Investigating the Compliance of Jordanian Universities with IFACs International Education Standard # 2 (Content of Professional Accounting Education Programs)

requirements
Mohammed Yassin* and Sameer El-Barghouthi
The viability of accountancy as a profession depends on the ability and willingness of its individual members to accept responsibility to meet global challenges. To meet these challenges, the professional accountants need to achieve an agreed level of competence. IFAC, through the International Accounting Education Standards Board (IAESB), intended to advance the profession of accountancy by establishing benchmarks for the minimum learning requirements of qualified accountants. The objective of this research is to explain the IFACs IESs requirements, in particular the Jordanian universities compliance with IES #2 requirements was investigated, and public and private universities were compared regarding the compliance with this standard. Based on the data collected from (3) public and (7) private universities, it is evident that the IFAC had a positive, but moderate influence on the subject areas taught in the accounting curriculum at Jordanian universities.

Keywords: Accounting Education, IFACs International Education Standards (IESs), Accounting Curriculum.

Introduction:
Nowadays the business world has become more dynamic, changing, and complex than ever before. Globalization, money markets, new educational models, specialization, information technology, regulations, world trade organization, and the complicated business processes, all these factors among others have changed the accounting environment to a more competitive one. (Gomaa et. al., 2004) While significant steps have been made toward the acceptance and use of harmonized international accounting standards, there is also strong support for international credentials for accountants - that is, the development of a harmonized set of qualifications for entry into and practice in the profession.

Mohammed Yassin *, Assistant Professor, Al-Zaytoonah University of Jordan. Sameer El-Barghouthi , Assistant Professor, Al-Zaytoonah University of Jordan.

Inasmuch as harmonized accounting standards may lead to financial statements that cross borders without restatement or translation, international standards for professional accountants may lead to the freer movement of professional accountants across borders. The organization taking responsibility for this daunting task is the IFAC - the International Federation of Accountants. (Hall and Sen, 2004) Research Problem: Accountancy is a profession that plays an important role in all societies. As the world moves toward global market economies, professional accountants need a broad global outlook to understand the context in which businesses and other organizations operate. Rapid change has been the main characteristic of the environment in which professional accountants work. Pressures for change are coming from many sources including: globalization, digitization, and the expansion of stakeholder groups, including regulators. Professional accountants are now expected to serve the needs not only of investors and creditors but also the information needs of many other users of financial and nonfinancial information. These trends lead to the need for greater accountability and, as a result, in all cultures demands on the profession are high and continue to rise. It is the professions capacity to satisfy these demands that determines its value to society. These trends challenge professional accountants to make greater contributions to society than ever before, and they also present a challenge to maintaining competence. The viability of accountancy as a profession depends on the ability and willingness of its individual members to accept responsibility for meeting these challenges. To meet these challenges, the profession needs to ensure that individuals who become professional accountants achieve an agreed level of competence, which is then maintained. The means by which individuals develop and maintain competence is through education, practical experience, and continuing professional development. The profession, therefore, needs to set and meet high standards in these three areas. IFAC, through the International Accounting Education Standards Board (IAESB), intended to advance the profession of accountancy by establishing benchmarks for the minimum learning requirements of qualified accountants, and it is important to test whether the universities curricula comply with these standards requirements or not. (IFAC, 2009)

Research Importance: Several underlying goals fuel the global education standards. The overarching goal of accounting education and experience is to produce competent professional accountants capable of making positive contributions to the profession and to society as a whole. In addition, the globalization of markets and economies intensifies the need for professional accountants with a global perspective who are able to understand the context in which complex business organizations operate. The complexity of organizations and transactions lead to the need for greater accountability. (Hall and Sen, 2004) Professional accountants are challenged to maintain, achieve and compete in their field while continuing to make contributions to the profession and the public interest. The future of the profession depends on the willingness of its individual members to accept responsibility for meeting these challenges. It is the role of professional bodies (including IFAC) to monitor the fulfillment of these responsibilities. Research Objectives: This research aims to: 1- Explain the IFACs International Education Standards (IES) requirements. 2- Investigate the Jordanian universities compliance with IFACs IES #2 requirements. 3- Compare the Jordanian public universities with private universities regarding the compliance with IFACs IES #2. Research Question: Over the past two decades researchers such as (Heaston, 1984), (Gupta, 1992), (Edwards, 1992) have explored the significant qualifications required by professional accounting bodies of their membership, and the similarities and differences among those qualifications, and IFAC's recent initiative to have members comply with common educational standards by January 1, 2005, the following research question is posed: Since Jordan is a member country in IFAC, are Jordanian universities accounting curricula comply with the international accounting education standards? And what is the difference between the public and private universities in the way of their compliance?

Theoretical Background: The Importance of Accounting Education One of the primary activities of IFAC is education. Working to advance accounting education programs worldwide, IFACs International Accounting Education Standards Board (IAESB) develops International Education Standards, setting the benchmarks for the education of members of the accountancy profession. (IFAC, 2009) All cultures exist in an environment of significant change. Increasingly, today's professional accountants need to be technical experts with excellent communication skills and they need to be able to meet the reporting and information needs of the new knowledge economy. In addition to acquiring technical accounting knowledge and skills, professional accountants need skills that enable them to be, when appropriate, business advisors; financial analysts; excellent communicators; capable negotiators; and first-class managers. At the same time, integrity, objectivity and willingness to take a firm stand are essential attributes of professional accountants. Professional values and ethics are integral to being a professional accountant. (Williams, 2010) A program of accounting education and practical experience needs to go beyond the traditional approach. This approach emphasized transfer of knowledge, with learning defined and measured strictly in terms of knowledge of principles, standards, concepts, facts and procedures at a given point in time. (Tiron and Mutiu, 2007) Increased emphasis needs to be placed on a set of professional knowledge, professional skills, and professional values, ethics and attitudes broad enough to enable adaptation to constant change. Individuals who become professional accountants should have a constant desire to learn and apply what is new. Scope of International Education Standards (IES) for Accountants IESs are intended to advance the profession of accountancy by establishing benchmarks for the minimum learning requirements of qualified accountants, including education, practical experience and continuing professional development. (Hurt, 2007) One of the aims of the IESs is to identify the subjects that need to be covered, rather than to suggest actual courses that should be taken. That is because the subjects identified are described differently in different parts

of the world. It is recognized that some member bodies require a greater range of subjects; others may place greater emphasis on certain subjects to meet the specific purposes for which their students are being trained. Professional values, ethics and attitudes, however, run through all areas and may be integrated with many of the other subjects. (IFAC, 2009) IFAC recognizes that member bodies may be at different stages in their development. The required level of understanding may also vary in different professional accountancy bodies and over different time periods. (IFAC, 2009) One important defining factor of the curriculum is the set of professional knowledge, professional skills, and professional values, ethics and attitudes relevant to a particular country, region, culture or professional body while continuing to recognize the broader global view. IESs prescribe the learning and development requirements of professional accountants under the following IESs: (IFAC, 2009) IES 1- Entry Requirements to a Program of Professional Accounting Education: describes the requirements for the access of IFAC members to a professional program. Its aim is to make sure that the program attendants have a general training background that allows them to have a reasonable chance of success in their work that they benefit from qualified examination and have a necessary period of experience. IES 2- Content of Professional Accounting Education Programs: establishes the knowledge and competences required for the work of a professional accountant, i.e. accounting, financing and related knowledge, organizational and business knowledge, along with knowledge and competences in IT, a professional diploma or qualification, as well as at least two years of university studies, day courses. IES 3- Professional Skills: includes a series of required professional skills: intellectual, technical and functional, personal, interpersonal and communication skills, organizational and business management skills and emphasizes that general education assists in developing these skills. IES 4- Professional Values, Ethics and Attitudes: establishes the required professional values, ethics and attitudes, the minimum study areas, recognizing that the different approaches will reflect the specific-cultural and national environment. IES 5- Practical Experience Requirements: aims to make sure that candidates have the practical experience necessary for becoming professional accountants: minimum 3 years of practical experience, the

guidance of experienced professional accountants and the recording and revision of the experience. IES 6- Assessments of Professional Capabilities and Competence: stipulates a final evaluation before the qualification as a professional accountant by a test of theoretical knowledge and a practical application of knowledge. IES 7- Continuing Professional Development: stipulates that lifelong learning and continuing professional education is compulsory for all professional accountants, facilitates the access to continuing professional education, establishes reference points for the education and competence of professional accountants and monitors and applies continuing professional education. IES 8- Competence Requirements for Audit Professionals: prescribes competence requirements for audit professionals. This study will shed light on IES 2: Content of Professional Accounting Education Program, where it is necessary to identify the main topics that should be covered in the accounting program curriculum. International Education Standard (IES 2): Content of Professional Accounting Education Programs According to IES 2, par.11, professional accounting study should be a part of the prequalification program; this study should be long enough and intensive enough to permit candidates to gain the professional knowledge required for professional competence. Students should pursue a degree in accounting, or a professional qualification, to gain this knowledge. The content of professional accounting education should consist of: 1. Accounting, finance and related knowledge. This component should include the following areas: financial accounting and reporting, management accounting and control, taxation, business and commercial law, audit and assurance, finance and financial management and professional values and ethics. This part needs to be delivered at least at the level of an accounting degree (IES 2, par. 24). 2. Organizational and business knowledge. This component should comprise the following subject areas: economics, business environment, corporate governance, business ethics, financial markets, quantitative methods, organizational, behavior, management and strategic decision making, marketing and international business and globalization. According to IES 2 par. 26,

organizational and business education equips prospective professional accountants with knowledge of the environment in which employers and clients operate. It also provides the context for the application of all the professional skills acquired during the prequalification process. 3. Information technology knowledge and competences comprise general knowledge of IT, IT control knowledge, IT control competences, IT user competences and one of, or a mixture of, the competences of, the roles of manager, evaluator or designer of information systems. Paragraph 30 of IES 2 states that as part of their pre-qualification education, all professional accountants are expected to participate in at least one of the roles of manager, designer or evaluator of information systems or a combination of these roles. That means that at the point of qualification, candidates are expected to have a knowledge and understanding of the competency elements in at least one of these roles. Literature Review: In the international literature, accounting education has always had a special place, becoming one of the most debated subjects, but the research about IES is still rare. In a study performed by (Mutiu and Tiron, 2009) aimed to identify the actual stage of accounting curricula in Romanian universities regarding the disciplines which contribute to the development of accounting graduates as leaders. Concerning the methods used, the study chose as a benchmark the IFACs requests on accounting education at pre-qualification education level presented in the Introduction to International Education Standards (IES) and in IES 2. This study concluded that Romanian universities can assure the premises of leadership, and proved that the degree of cohesion with IES is increasing rapidly. Keeping in mind that universities mission is to prepare graduates who can fulfill the market expectations, the researchers consider that universities will offer leaders in the near future. Another study in Romania prepared by (Diaconu, 2008) focuses on extracting an educational matrix from IES and comparing it with the local educational matrix produced by Romanian universities in order to evaluate the consistency of the conformity between them. Based on IESs, he extracted the main topics recommended to form a general accepted

educational curricula and evaluated the structure of the disciplines which are considered by IES as needed to be part of ideal educational curricula. Using the matrix, he compared the educational curricula of selected universities by name and supposed content of the disciplines with the international requirements and evaluated the disciplines using points until the maximum level of the matrix. Diaconus research proves that Romanian universities (at least those analyzed) are doing efforts to adapt their accounting curricula in order to comply with the international general accepted benchmark in the field. Also (Gomaa et. al., 2004) discussed the coordination between academic society and the profession to improve a global accounting curriculum that is highly related to the professions requirements. They concluded that there are some differences among countries, even in the same country, about major requirements in the accounting education programs. Even though that the IFAC have provided a group of directions, criteria, and studies to improve the accounting education, it did not provide enough clarification of the abilities and curriculum that should be followed by universities. (Hall and Sin, 2004) aimed to explore the role of the IFAC in the harmonization of qualifications for entry into and practice in the accounting profession, in particular the educational and ethical standards. Based on a review of the data collected through a survey sent via email to the IFAC member countries, yielded 41 useable responses from 35 member countries, it is evident that the IFAC had a positive influence on the harmonization of credentials for professional accountants among its member bodies. Also it was found that 94.3% of the sample was compliant with IFAC education standard. Research Methodology: After reviewing the literature of accounting education and the pronouncements of IAESB, the researcher prepared a checklist consisting of (22) items shown in tables 2,3 and 4 in the results discussion below, covering the content of professional accounting education mentioned in IES 2, as follows: - Group #1: (7) items covering the accounting, finance, and related knowledge component.

Group #2: (10) items covering the organizational and business knowledge component. Group #3: (5) items covering the information technology component.

A three level scale was used to measure each item (Totally covered 2 marks, Partially covered 1 mark, Not covered 0 mark). The researcher collected the updated curriculum of (10) universities that teach accounting in Jordan (3 public and 7 private) shown in (Table 1), then tried to collect the most recent accounting course descriptions, and gave them marks according to the checklist used, then calculated the average, and gave the following benchmark according the researchers opinion: - Average above 1.5 indicates good compliance. - Average between 1 and 1.5 indicates moderate compliance. - Average below 1 indicates poor compliance.
Table 1 Research Sample: Public and Private Universities Teaching Accounting in Jordan

Sample Public Universities: Yarmouk University Hashemite University Al-Balqa Applied University Private Universities: Al-Zaytoonah University of Jordan Isra University Middle East University Zarqa Private University University of Petra Irbid National University Philadelphia University

IES # 2 was used as a proxy, since the content of this IES is covered in at least two years of university studies.

Research Constraint: The research performed was made based on the accuracy and transparency degree of the universities curriculum. Because of this, the researcher would not afford himself to draw up a general conclusion but meanwhile it allowed him to detect a trend towards IES application in Jordan. Results Discussion: Results discussion is classified into four major headlines according to the IFACs IES #2: Accounting and Finance Knowledge, Organizational and Business Knowledge, and Information Technology Knowledge and Competencies, followed by an overall analysis for the above three areas. Accounting, Finance, and Related Knowledge: Sample data are shown in averages for each item of the accounting and finance knowledge area in table 2.
Table 2 Compliance with IFACs IES #2 Accounting, Finance, and Related Knowledge Component: Public Universities vs. Private Universities
Subject area Financial accounting and reporting Management accounting and control Taxation Business and commercial law Audit and assurance Finance and financial management Professional values and ethics TOTAL Total Sample N Average 10 2.00 10 2.00 10 2.00 10 1.60 10 2.00 10 1.80 10 0.00 10 1.63 Public Average 2.00 2.00 2.00 2.00 2.00 2.00 0.00 1.71 Private Average 2.00 2.00 2.00 1.43 2.00 1.71 0.00 1.59

n 3 3 3 3 3 3 3 3

n 7 7 7 7 7 7 7 7

The data indicate that both public and private universities in Jordan comply with IFACs IES#2 in the part of accounting, finance, and related knowledge component, the average result for the total sample was 1.63 out of 2, with an advantage for the public universities, since the average compliance of the public universities was 1.71, and of the private universities was 1.59. Both averages exceeded the benchmark used in this study, which was 1.5; this demonstrates good compliance with the educational standards. These results are logical, because we are dealing with the core topics in the accounting curriculum. The full compliance covers the major topics in accounting, as we can note from table 2 that

financial accounting and reporting, management accounting and control, taxation, and audit and assurance scored the full mark of compliance. Also, the business and commercial law subject area averaged 1.43 in the private universities, which indicates moderate compliance with the educational standards regarding this subject. It is worth noting that professional values and ethics subject area is completely absent from the accounting curriculum in both public and private universities. This result is consistent with the global trend. Despite widespread agreement that ethics should be an integral part of accounting education, implementation has been slow. Several surveys have found little integration of ethics into the accounting curriculum. A recent survey by the American Accounting Association found that only 46% of schools offered a separate course in ethics. The majority of those courses did not provide adequate coverage of ethics, values and appropriate professional conduct. (Mastracchio, 2005) Organizational and Business Knowledge: Table 3 focuses on the level of compliance of the public and private universities with the organizational and business knowledge component of the IFACs IES #2. Data shows that there is a poor compliance by the total sample of the study; the average compliance was 0.97 out of 2. Despite this low result, the private universities seem to be more compliant with the standard, since the average compliance of the private universities was 0.99; which approximates the moderate level of compliance, however the public universities averaged 0.93.
Table 3 Compliance with IFACs IES #2 Organizational and Business Knowledge Component: Public Universities vs. Private Universities
Subject area Economics Business environment Corporate governance Business ethics Financial markets Quantitative methods Organizational behavior Management and strategic D.M. Marketing International business & globalization TOTAL Total Sample N Average 10 1.90 10 2.00 10 0.00 10 0.00 10 0.90 10 2.00 10 0.40 10 0.90 10 1.40 10 0.20 0.97 10 Public Average 2.00 2.00 0.00 0.00 1.00 2.00 0.67 1.00 0.67 0.00 0.93 Private Average 1.86 2.00 0.00 0.00 0.86 2.00 0.29 0.86 1.71 0.29 0.99

n 3 3 3 3 3 3 3 3 3 3 3

n 7 7 7 7 7 7 7 7 7 7 7

When considering a depth to table 3, we can find visible differences in the results of most subject areas. This can mostly be attributed to the flexibility of universities in choosing the topics that should be taught as complementary courses in the curriculum. Again, we can notice that the subjects related to ethical issues are missing. The corporate governance and business ethics subjects are totally absent from both public and private universities curricula. Also, the organizational behavior subject is almost hidden, since the total sample average was 0.4, with a better compliance of public universities over the private ones. International business and globalization subject is almost absent, since the total sample average was 0.2. This subject area was not found in the public universities at all. Information Technology: As discussed earlier, the information technology subject presents a complementary and important part of the accounting curriculum, as the technological development significantly affects the accounting practices. This is visible in table 4.
Table 4 Compliance with IFACs IES #2 Information Technology Component: Public Universities vs. Private Universities
Subject area general knowledge of IT IT control knowledge IT control competences IT user competences one of, or a mixture of, the competences of, the roles of manager, evaluator or designer of information systems TOTAL Total Sample N Average 10 1.80 10 1.00 10 0.00 10 1.50 Public Average 2.00 1.00 0.00 1.33 Private Average 1.71 1.00 0.00 1.57

n 3 3 3 3

n 7 7 7 7

10 10

2.00 1.26

3 3

2.00 1.27

7 7

2.00 1.26

Table 4 emphasizes the assumption based on the importance of information technology impact on accounting, since we can notice that the total sample compliance average with the standards was 1.26 out of 2, which indicates a moderate degree of compliance, with very close levels for both public and private universities; 1.27 for public and 1.26 for private universities.

Also, it is illustrated in table 4 that the IT control competences are missing from the curricula, the researcher looks at this result as a normal issue, since the IT control competencies are specific factors that a business sees as being central to the way it, or its employees, works (www.wikipedia.com) in the filed of IT control, which are technical issues somehow far from accounting specialization. Overall View: After discussing the detailed subject areas that form the content of professional accounting education program, we will take an aggregate view on the three major areas. Table 5
Compliance with IFACs IES #2 Content of Professional Accounting Education Program: Public Universities vs. Private Universities
Major Subject area Total Sample N Average 10 10 10 10 1.63 0.97 1.26 1.25 Public Average 1.71 0.93 1.27 1.26 Private Average 1.59 0.99 1.26 1.24

n 3 3 3 3

N 7 7 7 7

Accounting, Finance, and Related Knowledge Component Organizational and Business Knowledge Component Information Technology Component
TOTAL

We can note from table 5 that there is a moderate compliance with the IFACs IES #2 as a whole, since the total sample average compliance was 1.25, with a very little preference for the public universities over the private ones; they averaged 1.26 and 1.24 respectively. This indicates that there are common standards that frame the accounting specialization curricula in the Jordanian universities, supported by the higher education regulations. These regulations, as noted from table 5, support the concentration on the major topics in accounting, since the average compliance with the accounting, finance, and related knowledge was 1.63 for the total sample, which indicates good compliance with international standards, followed by a moderate concentration on the IT component, but we can notice a poor compliance with the organizational and business knowledge component.

Conclusions: The objective of this research is to explain the IFACs IESs requirements, in particular the Jordanian universities compliance with IES #2 requirements was investigated, and public and private universities were compared regarding the compliance with this standard. Based on a review of the data collected from secondary sources, it is evident that the IFAC had a positive, but moderate influence on the subject areas taught in the accounting curriculum at universities in the case of Jordan. Regarding the three major subject areas required by IES #2 to be covered in accounting curriculum, it was found that there is a concentration on the accounting, finance, and related knowledge, since it is the major topic in the specialization. However, there is a moderate coverage of the IT component, since it is an important tool that contributed to the development of accounting. But a poor compliance was found in the field of organizational and business knowledge, because of the universities flexibility in choosing the related subjects to be covered in the curriculum, and the negligence of the governance and ethical issues from the curriculum. By focusing on the concerns and issues of todays challenging business environment, one can demonstrate that studying business ethics provides vital knowledge that contributes to overall business success (Ferrell and Ferrell, 2009). Further research will be useful to investigate the coordination between the universities and IFAC's member bodies to bridge the gap between academia and profession. References:

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