Focused on enhancing lifelong learning and supporting improvements in continuing education systems for professional accountants, the EU REPARIS Audit Training of Trainers Program explores ways of modernizing the skills of the profession to provide effective financial reporting support to Small and Medium Enterprises (SMEs) and private sector enterprises. • Since 2015, the EU-REPARIS Audit Training of Thematic workshops address both technical and soft Trainers Program has brought together Small and skills training. They are logically sequenced into two Medium Practitioners and Professional Accountancy streams: fundamentals and advanced. A realistic Organization (PAO) educators from Western Balkan case-study of a small audit client “PejaSko” has been and other European countries to engage in a peer- developed as a core teaching resource. This helps to-peer learning and knowledge exchange process facilitate the workshops and provides an opportunity through a regional Community of Practice. to bridge the gap between theory and the practical application of international standards. Online sessions • In its first two years the Community of Practice supplement the thematic workshops. met for four thematic workshops and three virtual (online) learning events, developed many practical • The Program has also developed awareness raising teaching resources, and issued several awareness publications, and undertaken group challenges and raising publications. simulations focused on relevant current topics and specialized areas. All legacy materials and resources are available for further use by the Community of Practice members and their sponsoring PAOs. • Demand for the program has been high, and many PAOs participate in the program at their own cost. Other PAOs, who are not currently part of the program, have requested access to translated versions of its materials. Thematic workshop, October 2016, WB Office Vienna HOW IS THE • Many small and medium practitioners globally are revisiting their practice models to adjust to technological advancements, and to respond PROGRAM effectively to the evolving needs of their SME clients and the changing business environment. In addition CONTRIBUTING to technical proficiencies, modern practitioners must possess a range of soft skills including in selling, TO REGIONAL negotiating, communicating, and performing other business functions. The Community of Practice raises awareness of these fundamental changes CHANGE? and provides the educational and practical resources to develop these essential soft skills. he program develops a learner centered approach • T through the Community of Practice which is highly The knowledge, educational resources, and interactive and involves simulating real life business practical tools shared within the regional situations. This allows participants to tackle and solve group are transferred locally through country some real life problems through a “learning-by-doing” replication training events delivered under the educational approach. Traditional and long-established continuing professional education systems of continuing professional development activities, national professional bodies. An estimated such as conferences, lectures, and roundtables, are 10,500 accountants in practice and business believed that have only a limited effect on improving from across the region benefit from this competence and performance. In contrast, learning cascade of learning. activities which are interactive, encourage reflection • Research conducted by the International Federation on practice, provide opportunities to develop skills, of Accountants® indicates that small and medium and involve simulating real life situations focused practitioners continue to be the preferred advisors on outcomes, are more effective and lead to actual and natural service providers to SMEs. Offering improvement in practice. professional services that are well suited to the SME profile, small and medium practitioners help businesses to produce more credible financial information and access better advice in order to make important decisions about growth. Thematic workshop, February 2016, JVI Vienna TESTIMONIALS Hysen Cela President, Institute of Authorized Chartered Auditors of Albania “The Audit Training of Trainers program organized by the Centre for Financial Reporting Reform in Vienna has been a very good support to our efforts to train practitioners in Albania to apply international standards in SME audits because it offers a practical approach to educate smaller and medium sized practices while performing audits of smaller clients. We have translated the materials and cases into Albanian and disseminated to our members during our CPD sessions. In the next CPD sessions we will continue to work with the PejaSko case study, that is a core teaching resource of the Audit Training of Trainers program, and we consider it a very useful tool that can aid ISA documentation in SMEs audits. The program also offers many simulations that will help develop practitioner’s softer skills.” Nenad Randjelovic Member of the Education Committee, Institute of Certified Auditors of the Republic of Macedonia “The Institute of Certified Auditors of the Republic of Macedonia (ICARM) replicated the Audit Training of Trainers workshops focusing on thematic areas audit planning, risk identification, and assessment during its 2016 continuing education cycle. We received lots of positive feedback from participants attending these training sessions and due to high demand and participant satisfaction with the training we plan to deliver further replication events within the 2017 CPD cycle. ICARM is now preparing to use the PejaSko case study scenario while conducting focused workshops with the profession in order to train members use a IT audit documentation tool donated by the French profession (Pack SME).” Edona Peruci Uka Head of Professional Standards Department, Society of Certified Accountants and Auditors of Kosovo “The Society of Certified Accountants and Auditors of Kosovo is piloting a voluntary assessment of effectiveness of certain lectures and CPD sessions by requesting members who completed the learning to undergo a written test. The results of the assessment are used to measure the effectiveness of the learning experience and suggest improvements. Feedback is also provided to members on their level of achievement. It is our observation that CPD sessions that are accompanied with lots of professional discussions, debates, and interactions from the audience provide a better learning experience and provoke genuine improvement in practice. The Audit Training of Trainers and its many practical cases and simulations offer opportunities for participants to reflect on learning and is the right way forward to change CPD teaching formats from a compliance mentality focus to a lifelong learning philosophy.” PARTICIPANT FEEDBACK AND IMPACT MEASUREMENT Participant feedback has been very positive. Participants appreciate the program’s practical approach (case study, exercises), use of well-developed materials, and access to high level speakers. There is demand for more frequent training sessions, as there are long time gaps between modules, and there is interest in more group challenges and exercises. Highlights: Participants’ feedback1 • 90% of participants were satisfied or very satisfied • 95% of participants felt there was sufficient with the workshop and ranked favorably or very opportunity for interactive participation and favorably the overall benefits of the workshops; networking, and that topics covered were interesting • 91% provided feedback that they would be able to and stimulating. apply the materials and the case study in their local CPD and training programs; Highlights: Participants’ comments2 “The group challenges and games, such as the Ethical own experiences and reflecting how we have acted in Dilemmas Board Game, are excellent ways to combine certain situations but also learning ideas from other learning with some fun and the program should include colleagues who faced similar situations.” more challenges in the future.” “The case study offers many templates and forms that “This is a great format for interactive training: we are are very useful in practice and will help to improve the working in smaller groups on a practical case, sharing quality and documentation of our audit files.” Highlights: Impact evaluations • Participants felt 7% average increase in readiness in their PAOs and customize for replication in country to train others after the workshop and 10% average CPD events. Eight months later, 85% of participating increase in overall confidence in topics covered trainers had actually included the training materials (February 2016). One year later, participants felt and case study in their local CPD and training offering 25% average increase in readiness to train others (October 2016); after the workshops and 24% average increase in • 100% of participants reported they will share the overall confidence in topics covered (March 2017); materials and resources further in their PAOs and • 92% of participants expected to share the materials customize for replication in country CPD events and resources from a February 2016 workshop further (March 2017). 1 Source: Thematic workshop, March 2017, Joint Vienna Institute, Vienna 2 Source: Replication event, December 2016, Skopje PROGRAM REVIEW This program review is adapted from Mr. Joel L. Tan-Torres article “Traveling 40,000 kilometers” published in the Business Mirror on April 2, 20173. Mr. Joel L. Tan-Torres is the Chairman of the Philippines Professional Regulatory Board of Accountancy. “On March 15 and 16 I attended the Audit Training number of group exercises and cases to enhance for Trainers (Audit ToT) held in the Joint Vienna presentation and soft skills and to simulate real- Institute. This training was conducted by the life business situations. Our group emerged as Centre for Financial Reporting Reform (CFRR) the best presenter of a case on presentation of and was attended by over 35 people, from 14 our engagement offerings to a client. countries, mostly from Eastern Europe and I was We had an excellent group of resource persons, the only Asian among the participants. including World Bank presenters and also The Audit ToT is a series of lectures and Paul Thompson of the European Federation of workshops that focus in particular on the Accountants and Auditors, and Mats Olsson of the needs and challenges of small- and medium- International Federation of Accountants. sized practices and aim to increase the audit I brought along the Audit ToT materials that included profession’s capacity to deliver high-quality the documentation templates and samples and a training and continuing professional development Trainers Guide. I will be making these available for programs based on International Auditing and schools, professional accountancy organizations, Assurance Standards Board standards. and other stakeholders to use for the training This Audit ToT that I attended focused on audit of their students or audit staff. The Board of execution. We were engaged in a number of Accountancy will be organizing a learning activity practical exercises covering testing controls and based on the Audit ToT program.” substantive audit procedures. We also had a 3 Full article can be accessed at http://www.businessmirror.com.ph/traveling-40000-kilometers-3/ PROGRAM PARTNERS The program is conducted with the support of the International Federation of Accountants ® (IFAC)®. PARTICIPATING PAOs The CFRR team is very grateful to the following PAOs whose educators and trainers participate in the Audit Training of Trainers Program: • Institute of Authorized Charted Auditors of Albania (IEKA) • Association of Accountants and Auditors of Republika Srpska (AAARS) • Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina (SRRF-FBH) • Auditors Chamber in the Federation of Bosnia and Herzegovina • Institute of Certified Public Accountants of Bulgaria • Croatian Audit Chamber • Estonian Auditors’ Association • Society of Certified Accountants and Auditors of Kosovo (SCAAK) • Institute of Certified Auditors of the Republic of Macedonia (ICARM) • Institute of Certified Accountants of Montenegro (ICAM) • Philippines Board of Accountancy • Chamber of Financial Auditors of Romania (CAFR) • Chamber of Authorized Auditors of Serbia (CAA) • Serbian Association of Accountants and Auditors (SAAA) CONTACTS Kalina Sukarova Senior Financial Management Specialist, Centre for Financial Reporting Reform (CFRR), Governance Global Practice, The World Bank ksukarova@worldbank.org +43-1-217-0732 Piotr Pyziak Consultant, Centre for Financial Reporting Reform (CFRR), Governance Global Practice, The World Bank ppyziak@worldbank.org +43-1-217-0735 Elena-Cornelia Salcher Consultant, Centre for Financial Reporting Reform (CFRR), Governance Global Practice, The World Bank esalcher@worldbank.org +43-1-217-0730 Visit the EU-REPARIS Audit Training of Trainers web page: http://go.worldbank.org/D6CT7QUHM0 ABOUT THE CFRR The Centre for Financial Reporting Reform (CFRR) development; know-how and knowledge transfer; and based in Vienna, Austria, is part of the World Bank’s technical assistance to strengthen existing institutions. Governance Global Practice and leads the World CFRR activities are focused on four areas of expertise: Bank’s corporate financial reporting agenda. The CFRR i) raising awareness of the importance of the corporate provides a range of knowledge, convening and capacity financial reporting reform agenda and contributing to development services in support of financial reporting legislative reform; ii) building institutional capacities reform, institutional strengthening and the dissemination by addressing knowledge gaps and offering tailored of good practice in the area of financial reporting and advice in areas such as public oversight and standards; auditing. The CFRR supports global clients to adopt and iii) encouraging strong and engaged professional implement high-quality financial reporting standards as accountancy organizations; and iv) promoting the a key element of strong corporate governance systems. development of internationally compatible accounting The CFRR provides knowledge services including education. analytical and advisory services; learning and skill Centre for Financial Reporting Reform Governance Global Practice The World Bank Praterstrasse 31 1020 Vienna – Austria T: +43 (0)1 2170-700 F: +43 (0)1 2170-701 cfrr@worldbank.org www.worldbank.org/cfrr