Professional Accounting Education in Indonesia: Evidence on Competence and Professional Commitment

Abstract

This study aims at examining whether accounting graduates who
have achieved the Professional Accounting Education (PAE)
certification possess a higher competency level compared to those
who do not yet have PAE certification The study also examines
whether those who possess a PAE certificate have better commitment
to their career as public accountants than their counterparts who do
not possess PAE certificates. The population of this study consists of
auditors or accountants who work in public accounting firms in
Jakarta. The population is divided into two sub populations
consisting of junior auditors and senior auditors (supervisor,
manager and partner). The sample of each sub population was
selected using the ‘judgmental’ method. In order to examine the
competency and commitment of junior auditors who had passed the
PAE, we used case studies to test them; while questionnaires were
used to obtain the perceptions of senior auditors regarding the
competency and commitment of junior auditors. The findings reveal
that the competency and commitment of junior auditors who possess
PAE certificates are significantly higher than those with no PAE
certification. This implies that PAE has made accountants or auditors
more professional, suggesting that auditors ought to possess PAE
certification.
Keywords: Professional Accounting Education, Commitment, Competency,
Professional Accountant