Desired attributes of public accounting firms in the job selection process: an empirical examination of accounting graduates' perceptions

The purpose of this study is to identify attributes of public accounting firms that accounting graduates find most desirable in their job selection decisions, and the impacts of individual differences on these perceptions. Factor analysis performed on the responses of 167 final-year accounting students in Hong Kong to a 30-item questionnaire identified seven factors. The results indicate that accounting graduates considered help in finishing their professional accounting examinations and good staff relationships as the most important criteria in their choice of employers. In addition, female accounting graduates were more concerned about the possibility of being required to travel or be transferred, but were less concerned about the reputation and profile (such as the client base and the size) of the firms than their male counterparts. Accounting graduates with a higher grade point average (GPA) were less concerned about the working environment, but more concerned about a firms' reputation and profile than those with a lower GPA. The implications of these results are discussed.     

An examination of professional commitment in public accounting

This study analyzes the professional commitment of Canadian Chartered Accountants who are partners, managers (supervisors) and other staff CAs in public practice. This commitment is examined in relation to organizational commitment, professional-organizational conflict, satisfaction with income and organizational level. The commitment to organization is shown to be the most powerful predictor of CAs' professional commitment in all organizational levels. At the same time, professional-organizational conflict has a negative impact on professional commitment, and satisfaction with income has a positive influence on such a commitment.     

An empirical examination of stress in public accounting

This paper presents the results of an investigation of stress in public accounting, using a national sample of certified public accountants. The relationship between a set of predictor variables (organizational stressors and work/home conflict) and a set of criterion variables (job-related tension, job dissatisfaction, and propensity to leave public accounting) was analyzed using canonical correlation analysis. Job-related tension was associated with heavy work demands; job dissatisfaction and intension to leave were associated with slow career progress, unfulfilling jobs, and unclear job objectives.     

Appropriateness of accounting data in performance evaluation: An empirical examination of environmental uncertainty as an intervening variable

Rooted in contingency theory, this study puts forth propositions stating (1) that superiors of business units which face higher environmental uncertainty will use a more subjective performance appraisal approach whereas superiors of business units which face lower environmental uncertainty will use a more formula-based performance evaluation approach, and (2) that a stronger fit between environmental uncertainty and performance evaluation style would be associated with higher business unit performance. Findings from 58 business units in eight Fortune 500 firms provide strong support to both sets of these propositions.     

An examination of managerial accounting practices as a process of mutual adjustment

Managerial accounting practices are organizational control mechanisms which serve to constrain decision-makers yet, themselves, are the outcomes of emergent resistance, force and bargaining. The contradictory nature of managerial accounting practices as a form of social control is illustrated by a study of one firm's accounting practices before and after a severe financial crisis. Here, managerial accounting is seen as a dynamic process of mutual adjustment, changing and being changed by the wider organization. Assessment of the process of mutual adjustment reveals an unfolding, reflexive decision-making process in which accounting strategies are designed to centralize the direction of resources and the monitoring of division performance. However, these accounting rules and procedures are neither neutral nor uncontested, as divisional controllers resist corporate decision-makers. New patterns of organizational autonomy and interdependency are highlighted and created by these accounting practices, as managerial interdependencies are more tightly woven around centralized corporate missions.     

The job satisfaction of higher level employees in large certified public accounting firms

This research study is divided into two parts. In the first part differences between audit, tax and management services (MS) specialists holding positions of Senior or higher and employed by large CPA firms are examined on three dimensions: (1) job satisfaction, (2) personal characteristics and (3) job features. Using multivariate analysis several differences between MS specialists and audit tax specialists as a combined group are detected. However, no statistically significant differences were found on the three dimensions between audit and tax specialists. The second part of the study concerned predicting the job satisfaction of audit, tax and MS specialists using personal characteristics and job features as independent variables in multiple regression. Moderate success was achieved in predicting the job satisfaction of audit and tax specialists, but predicting the level of job satisfaction of MS specialists was unsuccessful. The results of this study have policy implications for large CPA firms as well as research implications for job satisfaction researchers.     

Culture and accounting in Indonesia: An empirical examination

This study examines the relationships among the cultural characteristics of Indonesian society, reporting practices of Indonesian firms, and accounting standards promulgated by the Association of Indonesian Accountants. It is argued that an empirical relation exists between the change in cultural values, as conceived by Hofstede's theory of the five dimensions of cultural values (power distance, uncertainty avoidance, individualism, masculinity, and time horizon and the change in accounting values as captures by Gray's four dimensions (professionalism, conservatism, secrecy, and uniformity). Using LISREL to evaluate data between 1981 and 1992, three of Hofstede's five cultural values (power distance, uncertainty avoidance, and individualism) have significant relationships with one or more accounting value. This limited confirmation of the culture-accounting relationships suggest that particular historical and economic configurations must be considered in longitudinal analysis. The conflicting influences of extensive government involvement in the economy and nascent market competition are a possible explanation of the Indonesian results.     

An examination of African Americans' access to public accounting mentors: perceived barriers and intentions to leave

This paper reviews prior research on diversified mentoring relationships and formulates predictions regarding African Americans' access to public accounting mentors. Empirical analysis is based on responses from 116 African-American public accounting employees, compared to 756 Caucasian responses from a prior study. Statistical results indicate that African-American public accounting employees are less likely to obtain an informal mentor and perceive greater barriers to obtaining mentors. For two mentoring functions (protection and assistance, and social support), African-American respondents reported lower levels of support, compared to Caucasian respondents. Also, African-American respondents indicated stronger intentions to leave public accounting.     

The quality of financial reporting in China: An examination from an accounting restatement perspective

This study uses restatements to reveal the poor quality of past accounting information reported within China’s capital market. We show that up to a quarter of listed firms in mainland China explicitly admitted the poor quality of their financial information by restating their previous financial reports between 1999 and 2005. Many of these firms managed their earnings mainly via below-the-line items to avoid losses and promote survival, rather than to support refinancing goals. Such poor-quality financial reporting is more likely among firms that have weaker profitability and a shareholder base that is state-controlled, with diffused ownership and a relatively low proportion of shares held by institutional investors. Furthermore, we find the market to be relatively insensitive to such admissions. Investors’ reactions capture only the earnings information of the current reported year, rather than also reflecting the concurrently revealed correction of past financial reporting. However, the equity market does not completely ignore the earnings information. Investors’ reliance on earnings is merely low relative to the mature US market. These findings demonstrate that accounting credibility in China has low value; providing poor-quality financial information bears little cost because various market mechanisms fail to deter such behavior. Nevertheless, regulators’ ongoing efforts to enhance the quality of financial information and disclosure among listed firms are still fruitful. The frequency of restatements decreased over our sample period, which reinforces the current regulatory prospects and strategies for further improving China’s capital markets.     

An examination of the peer review process in accounting journals

An anonymous survey of university accounting faculty was conducted to assess current perceptions of the peer review process in accounting journals. The responses revealed that (a) most respondents are fairly positive about the peer review process, especially the process being fair/unbiased and improving the quality of research; (b) the most serious perceived threats to review process integrity involve reviewer misconduct (e.g., delaying reviews for self-interest or rejecting papers for revenge); (c) editors allowing excessive delays in the process and institutional favoritism by editors are seen as the most prevalent issues; (d) editors/associate editors of high-level or top-tier journals are most positive about the review process, while assistant professors, those at doctoral-granting institutions, and those submitting to top-tier journals are least positive; and (e) respondents’ suggestions for improving the review process emphasize improving timeliness, reducing favoritism, and reconsidering the notion of blind reviews (some consider blind reviews to be impossible, but others want to ensure that reviews are blind). Based on the results and other sources, we offer a proposed starting point for a peer review code of conduct for accounting journals.     

Towards an understanding of excel functional skills needed for a career in public accounting: Perceptions from public accountants and accounting students

Public accounting firms (e.g., Grant Thornton, 2012) are stressing an interest in recruiting accounting students with a proficiency in Excel. The purpose of this study is to investigate which Excel functions are perceived to be important and useful for new hires to understand prior to starting a job in public accounting. We collect survey data from four large public accounting firms as well as undergraduate and graduate accounting students (i.e., potential new hires) to gauge perceptions of Excel importance, knowledge, and usage in public accounting. We find that employees at the firms believe the most important Excel functions are: basic formula, filter and sort data, vertical (horizontal) lookup, formatting of documents, and If/Then statements. In a comparison of new hires at public accounting firms with accounting students, results suggest that accounting students underestimate the importance and usage of some of these Excel functions. In addition, results suggest that new hires’ perceived knowledge on how to use specific Excel functions in their accounting job is statistically different than students’ perceived knowledge on how to use some of the same Excel functions. Our research contributes to educational accounting literature by documenting which Excel functions employers in public accounting want new hires to know prior to starting a job in public accounting. Also, this research informs accounting educators that students’ perceptions are not the same as public accounting employers’ expectations with respect to analytical skills using Excel technology.     

Professionalism, organizational commitment and job satisfaction in an accounting organization

With growth in the number of professionals employed in organizations, concern has been expressed over potential conflict between the professionalism of these employees and their commitment to the organization. Empirical studies examining the relationships between professionalism, organizational commitment and job satisfaction have reported inconsistent results. This paper examines these variables in an organization setting involving several field offices of a “Big Eight” U.S. accounting firm. Accountants who reported high levels of professionalism also reported high levels of organizational commitment. Additionally, both professionalism and organizational commitment were strongly related to job satisfaction.     

Determining the feasibility of an internship program in public accounting

In recognition of the desirability of practical experience for the accounting student, a pilot internship program was undertaken. This paper describes the structuring and implementation of that program and discusses the evaluation of the program by the student interns and the participating CPA firm. Requirements for student participation in the internship course and an outline for employer evaluation of the interns are included.     

Ethics education in accounting: An investigation of the importance of ethics as a factor in the recruiting decisions of public accounting firms

In recent years, significant attention has been directed to the role of ethics in the business environment and to the ethical development of business students. This study explores the importance of ethical behavior as a factor in the recruiting decisions of public accounting firms. Factors related to the ethical behavior of entry-level employees were compared with other personal characteristics that are traditionally viewed as important to public accounting firms (e.g., personality, appearance, academic performance, etc.). Recruiters from both Big-Six and non-Big-Six firms indicated strong views on the importance of the students' ethical propensities. In fact, ethics received the highest rating by the public accounting firms regardless of their size. The results of this study provide strong evidence for accounting educators to continue to stress to their students the importance of ethical behavior and to continue their efforts to more fully integrate ethics education into the accounting curriculum.     

Developing critical thinking: An examination of contemporary practices in accounting

Employers and professional bodies call for higher education accounting courses to emphasise the importance of critical thinking skills. This study provides an in-depth assessment of how critical thinking is currently taught and assessed across an entire accounting degree. Our study contributes to our understanding of how teaching and assessment can support students in developing their critical thinking. Using a case study approach, we identify resource restraints and disruptions to traditional forms of engagement as key challenges to developing critical thinking skills in accounting education. We conclude with suggestions for teaching practice, such as formative scaffolds and teacher-led discussions.     

A possible explanation of the gender gap among accounting academics: evidence from the choice of research field

Despite the significant increase in the number of women in accounting research over past decades, the percentage of female full professors in accounting is still low. One of the problems may relate to the research area(s) they choose to specialize in. Is the relatively slow promotion of women due to their decision to concentrate in ‘nonmainstream’ fields of research? In this study, we collect data on 1,042 male and female accounting academics. Using the research interests declared on each academic web page, we find that accounting researchers show no significant gender differences in their choice of research fields. Hence, we conclude that the underpromotion of women cannot be attributed to their choice of ‘nonmainstream’ fields.     

Level of multinationality as an explanation for post-announcement drift

This study tests whether the observed patterns in stock returns after quarterly earnings announcements are related to the level of multinationality, a variable used to proxy for earnings predictability. Our findings show that the level-of-multinationality variable is negatively correlated with the observed post-announcement abnormal returns. The findings suggest that the level of multinationality as a proxy for earnings predictability underlies the predictability of stock returns after earnings announcements.     

Custom fabric ventures: An instructional resource in job costing for the introductory managerial accounting course

Job costing is a core foundational concept in the introductory managerial accounting course. The purpose of this instructional resource (IR) is to provide a thorough hands-on, active learning resource that will allow introductory students to experience a full set of accounting and management activities necessary to produce a job and assign production costs to it. For example, the IR requires students to analyze overhead costs, determine the optimal job size, schedule production, calculate the amount of materials to purchase, complete material requisitions, update raw materials records, analyze labor time records, complete a job cost record and address critical thinking questions. The IR was developed for use in a “flipped classroom” in which students work under the guidance of the instructor, but could alternatively be assigned as an unsupervised out-of-class assignment or on-line project. Since the IR was specifically developed as a learning tool for novice introductory managerial accounting students, adequate guidance is provided throughout the activity. However, to add realism and challenge students to think beyond the confines of simple mechanics, management and accounting issues are seeded throughout. Student feedback indicates that the IR not only helps students learn how a job costing system operates, but also helps students become aware of management decisions and accounting issues that impact the costs assigned to a job.     

An empirical examination of CobiT as an internal control framework for information technology

One commonly used framework for developing and evaluating technology intensive information systems is CobiT. This framework was originally a benchmark of best control practices developed and maintained by the Information Technology Governance Institute, the umbrella organization to the Information Systems Audit and Control Association. We empirically examine the conceptual model that underlies the CobiT internal control framework as it applies to an audit setting (including operational, compliance, and financial audit settings). We find that superimposing CobiT's conceptual model onto audit relevant assessments made by a panel of highly experienced IT auditors confirms the internal consistency between the underlying constructs of CobiT. Furthermore, we find that CobiT's conceptual model predicts auditor behavior in the field related to their seeking help and giving help as evidenced by their postings to a general IT audit listserv. Given the results of this study, we propose future research aimed at developing a general theory of internal control applicable to information technology based on CobiT.