Learning Accounting and Auditing in Russian
By Adolf Enthoven

Of the 200 million Russian speakers in the countries of the former Soviet Union only a small portion can use English as a working language. At the same time, most former Soviet Union countries, including Russia, have decided to adopt international accounting and auditing standards as promoted by the International Accounting Standards Board and the International Federation of Accountants. As of next year, all public companies in Russia will have to submit financial statements based on international standards.

Will the next generation of accountants in the former Soviet Union countries use English, the only language accepted internationally? Or could those accountants who pass the required exams in Russian also receive professional certification? A heated debate on the issue has now come to an end, with those on the side of the Russian language certificate clearly on the winning side. Specifically, it was a victory of the International Council of Certified Accountants and Auditors, a federation of regional associations founded two years ago by 10 professional organizations in Kazakhstan, the Kyrgyz Republic, Russia, Tajikistan, Ukraine, and Uzbekistan. They agreed to adopt and mutually recognize the title "certified international professional accountant" (CIPA) and to require standardized exams for those who want to gain this qualification. The learning materials the council publishes are in Russian and the tests it conducts for aspiring candidates are also in Russian.

The council will develop standardized courses both for professional and academic training and for self-study, will implement a rigorous professional examination administered by an independent examination network, and will conduct exams at two levels. Those passing level 1 will become certified accounting practitioners and those passing the final exam will be recognized as CIPAs. The exam results to date have been encouraging: more than half the students passed the level 1 exams. The first CIPA exams will be offered later this year.

Thanks to the CIPA program the number of independent, professional accountants will increase significantly. By certifying the competence of those who prepare financial reports, the quality of those reports could well improve and the interests of minority investors may also be better protected.

The author is the director of the Center for International Accounting Development, University of Texas at Dallas, 2601 N. Floyd Road, Richardson, Texas 75083-0688, tel.: 972-883-2320, fax.: 972-883-2192.