Mentoring and turnover intentions in public accounting firms: A research note

Turnover in public accounting firms is a critically important issue as firms seek to retain quality accounting personnel in the face of skilled labour shortages. Mentoring is one initiative that has been suggested as a means of reducing the high costs associated with employee turnover. However, prior accounting research examining the association between mentoring and turnover intentions has produced mixed results, which may be due, at least in part, to difficulties in operationalizing the mentoring construct. Drawing on recent management literature regarding organizational turnover intentions, we challenge the conventional view that mentoring generally leads to reduced turnover intentions, by testing a theoretical model that posits that different functions of mentoring have differing effects on turnover intentions. Specifically, we argue that while the psychosocial support function of mentoring can serve to reduce public accountants’ turnover intentions, the career development function of mentoring has the potential to increase turnover intentions. Results support this conclusion.     

Organizational culture in public accounting: Size, technology, rank, and functional area

This study examines the nature of organizational culture in public accounting and demonstrates that different aspects of culture exist across and within public accounting firms. Organizational culture is defined in terms of values shared by members of an organization (or organizational sub-unit) that manifest themselves in the practices of that organization. Practices particularly important to the development and maintenance of culture include selection and socialization. The hypotheses state that different aspects of organizational culture vary across public accounting firms of different size and technology, and public accountants of different rank and functional area. These hypotheses are tested and largely supported with responses to a paper and pencil instrument, the Values Survey Module (Hofstede, Institute for Research on Intercultural Cooperation, 1982), which was completed by 338 public accountants across the United States. Implications for accountants and future research are also discussed.     

The market for public accounting services: Demand,supply and regulation

An analysis of the market for public accounting services is derived from agency theory. The theory shows that owners and their agents (employees) benefit from monitoring. Furthermore, the owners and managers of enterprises bear the cost when potential investors and users of financial statements (outsiders) fear that those in control operate the enterprise contrary to the interests of the outsiders. The demand for public accounting services is derived from these concerns. The public accountants' comparative advantages in providing this service, the structure of the market supplying the service, and the nature of the demand for its regulation follow from the initial analysis. In the last part of the paper the staff reports of the 1972 U.S. House of Representative (Moss) and Senate (Metcalf) committees are examined and compared with the available evidence.     

Informal communications, nonformal communications and mentoring in public accounting firms

Control is important within public accounting firms for a variety of reasons. Yet professional pronouncements are limited in providing guidance to auditors in the form of formally stated rules and requirements. The purpose of this article is to examine the non-formalized, non-rule oriented approaches employed in large public accounting firms to effect control. More specifically, it is directed towards understanding the possible roles of informal and nonformal communications and mentoring in managing public accounting firms.Based upon evidence gathered using a naturalistic, qualitative research methodology, it is concluded that: (1) informal communications exist in public accounting firms, play a limited role in informing organizational members of the politics and power within the organization, and are of some benefit to lower level individuals; and (2) nonformal communications and mentoring are involved with the performance of audit tasks, socialization of the individual firm, and instruction as to politics and power within the organization, and benefit the protege, mentor and firm, though at some cost. Implications of the study are also explored.     

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.     

Harmonizing public sector accounting in Europe: thinking out of the box

A broad debate about the harmonization of public sector accounting standards in Europe is underway. The authors provide arguments in favour of harmonization, but they also acknowledge the existing pluralism and diversity by taking stock of the state of play in 14 European countries. The paper makes a proposal for a way forward for policy-makers and standard-setters, in which the benefits of harmonization can be obtained without obliging EU member countries to necessarily abandon their current public sector accounting systems.     

A study of the perception of public accounting skills held by UK students with accounting and non-accounting carrer aspirations

This paper examines perceptions of the skills that are important for success in public accounting. The total sample consists of 203 respondents who have operationalized carrer interest by either applying to accounting firms (n = 107) or to other large companies for non-accounting positions (n = 96). Data was gathered using an attitudinal questionnaire administered to the two groups. ttests, ANOVA and multivariate analysis were used to analyse the results. Factor analysis was used to generate inputs for discriminant analysis. The finding indicate that bot groups have similar perceptions of the importance of analytical ability and deductive reasoning. However, respondents interested in entering the accounting profession attach greater importance to the possession of good interpersonal skills, empathy, sensitivity, innovation and creativity. Accounting applicants describe accounting as incorporating a wider skill repertoire than those with non-accounting aspirants. The implications of these differing views for carrer choice and accounting education are explored.     

A theoretical basis for public sector accrual accounting research: current state and perspectives

ABSTRACT

Public sector or government accounting has been the subject of many research endeavors. However, scholars have repeatedly criticized the lack of a consistent and well-defined theoretical basis for international research. So far, most researchers have drawn from various streams of theoretical perspectives with often unsatisfactory results. The goal of this paper is to put forward the International Public Sector Accounting Standards Board’s (IPSASB) Conceptual Framework as a point of reference for establishing a better-fitting theoretical basis for public sector accrual accounting research.     

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.     

Accounting in markets, hierarchies and networks: The role of accounting in the transnational governance of postal transactions

We examine the changing role of accounting in the development of the international postal system between 1840 and the emergence of the Universal Postal Union (UPU) in 1875. We use the distinction between mundane and opportunistic transaction costs to explain why accounting disappeared as a coordinating mechanism as postal transactions migrated from spot market exchanges, through bilateral contracts (treaties) between nations, into a network of domestic post offices coordinated by the UPU. Our analysis refines the application of transaction cost economics to the understanding of the role of management accounting in different governance mechanisms.     

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.     

Review: Time machines,ethics and sustainable development: accounting for inter-generational equity in public sector organizations

This review paper explores the key challenges associated with effective inter-generational equity accounts in relation to the governance of public sector organizations and sustainable development transformations. Three different approaches to inter-generational equity accounting are evaluated and an outline for future research is provided.     

New development: The protective role of conservatism in public sector accounting

This article picks up a discussion in international business accounting about the appropriate definition and use of conservatism (or prudence) and calls for a similar discussion in public sector accounting. If financial reports present an overly optimistic situation, politicians might use them to justify spending public money that is not there, risking the sustainability of services and ‘borrowing’ from future generations.     

Corporate governance,accounting and finance: A review

We review accounting and finance research on corporate governance (CG). In the course of our review, we focus on a particularly vexing issue, namely endogeneity in the relationships between CG and other matters of concern to accounting and finance scholars, and suggest ways to deal with it. Given the advent of large commercial CG databases, we also stress the importance of how CG is measured and in particular, the construction of CG indices, which should be sensitive to local institutional arrangements, and the need to capture both internal and external aspects of governance. The ‘stickiness’ of CG characteristics provides an additional challenge to CG scholars. Better theory is required, for example, to explain whether various CG practices substitute for each other or are complements. While a multidisciplinary approach to developing better theory is never without its difficulties, it could enrich the current body of knowledge in CG. Despite the vastness of the existing CG literature, these issues do suggest a number of avenues for future research.     

Regulatory networks for accounting and auditing standards: A social network analysis of Canadian and international standard-setting

Rose and Miller [Rose, N., & Miller, P. (1992). Political power beyond the state: Problematics of government. British Journal of Sociology, 43(2), 173–205] note that governmentality is exercised through “centers of calculation” embedded in “networks of rule;” we focus on the “networks of rule” and use social network analysis to document the linked organizations, both domestic and international, that affect the creation of accounting and auditing standards in Canada. The network is defined as the set of regulatory bodies and other organizations that have the right to appoint (or approve the appointment of) members of another organization’s standard-setting body. The network consists of 61 organizations, sharing 131 interlocks. These organizations are clustered into four groups centered on, respectively, the Canadian Institute of Chartered Accountants, the Canadian Securities Administrators, International Federation of Accountants and the IOSCO/World Bank. The analysis identifies the boundaries of these clusters and the key organizations that maintain the cohesion of the network. The conclusion identifies research opportunities opened by this perspective on accounting and auditing regulation.     

Gender effects and labor supply in public accounting: An agenda of research issues

Considerations of gender effects on labor supply issues are significant because of the potential to provide information to employees, firms and society. This paper presents a research agenda regarding women as a source of labor in public accounting. The research agenda indentifies issues which have been either uninvestigated or underinvestigated. Studies suggested by the agenda have purposes varying from exploratory to confirmatory, and from social justice and equity to economic. Research design concerns and related theory are provided. The androcentric culture of public accounting, patriarchy, cultural expectations and the dynamics of change are key issues affecting the proposed research.     

Sources of professional staff turnover in public accounting firms: Some further evidence

A recent article by Rhode et al. (1977) identified 39 variables associated with professional staff turnover in public accounting firms. The present study attempted to extend this prior work by examining the antecedents of the turnover act, namely those variables associated with the turnover decision. Using a valence-instrumentality-expectancy framework, measures of task outcome valence and instrumentality were evaluated with turnover expectations for a sample of 306 staff-level accountants. The findings indicated that the turnover decision was largely a function of negatively-valued task outcomes and the likelihood of obtaining these outcomes in one's current position, and the higher likelihood of obtaining certain positive outcomes in alternative positions.