PS Literature Review Taskforce - IFAC · 2017. 11. 9. · Action #1: Complete an analysis of the PS...
Transcript of PS Literature Review Taskforce - IFAC · 2017. 11. 9. · Action #1: Complete an analysis of the PS...
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PS Literature Review Task Force update
CAG/IAESB meetings
Mexico City
Oct 30 and Nov 2
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Agenda
• Literature review overview from academics– Dr. Sridhar Ramamoorti, University of Dayton– Dr. Audrey Gramling, Colorado State University
• Update on PS survey outreach• Discussion of TF recommendations
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PS stakeholder engagement activities
PS Survey
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Respondents
• Worked with the Global Accounting Alliance (GAA) Education Directors, Professional Accountants in Business (PAIBC), and the Forum of Firms (FOF) to complete a short survey
• Survey responses to date are as follows:– GAA – 10 responses– PAIBC – 9 responses– FOF – responses due Oct. 31
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PAIBC
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0
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2
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4
5
6
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8
Relevant accountingstandards
Relevant auditing/assurancestandards
Entity's industry Entity's business/operations
Strongly Agree Agree Neither Disagree Strongly Disagree
PAIB
Knowledge
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0
1
2
3
4
5
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7
8
Critical thinking Challenging mindset Courage Awareness of unconsciousbias affecting decision
makingStrongly Agree Agree Neither Disagree Strongly Disagree
PAIB
Behavioral Factors
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0123456789
Strongly Agree Agree Neither Disagree Strongly Disagree
PAIB
Competence Factors
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0123456789
Messaging from or tone ofleadership/ team/
management/ department
A commitment to the publicinterest
Timely supervision andreview
Sufficient time to meetdeadlines
Strongly Agree Agree Neither Disagree Strongly Disagree
PAIB
Environmental Factors
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01234567
Amend existing IES content Create a new standaloneIES on PS
Provide guidance on PS Other
Strongly Agree Agree Disagree Strongly Disagree Don't Know
PAIB
IAESB Other Actions
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• The ability to report findings/issues anonymously if necessary• Implementation of an anti-retaliation policy for reporting potential issues• Emotional Intelligence, diplomacy skills, interpersonal skills, leadership skills • Professional skepticism must be applied within the context that the PAIB is part of the
management and decision making team • Professional skepticism must be applied in a positive, solution oriented manner
consistent with the organization's risk appetite and competitive situation• Error risk / Lack of knowledge / Lack of due diligence / Control risk / Detection risk • Professional education environment
PAIB
Are there other factors that are critical to the application of professional skepticism that have not been included in the list above?
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GAA Education Directors
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0123456789
10
Relevant accountingstandards
Relevant auditing/assurancestandards
Entity's industry Entity's business/operations
Strongly Agree Agree Neither Disagree Strongly Disagree
GAA Education Directors
Knowledge
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0
2
4
6
8
10
12
Critical thinking Challenging mindset Courage Awareness of unconsciousbias affecting decision
makingStrongly Agree Agree Neither Disagree Strongly Disagree
GAA Education Directors
Behavioral Factors
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0123456789
10
Strongly Agree Agree Neither Disagree Strongly Disagree
GAA Education Directors
Competence Factors
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01234567
Messaging from or tone ofleadership/ team/
management/ department
A commitment to the publicinterest
Timely supervision andreview
Sufficient time to meetdeadlines
Strongly Agree Agree Neither Disagree Strongly Disagree
GAA Education Directors
Environmental Factors
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01234567
Amend existing IES content Create a new standaloneIES on PS
Provide guidance on PS Other
Strongly Agree Agree Disagree Strongly Disagree Don't Know
GAA Education Directors
IAESB Other Actions
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GAA Education Directors
Are there other factors that are critical to the application of professional skepticism that have not been included in the list above?
• Professional skepticism should only be directed to audit professionals• Skepticism is relevant to accountants preparing tax returns, undertaking due diligence, in reporting
roles in group organizations in fact in virtually all roles of professional accountants• Ability to engage with experts other than professional accountants • Ability to synthesize and evaluate information from a variety of sources including other experts• Interpersonal skills, including influencing and conflict resolution skills • Ability to use data analytics tools and interpret data to enable further investigation• Over confidence or lack of confidence • Fee / budget pressures • Concerns over importance of client to firm and / or general assessment of client satisfaction • Lack of consideration of contradictory evidence
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Question for the CAG/IAESB
• Are there other stakeholder groups that you recommend be surveyed?
• Should we consider a general request on the IFAC Knowledge Gateway with a link to the survey?
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PS Literature Review TF recommendations
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Action #1: Complete an analysis of the PS competencies, skills and behaviors identified in the literature review and stakeholder surveys against the competence areas and learning outcomes in the extant IESs. Propose updates for next maintenance process.
• Does the CAG/Board agree we should evaluate opportunities to improve or expand the references to competence areas and/or learning outcomes in the current IESs to better support the application of PS?
• Does the CAG/Board agree that any proposed changes to the IESs should be addressed as part of the next maintenance cycle? If not, what timing would you suggest?
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Action #2: Develop thought leadership or personal perspectives to promote knowledge sharing and excellence in accounting education
• Proposed topics and priorities:• Tier 1: How skepticism applies to a broader range of professional accountants,
not just auditors
• Tier 1: How to become a better skeptic?
• Tier 2: What we can learn from other professions on enhancing skepticism
• Tier 2: Discuss the role of bias on the application of PS
• Tier 3: Discuss the effect of innovation and automation on the application of PS
• Tier 3: Address the concept of situational awareness as a means to improve the application of PS
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Action #2: Develop thought leadership and personal perspectives to promote knowledge sharing and excellence in accounting education
• Does the CAG/Board agree with the proposed topics for the publication of thought leadership? Any to add? Any to remove?
• Does the CAG/Board agree with the relative priority (sequence) to addressing the proposed publications? If not, what would you change?
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Action #3: Request additional primary research on the skills, traits, good practices necessary to improve the application of PS
• Work with the SEC team to request, collect, and evaluate examples of good practices by member bodies or accounting firms to develop and enhance the application of PS
• Engage researchers to survey universities or education providers on what they are doing or plan on doing to develop a questioning mindset and other relevant skills in aspiring professional accountants by the end of IPD
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Action #3: Request additional primary research on the skills, traits, good practices necessary to improve the application of PS
• Does the CAG/Board agree that we should with the SEC team to extend our outreach to identify education and training good practices?
• Does the CAG/Board agree that we should engage researchers to survey universities on current practices to develop a questioning mindset and other relevant skills in aspiring professional accountants by the end of IPD?
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Next steps
• Develop a timeline for completing the activities approved by the Board
• Establish teams, identify team leads and team members to execute the agreed-upon activities
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Thank you!