Accounting studies in Israel – Becoming a CPA in Israel
The authority that supervises the profession in Israel is delegated by law to the Israel Auditors’ Council. The Council is a statutory body subordinate to the Ministry of Justice and headed by the General Manger of the Ministry of Justice. The Auditors Law and the bylaws set accordingly regulate matters concerning licensing, exams, and continuous supervision of the profession in Israel.
The Israeli body which is a member of IFAC is the Institute of Certified Public Accountants in Israel (ICPAI). It is a voluntary body in which approximately 80% of the auditors in Israel are members.
Approximately half of the auditors in Israel are employed in accounting and management roles outside of the auditing firms in Israel and do not perform audits.
Training and Licensing
There are two different programs for obtaining an auditor’s license: an academic and a non-academic program. Approximately 80% of the people joining the profession nowadays choose the academic program.
One has to receive a bachelor’s degree in a dual-major at a university in Israel: usually economics and accountancy, or management and accountancy and sometimes law and accountancy.
Upon receiving the bachelor’s degree (which takes 3-4 years) most students choose to study an additional year, “a supplemental year,” in which deeper knowledge in accountancy and taxation is acquired.
Students that have completed the “supplemental year” must pass two final exams of the Council in advanced financial accountancy and advanced auditing.
Once the students have received the degree, they are eligible for a two-year apprenticeship in an auditing firm (or another body approved by the Council).
To receive an auditor’s license, one must complete the above mentioned program successfully.
Non Academic Program
As mentioned above, only a minority of the people joining the profession choose the non academic program.
The program is based on self-study and/or on studies at non-academic schools. The candidate must pass 15 external exams administered by the Council arranged in four sessions:
* Interim A (trade calculations, introduction to economics, introduction to accountancy)
* Interim B (costing and managerial accountancy, auditing, introduction to law)
* Final A (financial accountancy, trade and labor laws, corporate law, statistics, funding)
* Final B (advanced managerial accountancy, tax law, advanced auditing, advance financial accountancy)
The students completing this program must also complete a two-year apprenticeship in order to receive a license.
The Israel Auditors' Council has decided to add an exam at the Final A session on “Information Technology” based on the IEG 11 recommendations.