which relates to social structures including relationships with
authority;
(3) masculinity versus femininity, which relates to the social implications of either
gender or social drive; and
(4) uncertainty avoidance, which relates to the ability to deal with uncertainty.
Gray (1988) suggests an extension to Hofstede (1980) arguing that accounting values are
derived from cultural dimensions, which in turn infuence accounting systems
(including education and practice). Gray (1988) identifed four key accounting
dimensions which were congruent to that of Hofstede (1980):
(1) professionalismversus statutory control, referring to professional judgment and
self-regulation in contrast to regulatory or social compliance;
(2) uniformity versus fexibility, which contrasts the level of enforcement of
standardized accounting practices;
(3) conservatism versus optimism referring to a stringent approach to
measurement, as opposed to a more optimistic approach; and
(4) secrecy versus transparency, referring to confdentiality and the constraint of
disclosure of information as opposed to a more transparent and publicly
accountable approach.
While cultural dimensions are identifed, for the purpose of this study, the cultural
dimensions will be used within a limited sphere in identifying unique elements of the
education systems in each country to incorporate theminto a globally applicable model.
The scope of the study is limited to thus looking at a broader application of culture, as
opposed to specifc detailed analysis of sub-cultures.
The move by the IAESB towards global convergence of accounting education is
complex. A clear understanding of the unique and sometimes diverse accounting
education systems that operate in different countries across the globe may assist to
reduce this complexity. While countries with a developed accounting education system
may fnd this a relatively easy task, those involved in countries where the accounting
education system is not well developed may fnd it problematic. Regardless, better
understanding of the similarities and differences across different accounting education
systems is useful information for those charged with making decisions that impact
global convergence of accounting education.
3. Research design and methodology
An action research methodology guided the research presented here. This approach,
involving a continuous cycle of planning, action and review(Cherry and Bowden, 1999),
provided the research team with the unique opportunity to develop and test the model,
whilst studying and documenting the accounting education systems in the three
countries under review. The approach aligns with the primary aim of the research to
develop an accounting education model/framework that can be used in IFAC member
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countries (particularly those with a developing accounting education system) to better
articulate their existing accounting education system.
To achieve this, the action research methodology guided the use of a case study
approach to learn about and document the systems of accounting education for
Australia, Japan and Sri Lanka. The choice of sample countries refects a desire by the
researchers to document the diversity and the variances at play between countries. The
analysis of the initial case study notes assisted in the development of the Global
Accounting Education Model. From this analysis, six key categories were identifed:
(1) Candidates.
(2) Degree or pre-qualifcation entry requirement.
(3) Degree – accreditation (details of the degree).
(4) Professional association qualifcation.
(5) Professional qualifcation membership (e.g. exemptions).
(6) Continuing professional development.
Each researcher proceeded to use these sub-headings, and the associated questions to
test the model’s applicability and to ensure it allowed for country-specifc nuances. That
is, the researchers discarded their original case study notes and applied the model to test
for robustness. The model and case studies were developed and tested by a member of
the research team who was born, educated and worked as an accounting academic
teaching in an accounting degree program, in the respective countries.
3.1 The development and testing of the model
The model was developed over a lengthy period by the research team and underwent a
number of iterations, in keeping with the action research methodology applied; from the
complex and unworkable to what is now considered a practical model for implementation.
Various drivers, constraints and infuences that impacted the model in each country were
considered by the research team to ensure the model allowed for variances. These
allowances were crucial to the development of a model, designed to have global application.
In addition, feedback from participants at three presentations of the model challenged the
researchers to reduce the complexity of earlier iterations[3]. During the development phase,
the draft model was also provided to a range of stakeholders, including academics and
members of professional bodies, for feedback, which led to further refnement of the model.
Each researcher followed strict guidelines in applying the model to their country
(thus addressing the questions designed in the model and reported later in this paper) to
ensure consistency, while allowing for some variation to refect national-specifc
requirements. The process was signifcant in that it enabled the project team to further
refne the model based on each person’s application of the model in the three countries in
this study. Thus a cycle of model development, testing and refnement occurred.
4. A global model of accounting education
The model (see Figure 1) is designed to assist interested parties in any country to
identify and develop their own unique system of accounting education. It is a starting
point for conversation, not an end point. It is not designed to cover all relevant questions
for each country as this is not possible given the unique aspects of different countries
previously discussed. This model is available as an interactive resource at:
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)http://thegaem.org/ Being applicable at a global level, it has the potential to reveal
similarities and differences in accounting education systems as they play out across the
globe, while allowing for variations as appropriate. Figure 1 presents the Global
Accounting Education Model.
4.1 A global model – accompanying questions
As the model evolved, the project team established a set of questions designed to assist
participants in understanding the application of the model. The model was applied,
refned and reapplied several times to each of the countries represented within this
project. The following questions, embedded within the framework of the model shown
in Figure 1, evolved during this iterative process.
Initial professional development (IPD) - degree entry
Question: Who are the providers of IPD in your country offering an academic
qualifcation that leads to entry to professional programs offered by IFAC member
professional bodies?
• What are the requirements for qualifcation?
Initial professional development – non-degree entry
Question: Who are the providers of IPD in your country offering a program (perhaps
non-academic) that leads to entry to professional programs offered by IFAC member
professional bodies?
Figure 1.
Global Accounting
Education Model
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• What are the requirements for qualifcation?
Initial professional development – National professional programs
Question: Who are the local providers of IPD in your country offering professional
accounting programs that lead to certifcation as a ‘professional accountant’?
• What are the requirements of the program?
Initial professional development – International professional programs
Question: Who are the primary international providers of IPD in your country offering
professional accounting programs that lead to certifcation as a “professional
accountant”?
• What are the requirements of the program?
Continuing professional development (CPD) – national
Questions: Who are the local providers of CPD in your country?
• What are the essential elements of the CPD?
Continuing professional development – international
Questions: Who are the international providers of CPD in your country?
• What are the essential elements of the CPD?
5. Accounting education system overviews: Australia, Japan and Sri
Lanka
To canvass the accounting education systems in each of the three countries, it was
necessary to develop comprehensive case studies for each national context. The
development of these case studies was a lengthy and iterative process. Each case study
was reviewed by the project team and then sent to an external expert for validation.
Each of the case studies is summarised below as context for the development of the
Global Model of Accounting Education.
5.1 Case study 1 – Australia
5.1.1 Overview. The Australian Higher Education system is made up of 39 universities
of which 37 are public institutions and 2 are private. In addition, it includes more than
150 non-self accrediting higher education providers. In 2011, a Tertiary Education
Quality Standards Agency (TEQSA) was created as the national regulator for quality
and standards in Australia.
Australia has three professional accounting bodies who are IFACmembers. They are
the Institute of Chartered Accountants in Australia (ICAA), Certifed Public Accountant
Australia (CPAA) and the Institute of Public Accountants (IPA).
5.1.2 Australia-specifc accounting education standards. TEQSA is the national
regulator responsible for assuring quality and standards in higher education in
Australia. In Accounting, fve threshold learning standards have been developed to
benchmark quality and standards in undergraduate and graduate accounting programs
(www.olt.gov.au/resources?text?ALTC?standards?accounting). These standards
refer to: judgement; knowledge; application skills; communications and teamwork; and
self-management.
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5.1.3 Professional membership pathway. The most common entry pathway to
professional bodies for candidates is through obtaining accounting/business-related
tertiary degree qualifcations which covers the core competency requirements.
Alternatively, candidates may meet the pre-entry requirements by completing a
foundation level program (for example, the CPA Foundation Program or the Graduate
Certifcate of Chartered Accounting Foundations Program) or by completing
stand-alone units, which meet the professional core competency requirements above
and beyond their existing qualifcations (either Australian or overseas). However,
increasingly candidates from around the globe have sought entry membership on the
basis of tertiary qualifcations completed overseas. Exemptions may be granted on the
basis of an international award and/or prior work experience.
The high level of involvement of the professional accounting bodies in the accreditation
of accounting programs in Australia promotes ongoing dialogue between academics and
professional bodies; a unique feature of the accounting education system in Australia
compared to many other countries. University accounting programs in Australia are
accredited by the two major professional accounting bodies: CPAAand ICAA.
5.1.4 Associate (pre-professional) level membership. The three professional bodies
provide a pre-professional level membership for candidates who qualify to follow the
program (as indicated in the professional membership pathway).
CPAA provides an Associate Membership (ASA) level for candidates who meet the
entry requirements, once they enrol for the professional level program. ASAcandidates
have six years to complete the CPAProgramand meet the relevant practical experience
requirement, to become a CPA. Furthermore, candidates must hold a university degree
to receive the CPA designation.
The ICAA does not necessarily have a designated pre-professional membership
level. However, candidates who meet the core competency requirements are allowed to
enter the ICAA professional program.
The IPA provides an IPA Associate membership level for those who meet the core
requirements. The IPA differentiates itself from the other two professional bodies by
providing a pathway for students holding an Advanced Diploma.
5.1.5 Professional level membership. The completion of the professional level
program leads to admission to the respective professional body.
The CPAprogramconsists of four core units and two electives within a six year time
frame. In addition, a practical experience component is undertaken currently with the
education component. This requires the completion of three years, supervised relevant
work experience. The CPA Program is not considered an academic postgraduate
program. CPAs with at least 15 years full-time work in accounting, fnance or business
or at least fve years’ experience in an executive position or as a public accountant may
apply for Fellow status.
The ICAA program consists of 5 core units. Like the CPA Program, a practical
experience component is undertaken concurrently with the education component. This
requires the completion of three years, supervised relevant work experience. The ICAA
Program leads to the GradDipCA, which is considered equivalent to a postgraduate
degree. Those who have been a member continuously for ten years and have been in a
senior position for seven years may nominate for advancement to Fellow status.
The IPA Program consists of two components: a formal postgraduate qualifcation
combinedwitha mentoredworkexperience component. The IPAProgramconsists of 6 core
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units. The IPA offers candidates the opportunity to progress to a Masters qualifcation by
completing an additional four elective units. The Fellowstatus is open to members of seven
or more years standing with ten years’ experience (including fve at a senior level).
5.1.6 Continuing professional development. CPD is a requirement of all three
professional bodies in Australia to maintain full membership. CPD may be provided by
a number of different providers and outlets. It is not restricted to universities, employers
and professional bodies and may take on a variety of forms. For CPAA, the expectation
is 120 hours CPDin each triennium(three years). At least 20 hours should be undertaken
in each year. Similarly, for the ICAA the expectation is 120 qualifying hours over three
years (for training and development activities). For IPA, the expectation is a minimumof
80 hours structured CPE activity per biennium (two years). Random compliance audits
are undertaken by all professional bodies.
5.2 Case study 2 – Japan
5.2.1 Overview. In Japan, the CPAdesignation and examination process are regulated by
statute. The CPAexamis open to school leavers and other non-graduates seeking entry.
The CPA exam scheme allows candidates to attempt the CPA exam without any
dedicated accountancy education or any degree as a pre-requisite for entry. The
Japanese Institute of Certifed Public Accountants (JICPA) is the only accounting
professional body in Japan that has IFAC membership and is permitted to carry out
company audits.
5.2.2 Japan-specifc accounting education standards. The Ministry of Education, Culture,
Sports, Science and Technology has an oversight role with the development of general
quality assurance standards for the tertiary sector in 2008. The Japan University
Association for Computer Education (JUACE), which is a public interest incorporated
association organised by 422 Japanese private universities, releases benchmark statements
and standards for accounting subjects for accounting degrees, however, this has no
association to the CPA program itself, given its independence to formal university
qualifcations.
5.2.3 Professional membership pathway. As noted earlier, the entry exams of the
CPA, which is governed by statute, is open to school leavers and other non-graduates.
Once this is completed, the candidate is accepted into the professional program. While
the CPAentry examis intended to be self-paced study, it is common for candidates to go
either through an accounting degree program or private tuition (referred to as Cram
School) to support the study program.
5.2.4 Associate (pre-professional) level membership. This requires passing the CPA
examthat leads to admission to the JICPAas a provisional member. The CPAexamwill
have two stages of testing, a multiple choice question level and, once that is completed,
a written essay testing level. Once a candidate has successfully completed all levels, the
candidate is then given a provisional membership.
5.2.5 Professional level membership. This requires the completion of a two-year
professional work experience program and attendance at training programs which are
offered by the JICPA. JICPAs full-professional level membership can be obtained by the
candidates at least three years after becoming the associate level members of the JICPA,
because training programs has three-year curriculum. Once these requirements are met,
the Japanese government confers the status of CPA to the candidate. The Japanese
system relies on the competitive CPA examination as a form of professional quality
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control. The candidates who aspire to become a CPAneed to pass this competitive CPA
examination before obtaining associate level membership.
5.2.6 Continuing professional development. The CPA statute by law requires all
CPAs to complete CPD programs provided by the JICPA. Each CPA member of the
JICPA needs to obtain 120 CPD credits over a three-year period.
5.3 Case study 3 – Sri Lanka
5.3.1 Overview. The Accounting profession in Sri Lanka is dominated by the Institute of
Chartered Accountants of Sri Lanka (ICASL) that functions as the leading accounting
professional body and the accounting standard setter in Sri Lanka. The ICASLoffers the
Chartered Accounting programsimilarly structured to that of the Institute of Chartered
Accountants of England and Wales (ICAEW) in the UK.
The Sri Lankan Higher Education system is made up of 15 government universities,
of which nine universities offer accounting specialization degree programs. While any
degree would be considered suffcient for entry into the ICASL program, it is not
mandatory to have a degree.
The traditional, most popular and most recognized method to be an accountant in Sri
Lanka is to obtain a professional accounting qualifcation. The ICASL is the national
accounting body, and the only IFAC member in Sri Lanka. ICASL has over 30,000
registered students and over 4,200 members. To obtain the full membership of ICASL
(associate membership), the students have to sit examinations and complete a three-year
practical training requirement. However, Chartered Institute of Management Australia
(CIMA) (Sri Lanka) and Association of Chartered Certifed Accountants (ACCA) (Sri
Lanka) also successfully operate in Sri Lanka. ACCA and CIMA offer students a global
perspective with respect to membership. ICASL remains the dominant player in Sri
Lanka given its national focus and the extent of development of the accounting
education (AE) system in that country.
5.3.2 Sri Lanka specifc accounting education standards. Based on the model used by
the ICAEW’s Association of Chartered Accountants (ACA) qualifcation, the ICASL
program also adheres to IFACs IES. The academic program standards are overseen by
the University Grants Commission (UGC). The UGC ensures the quality, continuous
development and effcient performance of Sri Lankan higher education institutions.
Quality is assured via institutional and subject reviews, undertaken by the Quality
Assurance and Accreditation Council. Subject benchmarking is encouraged in Sri
Lankan Universities to regulate academic standards.
5.3.3 Professional membership pathway. The minimum qualifcation to enrol as a
registered student in ICASL is three ordinary passes[4] at general certifcate of
education (advanced level) (GCE (A/L)) examinations in any stream at one sitting.
ICASL also considers other qualifcations including: a degree from a university in
Sri Lanka or any other university; membership of the Sri Lanka government
accountant service; and membership of the Sri Lanka government audit service. A
candidate who wishes to follow the ICASL program is not expected to have any
accounting knowledge at the point of entry. The unique feature of accounting
education in Sri Lanka is that university students sit for the professional accounting
examinations while studying for the academic degree programs in universities.
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5.3.4 Associate level membership. Unlike the Australian or Japanese systems, an
Associate level membership is considered a full level membership equivalent to that of
a professional accountant.
The course structure of the ICASL consists of four levels and a case study. These
levels include two at Certifcate Level (foundation and intermediate), two at the Strategic
Level and one at the post strategic level (which requires completion of a case study). In
order to obtain the ACA, students must pass the above examination and fulfl the
practical training requirement (internship) which is 440 working days of Strategic Level
Internship. The associate member who has satisfed the council that he/she has acquired
the CPD credits and a minimum of fve years’ work experience after admission to
Associate Membership can apply for the status of Fellow member.
5.3.5 Continuing professional development. CPD is a requirement in Sri Lanka to
maintain full membership and for the progression to other membership levels. Each
ICASL member is required to obtain 120 CPD credits over a three-year period.
6. Differences and similarities in Australia, Japan and Sri Lanka
The above overview of case studies demonstrates the differences and similarities that
are evident across and between countries in terms of accounting education systems. This
snapshot of systems across three countries reveals fve key areas of variation:
(1) In Australia, three national professional accounting bodies are IFAC member
bodies, while, in Japan and Sri Lanka, there is only one national IFAC member
body. Australia has the Institute of Chartered Accountants, CPAA and the IPA.
Japan has the JICPA, while Sri Lanka has the ICASL.
(2) In Australia, entry to the professional programs requires that a body of
accounting knowledge be assessed and passed. In Sri Lanka, no pre-requisite
accounting knowledge is required, other than obtaining three passes at the
Advance level examination. In Japan, the requirement is successful completion
of the CPA entry exam.
(3) The accreditation process in Australia enhances the relationship between
academics and professional bodies, whilst no such accreditation process occurs
in either Japan or Sri Lanka.
(4) In Sri Lanka, students are able, and most do undertake the professional program
concurrent with their undergraduate studies with many enrolling in the
professional program before enrolling in accounting programs at university
level. This is rarely the case in Australia and Japan.
(5) Each of the countries has their own benchmark discipline standards. In the
Australian context, these standards are determined by the accounting
community (academics, employers and professional bodies). The JUACE
prescribes accounting students’ competencies in Japan. Meanwhile, a Subject
Benchmark Statement in Accounting provides guidance in Sri Lanka.
It is evident, and not surprising, that key differences exist between the three countries in
this study. One could reasonably expect that these and other differences will surface
across other countries. But what is important is gaining an initial understanding of
accounting education systems and how a Global Model of Accounting Education might
be used to achieve this. Table I highlights key areas of difference between the countries.
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7. Conclusion
The primary purpose of the research reported in this paper is the development and testing
of a prototype Global Accounting Education Model (accessible at: http://
thegaem.org) to act as a useful tool to better understand the basic elements of accounting
education systems across the globe. The model allows us to consider key similarities and
differences across countries which enhances our understanding of how convergence of
accounting education on a global scale, through the adoption of IES, may be achieved. The
Accounting discipline leads in this approach to a global standard for education. As a leader
in relation to education standards, there is much to share and learn about how a global
approachis impactedbythe unique contexts of eachcountry’s accountingeducationsystem.
Further, the model may be used for other purposes – for example, to gather an overviewof
various systems inaparticular regionthat canbe usedas abasis for comparisonandchange.
The model presented in this paper is not fne-tuned to accommodate the diverse needs
of all countries. This is not possible; nor is it the intent. The model, developed after
researching the accounting education systems of Australia, Japan and Sri Lanka, is a
starting point for discussions about accounting education systems including how their
differences should be accommodated in the ongoing revision of IES by the IAESB.
The model serves as a useful resource for stakeholders across diverse language
groups, as the model can be simply repurposed for various languages. It is a new
addition to the current literature where there are few studies that explore or compare
accounting education models between nations. It is important to note, however, that no
model can accommodate all of the diverse needs of various countries who have their own
unique cultural, political, social and regulatory environments.
The selected countries represent diversity across culture (broadly incorporating
language, social and political contexts), which has an infuence on the development and
nature of accounting education systems in each country. Each of the three countries has
a unique approach to accounting education and each has varying levels of engagement
with the key professional body/bodies in their country. This aspect and other areas of
variation revealed in this research, underscore the importance of considering those
developed, and perhaps less developed accounting education systems in IAESB
decision-making. The model to some extent recognizes that cultural differences cannot
Table I.
Key areas of difference
Category Australia Japan Sri Lanka
IFAC professional
bodies
CPA, ICAA and IPA JICPA ICASL
Pre-requisite Foundation level
accounting knowledge
Successful completion of
CPA Entry exam
Minimum 3 A/L passes
Accreditation Academic/Professional
accreditation
No formal accreditation
processes
No formal accreditation
processes
Concurrent degree
level study
Not common Not common Common practice
Quality assurance Accounting
community based (i.e.
Professional, academic
and employer)
benchmarking
JUACE Government Quality
Assurance Body
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be captured in a static model. Afuture direction may be to refne and apply the model in
a more focused manner within a specifc country to delve further into the cultural
dimensions. Furthermore, future research might explore the reasons for variations
across countries; be they economic, political or cultural.
As a global body, the voices of all IFACmember bodies are important, yet their needs
in terms of IAESB support will undoubtedly vary. A key determinant of this level of
support will be the level of development and/or maturity of the accounting education
systemin each country. For some countries where the accounting education systemis in
its infancy, application of the proposed model may provide a practical and useful way of
determining key elements of the accounting education system.
Notes
1. The IAESB is part of the International Federation of Accountants (IFAC). IFAC is a global
organisation for the accountancy profession with 179 members in 130 countries. available at:
www.ifac.org/about-ifac (accessed 6 January 2014).
2. The full report of the research project that includes further details of the case studies
conducted for each country are available at: www.iaaer.org/research_grants/
IAAER_ACCA_InformingIASB_2ndRd.htm
3. Our thanks to participants at two previous presentations to members of the IAESBandACCA
in South Africa and Italy (2011) and London (2012).
4. The GCE A/L system has fve levels of grades. F, fail (under 40 per cent), S, Ordinary pass
(between 40 per cent and 54 per cent), C, Credit pass (between 55 per cent and 64 per cent, B,
Very good pass (between, 65 per cent and 74 per cent) and A, Distinction (above 75 per cent).
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Corresponding author
Jade McKay can be contacted at: [email protected]
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doc_650520916.pdf
The purpose of this paper is to examine the accounting education systems in three
countries – Australia, Japan and Sri Lanka – to inform the development and testing (by application)
of a Global Model of Accounting Education.
Accounting Research Journal
Towards a Global Model of Accounting Education
Kim Watty Satoshi Sugahara Nadana Abayadeera Luckmika Perera J ade McKay
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Model of Accounting Education ", Accounting Research J ournal, Vol. 27 Iss 3 pp. 286 - 300
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Towards a Global Model of
Accounting Education
Kim Watty
Faculty of Business and Law, Deakin University, Melbourne, Australia
Satoshi Sugahara
Hiroshima Shudo University, Hiroshima, Japan, and
Nadana Abayadeera, Luckmika Perera and Jade McKay
Faculty of Business and Law, Deakin University, Melbourne, Australia
Abstract
Purpose – The purpose of this paper is to examine the accounting education systems in three
countries – Australia, Japan and Sri Lanka – to informthe development and testing (by application)
of a Global Model of Accounting Education.
Design/methodology/approach – An action research methodology is applied with a case study and
model development approach.
Findings – The case studies reveal variations in accounting education systems, which exist across the
three countries examined in this research. Key differences (some signifcant and others nuanced) were
found between accounting education systems and include: entry requirements to professional
programs; accreditation processes; and benchmark discipline standards. These differences are
provided for in the questions that underpin the model developed and applied as a key part of the
research.
Practical implications – This model is presented as a tool to assist interested parties in any country
to take initial steps to identify their own unique system of accounting education. It may also be of
particular use in those countries in the early stages of developing an accounting education system. This
understanding of accounting education systems enhances the opportunity for global convergence of
accounting education.
Originality/value – The model, informed by the case studies, is an original contribution to the
literature and discussions around global convergence in accounting education. The model is designed
for practical application and the value is that it provides an important starting point for considering
issues of importance in the development of a system of accounting education, and/or, better
understanding the similarities and differences across existing systems.
Keywords Global convergence, International education standards (IES),
Models of accounting education
Paper type Research paper
1. Introduction
Since the 1980s, accounting education has been through some notably “turbulent times”
(Campbell et al., 2013, p. 70) and there have been increasing calls for improvement in
relation to its focus, standards and overall quality (Accounting Education Change
Commission, 1990; Albrecht and Sack, 2000; Boyd et al., 2000; Campbell et al., 2013;
Evans et al., 2010). It is against the backdrop of these calls for improvement that the
International Accounting Education Standards Board (IAESB) introduced International
Education Standards (IES) to develop high-quality standards and guidelines to
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1030-9616.htm
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Vol. 27 No. 3, 2014
pp. 286-300
©Emerald Group Publishing Limited
1030-9616
DOI 10.1108/ARJ-08-2013-0054
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strengthen accounting education on a global level (Karreman et al., 2007)[1]. Karreman
et al. (2007, p. 473) claim, “The need for upgrading of accounting education in many parts
of the world has been clearly demonstrated”.
As delineated by Saville (2007) and, more recently, Needles (2008), there are eight IES
which have been under continual refnement since their development in 2001. These
standards relate to: entry requirements; content; professional skills; professional values,
ethics and attitudes; practical experience requirements; requirements for assessment;
continuing professional development and competence for auditing professionals.
Karreman (2011) suggests that the introduction of IES indicate the International
Federation of Accountants (IFACs) commitment to improving accountancy as a global
profession. The GAE, 2007 study identifed fve key areas of development in terms of
qualifcation, education and training. These elements are: global coordination of
accounting education; standards and regulation; globalization and convergence;
programme development and competence education in professional accounting
(Karreman et al., 2007). The work of the IAESBin seeking to introduce a global approach
to accounting education has a rich history, and thus may be of interest to other
disciplines seeking to develop graduate global mobility.
The move towards global convergence of accounting education standards is neither
simple nor straightforward. Countries, after all, have diverse cultural, political, social
and regulatory environments (Hove, 1986; Osiegbu, 1987; Perera, 1975; Wallace, 1990;
Wijewardena and Yapa, 1998). They also have unique systems of accounting education
and traditions (Carmona and Trombetta, 2008), and this diversity in systems necessarily
problematizes the implementation of a single set of international standards applicable to
all countries (see Sawani, 2009). McPeak et al. (2012) point to the challenge of
convergence, given the variety of accounting education systems around the globe. It is
this challenge that motivates the development of the Global Model of Accounting
Education presented in this paper. This is not a one-size-fts-all model of accounting
education. It is designed as a tool to assist countries, particularly those who are less
advanced in the development of their accounting education system, to consider some of
the important elements of the system as identifed by other more developed countries.
Educating accounting graduates for a global world is a partnership between higher
education institutions, professional bodies, employers and regulatory bodies. The level
of infuence on the design and operation of an accounting education system differs,
according to the different contexts of each country. A model that identifes the links
between these key stakeholders may assist those seeking to develop their own unique
accounting education system. Understanding these systems acts to better inform key
decision-makers, such as the IAESB, on matters of global convergence of accounting
education.
As part of a larger study exploring IES awareness and adoption[2], case studies of
three countries – Australia, Japan and Sri Lanka – were undertaken to inform the
development and subsequent testing of the Global Model of Accounting Education
presented in this paper. These countries were seen as representing diversity across
many elements, thus providing opportunity for interesting insights into how countries
differ in their accounting education models, and how specifc variances in national
context may impact the adoption of IES.
Each country represents a unique cultural sub-context. For example, Australia could
be considered as a developed country with a westernised culture. Similarly, Japan is a
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country with strong Asian values, but unlike many other Asian countries, Japan falls
under the category of a developed economy. Sri Lanka, on the other hand, is a developing
country with Asian values. Larson and Kenny (1995) state that efforts to converge are
made even more controversial when considering developing countries, and this is a view
shared by others (Larson and Street, 2004; Rezaee et al., 2010).
The case studies both informed the development of a Global Model of Accounting
Education and then provided a test bed for the model. This paper provides an overview
of the literature surrounding IES and establishes the link between accounting education
systems and global convergence of accounting education using IES. The succeeding
section will defne the parameters of the research design and methodology. Following
this, the Global Model of Accounting Education is presented and then testing of the
model is provided by applying the model to each of the case study countries – Australia,
Japan and Sri Lanka. Findings of similarities and differences across the three countries
are followed by the conclusion.
2. Prior literature
Global convergence of accounting education is a contested issue, in a similar manner to
the debate that surrounded the global implementation of International Financial
Reporting Standards (Barth, 2008; Munter and Reckers, 2009; Thomas, 2009). There is
limited literature surrounding IES and the issue of global convergence of accounting
education standards with few exceptions (Needles, 2008; Saville, 2007; Stocks, 2009;
Sugahara, 2013; Sugahara and Boland, 2011; Sugahara and Wilson, 2013; Watty et al.,
2012). In their study, Sugahara and Wilson (2013) found that there is, in fact, little
awareness and recognition of IES among academics and that it is, therefore, not
surprising that the research surrounding IES is so sparse. While Sugahara and Wilson
(2013) focused on academic discourse around IES in published academic articles, others
have argued the same (see Watty et al., 2012), suggesting that the lack of scholarly
research on IES may be a direct result of this lack of awareness and interest on behalf of
academics.
Relevant to this study, Sugahara (2013) found that cultural differences were a
distinctive driver in the formation of educators’ views about convergence. Attitudes
towards convergence and adoption of IES are necessarily impacted by these cultural
differences. Other points of difference include: differing expectations in terms of
perceptions about the types and levels of competencies and skills expected of
accountants (Sugahara, 2013); the degree of infuence/importance of stakeholders, for
example, professional accounting bodies (Sugahara, 2013); and certifcation and
licensing requirements (Peek et al., 2007; Sugahara, 2013). While not always focused on
IES specifcally, the research highlights several global challenges to the implementation
of global standards which include: the diversity of accounting programs internationally
(Needles, 2005); the struggle that developing nations face (for example, lack of resources,
accessibility to technology) (Amenkhienan, 1986; Briston, 1990; Briston and Wallace,
1990; Collins, 1989; Goeltz, 1991; Hoarau, 1995; Hove, 1989; Perera, 1989; Wallace, 1990)
and signifcantly, an overall lack of awareness of IES (Sugahara and Wilson, 2013;
Watty et al., 2012). The former Chair of the IAESB, Professor Mark Allison, attributes
the variation in accounting education systems to culture, law, economics and
technology, and views these contextual factors as more signifcant than “the variation in
approaches found in technical accounting matters” (Sugahara, 2013, p. 5).
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Hofstede (1980) identifed four cultural dimensions:
(1) individualism versus collectivism, which is described as the relationship
between the individual and the group;
(2) power distance, which relates to social structures including relationships with
authority;
(3) masculinity versus femininity, which relates to the social implications of either
gender or social drive; and
(4) uncertainty avoidance, which relates to the ability to deal with uncertainty.
Gray (1988) suggests an extension to Hofstede (1980) arguing that accounting values are
derived from cultural dimensions, which in turn infuence accounting systems
(including education and practice). Gray (1988) identifed four key accounting
dimensions which were congruent to that of Hofstede (1980):
(1) professionalismversus statutory control, referring to professional judgment and
self-regulation in contrast to regulatory or social compliance;
(2) uniformity versus fexibility, which contrasts the level of enforcement of
standardized accounting practices;
(3) conservatism versus optimism referring to a stringent approach to
measurement, as opposed to a more optimistic approach; and
(4) secrecy versus transparency, referring to confdentiality and the constraint of
disclosure of information as opposed to a more transparent and publicly
accountable approach.
While cultural dimensions are identifed, for the purpose of this study, the cultural
dimensions will be used within a limited sphere in identifying unique elements of the
education systems in each country to incorporate theminto a globally applicable model.
The scope of the study is limited to thus looking at a broader application of culture, as
opposed to specifc detailed analysis of sub-cultures.
The move by the IAESB towards global convergence of accounting education is
complex. A clear understanding of the unique and sometimes diverse accounting
education systems that operate in different countries across the globe may assist to
reduce this complexity. While countries with a developed accounting education system
may fnd this a relatively easy task, those involved in countries where the accounting
education system is not well developed may fnd it problematic. Regardless, better
understanding of the similarities and differences across different accounting education
systems is useful information for those charged with making decisions that impact
global convergence of accounting education.
3. Research design and methodology
An action research methodology guided the research presented here. This approach,
involving a continuous cycle of planning, action and review(Cherry and Bowden, 1999),
provided the research team with the unique opportunity to develop and test the model,
whilst studying and documenting the accounting education systems in the three
countries under review. The approach aligns with the primary aim of the research to
develop an accounting education model/framework that can be used in IFAC member
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countries (particularly those with a developing accounting education system) to better
articulate their existing accounting education system.
To achieve this, the action research methodology guided the use of a case study
approach to learn about and document the systems of accounting education for
Australia, Japan and Sri Lanka. The choice of sample countries refects a desire by the
researchers to document the diversity and the variances at play between countries. The
analysis of the initial case study notes assisted in the development of the Global
Accounting Education Model. From this analysis, six key categories were identifed:
(1) Candidates.
(2) Degree or pre-qualifcation entry requirement.
(3) Degree – accreditation (details of the degree).
(4) Professional association qualifcation.
(5) Professional qualifcation membership (e.g. exemptions).
(6) Continuing professional development.
Each researcher proceeded to use these sub-headings, and the associated questions to
test the model’s applicability and to ensure it allowed for country-specifc nuances. That
is, the researchers discarded their original case study notes and applied the model to test
for robustness. The model and case studies were developed and tested by a member of
the research team who was born, educated and worked as an accounting academic
teaching in an accounting degree program, in the respective countries.
3.1 The development and testing of the model
The model was developed over a lengthy period by the research team and underwent a
number of iterations, in keeping with the action research methodology applied; from the
complex and unworkable to what is now considered a practical model for implementation.
Various drivers, constraints and infuences that impacted the model in each country were
considered by the research team to ensure the model allowed for variances. These
allowances were crucial to the development of a model, designed to have global application.
In addition, feedback from participants at three presentations of the model challenged the
researchers to reduce the complexity of earlier iterations[3]. During the development phase,
the draft model was also provided to a range of stakeholders, including academics and
members of professional bodies, for feedback, which led to further refnement of the model.
Each researcher followed strict guidelines in applying the model to their country
(thus addressing the questions designed in the model and reported later in this paper) to
ensure consistency, while allowing for some variation to refect national-specifc
requirements. The process was signifcant in that it enabled the project team to further
refne the model based on each person’s application of the model in the three countries in
this study. Thus a cycle of model development, testing and refnement occurred.
4. A global model of accounting education
The model (see Figure 1) is designed to assist interested parties in any country to
identify and develop their own unique system of accounting education. It is a starting
point for conversation, not an end point. It is not designed to cover all relevant questions
for each country as this is not possible given the unique aspects of different countries
previously discussed. This model is available as an interactive resource at:
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)http://thegaem.org/ Being applicable at a global level, it has the potential to reveal
similarities and differences in accounting education systems as they play out across the
globe, while allowing for variations as appropriate. Figure 1 presents the Global
Accounting Education Model.
4.1 A global model – accompanying questions
As the model evolved, the project team established a set of questions designed to assist
participants in understanding the application of the model. The model was applied,
refned and reapplied several times to each of the countries represented within this
project. The following questions, embedded within the framework of the model shown
in Figure 1, evolved during this iterative process.
Initial professional development (IPD) - degree entry
Question: Who are the providers of IPD in your country offering an academic
qualifcation that leads to entry to professional programs offered by IFAC member
professional bodies?
• What are the requirements for qualifcation?
Initial professional development – non-degree entry
Question: Who are the providers of IPD in your country offering a program (perhaps
non-academic) that leads to entry to professional programs offered by IFAC member
professional bodies?
Figure 1.
Global Accounting
Education Model
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• What are the requirements for qualifcation?
Initial professional development – National professional programs
Question: Who are the local providers of IPD in your country offering professional
accounting programs that lead to certifcation as a ‘professional accountant’?
• What are the requirements of the program?
Initial professional development – International professional programs
Question: Who are the primary international providers of IPD in your country offering
professional accounting programs that lead to certifcation as a “professional
accountant”?
• What are the requirements of the program?
Continuing professional development (CPD) – national
Questions: Who are the local providers of CPD in your country?
• What are the essential elements of the CPD?
Continuing professional development – international
Questions: Who are the international providers of CPD in your country?
• What are the essential elements of the CPD?
5. Accounting education system overviews: Australia, Japan and Sri
Lanka
To canvass the accounting education systems in each of the three countries, it was
necessary to develop comprehensive case studies for each national context. The
development of these case studies was a lengthy and iterative process. Each case study
was reviewed by the project team and then sent to an external expert for validation.
Each of the case studies is summarised below as context for the development of the
Global Model of Accounting Education.
5.1 Case study 1 – Australia
5.1.1 Overview. The Australian Higher Education system is made up of 39 universities
of which 37 are public institutions and 2 are private. In addition, it includes more than
150 non-self accrediting higher education providers. In 2011, a Tertiary Education
Quality Standards Agency (TEQSA) was created as the national regulator for quality
and standards in Australia.
Australia has three professional accounting bodies who are IFACmembers. They are
the Institute of Chartered Accountants in Australia (ICAA), Certifed Public Accountant
Australia (CPAA) and the Institute of Public Accountants (IPA).
5.1.2 Australia-specifc accounting education standards. TEQSA is the national
regulator responsible for assuring quality and standards in higher education in
Australia. In Accounting, fve threshold learning standards have been developed to
benchmark quality and standards in undergraduate and graduate accounting programs
(www.olt.gov.au/resources?text?ALTC?standards?accounting). These standards
refer to: judgement; knowledge; application skills; communications and teamwork; and
self-management.
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5.1.3 Professional membership pathway. The most common entry pathway to
professional bodies for candidates is through obtaining accounting/business-related
tertiary degree qualifcations which covers the core competency requirements.
Alternatively, candidates may meet the pre-entry requirements by completing a
foundation level program (for example, the CPA Foundation Program or the Graduate
Certifcate of Chartered Accounting Foundations Program) or by completing
stand-alone units, which meet the professional core competency requirements above
and beyond their existing qualifcations (either Australian or overseas). However,
increasingly candidates from around the globe have sought entry membership on the
basis of tertiary qualifcations completed overseas. Exemptions may be granted on the
basis of an international award and/or prior work experience.
The high level of involvement of the professional accounting bodies in the accreditation
of accounting programs in Australia promotes ongoing dialogue between academics and
professional bodies; a unique feature of the accounting education system in Australia
compared to many other countries. University accounting programs in Australia are
accredited by the two major professional accounting bodies: CPAAand ICAA.
5.1.4 Associate (pre-professional) level membership. The three professional bodies
provide a pre-professional level membership for candidates who qualify to follow the
program (as indicated in the professional membership pathway).
CPAA provides an Associate Membership (ASA) level for candidates who meet the
entry requirements, once they enrol for the professional level program. ASAcandidates
have six years to complete the CPAProgramand meet the relevant practical experience
requirement, to become a CPA. Furthermore, candidates must hold a university degree
to receive the CPA designation.
The ICAA does not necessarily have a designated pre-professional membership
level. However, candidates who meet the core competency requirements are allowed to
enter the ICAA professional program.
The IPA provides an IPA Associate membership level for those who meet the core
requirements. The IPA differentiates itself from the other two professional bodies by
providing a pathway for students holding an Advanced Diploma.
5.1.5 Professional level membership. The completion of the professional level
program leads to admission to the respective professional body.
The CPAprogramconsists of four core units and two electives within a six year time
frame. In addition, a practical experience component is undertaken currently with the
education component. This requires the completion of three years, supervised relevant
work experience. The CPA Program is not considered an academic postgraduate
program. CPAs with at least 15 years full-time work in accounting, fnance or business
or at least fve years’ experience in an executive position or as a public accountant may
apply for Fellow status.
The ICAA program consists of 5 core units. Like the CPA Program, a practical
experience component is undertaken concurrently with the education component. This
requires the completion of three years, supervised relevant work experience. The ICAA
Program leads to the GradDipCA, which is considered equivalent to a postgraduate
degree. Those who have been a member continuously for ten years and have been in a
senior position for seven years may nominate for advancement to Fellow status.
The IPA Program consists of two components: a formal postgraduate qualifcation
combinedwitha mentoredworkexperience component. The IPAProgramconsists of 6 core
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units. The IPA offers candidates the opportunity to progress to a Masters qualifcation by
completing an additional four elective units. The Fellowstatus is open to members of seven
or more years standing with ten years’ experience (including fve at a senior level).
5.1.6 Continuing professional development. CPD is a requirement of all three
professional bodies in Australia to maintain full membership. CPD may be provided by
a number of different providers and outlets. It is not restricted to universities, employers
and professional bodies and may take on a variety of forms. For CPAA, the expectation
is 120 hours CPDin each triennium(three years). At least 20 hours should be undertaken
in each year. Similarly, for the ICAA the expectation is 120 qualifying hours over three
years (for training and development activities). For IPA, the expectation is a minimumof
80 hours structured CPE activity per biennium (two years). Random compliance audits
are undertaken by all professional bodies.
5.2 Case study 2 – Japan
5.2.1 Overview. In Japan, the CPAdesignation and examination process are regulated by
statute. The CPAexamis open to school leavers and other non-graduates seeking entry.
The CPA exam scheme allows candidates to attempt the CPA exam without any
dedicated accountancy education or any degree as a pre-requisite for entry. The
Japanese Institute of Certifed Public Accountants (JICPA) is the only accounting
professional body in Japan that has IFAC membership and is permitted to carry out
company audits.
5.2.2 Japan-specifc accounting education standards. The Ministry of Education, Culture,
Sports, Science and Technology has an oversight role with the development of general
quality assurance standards for the tertiary sector in 2008. The Japan University
Association for Computer Education (JUACE), which is a public interest incorporated
association organised by 422 Japanese private universities, releases benchmark statements
and standards for accounting subjects for accounting degrees, however, this has no
association to the CPA program itself, given its independence to formal university
qualifcations.
5.2.3 Professional membership pathway. As noted earlier, the entry exams of the
CPA, which is governed by statute, is open to school leavers and other non-graduates.
Once this is completed, the candidate is accepted into the professional program. While
the CPAentry examis intended to be self-paced study, it is common for candidates to go
either through an accounting degree program or private tuition (referred to as Cram
School) to support the study program.
5.2.4 Associate (pre-professional) level membership. This requires passing the CPA
examthat leads to admission to the JICPAas a provisional member. The CPAexamwill
have two stages of testing, a multiple choice question level and, once that is completed,
a written essay testing level. Once a candidate has successfully completed all levels, the
candidate is then given a provisional membership.
5.2.5 Professional level membership. This requires the completion of a two-year
professional work experience program and attendance at training programs which are
offered by the JICPA. JICPAs full-professional level membership can be obtained by the
candidates at least three years after becoming the associate level members of the JICPA,
because training programs has three-year curriculum. Once these requirements are met,
the Japanese government confers the status of CPA to the candidate. The Japanese
system relies on the competitive CPA examination as a form of professional quality
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control. The candidates who aspire to become a CPAneed to pass this competitive CPA
examination before obtaining associate level membership.
5.2.6 Continuing professional development. The CPA statute by law requires all
CPAs to complete CPD programs provided by the JICPA. Each CPA member of the
JICPA needs to obtain 120 CPD credits over a three-year period.
5.3 Case study 3 – Sri Lanka
5.3.1 Overview. The Accounting profession in Sri Lanka is dominated by the Institute of
Chartered Accountants of Sri Lanka (ICASL) that functions as the leading accounting
professional body and the accounting standard setter in Sri Lanka. The ICASLoffers the
Chartered Accounting programsimilarly structured to that of the Institute of Chartered
Accountants of England and Wales (ICAEW) in the UK.
The Sri Lankan Higher Education system is made up of 15 government universities,
of which nine universities offer accounting specialization degree programs. While any
degree would be considered suffcient for entry into the ICASL program, it is not
mandatory to have a degree.
The traditional, most popular and most recognized method to be an accountant in Sri
Lanka is to obtain a professional accounting qualifcation. The ICASL is the national
accounting body, and the only IFAC member in Sri Lanka. ICASL has over 30,000
registered students and over 4,200 members. To obtain the full membership of ICASL
(associate membership), the students have to sit examinations and complete a three-year
practical training requirement. However, Chartered Institute of Management Australia
(CIMA) (Sri Lanka) and Association of Chartered Certifed Accountants (ACCA) (Sri
Lanka) also successfully operate in Sri Lanka. ACCA and CIMA offer students a global
perspective with respect to membership. ICASL remains the dominant player in Sri
Lanka given its national focus and the extent of development of the accounting
education (AE) system in that country.
5.3.2 Sri Lanka specifc accounting education standards. Based on the model used by
the ICAEW’s Association of Chartered Accountants (ACA) qualifcation, the ICASL
program also adheres to IFACs IES. The academic program standards are overseen by
the University Grants Commission (UGC). The UGC ensures the quality, continuous
development and effcient performance of Sri Lankan higher education institutions.
Quality is assured via institutional and subject reviews, undertaken by the Quality
Assurance and Accreditation Council. Subject benchmarking is encouraged in Sri
Lankan Universities to regulate academic standards.
5.3.3 Professional membership pathway. The minimum qualifcation to enrol as a
registered student in ICASL is three ordinary passes[4] at general certifcate of
education (advanced level) (GCE (A/L)) examinations in any stream at one sitting.
ICASL also considers other qualifcations including: a degree from a university in
Sri Lanka or any other university; membership of the Sri Lanka government
accountant service; and membership of the Sri Lanka government audit service. A
candidate who wishes to follow the ICASL program is not expected to have any
accounting knowledge at the point of entry. The unique feature of accounting
education in Sri Lanka is that university students sit for the professional accounting
examinations while studying for the academic degree programs in universities.
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5.3.4 Associate level membership. Unlike the Australian or Japanese systems, an
Associate level membership is considered a full level membership equivalent to that of
a professional accountant.
The course structure of the ICASL consists of four levels and a case study. These
levels include two at Certifcate Level (foundation and intermediate), two at the Strategic
Level and one at the post strategic level (which requires completion of a case study). In
order to obtain the ACA, students must pass the above examination and fulfl the
practical training requirement (internship) which is 440 working days of Strategic Level
Internship. The associate member who has satisfed the council that he/she has acquired
the CPD credits and a minimum of fve years’ work experience after admission to
Associate Membership can apply for the status of Fellow member.
5.3.5 Continuing professional development. CPD is a requirement in Sri Lanka to
maintain full membership and for the progression to other membership levels. Each
ICASL member is required to obtain 120 CPD credits over a three-year period.
6. Differences and similarities in Australia, Japan and Sri Lanka
The above overview of case studies demonstrates the differences and similarities that
are evident across and between countries in terms of accounting education systems. This
snapshot of systems across three countries reveals fve key areas of variation:
(1) In Australia, three national professional accounting bodies are IFAC member
bodies, while, in Japan and Sri Lanka, there is only one national IFAC member
body. Australia has the Institute of Chartered Accountants, CPAA and the IPA.
Japan has the JICPA, while Sri Lanka has the ICASL.
(2) In Australia, entry to the professional programs requires that a body of
accounting knowledge be assessed and passed. In Sri Lanka, no pre-requisite
accounting knowledge is required, other than obtaining three passes at the
Advance level examination. In Japan, the requirement is successful completion
of the CPA entry exam.
(3) The accreditation process in Australia enhances the relationship between
academics and professional bodies, whilst no such accreditation process occurs
in either Japan or Sri Lanka.
(4) In Sri Lanka, students are able, and most do undertake the professional program
concurrent with their undergraduate studies with many enrolling in the
professional program before enrolling in accounting programs at university
level. This is rarely the case in Australia and Japan.
(5) Each of the countries has their own benchmark discipline standards. In the
Australian context, these standards are determined by the accounting
community (academics, employers and professional bodies). The JUACE
prescribes accounting students’ competencies in Japan. Meanwhile, a Subject
Benchmark Statement in Accounting provides guidance in Sri Lanka.
It is evident, and not surprising, that key differences exist between the three countries in
this study. One could reasonably expect that these and other differences will surface
across other countries. But what is important is gaining an initial understanding of
accounting education systems and how a Global Model of Accounting Education might
be used to achieve this. Table I highlights key areas of difference between the countries.
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7. Conclusion
The primary purpose of the research reported in this paper is the development and testing
of a prototype Global Accounting Education Model (accessible at: http://
thegaem.org) to act as a useful tool to better understand the basic elements of accounting
education systems across the globe. The model allows us to consider key similarities and
differences across countries which enhances our understanding of how convergence of
accounting education on a global scale, through the adoption of IES, may be achieved. The
Accounting discipline leads in this approach to a global standard for education. As a leader
in relation to education standards, there is much to share and learn about how a global
approachis impactedbythe unique contexts of eachcountry’s accountingeducationsystem.
Further, the model may be used for other purposes – for example, to gather an overviewof
various systems inaparticular regionthat canbe usedas abasis for comparisonandchange.
The model presented in this paper is not fne-tuned to accommodate the diverse needs
of all countries. This is not possible; nor is it the intent. The model, developed after
researching the accounting education systems of Australia, Japan and Sri Lanka, is a
starting point for discussions about accounting education systems including how their
differences should be accommodated in the ongoing revision of IES by the IAESB.
The model serves as a useful resource for stakeholders across diverse language
groups, as the model can be simply repurposed for various languages. It is a new
addition to the current literature where there are few studies that explore or compare
accounting education models between nations. It is important to note, however, that no
model can accommodate all of the diverse needs of various countries who have their own
unique cultural, political, social and regulatory environments.
The selected countries represent diversity across culture (broadly incorporating
language, social and political contexts), which has an infuence on the development and
nature of accounting education systems in each country. Each of the three countries has
a unique approach to accounting education and each has varying levels of engagement
with the key professional body/bodies in their country. This aspect and other areas of
variation revealed in this research, underscore the importance of considering those
developed, and perhaps less developed accounting education systems in IAESB
decision-making. The model to some extent recognizes that cultural differences cannot
Table I.
Key areas of difference
Category Australia Japan Sri Lanka
IFAC professional
bodies
CPA, ICAA and IPA JICPA ICASL
Pre-requisite Foundation level
accounting knowledge
Successful completion of
CPA Entry exam
Minimum 3 A/L passes
Accreditation Academic/Professional
accreditation
No formal accreditation
processes
No formal accreditation
processes
Concurrent degree
level study
Not common Not common Common practice
Quality assurance Accounting
community based (i.e.
Professional, academic
and employer)
benchmarking
JUACE Government Quality
Assurance Body
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be captured in a static model. Afuture direction may be to refne and apply the model in
a more focused manner within a specifc country to delve further into the cultural
dimensions. Furthermore, future research might explore the reasons for variations
across countries; be they economic, political or cultural.
As a global body, the voices of all IFACmember bodies are important, yet their needs
in terms of IAESB support will undoubtedly vary. A key determinant of this level of
support will be the level of development and/or maturity of the accounting education
systemin each country. For some countries where the accounting education systemis in
its infancy, application of the proposed model may provide a practical and useful way of
determining key elements of the accounting education system.
Notes
1. The IAESB is part of the International Federation of Accountants (IFAC). IFAC is a global
organisation for the accountancy profession with 179 members in 130 countries. available at:
www.ifac.org/about-ifac (accessed 6 January 2014).
2. The full report of the research project that includes further details of the case studies
conducted for each country are available at: www.iaaer.org/research_grants/
IAAER_ACCA_InformingIASB_2ndRd.htm
3. Our thanks to participants at two previous presentations to members of the IAESBandACCA
in South Africa and Italy (2011) and London (2012).
4. The GCE A/L system has fve levels of grades. F, fail (under 40 per cent), S, Ordinary pass
(between 40 per cent and 54 per cent), C, Credit pass (between 55 per cent and 64 per cent, B,
Very good pass (between, 65 per cent and 74 per cent) and A, Distinction (above 75 per cent).
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Corresponding author
Jade McKay can be contacted at: [email protected]
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