Competency‐Based Education and Assessment for the Accounting Profession: A Critical Review*

Abstract

In recent years many professional accounting associations have become interested in establishing competency‐based professional requirements and assessment methods for certifying accounting professionals. A competency‐based approach to qualification specifies expectations in terms of outcomes, or what an individual can accomplish, rather than in terms of an individual's knowledge or capabilities. This idea has an obvious appeal to many practitioners and administrators of professional qualification programs. However, there is limited knowledge about competency‐based approaches in the accounting profession and among accounting academics, which is constraining discussion about the value of these approaches and about the strengths and weaknesses of the different competency models that have sprung up in various jurisdictions. In this paper we review and synthesize the literature on competency‐based approaches. We identify a number of theoretical benefits of competency‐based approaches. However, we also find many alternative definitions and philosophies underlying competency‐based approaches, and a variety of visions of how competencies should be determined and assessed. We note that there is limited evidence supporting many competency‐based approaches and we identify 14 research questions that could be used to help policy makers to more effectively address policy matters related to competency‐based education and assessment.

Competence-based Approaches to the Assessment of Professional Accountancy Training Work Experience Requirements: The ICAS Experience

“…Eraut (1994) further articulates that in many cases, performance evidence collected via direct observation in the work-place may be the most valid method of assessing competence and sometimes, the only option. Indeed, this view is also supported by Boritz and Carnaghan (2003) who suggest that the work-place is the most appropriate forum for the assessment of competence. This is further articulated by Lines and Gammie (2004) who posit that many of the required competences identified by IFAC in their education standards (IFAC, 2003a) cannot be effectively 1 The backwash effect of assessment suggests that the assessment drives both the teaching and learning, therefore if the assessment instruments remain very traditional then the teaching and learning processes will not develop.…”

“…It is this stage, which seems to result in the many variations of competency models, (Hyland, 1994;Hagar and Gonczi, 2002;Boritz and Carnaghan, 2003) although there are essentially two extremes: the functional analysis method and the capability method.…”

“…The 'capabilities' method (or 'input' approach) outlines the characteristics of the people doing the work and considers what inputs are required to enable the task performance expected of a newly qualified accountant (Eraut, 1994;Boritz and Carnaghan, 2003). This approach attempts to capture the cognitive processes and personal qualities of the trainee accountant as opposed to confirming the ability to carryout certain tasks.…”

“…Competency models currently in operation tend to adopt characteristics of both the functional analysis and capabilities approach, with competences being defined in terms of outcomes, knowledge, skills, attitudes and cognitive abilities (Boritz and Carnaghan, 2003). These hybrid competence approaches have evolved due to the limitations with adopting either a purely functional approach or a purely capabilities approach.…”

“…In the context of professional accountancy training, competence is defined as 'being able to perform a work role to a defined standard with reference to real working environments ' (IFAC, 2003b, p.12) and hence links educational goals with professional practice (Boritz and Carnaghan, 2003). Thus, a competency framework should ensure that newly qualified accountants can perform the tasks expected of them in practice to a certain standard and accordingly 'are competent to work as professional accountants and to offer their services to the public' (IFAC, 2003b, p8).…”