Cognitive ability and performance in accounting students: The importance of data analytics assignments

Abstract

Cognitive ability plays a key role in the success of accounting professionals. The development of this cognitive ability (i.e., critical thinking, reflective judgment, problem-solving) in accountants falls heavily on higher education. To address the limited investigation of cognitive ability in accounting students, this research seeks to better understand cognitive development in accounting education via an empirical study. The study attempts to expand the current discussion of student cognitive ability by exploring the relationship between students’ cognitive ability and academic performance by developing hypotheses focused on both lower-level memorization and higher-level analytical assignments. Data from accounting students attending a major university in the United States support the positive link between measures of cognitive ability (i.e., reflective judgment) and both overall course grades and data analytics assignment grades. These results suggest that accounting education needs to go beyond testing within the multiple-choice paradigm and shift the focus to descriptive, diagnostic, predictive, and prescriptive data analytics assignments. Further, this research provides a path forward for educators attempting to prepare today’s graduating accounting students for their future careers.