Glossary of Terms
This glossary comprises a collection of defined terms, many of which have been specifically defined within the International Education Standards (IESs). It is acknowledged that terms may be understood to have different common meanings, nuances of meaning, and applications among the various countries in which IFAC member organizations operate. The glossary does not prescribe the use of terms by IFAC member organizations. Rather, the glossary is a list of defined terms, with special meanings, for their use within the IESs.
Words and phrases that are highlighted link to their definitions elsewhere in the glossary.
The definitions in this glossary are effective from January 1, 2026.
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Accessible (of assessment)
In relation to an assessment, whether an assessment activity allows all individuals to participate in and demonstrate achievement of learning outcomes.
Aspiring professional accountant
An individual who has commenced a professional accounting education program as part of Initial Professional Development.
Authenticity (of assessment)
In relation to an assessment, whether an assessment activity assesses the learning outcomes in a way that reflects realistic situations faced by professional accountants.
Combination approach
A combination approach combines elements of input-based and output-based approaches.
Content validity (of assessment)
In relation to assessment, whether an assessment activity provides adequate coverage of the particular aspect of professional competence being assessed.
Continuing professional development (CPD)
Learning and development that takes place after initial professional development, and that develops and maintains professional competence* to enable professional accountants to continue to perform their roles competently.
Cooperative education
A program of education, generally leading to a degree, which includes alternating periods (e.g., terms, semesters, trimesters) of academic study and full-time work experience. This will generally result in additional time required to complete degree requirements.
Education
Systematic process aimed at acquiring and developing knowledge, skills, and other capabilities within individuals, a process that is typically but not exclusively conducted in academic environments.
Equity (of assessment)
In relation to assessment, whether an assessment activity is fair and without bias, allowing all aspiring professional accountants an equal opportunity to successfully complete the professional accounting education program. Equity is achieved by assessment activities which are accessible and inclusive to all aspiring professional accountants.
Face validity (of assessment)
In relation to assessment, whether an assessment activity is perceived to measure what it is intended to measure.
Financial statements
A structured representation of historical financial information, including disclosures, intended to communicate an entity's economic resources or obligations at a point in time or of the changes therein for a period of time in accordance with a financial reporting framework. The term "financial statements" ordinarily refers to a complete set of financial statements as determined by the requirements of the applicable financial reporting framework, but can also refer to a single financial statement. Disclosures comprise explanatory or descriptive information, set out as required, expressly permitted or otherwise allowed by the applicable financial reporting framework, on the face of a financial statement, or in the notes, or incorporated therein by cross-reference.
The financial statements subject to audit are those of the entity, prepared by management of the entity with oversight from those charged with governance.
Firm
A sole practitioner, partnership or corporation or other entity of professional accountants, or public sector equivalent.
Formal assessment
Evaluation of professional competence developed through learning and development during IPD.
Formal assessment activity
Those activities designed to assess specific areas of professional competence during IPD.
Good practice
Those elements considered essential to the education and development of professional accountants and performed at a standard necessary to the achievement of professional competence.
Inclusive (of assessment)
In relation to assessment, whether an assessment activity provides all aspiring professional accountants with an equal opportunity to demonstrate their achievement of learning outcomes.
Information and communications technologies (ICT)
Established and emerging technologies, techniques, and processes used to capture, manage, transform, or communicate data and information.
Initial professional development (IPD)
Learning and development through which aspiring professional accountants first develop competence leading to performing a role as a professional accountant.
Input measure
An input-based measure focuses on the investment made in learning and development, for example, the number of hours an individual is expected to attend a course or the subject areas covered.
Input-based approach
An approach that establishes an amount of learning activity required for professional accountants to develop and maintain professional competence.
Integrity (of assessment)
In relation to assessment, whether an assessment activity is designed, delivered, and overseen to minimize the potential breaches of assessment security, improper administration and/or completion of an assessment.
Intellectual skills
Skills relating to the ability of a professional accountant to solve problems, to make decisions, adapt to change, and exercise professional judgment.
Interpersonal and communication skills
Skills relating to the ability of a professional accountant to work and interact effectively with others.
Learning and development
An ongoing process of developing and maintaining professional competence throughout the career of a professional.
Learning outcome
The content and the depth of knowledge, understanding, and application required for a specified competence area.
Monitoring
Systematic process of collecting, reviewing, and confirming the evidence that demonstrates professional competence has been developed or maintained.
Organizational skills
Skills relating to the ability of a professional accountant to work effectively with or within an organization to obtain the optimal results or outcomes from the people and resources available.
Output measure
An output-based measure focuses on whether the professional accountant has developed the specified competence.
Output-based approach
An approach that requires professional accountants to demonstrate, by way of achieved learning outcomes, that they develop and maintain professional competence.
Personal skills
Skills relating to the personal attitudes and behavior of a professional accountant.
Practical experience
Workplace and other activities that are relevant to developing professional competence.
Practical experience supervisor
A professional accountant who is responsible for guiding, advising, and assisting aspiring professional accountants in acquiring sufficient practical experience.
Predictive validity (of assessment)
In relation to assessment, whether the content of the assessment activity relates to the particular aspect of professional competence that it is intended to assess.
Professional accountant
An individual who achieves, demonstrates, and further develops professional competence to perform a role in the accountancy profession and who is required to comply with a code of ethics as directed by a professional accountancy organization or a licensing authority.
Professional accounting education
Education and training that builds on general education, and imparts (a) professional knowledge, (b) professional skills, and (c) professional values, ethics, and attitudes.
Professional accounting education program
Programs designed to support aspiring professional accountants to develop the required level of professional competence by the end of initial professional development. They may consist of formal education delivered through degrees and courses offered by universities, other higher education providers, IFAC member organizations, and employers, as well as workplace training.
Professional judgment
The application of relevant training, knowledge, and experience, within the context provided by auditing, accounting, and ethical standards, in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement.
Professional knowledge
Those topics that make up the subject of accountancy as well as other business disciplines that, together, constitute the essential body of knowledge for professional accountants.
Professional skepticism
An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of evidence
Professional skills
Intellectual, interpersonal and communication, personal, and organizational skills that a professional accountant integrates with technical competence and professional values, ethics, and attitudes to demonstrate professional competence.
Professional values, ethics, and attitudes
The characteristics that identify professional accountants as members of a profession. They include the principles of conduct (e.g., ethical principles) generally associated with and considered essential in defining the distinctive characteristics of, professional behavior.
Psychometric modeling (of assessment)
A method used to calibrate and score characteristics of assessments.
Psychometrics (of assessment)
The field of study concerning the objective measurement of skills or abilities.
Qualification
Qualification as a professional accountant means, at a given point in time, an individual is considered to have met, and continues to meet, the requirements for recognition as a professional accountant.
Reflective activity
The iterative process by which professional accountants, at all stages of their career, continue to develop their professional competence by reviewing their experiences (real or simulated) with a view to improving their future actions.
Relevant ethical requirements
Those ethical requirements to which professional accountants are subject, which ordinarily comprise the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with any national requirements that are more restrictive.
Reliability (of assessment)
In relation to assessment, whether an assessment activity consistently produces the same conclusion, given the same set of circumstances.
Specialization
The formal recognition by a member body of a group of its members possessing distinctive competence in a field, or fields, of activity related to the work of the professional accountant.
Sufficiency (of assessment)
In relation to assessment, whether an assessment activity has a balance of depth and breadth, knowledge and application and, combines material from different areas applied to a range of situations and contexts.
Sufficiency (of practical experience)
Whether practical experience has a balance of depth and breadth, knowledge and application and, where appropriate, integration of material from different areas applied to a range of situations and contexts.
The breadth of practical experience is affected by factors such as: nature of role; level of proficiency, prior level of formal education, national or local laws; requirements of regulatory authorities; and the public's expectation for professional competence.
The depth of practical experience is affected by factors such as: the variety and complexity of tasks; level of supervisory and mentoring support.
Technical competence
Technical competence is defined as the ability to apply professional knowledge to perform a role to a defined standard.
Training
Learning and development activities that complement education and practical experience. Training emphasizes practical application, and is usually conducted in the workplace or a simulated work environment.
Transparency (of assessment)
In relation to assessment, whether details of an assessment activity, such as competence areas and learning outcomes to be assessed and timing of the activity, are disclosed publicly.
