Prof.Dr. Sotiraq Dhamo Doc. Julian Naqellari The University of Tirana Accounting Department
1. Key stakeholders in A&A Education 2. Current Third Level Qualification: University of Tirana (as an example) 3. Current Professional Qualification: Entry Routes in Albania 4. Overall Reform Agenda 5. Further specific areas of possible reform for University Sector & Professional Qualification 6. Potential next steps
University Qualification Ministry of Education Over 20 public and private universities offering A&A courses in Albania including: The University of Tirana the biggest one with more than 150 students graduated in Master degree in A&A every year Professional Qualification Public Oversight Board (MoF) Auditing Stream Auditor s Association Accounting Stream Accountant s Association Certification Authority Certification Authority
University of Tirana 1 2 3 Bachelor in Accounting and Finance Professional Master in Accounting (full time and part time) Master of Science in Accounting and Auditing (full time) Philosophy degree in Accounting and Auditing
First Year Second Year Third year Introduction to Economics Macroeconomics Financial Management Basics of Marketing Applied Mathematics HR Management Management Principles of Accounting Operational Management Sociology / History of Economics Basics of Statistics Cost Accounting Microeconomics Financial Accounting Money and Banking General Mathematics Informatics Business Taxation Business Communication Applied Statistics Management Accounting Principles of Finance Business Law Marketing Management Elective 1 (students choose): Personal Finance, or Special Seminar Elective 2 (students choose): Entrepreneurship & Small Business Management, or Accounting Information Systems Bachelor Thesis Investment
As a Bachelor in Accounting & Finance with the UoT, the graduate will be qualified to carry out related business tasks as an employee in finance and accounting field. As a Bachelor of Accounting & Finance with the UoT, the graduate will be qualified (after a selection process) to follow up the studies in the second and third level.
First year Financial Market and Institutions Advanced Management Accounting Advanced Financial Management IFRS & National Accounting Standards Research and Quantity Methods in Accounting Organization of the Accounting System and Control Advanced Financial Accounting Accounting for Public and non for profit organizations Business Law Elective 1 (students choice): 1. Public Finance, or 2. Professional Ethics, or 3. Spreadsheet Modeling. Second year Fiscal Administration Auditing and ISAs Consulting, Assurance and other professional Services Financial Statements Analysis Elective 2 (Students choose): 1. Forensic Accounting, or 2. Corporate Governance, or 3. Risk Management. Practice Master Thesis
Academic Year / Full Time Advanced Management Accounting Advanced Financial Management Business Legislation Financial Statements Analysis Advanced Financial Accounting Fiscal Administration Organization of Accounting and Control Systems Accounting for Public and Non for profit Organizations Auditing and Assurance and Consulting Services Elective 1 (Students choose 1 of the courses): 1. Insurance and Banks Accounting, or 2. Professional Ethics Elective 2 (Students choose 1 of the courses): Corporate Governance, or Computerized Accounting and Applied Software, or Control and Internal Audit Practice Thesis
With Master degree in Accounting and Auditing with the UoT, the graduate will be qualified to practice accounting or auditing as a profession (after a professional training and qualification system), and/or to carry out related business tasks as an employed accountant. With Master degree in Accounting and Auditing with the UoT, the graduate will be qualified (after a selection process) to follow up the studies in the third level (Phd. studies).
The Law on Higher Education and its amendments regulates the activities of universities and faculties, the establishment and work of the governing bodies, and methods of recruiting teaching staff, etc. The role of the university, its scope of work, and basic work, conditions and objectives are also regulated by the law, while the overall organization and activities are more closely defined by its own statute. UoT endeavors to be a truly contemporary university based on the modern infrastructure, by expanding and modernizing facilities. The main challenges are the integration and globalization of higher education, considering the stage of development of the Albanian society.
2.4. Key aspects of University Sector Well established third level accounting and audit courses at the major universities (i.e. University of Tirana (UoT)) Fixed entry quotas in public universities, tuition fee Comparably well developed accounting and audit syllabus across bachelors and masters programs (using UoT as an example) Based on IESs and focused on students preparation for labour market However limited resources in some aspects constrains further development Only a few academics are practitioners Insufficient facilities Lack of accreditation Non sustainable linkages to the professional qualification No real progression from degree level to professional programme
Auditing Stream BA in Accounting and Finance MSc / MP in Accounting and Finance IEKA Training Programme Certification Authority: Statutory Auditor Accounting Stream BA in Accounting and Finance Msc / MP in Accounting and Finance Professional Accounting Bodies Training Programme Certification Authority : Chartered Accountant
The Law on Professions (2009) regulates the profession of Certified Auditor and Certified Accountant, the activities of professional bodies and Certification Authority and Public Oversight Board. The role of these bodies, its scope of work, the conditions of candidates admission in the professions, the requirements for IPD and CPD, are also regulated by the law, while the overall organization and activities of professional bodies are more closely defined by their own statute.
Paper One: Accounting, financial reporting and financial statements analysis. Paper Two: Albanian Civil law, Penal law, Commercial and Company Law, and Labor Law to the extent they relate to the statutory audit of financial statements. Papers One & Two are Compulsory for Statutory Auditors & Chartered Accountants
Paper Three: Code of Ethics for professional accounts, ISQC, ISA, IAP Directives, International statements on Review Engagements, International Standards on Assurance Engagements and other International Standards issued by IFAC and published in Albanian, as well as regulations on the organization of the statutory auditor s profession Paper Four: Organization, management and internal control of companies, including information systems and computing. Paper Five: Taxation Law in the Republic of Albania.
3.3. Key aspects of Professional Qualification Enhancements required in the overall syllabus in order to comply with the requirements of the IFAC IES s technical competences Level of proficiency below required standard Some learning outcomes required by IES s not covered No in depth professional education is provided for the professional entrants Again limited resources constrains further development Lack of evaluation structure in CA Non sustainable linkages to the university sector No real progression from degree level to professional programme Lack of close cooperation between universities and professional bodies (no accreditation agreement)
There is a lack of specific internal technical capacity within the CA. Exams are managed by the CA but it has a limited contribution to the syllabus and material being examined. The CA relies on the PB inputs and external professional experts in developing the exam papers including members of academia. In addition, the syllabus and exam structure are too theoretical in places. There are no overall learning outcomes competences, or skills stated for the course program, and there is no overall aim and objective stated for the course program. auditor; There is a lack of detail on what is to be studied, the syllabus do not show the subject contents, and to what depth and rigor and to what extent they are aligned with the five CA examination curricula.
4. Overall Reform Agenda World Bank established the Corporate Financial Reporting Enhancement Project (CFREP) in Albania in 2011 Four specific components: Component 1: An improved legal framework in the area of corporate financial reporting, aligned with the EU acquis communautaire; Component 2: More effective setting of national accounting standards by the National Accounting Council (NAC) Component 3: Improved setting of audit standards and supervision of auditing practices by the audit oversight system Component 4: Revised curricula in accounting and auditing both in universities and for professional certification to raise the level of professional skills
4. Overall Reform Agenda Under Component 4 an assessment has been completed covering the educational system for accountants and auditors from university to professional qualification The assessment makes recommendations for the enhancement of the professional qualification Possible new structure and framework Increase level of proficiency and learning outcomes Assessment is still under discussion by stakeholders
The working group under the Component 4 of this project consists of the main stakeholders (universities, professional organizations representatives) and together with the consultant: agree and suggest several restructuring recommendations aimed at developing and implementing of an integrated education and training system for accountants and auditors leading to a professional qualification. consider enhancing the professional qualification based on the international best practice
5. Further specific areas of possible reform University Sector Further enhancement required in the overall syllabus in order to comply with the requirements of the IFAC IES s technical competences The international accreditation and recognition can be realized once the current curricula is based on IES s requirements. Academic Staff need to be trained and encouraged to use a broad range of learning centered teaching methods. Support with literature and logistic facilities
Strengthening the academic and professional links between the universities and professional bodies The universities and the Professional Bodies can work closer together to develop an integrated accounting and auditing education training program. Strengthening the academic and professional links between the universities and an EU/ International university
Setting up a professional examination unit inside CA that coordinates with Professional Bodies for the training programs, professional curricula and the syllabus of examinations. It would help increase the level of examination framework credibility. The CA should consider the possibility of POB approval of professional curricula, and examination learning outcomes and level of proficiency as required by IESs. There is a need to revise the professional curricula for all Professional Bodies to establish conformity with the requirements of the revised IESs.
5. Further specific areas of possible reform Professional Qualification The auditing and accounting training programs should be more practical and aligned with IES s learning outcomes of technical competencies; professional skills, and values, ethics and attitudes. There is a need for a more practical approach to the syllabus and exams. The auditing and accounting training programs should be : Integrating knowledge, skills, professional values, ethics and attitudes across topics and disciplines to deal with complex situations along with the required IESs level of proficiency Stimulating candidates to develop professional skepticism and professional judgment
It is important that exam papers are more professionally prepared to test all required skills and abilities by selecting and integrating principles and theories from different areas of technical competency. Demonstrating the ability and skills to synthesize and evaluate. Double marking is an important means of reducing subjectivity and increasing effectiveness. Each marker should use the same marking schedule as this would give consistency to the process.
Ensure that the new framework is standardized and covers the requirements of all applicable International Educational Standards (IESs) of IFAC; Design the framework in such a way so as to emphasize possible law and practice in accountancy and audit in Albania; Make provisions in the framework to match the needs of all sectors of the Albanian economy, with particular emphasis on the needs of the private and public sector; Ensure that the resulting curricula provided an economically viable and operationally sustainable set of qualifications for stakeholders to deliver
Ensure that the framework is standardized and covers the requirements of all applicable International Educational Standards (IESs) of IFAC; Upgrade the syllabus /learning outcomes and the level of technical proficiency Reassess the framework in such a way so as to emphasize the practice in accountancy and audit in Albania; Reassess the framework to match the needs of all sectors of the Albanian economy, with particular emphasis on the needs of the private and public sector;
International Standards (IES) Local Considerations Revised/ New Qualification Framework
General Accountant (Stage 1) P1: Financial Accounting P2: National Tax, Law & Governance P3: Audit & Assurance General Accountant (Stage 2) P4: Management Accounting P5: Financial Management P6: Business & Organisational Environment P7: Financial Reporting Chartered Auditor (Stage 3) P8: Strategy P9: Advanced Taxation P10: Corporate Governance & Ethics P11: Advanced Financial Reporting P12: Advanced Audit & Assurance
Steps 1 and 2 - the General Accountant (GA) stage; three modules at level 1; and four modules at level 2. Successful completion of examinations in all seven of these modules will lead to the award of the General Accountant.
Step 3 - the Chartered Auditor (CA) stage - consists of five modules in order to achieve this qualification level. Registered auditor status, need successful completion of Audit & Assurance in the Private Sector module.
Accountant (Stage 1) P1: Financial Accounting, Reporting & FS Analysis (advanced) P2: Mgmt. Accounting, Financial Mgmt. & Control P3: Legislation P4: Business & Organizational Environment P5: Accounting & Intern. Control system Audit & Assurance (foundation) Auditor (Stage 2) P7: Advanced Audit & Assurance P8: Corporate Governance & Ethics P7: Risk Management & MIS
Step 1 the Accountant stage; five modules, one module at advanced level, three at intermediate level and the other at foundation level. Successful completion of examinations in all five of these modules will lead to the award of the Certified Accountant. The first module is qualificatory for the next modules
Step 2 - the Chartered Auditor (CA) stage - consists of three modules in order to achieve this qualification level. The first module is qualificatory for the next modules
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