A Factor Analysis of the Skills Necessary in Accounting Graduates

Abstract

ABSTRACTThis study obtains the opinions of two important constituent groups for higher education accounting programs: (1) public accountants and (2) non-public accountants, regarding the importance of accounting-related skills and topics to be covered in undergraduate curricula. Factor analysis was used to determine common factors for each group. The level of importance of factors was then compared within each group.INTRODUCTIONDissatisfaction with the level of accounting knowledge and skills exhibited by new hires has been of concern by employers for a number of years. According to Nelson (1995) impassioned cries for changes in accounting education have come from the accounting profession since the inception of university programs. As accounting has moved beyond the use of pencils, erasers, and 12-column worksheet paper toward embracing today's technology, these concerns have become more apparent. In short, accounting graduates need to understand and master accounting-related skills and topics associated with technological innovations including hardware and software in order to be productive starting with their first day on the job. Further, in order to function in today's diverse business environment, other accounting-related skills and topics may be essential, such as proficiency in a second language, creativity in problem solving and internet research.In order to address these issues, accounting curricula may now incorporate business classes that help students obtain skills in software such as Excel, Word, and Access, and learn about technology such as telecommunication software, intranets, and client/server management. Other business courses help students become aware of the impact of diverse workplaces, as well as global, ethical, and environmental issues. Even so, accounting programs have been especially inundated in the past two and a half decades with studies and position papers addressing the quality of education available for accounting students and recommending changes in educators' approach to providing a more comprehensive knowledge of accounting. As recently as 1998 the AICPA issued their top five issues for the public accounting profession in their Vision Project, also offering guidance for changes in higher education for aspiring CPAs.Some practitioners and academicians seem to feel that academic accountants have addressed only some of the issues raised with only a limited amount of success. The 2000 Albrecht and Sack (A&S) seminal study reporting that, in general, accounting education had not changed substantively in response to the demands of accounting practitioners which expresses concern about the future of accounting programs provided further food for discussion. Albrecht (2002) also took his concerns to the American Association of Collegiate Schools of Business (AACSB), causing substantial upheaval in accredited institutions. To illustrate the impact of Albrecht and Sack's research, Johnson and Halabi (2009) determined that A&S was cited in over 29% of published research papers during the seven-year period between the beginning of 2001 and the end of 2007, which is certainly evidence of a strong reaction to their concerns on the part of the professoriate.Others have expressed concern that accounting programs in general have geared their accounting curricula solely for students interested in public accounting, excluding students who are more interested in the non-public accounting arena (Ahadiat, 2008). However, there does not seem to be a consensus about the courses that should be completed in order to ensure success in the non-public accounting arena (see, for example, Hurt, 2007). The purpose of this paper is to report the findings of a study examining the viewpoints of public accounting and non-public accounting professionals regarding accounting-related skills and topics they feel students should have prior to employment. Perspectives of practicing accountants, both in public accounting and in other areas of accounting, were gathered in order to gain insight into this question. …

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