The associations among accounting program attributes, 150-hour status, and CPA exam pass rates

This study contributes to the extant literature by providing a better understanding of the associations among attributes of schools providing accounting education, 150-hour status, and CPA exam pass rates. We model program-level pass rates as a function of the state’s 150-hour status and several program-specific attributes, including: the level of AACSB accreditation, student selectivity, the percentage of candidates with advanced degrees, and faculty research productivity. We examine the average pass rates of 520 accounting programs that provided 43,711 first-time candidates for CPA exams given in 1998 and 1999. Similar to most prior studies we find that candidates from more selective schools, candidates with advanced degrees, and candidates who attended schools located in jurisdictions with the 150-hour requirement fully in place have higher average pass rates. However, we also find a significant decline in average pass rates during the 150-hour transition period, and in contrast to the strong positive effects of accreditation reported by [Grant, C. T., Ciccotello, C. S., &; Dickie, M. (2001). Barriers to professional entry: how effective is the 150-hour rule? Journal of Accounting and Public Policy, 21, 71–93], we find only weak evidence of an association between program-level pass rates and college-level or separate AACSB accounting program accreditation.     

The integration of behavioral accounting in graduate accounting curricula

This paper reports the results of a survey of the administrators of graduate accounting programs in 186 accredited business schools on the incorporation of behavioral accounting materials in graduate accounting curricula. The majority of respondents (57.7%) reported that their accounting programs do incorporate behavioral accounting materials. A greater number of respondents (84.2%) favored inclusion of behavioral accounting in the future. Teaching behavioral accounting in a hybrid course is the most popular approach, and managerial accounting and auditing courses are most likely to include behavioral accounting materials.     

Inconsistencies in the business law education of accounting students: A survey of accounting educators

A general requirement for an accountant to take the CPA examination is the completion of a course in business law. It appears that what constitutes the business law course requirement is rather loosely defined and leaves excessive room for interpretation. What is a business law course? A survey of accounting educators regarding the business law requirement and the law courses taught at their respective schools reveals, inter alia, a divergence of opinion regarding the business law requirement, the perceived objective of teaching business law to accounting students, the importance of the legal topics included on the CPA exam, and the coverage of those topics at their respective institutions. In general, accounting educators are encouraged to both review their current business law requirements and to take a more active role in monitoring the business law curriculum.     

Achieving globalization of AACSB accounting programs with faculty-led study abroad education

This paper is motivated by recommendations from the American Assembly of Collegiate Schools of Business (AACSB), the Pathways Commission, and NAFSA: Association of International Educators to increase global exposure in the accounting curriculum. Some schools have responded to these demands by offering short-duration, faculty-led, study abroad programs. We explain how these programs play a vital role in fulfilling the educational advisory boards’ calls to internationalize the accounting curriculum and investigate the extent to which schools are incorporating these programs. This paper provides a review of the details from our hand-collected data on the short programs that are offered by AACSB-accredited institutions. We integrate the information from our collection of data on existing programs, prior literature, pronouncements from educational advisory boards, and select faculty interviews to offer an analysis of the course design and travel considerations for schools contemplating such an opportunity for students in their programs.     

Internationalizing the accounting curriculum

The study of international investment and business activities is important, a fact recognized by the AACSB in requiring that all accredited schools incorporate a worldwide dimension into their curricula. The primary purpose of this article is to report how accounting departments are currently satisfying this worldwide dimension requirement. The information presented is based upon responses to a questionnaire sent to all AACSB-accredited accounting departments and programs.     

Interpreting the meaning of objectives of an accounting program

AACSB mission-linked accreditation gives business schools and accounting programs an incentive to review their mission statements. Faculty and administrators are responsible for developing mission statements supported by specific objectives. Although the individuals participating in and affected by accounting education programs have objectives, the literature is not precise in defining what it means for the programs themselves to have objectives. Educational programs are social (multiperson) activities involving heterogeneous constituencies. Previous accounting literature outside the education context identifies three interpretations of the objectives of a social activity. An examination of these interpretations sheds light on the difficulty of identifying a manageable, specific, internally consistent, meaningful, and broadly accepted set of objectives to support a general statement of mission.     

Research,teaching, and service in promotion and tenure decisions of accounting faculty

This study examines whether the relative values of research, teaching, and service activities in promotion and tenure decisions of accounting faculty vary across American Assembly of Collegiate Schools of Business (AACSB)-accredited colleges of business and their departments of accounting in accordance with their educational missions. Educational mission is determined by an institution's classification under the Carnegie Foundation system. Deans and accounting department heads are surveyed to measure relative emphasis placed on research, teaching, and service. The results demonstrate that the manner in which deans and accounting department heads value research, teaching, and service is consistent with their institutions' educational mission. The views of both deans and accounting department heads at doctoral-granting, high research support schools (Research I and II) differ from those of their counterparts at both doctoral-granting, low-research support schools (Doctorate I and II), and nondoctoral-granting schools (Comprehensive). We conclude that in studies examining faculty performance, the traditional classification of institutions based simply on doctoral-granting status may provide misleading or incomplete results. Our results show that the views of both deans and accounting department heads at doctoral-granting institutions are not homogeneous regarding the relative emphasis placed on both research and teaching. Accordingly, we recommend that future research studies in this area utilize the more discriminating Carnegie classification scheme.     

A CPA preparation program for non-accounting majors

The CPA Preparation Program is an innovative program in accounting education designed to prepare non-accounting majors for CPA certification. The program consists of the required courses necessary to sit for the CPA exam.     

An exploratory study on the impact of COVID-19 on U.S. State boards of accountancy

In the United States (U.S.) individual state boards of accountancy govern the accounting profession within each state. When COVID-19 struck the U.S., state boards worked to maintain normal operations. This study examines how COVID-19 affected the regulatory and oversight activities of the state boards of accountancy and the ways in which boards adapted to the pandemic. We interview executive directors from 21 state boards to determine the pandemic’s impact on board operations and continuing professional education requirements. We also evaluate whether state boards implemented guidance from parties such as the National Association of State Boards of Accountancy (NASBA), and the resources boards had available to navigate the pandemic. Finally, we examine our analyses and findings through the lens of institutional theory. In doing so, we describe how state boards’ individual reactions to the pandemic resulted in a largely homogenous response, as affected by coercive, mimetic, and normative isomorphic mechanisms.     

Effects of exposure to the International Education Standards on perceived importance of the global harmonization of accounting education among Japanese accounting academics

This exploratory study empirically examines the degree to which the Japanese accounting academics is exposed to the IESs and explores their perception of the importance of global harmonization in accounting education in terms of ensuring quality global control of the accounting profession. Responses from 76 questionnaires found that accounting staff, particularly in the post graduate Accounting Schools, have a basic understanding of the IESs and view this global harmonization as favorable whereas staff who teach at undergraduate level or at ordinal postgraduate level in tertiary schools have a much lower understanding and perception. This is of concern to the accounting profession as it is in these undergraduate schools and ordinal postgraduate schools from where the majority of successful CPA examinees graduate each year. The findings also indicated that the IESs can be effectively used as a benchmarking tool within the Japanese accounting academics.     

Electronic commerce education: Analysis of existing courses

E-commerce is reshaping business practices and education, yet many have expressed concern over the e-commerce education and training provided to students. This study examines the extent to which business schools, particularly accounting programs, are integrating e-commerce education into their curricula. An analysis of 79 syllabi provides evidence regarding: (1) the scope and nature of e-commerce education; (2) educational approaches to e-commerce; (3) e-commerce topics that could be taught as part of e-commerce education; (4) methods of coverage of e-commerce education; and (5) methods and reference materials for teaching an e-commerce course. This study initiates a general dialogue on the nature, content, objectives, and delivery of e-commerce education. An exploratory review and content analysis of a sample of 79 syllabi, representing different sizes of universities worldwide, reveals that business schools and accounting programs offer e-commerce courses emphasizing a broad range of skills, objectives, perspectives, teaching methods, and cognitive content. However, many common themes, topics, and assignments have emerged. The e-commerce education issues addressed in this study should help business schools and accounting programs prepare students for the challenges awaiting them in the area of emerging technological advances.     

An assessment of the cognitive demands of the uniform CPA examination and implications for CPA review/preparation courses

Recent research in learning theories and the accounting curriculum permit the evaluation of the cognitive demands of the CPA exam. Two recent CPA exams are analyzed using the Piagetian model of cognitive levels and the results show that an overwhelming number of the questions and problems on the exam demand only a lower, concrete-operational level of reasoning as opposed to the higher, formal-operational reasoning ability.The teacher's role in the cognitive learning model is also examined and a number of recommendations are offered to instructors of CPA review/preparation courses     

Using a stakeholder-based process to develop and implement an innovative graduate-level course in management accounting

Accounting programs have been challenged (e.g., W.S. Albrecht, R.J. Sack, Accounting Education: Charting the Course Through a Perilous Future, Accounting Education Series, vol. 16, American Accounting Association, Sarasota, FL, 2000; AICPA Core Competency Framework for Entry into the Accounting Profession, AICPA, New York, NY, 1999) to create innovative, cross-disciplinary courses/curricula and to tie such offerings to institutional strategic plans (e.g., I.T. Nelson, J.A. Bailey, A.T. Nelson, Issues in Accounting Education, 13 (1999) 301; AACSB International, Standards for accounting accreditation (April 21, 2000), AACSB, St. Louis, MO, 2000; AACSB International, Final draft – Eligibility procedures and standards for accounting accreditation 2004). This paper provides details about both the process used to develop an innovative graduate-level accounting course and the modules (Strategic Cost Management, Planning, and Performance Measurement) comprising the course. The paper therefore describes how one accounting program responded to the aforementioned challenges.At a strategic level, the paper discusses a three-stage process (planning, implementation, and assessment) that guided new-course design. Of particular interest is the impact of our business school's Strategic Plan and the AICPA core competency framework for entry into the accounting profession. (AICPA, New York, NY, 1999) on the development of educational objectives for the new course. Selected implementation issues (e.g., resource commitments needed to support delivery of the new course) are discussed. We also provide details regarding an assessment plan for the course and how data collected for the first three offerings of the course have guided course improvements. Because of its focus on process, this paper should be of interest to other accounting educators, particularly those interested in a stakeholder-based approach to developing and implementing new courses and curricula.     

Applications of computer-assisted tax research in academic tax programs

The use of computer-assisted tax research by students and faculty has begun to increase rapidly after being available for over 15 years. Factors contributing to this increased usage include accessibility to the data bases by microcomputers, transmission technology improvements, the emergence of new competitors, and the growth of specialized tax programs. The purpose of this research was to determine the nature and extent of the use of computer-assisted tax research in academic tax programs. A survey was conducted of all schools with American Taxation Association members, AACSB accreditation, and/or graduate tax programs. Current users project increased use while the 71% of respondents who are nonusers overwhelmingly cite cost constraints as the deterrent, with pessimism about the possibility of adopting CATR in the near future.     

Is academic performance a zero-sum game? Exploring the nexus between research and education outcomes of U.S. accounting programs

Academics and the public have long questioned whether research and teaching are symbiotic activities, with each enhancing the other. Revisiting this question for the U.S. accounting discipline, we analyze publication output in top-tier journals and CPA exam pass rates to indicate an accounting department's total research and educational achievement. Examining data for 65 top programs from 1985 to 2016 finds that research productivity and this desired educational outcome are positively, but not significantly, related. This suggests that an accounting department's two major activities do not conflict—but also do not strongly support each other. This result is generally reproduced for different levels of research production. Some variation is observed after the CPA exam changed to its current computerized administration.     

Accounting licensure,quality, and the “cadillac effect”

Empirical evidence from several professions suggests that licensing laws usually do not enhance the quality of service received by consumers, as alleged by licensing advocates. Moreover, licensing often reduces the availability of low-cost service to low-income consumers (the “Cadillac Effect”). This study applies these concerns to public accountancy. By comparing the malpractice coverage and fee structure of certified public accountants with their noncertified counterparts, the study finds that accounting licensure 1) is not related to service quality, and 2) may result in small businesses having to incur higher costs for accounting services.     

Accounting students’ choice of blended learning format and its impact on performance and satisfaction

Using online platforms to deliver educational content, some institutions have developed blended courses that combine the advantages of online instruction with traditional face-to-face (F2F) teaching. This study compares accounting student performance and satisfaction in two blended formats with similar content and design, i.e. F2F+ vs. Online+ courses. It also assesses the characteristics of students who choose the latter option over F2F+ courses. Students in four advanced accounting subjects were surveyed and their course performance was obtained. Results indicate that the main determinants of students’ decision to register for an Online+ course are retaking the course, increased weekly work hours, and belief that this type of blended course facilitates learning. Results show that students in advanced accounting courses with equivalent content and design perform similarly and have the same level of course satisfaction across course delivery formats, as hypothesized under equivalency theory.     

The incidence of documented standards for research in departments of accounting at US institutions

Evidence suggests that standards for research in accounting are vague to junior faculty at the same time business schools are placing more emphasis on scholarship when evaluating faculty for tenure and promotion (T&P). In response, we investigate the incidence of accounting-specific documented standards for research in T&P decisions based on an email survey of accounting department administrators at US institutions. In addition, we report respondent data about the use of documented and informal journal lists. Our findings suggest that few accounting departments, regardless of accreditation status, utilize department-specific written scholarship standards or journal lists, supporting faculty perceptions that scholarship requirements for T&P are vague. As part of our analysis we review implications of the Final Report of the AACSB International Impact of Research Task Force (AACSB International, 2008) on the use of journal lists for tenure and promotion decisions. We summarize by advocating for specific accounting department-level policies for T&P, including consideration of explicit journal lists.     

The Use of Computers in Accountancy Courses: A New Perspective

Bhaskar (1982, 1983) proposed a list of 26 topics, classified under three categories (computer science, computer as a computational tool, computer-aided instruction), for the use of computers in accountancy courses. This scheme is argued to be confusing, as some topics are classified wrongly, and is replaced by a new seven-category scheme. Among other things, computer-aided instruction is found to have doubtful value as judged from the collected experimental evidences. An important question is raised as to the necessity and desirability of the use of computers in accountancy courses. It is argued that not all topics proposed by Bhaskar are absolutely necessary, and that his list contains disturbing omissions and unrealistic expectations of accounting students' time. A new list of necessary computing topics is proposed. Each topic requires 2–3 hours of terminal time during a supervised laboratory session, and can be incorporated easily into existing accounting curricula. It is felt that a postgraduate diploma should be introduced for accounting graduates to cover the ever expanding fields of computer science, artificial intelligence, information systems, and their utilisation in accountancy. Finally, in the light of the Japanese fifth generation project, it is argued that the computer should be viewed as the accountant's intelligent assistant rather than merely as a computational tool.     

A Note on Perceptions of Finance Journal Quality

Finance journal quality is a critical issue for faculty annual elevations, for the tenure and promotion process, and for the administration of faculty workload plans. Unlike other studies that use objective measures (such as citation frequencies) to rate journals, this study focuses on the opinions of chairpersons about the relative quality of 55 finance, insurance, and real estate journals. A sample of 218 finance department chairpersons at AACSB accredited business schools were surveyed, and 125 responses were received (57.34% response rate). Besides overall aggregate scores, responses are segregated and tested for differences across several dimensions. The results offer interesting and current insight on general perceptions of journal quality.