Competence-based education and assessment in the accounting profession in canada and the usa

Abstract

This chapter describes recent developments in the use of competence frameworks for professional education in the Unites States of America (USA) and Canada, taking the accounting profession as an example. Professional accounting bodies in the USA and Canada, as well as internationally, have developed competence-based professional standards as a basis for professional education, certification, and continuing education. This chapter starts by reviewing the historical development of competence-based approaches in the USA and Canada. Two American Institute of Certified Public Accountants (AICPA)-supported competence frameworks that are quite different from each other are discussed: one for Certified Public Accountants (CPAs) aimed primarily at educators, and another one for Chartered Global Management Accountants (CGMAs) that serves as the basis for the education program and certification. In Canada, Chartered Professional Accountants of Canada (CPAC) resulted from the merger of three accounting bodies, all using competence-based approaches. CPAC has a single competence model for CPAs which is also used for professional education and certification, as well as to inform curricula of undergraduate accounting programs. Comparisons are drawn to the International Federation of Accountants’ International Accounting Education Standards addressing competence-based accounting education and outcome-based learning. All three current models include personal attributes and focus on what is needed for effective performance at various levels of proficiency and tend to focus on observable skills. All three also tend to view competencies as activities/skills, although CPA Canada also provides the outcomes of the skills. The CGMA and CPA Canada models also include knowledge requirements and define accounting practice-specific competencies, while the AICPA CPA one does not. Strengths and weaknesses of competence-based approaches in accounting are discussed and current efforts in accounting are compared with the competence-based approach in the medical profession. Finally future directions for competence approaches in accounting are considered.