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Start / ... / Steps on the Road towards Competency Based Training

In the Autumn 2004 the Education and Training Committee (ETC) of Institute of Chartered Accountants in Ireland (ICAI) decided to make the transition in its route to qualification from the existing knowledge-based process towards one that will be competency led. A competency-based qualification process means that the focus is on work outcomes rather than on inputs.

The ICAI's Training Contract, along with its education and assessment processes, provides the foundation for the widely respected career as a Chartered Accountant.

The period under training provides a structured environment within which trainees, under the supervision of an ICAI member, develop the professional values, technical / functional competencies, and the personal and interpersonal attributes that define the Chartered Accountant.

WHAT IS COMPETENCE? The International Federation of Accountants (IFAC), says the goal of accounting education and experience must be to 'produce competent professional accountants.' IFAC goes on to define competence as 'being able to perform a certain work role to a defined standard with reference to real working environments'. A competency-led training approach strengthens the links between the three elements that comprise the route to qualification as a Chartered Accountant: - a period of professional development combined with - education and - assessment processes. In the move to competency-led training, the traditional classification of 'time spent' on assignments by trainees will be replaced by an outcome-based approach, under which trainees will maintain a diary of competencies as they are acquired during their training period. The existing Record of Experience booklet that ICAI training firms will be familiar with, will be replaced by a Diary of Professional Development, the CA Diary.

In consultation with many stakeholders the ICAI has identified a profile of competencies that trainees should acquire during the period under training.

After a successful period of testing and development, the ICAI is now rolling out the new CA Diary on a phased bases. The diary is web based and trainees will chart the acquisition of their competencies during the period of professional development.

WHY CHANGE? A key benefit of the CA Diary is that the trainee must reflect and self-evaluate. Maintenance of the Diary compels the trainee to reflect on assigned tasks and to identify the competencies acquired. From this evaluation the training partner / mentor can assess whether a trainee understands the knowledge and skill level required to carry out a particular assignment.

THE CA DIARY The CA Diary identifies: - Professional Values, - Personal/Interpersonal Skills and - Functional Competencies

In identifying the functional competencies, the roles and tasks carried out by Chartered Accountants and the expectations of the marketplace were analysed.

The competencies are general in nature but recognise the core technical functions that identify the role of the Chartered Accountant in the areas of: - Financial Reporting - Auditing - Taxation - Finance

The identification of skills and competencies by the ICAI helps to ensure consistency of practical experience across all sectors of the profession.

The CA Diary will be made available electronically to trainees in this Autumn's intake on a phased basis and to all new trainees from September 2006.

Prior to admission as ICAI members, all trainees will be required to submit a copy of their CA Diary for review.

ICAI's Training Contract includes provision for the maintenance of a record of experience and training and for its review not less frequently than twice yearly. The review may be carried out by the training partner (who must be a Chartered Accountant), or any other qualified Chartered Accountant within the firm or organisation to whom the trainee reports at any given time.

The review process will present the trainer with an opportunity to reflect on the trainee's achievements and professional development and to plan together the goals for the next work period.

COMPETENCIES As a key prerequisite the ICAI requires its trainees -to demonstrate the acquisition of the Financial Reporting Competencies -to acquire core, broad-based business range of competencies; -to adopt the Professional values of the ICAI -to develop strong personal and interpersonal skills.

The CA Diary advises trainees to record their entries at the end of each assignment and / or at least every two months. Used correctly, it will assist mentors and trainees in the planning, recording, reflecting and reviewing of experience and training. It is also designed to ensure that trainees receive a balanced programme of experience at progressive levels of responsibilities, during the period of professional development.

PROFICIENCY LEVELS The CA Diary identifies three levels of proficiency as follows:

Level 1 - Understands -Can grasp a clear understanding for the task assigned -Can carry out tasks that are established processes -Work under supervision -Collect, organise and analyse basic information using established criteria -Communicate verbally and in writing, to an in-house audience

Level 2 - Applies 4Becomes pro-active in managing routine tasks 4Can undertake assignments with a lesser degree of supervision -Performs as part of a team in planning and executing assignments -Assumes appropriate additional responsibility -Communicates verbally in-house and prepares for manager / supervisor written communication to clients

Level 3 - Integrates -Identifies problems and resolves them. -Demonstrate an in-depth technical knowledge in defined areas. -Demonstrates clear managerial / leadership skills. -Generates ideas and is proactive in implementing -Communicates concisely and effectively, verbally and in writing, both in-house and to clients.

MENTOR AND TRAINEE ROLES The mentor acts as role model to the trainee sharing knowledge and experience. The mentor establishes the areas in which the trainee will gain experience and plans and monitors the competencies to be acquired by the trainee at least twice yearly. The trainee carries out his/her duties at all times professionally and in the interest of the training firm/ organization. Trainees are guided by the ICAI's Rules of Professional Conduct and should be familiar with the values, skills and competencies to be acquired during the training period.

CONCLUSION Workplace training and experience play a pivotal role in the development of future Chartered Accountants. One of the most important functions of experienced ICAI members is to influence and guide trainee members. The new CA Diary should greatly assist in this.