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EU-REPARIS is funded by the European Union and is an
integral part of WB EDIF.
Benchmarking results – Part 3: University of Montenegro
Achieving Excellence in Education: Aligning University Accounting Curricula to International Benchmarks
Tanja Lakovic, assistant, Economic Faculty, University of Montenegro
Atanasko Atanasovski, Consultant, Centre for Financial Reporting Reform, World Bank
September 14, 2015
2
About University of Montenegro- Faculty of Economics
»The Faculty is part of Public University, oldest faculty (1960)
with highest ranking in the country.
»Operates undergraduate degree program in economics (4
years) with 10 modules in the final academic year, one of which
in accounting.
» 8 active graduate programs among which program in
accounting and audit.
»The Faculty is dominantly financed by fees from students (74%)
and Government subsidies (21%).
3
About University of Podgorica- Faculty of Economics
»The Faculty is partly autonomous in developing new undergraduate and graduate programs, subject to approval by University Senate.
»The Faculty autonomously decides on format of teaching and examination.
»The Faculty in cooperation with the University Governing Bodies establishes academic partnerships with other Universities.
»Admission quotas are decided by the Government of Montenegro.
4
About University of Podgorica- Faculty of Economics
»Admits 60 of overall 300 students to the accounting and audit undergraduate program in their final (4th) academic year; 20-25 students out of 150 to the graduate program per academic year.
»Undergraduate accounting program offered since 2010, introduced through TEMPUS project partnership.
»The Faculty does not have a formal strategy to manage its interface with the corporate world;
»The Accounting professors have strong cooperation with the professional organisation (ICAM) and some with professional accounting firms and public sector in the country.
5
Update of Curricula
»In the past, general curricula reforms for undergraduate studies
were completed as part of re-accreditation process. Current
curricula created in 2010, with minor changes introduced in
2012.
»Teaching staff are making regular annual updates of courses
syllabuses, if needed.
»The Faculty analysis the quality of the teaching process through
electronic student surveys conducted at the end of each
semester.
6
Accounting and audit curricula/ materials
»The Accounting curriculum taught can be considered as
compliant with IFAC’s IES’s for Professional Accountants.
»Exemptions for accounting graduates are available for ACCA
(F1-F4) and local professional qualification provided by
Institute of Certified Accountants of Montenegro (certified
accountant).
7
Accounting and audit curricula/ materials
»Accounting related textbooks availability in local language has been rated as very good, however textbooks in financial management, financial reporting, cost accounting need improvement.
» The use of English textbooks and materials has been rated as modest.
»Updated English or translated version of IFRS’s, ISA’s and other relevant pronouncements are not available in the Faculty Library. IFRS 2010 translated into local languare are available.
»All courses are currently taught in local language, only.
8
»IT technologies have been modestly used for the teaching
process, mainly to effectively communicate with students.
»Presentations, short case studies, in-class exercises; group and
individual project assignments are the usual course delivery
methods.
»Exams (final and interim) are written and oral, composed of
combination of MCQ’s, short exercises; case studies or open-
ended discussion Q’s.
Accounting and audit curricula/ materials
9
Faculty Body
»Accounting Department has teaching staff of 9 (2 Full-time and
3 Associate Professors, 1 Assistant Professor and 3 Assistants)
»Teaching norm is minimum 8 hours per week for professors and
12 hours per week for assistants.
»Student/staff ratio is 300 per professor for 1-3 study years; 50
per professor for courses taught at 4th final year.
»Most of the Professors are proficient in English and have
experience in publishing and teaching in English.
10
Student Body
»25 % of all students study Accounting and Audit.
»The drop out rate in 2014 was 2.7%.
» The English language proficiency among students can be
considered as very good.
»Part of the Student body has international mobility; most
frequently the students used ERASMUS, TEMPUS and other
mobility programs in the past.
11
Accounting Student Body – Employment proportion
Proportion
Local audit & assurance companies 20%
International audit & assurance companies 5%
Financial sector (banking, insurance, other credit
institutions)
35%
Business community 30%
Government bodies 10
Non-profit, non-governmental organizations
TOTAL: 100%
12
Student Body – Interface with Corporate World
»The Faculty could benefit from a Career Center to manage its
link with the Corporate World.
»Joint advisory body that will incorporate representatives from
companies and institutions (employers) could be beneficial for
curricula update and practical training for students.
»Events are organised (once a year) to link students with
companies in recruitment process.
13
Benchmarking analysis results
»Undergraduate Program in Economics has 10 modules
(Students enroll in 4rd year of studies).
»The Accounting module has five compulsory courses taught
in the last semester of undergraduate studies.
»Benchmark analysis was performed against ACCA
Professional Qualification (Fundamental level courses) and
CIPFA International Public Financial Management
Qualification (up to Diploma level)
14
Benchmarking analysis results
»ACCA courses syllabus included:
» Accountant in business; Management Accounting; Financial Accounting
» Performance Management; Financial Reporting;
» Audit and Assurance
»ACCA courses not included:
- Corporate and Business Law
- Taxation
15
Benchmarking analysis results
»CIPFA International Public Financial Management Qualification
courses included (Diploma level):
» Financial Accounting; Management Accounting
» Public Sector Financial Reporting; Audit and Assurance
» Managing Organisations; Managing Finance
16
Benchmarking analysis results
» Accounting and audit related courses taught at the Undergraduate
Accounting Program:
Compulsory
» Accounting; Business Analysis; Financial Management
» Cost Accounting; Advanced Financial Reporting; Accounting for
Financial Institutions; Governmental Accounting; Corporate Analysis
and Control.
Electives
Accounting Information System; Auditing and Control
17
Benchmarking results for ACCA profile – without elective courses
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
F1 F2 F3 F5 F7 F8 F9
ACCA Papers
ACCA Benchmark Actual
18
Benchmarking results for ACCA profile – without elective courses
ACCA Profile No Topics Coverage Target
F1 Accountant in Business 169 71% 80%
F2 Management Accounting 134 76% 80%
F3 Financial Accounting 144 74% 80%
F5 Performance Management 25 21% 80%
F7 Financial Reporting 86 67% 80%
F8 Audit and Assurance 10 7% 80%
F9 Financial Management 119 65% 80%
TOTAL 687 58%
19
Benchmarking results for ACCA profile – Including elective courses
ACCA Profile No Topics Coverage Target
F1 Accountant in Business 201 85% 80%
F2 Management Accounting 134 76% 80%
F3 Financial Accounting 144 74% 80%
F5 Performance Management 29 24% 80%
F7 Financial Reporting 86 67% 80%
F8 Audit and Assurance 105 75% 80%
F9 Financial Management 119 65% 80%
TOTAL 818 70%
20
Benchmarking analysis results – ACCA profile
»Performance management topics not covered:
- CVP analysis
- Techniques and tools for presenting information to the management
- Budget preparation; budgeting approaches; behavioral aspects
- Management reports, variance analysis of results
- Balance scorecard; cost reduction and value chain analysis
- Performance measurement (long vs short term); financial vs non-financial PI’s; benchmarking;
- Pricing decisions; transfer prices; full analysis of costs relevant for decision-making
- Risk and uncertainty in decision-making;
21
Benchmarking analysis results – ACCA profile
»Financial Accounting and Reporting topics not covered:
- Consolidated financial statements
- Accounting for investment property
- Events after the reporting period
- Earnings per share
- Assets held for sale and discontinued operations
- Bank Reconciliations and Suspense Accounts
- Incomplete records
- Inventory and biological assets
- Accounting for leases
- Deferred tax
22
Benchmarking analysis results – ACCA profile
»Auditing and Assurance topics not covered in undergraduate
program syllabus:
- Audit objectives and tailored audit programs for specific items (tangible
and intangible non-current assets; non-current liabilities, provisions and
contingencies; share capital and reserves)
- Internal Audit, its contribution, framework for internal audit, reports
- Audit procedures for going concern;
- Test of controls; Internal controls for specific transaction cycles
- Audit techniques in non-profits
23
Benchmarking analysis results – ACCA profile
»Financial Management topics not covered in undergraduate
program syllabus:
- WACC; business valuation models; valuation of shares and debt
- EMH and practical considerations in valuation of shares
- Financial objectives for non-profits
- Specific investment decisions (lease or buy; asset replacement); non-
financial factors in investment decisions
- Finance vehicles for SME’s
- Financial risks and risk management techniques
24
CIPFA results – without elective courses
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
FA MA PS AA MO MF
CIPFA Papers
CIPFA Benchmark Actual
25
Benchmarking results for CIPFA profile – without elective courses
CIPFA Profile No Topics Coverage Target
FA Financial Accounting 144 67% 80%
MA Management Accounting 100 76% 80%
PS Public Sector Financial Reporting 6 15% 80%
AA Audit and Assurance 24 14% 80%
MO Managing Organisations 38 30% 80%
MF Managing Finance 69 38% 80%
TOTAL 381 44% 80%
26
Benchmarking results for CIPFA profile – including elective courses
CIPFA Profile No Topics Coverage Target
FA Financial Accounting 168 79% 80%
MA Management Accounting 101 77% 80%
PS Public Sector Financial Reporting 6 15% 80%
AA Audit and Assurance 126 75% 80%
MO Managing Organisations 49 39% 80%
MF Managing Finance 69 38% 80%
TOTAL 519 60%
27
Benchmarking analysis results – CIPFA profile
»Public Sector Financial Reporting topics not covered in
undergraduate program syllabus:
- IPSAS are not taught at Governmental Accounting Course
- Preparation of accrual based- single and consolidated entity financial
statements
- Tools to measure financial performance in the Public Sector,
interpretation of financial and non-financial information
28
Benchmarking analysis results – CIPFA profile
» Auditing and Assurance topics not covered in undergraduate program
syllabus:
» Role of the International Organization of Supreme Audit Institutions
(INTOSAI)
» Specific work of internal auditors; Contribution for Organisations;
Regulatory Framework; Internal performance reviews and internal
control audits; Reporting
» Audit in IT environment
29
Benchmarking analysis results – CIPFA profile
»Managing Organisations topics not covered in undergraduate program syllabus:
- Performance management models (Balance scorecard; KPI’s; benchmarking etc.)
- Business process re-engineering
- Value management techniques and analysis
- Procurement and typical tendering process in the public sector; Contracting in the Public Sector
- Outsourcing risks and benefits
- Quality control for service delivery in Public Sector; Service Delivery Environment
- Project management in Public Sector
30
Benchmarking analysis results – CIPFA profile
»Managing Finance topics not covered in undergraduate
program syllabus:
- Environment for Financial Management in the Public Sector
- Investment Management in the Public Sector; Techniques in capital
expenditure decision making
- Calculate Specific Cost of Capital in the Public Sector
- Treasury Management Activities in Public Sector Organisations
- Price setting strategies and influencing factors (Public Sector)
31
Benchmark Analysis – University of Montenegro
»Questions?