CPA Licensure Research Articles

The Impact of the CPA Evolution on Students’ Interest in Earning a CPA License and Working in Public Accounting

ABSTRACT The CPA Evolution is a joint initiative of the AICPA and NASBA to ensure the continued relevance of the CPA exam and to increase CPA licensure. Beginning in January 2024, a core plus discipline approach requires all candidates to pass three core exam sections and one of three discipline sections. This study examines whether this new exam format affects an individual’s interest in earning the CPA license and working in public accounting. The results of an experiment suggest that the new exam format significantly increases interest in earning a CPA license and that this effect is driven by nonaccounting major students who have career preferences in the accounting profession. Additionally, the new exam format marginally increases interest in working in public accounting, specifically with nonaccounting majors with career preferences in accounting. Our results indicate the CPA Evolution may help address the current pipeline staffing shortages in the field of accounting. Data Availability: Please contact the authors.

Accounting Program Leaders’ Perceptions of Criteria for Hiring Assistant Professors

ABSTRACT The academic accounting labor market is experiencing rapid changes on several fronts. We examine accounting program leaders’ perceptions of Assistant Professor hiring criteria, including how the criteria have changed in recent years. We ask program leaders to provide qualitative perspectives, rate the importance of 56 possible hiring criteria, and, in a supplemental analysis, rank and rate four hypothetical Assistant Professor candidates. Based on responses from 54 accounting program leaders, the results reveal a complex setting with research and teaching considerations, a focus on collegiality and professional experience, and an increasing focus on diversity. Specifically, Research Intensive schools (Carnegie R1 and/or doctorate in business) are more top-tier research and top-tier doctoral program focused, while Non-Research Intensive schools (all others) are more focused on general skills, other refereed journals, practitioner research, teaching experience, service, CPA licensure, and other professional certifications.

The Relationship of Active Participation of Accounting Students in Academic Competitions, and Academic Performance on their CPA Licensure Examination’s Performance

The Relationship of Active Participation of Accounting Students in Academic Competitions, and Academic Performance on their CPA Licensure Examination’s Performance

FACTORS AFFECTING ACCOUNTANCY GRADUATES’ READINESS FOR THE CERTIFIED PUBLIC ACCOUNTANT LICENSURE EXAMINATION

The demand for CPAs is no doubt very welcome news to the profession. Nevertheless, while this is happening, there is a wide gap between the number of graduates and the number of takers in the CPA board examination. The investigation aimed determined the factors affecting BSA graduates’ Readiness for CPA Licensure Examination. The 63 alumni respondents participated in the study on a snowball inspecting strategy in information gathering. Frequency and simple percentage, weighted mean, Chi-Square Test of Independence, and One-way ANOVA were used to treat and interpret the data. The examination revealed that administrative support, personal factors, and motivational factors have contributed greatly to the graduates' decision to take the board exam. It was also revealed that the knowledge, capabilities, and ways of thinking and acting of the graduates were affected greatly through the said factors. A significant relationship was identified between the factors in terms of financial aspects, academic performance, administrative support, personal factors, motivational factors, and the extent of contribution of these factors to the graduate's readiness for CPA licensure examination. The study concluded that several factors really affect the graduates’ decision to take the CPA licensures examination.

Educating the Future Accounting Professional: Actively Shaping Professional Identities for a Rapidly Changing World

Educating the Future Accounting Professional: Actively Shaping Professional Identities for a Rapidly Changing World

July 2021 Placement Ads

July 2021 Placement Ads

History of Specialization in the U.S. Public Accountancy and the CPA Evolution Project

The study has a three-fold purpose. First, it aims to examine the historical developments of the specialization efforts in the accounting profession. Second, a main goal is to review the features of the CPA Evolution that has been a joint project of the NASBA and the AICPA in the U.S. Furthermore, the study attempts to identify and discuss its advantages and disadvantages, challenges, and implications for educators and legislators. The paper argues that the CPA Evolution for the U.S. public accountancy has certain risks and threats, will be emerging initiative and inevitable within the profession, and seems to have formal transforming the CPA licensure.

January 2021 Placement Ads

January 2021 Placement Ads

The Professional Ethics Exam and Acts Discreditable: An Introductory Assignment

ABSTRACTThis practice-oriented assignment familiarizes accounting students with their states' professional ethics exam and illustrates the disciplinary proceedings process resulting from failed ethics. Part I of the assignment requires students to research their states' professional ethics exam requirements. Part II of the assignment asks students to select current disciplinary actions, review the affiliated disciplinary proceedings, apply relevant sections of the AICPA Code of Professional Conduct, and evaluate the appropriateness of the consequences. Survey responses from 322 accounting students suggest that prior to this assignment most students are unaware of an ethics requirement for initial CPA licensure. Students perceive that the assignment effectively exposes them to the AICPA Code of Professional Conduct and violations experienced by practicing CPAs. The majority of students surveyed believe the assignment is valuable, interesting, enjoyable, and improves their understanding of “ethics in practice.”

Linking OLSAT, Qualifying Results, Academic Performance, and Pre-Board Scores to CPA Licensure Examination Results

Linking OLSAT, Qualifying Results, Academic Performance, and Pre-Board Scores to CPA Licensure Examination Results

Influence of Selected Factors on CPA Licensure Examination Results

The researcher looked into the factors that affected the performance of Rizal Technological University CPA board examinees on the 2012 licensure examinations to determine the intervention necessary to improve the university’s review programs. Descriptive research design was used wherein twenty-four Bachelor of Science in Accountancy graduates who took the May and October 2012 board examinations were surveyed using a validated researcher-made questionnaire. Documentary analysis was used for evaluating qualitative data. Results revealed that: student factors (interest in the accounting program, time spent for studying lessons and availing of library/internet resources in research activities) and home/family factors (family financial support, parental involvement in studies, motivation and encouragement) highly influence performance; school factors (adequacy of relevant library books and materials, adequacy of technology hardware and software, good accounting program and good accounting faculty) were perceived to have average influence; and scholarships, grade weighted averages and attendance to review courses handled by prestigious review schools were found to be positive factors in passing the board examinations. Based on the findings, the researcher recommended that the regular assessment through qualifying examinations be conducted and that the pre-board/mock examinations in the review classes be strengthened.

A Probabilistic Estimation of Passing the Licensure Examination for Accountants

The paper employed a simulation model to determine probability of passing the CPA licensure exam. The predictor variables of the study were GPA, pre-review grade, and the subject clusters of the exam. The study covered periods 2007-2011.It was noted that the performance of the Accounting Education for the period covered was found to be impressive. Pre-review and the GPA have high statistical influence in passing the board exam. The threshold GPA is 2.2 while 2.4 for the pre-review.Of the subject clusters in the board exam, accounting problems have the highest impact in the actual board score followed by theory of accounts, management services, practical accounting problems, practical accounting problems and the least yet still bear impact is the business law and taxation.The collegiate validation exam used as indicator of readiness showed statistical association with the actual exam. A simulated model revealed that the scores of management and services, auditing problems, audit theory, business law and taxation and accounting problems have strong board outcome effects. The theory of accounts and accounting problems showed no statistical significance.

NOVEMBER 2013 PLACEMENT ADS

NOVEMBER 2013 PLACEMENT ADS

The Marketability of Options for Meeting the 150-Hour Requirement: An Empirical Analysis of Public Accounting Firm Recruiting Intentions

ABSTRACT: Students are often concerned with, and advisors are often confronted with, questions about the best way to obtain the 150 hours required for CPA licensure in most states and jurisdictions. This research provides insight through an experiment in which CPAs in public accounting provide assessments about how actively their organization would recruit job candidates whose profile descriptions differ only as to how they met the 150-hour requirement. By manipulating, at seven levels, the independent variable describing the method by which a hypothetical student obtained 150 hours, the study indicates that, in general, CPAs tend to value more accounting-specific coursework leading toward a degree, preferably an advanced degree. The study also provides suggested courses of action for students who do not have the option of pursuing a graduate degree.

Best Practices of Top Performing Schools in the Certified Public Accountants Licensure Examination

The Accountancy program, which is the most popular course in the field of Business and Management, is attracting more and more students. However, only very few students can finish the program due to the difficulty of the Accounting subjects. Among the Accountancy graduates, only very few can make it in the CPA Licensure Examination, which is one of the hardest licensure examinations to pass. In fact, the passing percentage in the CPA Licensure Examination remains one of the lowest in the Philippines. Hence, there is a need for schools offering Accountancy to examine the best practices of the top performing schools in the CPA Licensure Examination. This study determined the best practices of the 13 top performing schools in the licensure examination along recruitment, admission, instruction, retention, and graduation requirements and privileges. A survey questionnaire was the main tool used for data gathering. An interview with the respondents was also conducted to obtain more insights about their practices. Findings reveal the common practices of the 13 top performing schools deemed as contributory factors of a quality Accountancy program. These A†___¥s may be considered for adoption by non-performing schools. Keywords - Accountancy program, best practices in Accountancy program, Accountancy top performing schools, CPA Licensure Examination, survey, Philippines.

Accounting Education In Crisis

Almost on a daily basis new accounting rules and laws are put into use, creating information that must be known and learned by the accounting faculty and then introduced to and understood by the accounting student. Even with the 150 hours of education now required for CPA licensure, it is impossible to teach and learn all there is to learn. Over the years, changes have been recommended and some adopted into the accounting curriculum; however, the crisis of information overload continues in accounting education.

Occupational Licensure In The Accounting Profession Effects Of Public Regulation On Accountants Earnings

This paper examines the effects of CPA licensure requirements on earnings in the accounting profession. Using micro data from the U.S. Census, we estimate a model of individual earnings in which explicit controls are included for occupational requirements in the accountants state of residence. Two findings are noteworthy. First, states which require additional credit hours beyond the four-year degree appear to be characterized by higher earnings. Second, states which do not have experience requirements are associated with lower earnings. The subject appears fruitful for further research.

A History of U.S. Higher Education in Accounting, Part II: Reforming Accounting within the Academy

In the 1970s, efforts to reform accounting education revolved around the movement toward schools of accountancy (or independent departments). These efforts were largely unsuccessful. However, in the 1980s, the movement to expand accounting education beyond a four-year undergraduate degree resulted in American Institute of Certified Public Accountants (AICPA) members passing a rule mandating 150 hours of education for AICPA membership. The reaction to this rule was varied. Many state boards of accountancy and state legislatures adopted rules requiring 150 hours; however, the requirements for taking the CPA exam and licensure varied across states. After the rule's passage academicians responded by creating the Accounting Education Change Commission, whose purpose was to improve accounting education regardless of the number of credit hours students earned. Also, the AICPA shifted its attention to the possibility of expanding certification to practitioners who were not accountants. Both of these efforts were forestalled, and public attention shifted to the highly publicized accounting scandals of the 1990s. Efforts to reform accounting education since then have been led primarily by the National Association of State Boards of Accountancy (NASBA).

Supply-side effects of the 150-hour educational requirement for CPA licensure

This study examines issues associated with professional licensure in the context of the recently implemented 150-hour educational requirement for CPA licensure. We base our hypotheses on prior professional licensure research in economics and accounting. The results show that the implementation of the requirement has been associated with a substantial decline in the number of candidates taking the CPA exam, a significant increase in the pass-rate on the exam and an overall decline in the number of successful candidates. We also find that a substantial number of candidates advanced the timing of their candidature to circumvent the requirement and that candidates migrate from states that implement the requirement to non-implementing states.

The 150-hour rule as a barrier to entering public accountancy

In many states, CPA licensure now requires 150 credit hours of college coursework thereby adding an extra semester or year of schooling beyond typical undergraduate degree requirements. Thus, the “150-hour rule” should increase the cost of becoming a CPA and, consequently, reduce the supply of new CPAs. We test this hypothesis using panel data on the number of first-time candidates for the CPA exam in each state over the years 1985 to 2002. We find that the imposition of the 150-hour education requirement reduces the number of candidates sitting for the CPA exam by 60 percent and that the “grandfathering” provisions of the 150-hour rule produce a substantial transitory increase in the number of candidates sitting for the exam in the year prior to the rule’s effective date. Examination of candidates’ pass rates on the exam also finds behavior consistent with the hypothesis that the 150-hour rule is a barrier to entry.