Accounting student perceptions of characteristics necessary for success: a comparison with those cited by professionals.

Sale, Martha L. ; Cheek, Ronald G. ; Hatfield, Robert 等

INTRODUCTION

The inability of accounting firms to recruit, hire, and maintain accounting professionals that possess the technical, analytical, communication, and social skills needed by accounting firms prompted the formation of the Accounting Education Change Commission. The Bedford Committee of the American Accounting Association (1986) and the so called "white paper" of the then Big-Eight accounting firms (Perspectives ..., 1989) laid the blame for this crises on educational institutions. They charged that colleges were not attracting sufficient numbers of quality students into the accounting profession, the accounting curriculum lacked relevance, and that the skills and attributes of students were not being adequately developed. These charges may have been leveled against accounting education without consideration for other factors that might influence the characteristics of accounting graduates.

Of the many factors that influence students' career choice, it seems top students perception of accounting plays a large role in the decision to major or not major in accounting. In attempts to develop programs to attract sufficient numbers of quality students into accounting it is critical to understand what role these perceptions play. That top non-accounting students have a negative perception of accounting has been documented (Hermanson et al., 1995)

Students in all business disciplines tend to choose an area of study either in high school or soon after entering college with less than 15% delaying the decision past the sophomore year (Hermanson et al., 1995). This evidence of the early selection of a career seems to indicate that the choice is often made on general knowledge and perceptions developed before students enter the more strenuous and technical intermediate and upper level classes in their chosen field. Introductory classes in all business disciplines are required of most business majors. These classes are most often of general nature and fulfill introductory requirements of students in many business disciplines. They are, therefore, often presented to classes attended by students with a wide variety of declared business majors. One must suspect then, that all students have been exposed to similar amounts and quality of information before the career-choice decision is made. The questions that beg answers are, "Why do some students choose accounting while others eschew it as boring?" and, "Do the perceptions of accounting upon which career choices are made differ for accounting and non-accounting students?"

RELEVANT LITERATURE

Considerable research has been done on why students choose accounting as a profession, why they transfer into or out of the discipline, and what they expect of an accounting career. In a study comparing accounting majors to other business majors Case (1988) found that although earnings potential was the top criteria attracting freshmen to accounting, they also place high emphasis on career options as the number two choice, and on aptitude, intellectual challenge, and interesting subject matter as other important criteria. In an examination of the importance accounting and non-accounting business students place on job characteristics, it was found that accounting students place a higher value on long term financial rewards than do non-accounting students (Hermanson et al., 1995). Accounting students also perceived the prestige of accounting, the contributions accountants make to society, and the level of ethics practiced by accountants to be higher than did non-accounting business students. The authors point out that accounting fails to attract the "best and brightest" students because students in other business disciplines:

(1) are influenced by more immediate rewards available in other fields due to relatively higher starting salaries,

(2) are concerned about the personal liability and litigation risks of accounting,

(3) perceive other business areas to be more exciting than financial accounting,

(4) are repelled by the bookkeeping approach used in the first accounting classes,

(5) think that accounting firms are sweat shops, and

(6) accept the "bean counter" image of accountants.

These perceptions are not, however, compared and contrasted, with the perceptions of accounting students. Is it possible that there is little difference in the image of the accounting profession that is held by future accountants and their peers? Accounting students may accept this same stereotype of accounting, yet, find the prospect of joining the profession more suitable.

In a study comparing accounting and finance majors (Inman et al., 1989) accounting majors rated as more difficult both their intermediate and upper-level accounting courses, than did finance majors. Accounting students rated their courses as less interesting at all levels than finance majors did. Accounting students characterized liberal arts and natural sciences classes as "a waste" and indicated a strategy of taking the easiest courses possible to allow them to concentrate fully on accounting. Inman et al. (1989) reported the results of a survey on the importance attached to eight areas of college and personal goals comparing groups that either had transferred into accounting and those that had always been accounting majors with finance majors, and with liberal arts or social sciences majors. Of the groups surveyed Liberal Arts and Social Sciences majors attached the most importance to appreciation of liberal arts, self-directed learning, creative capabilities, influencing social values and helping others in difficulty. Transferees into accounting attached most importance to developing the ability to think clearly, and Finance majors attached most importance to being well off financially and mastery of technical knowledge in their discipline. They found that off all the groups surveyed, students who were always accounting majors attached the least importance to mastery of technical knowledge, self- directed learning, clear thinking ability, the development of creative capabilities, and being able to help others in difficulty. They were tied with finance majors on attaching the least importance the appreciation of liberal arts. Finance majors attached the least importance to being able to influence social values. There did not appear to be any clear-cut patterns of similarities or differences in the groups that were discernable over the range of attributes considered in the analysis.

Accounting and finance students were poled on the most important factors affecting their choice of career (Inman et al., 1989). Career advancement opportunities, interesting work assignments after two years, and long-range earnings potential were viewed as the three most important factors by both groups. A reasonable work schedule was viewed as least important by both. Both groups included career advancement opportunities, interesting assignments after two years, long-range financial rewards and professional development in the top five. Of the fifteen factors that were ranked in order of importance no more than three levels separated the position of each factor as ranked by Accounting majors and Finance majors. In contrast to the view that accounting fails to attract the "best and brightest" due to low starting salaries Finance majors in this study ranked starting salary at twelfth place in importance compared to tenth place for Accounting majors. All in all, this seemed to indicate that accountants shared many of the same career goals as finance majors and were aware of the rigorous demands of the accounting profession. Despite this evidence of willingness to work long hard hours, accounting students may not be adequately prepared for the reality of accounting as a profession. A preliminary report was issued of a four-year study by Konstans and Dean that found CPA's newly hired by public accounting firms suffer from "reality shock." It contends that graduates have technical knowledge, but are lacking in communication and reasoning skills (Journal of Accountancy, 1992).

This view is consistent with the complaint of public accounting firms that they are unable to hire graduates that are adequately prepared for careers in accounting, and it brings attention to the lack of general skills in accounting graduates. It is also consistent with the attitude outlined by Inman et al. (1989) that accounting students place very little value on these skills. This is evidence of general agreement that a deficiency in non-technical skills exists in accounting graduates.

Before the problem of insufficient qualified candidates choosing professional accounting can be addressed and alleviated it behooves those affected to try to determine its source. Several steps are involved in the evolution of a high school student into a CPA and a fundamental error in the development of suitable young CPA s might occur at any of those steps. If accounting firms base the choice of potential job applicants on inappropriate criteria they may pass over potentially successful candidates for those who are doomed to fail. If colleges and universities do not fully understand the demands of public accounting and the needs of potential accounting students they will be unable to guide the development of potential accountants. Initially, if appropriate high school and college students are not attracted to the profession there is little chance of producing an adequate supply of accounting graduates.

Public accounting and the role of the accountant is changing rapidly (Boress, 1994). Firms are now offering an entirely new range of services, many of which may be in relatively new areas where little guidance is available on what will be expected of the practitioner or how to choose employees and prepare them for success (Crumbly, 1993). There is also evidence to indicate that recruiters for accounting firms, which have formal criteria upon which to base hiring decisions, do not adhere to firm policies. Most recruiters for major firms are in close agreement upon the importance of certain characteristics of potential employees (Lewis, Shimerda & Graham, 1983). However, the ability of individuals to remember and accurately report complex cognitive or judgmental processes have led researchers to conclude that recruiters, "probably do not use the priories in recruiting decisions that they self-report," (Hassell & Hennessy, 1989). This lack of objectivity leads to a high likelihood of poor selection in the recruiting process.

Accounting schools have been criticized by the profession for the lack of preparedness of graduates (Williams, 1991). A major criticism of the current accounting curriculum is its failure to cover the common body of knowledge needed for success in practice. Specifically accountants need more instruction in basic economics, marketing, management, and uses of information technologies (AAA, 1986). Partners in accounting firms attach tremendous importance to the role communication skills, interpersonal skills, practice development and administrative skills, as well as technical competence has played in their ability to advance to partner (Bhamornsiri & Guinn, 1991). This highlights the need for a broader educational background for accounting students.

Unfortunately, neither the selection process nor the educational process described here is able to affect the selection of the individual into accounting. This selection into accounting as a career is a self-selection process often completed before either collegiate educators or accounting professionals have a chance to influence the process. If students are not given adequate information upon which to base career-choice decisions, if they hold inaccurate perceptions of accounting as a career, they will make poor decisions. Some studies have been done toward identifying what characteristics students bring into accounting. For the most part, they have been done with instruments designed to measure learning styles or traits that make up portions of the personality (Brown & Burke, 1987). It is accepted, as mentioned earlier, that other business professionals may have a poor image of the accounting profession, describing it as boring, without intellectual challenge, requiring a lot of rote memorization, and as requiring rigorous study to complete the course work, Herculean effort to pass the CPA exam, and the prospect of a future that, "all you get out of it is that for the rest of your life, you can just keep doing it more and more," (Inman et al. 1989). Even though this view of accounting is attributed to those students who have chosen other professions, there is little research to indicate whether or not accounting students themselves share this view.

PURPOSE

This study measures the degree to which accounting and non-accounting students in business classes perceive a necessity for professional accountants to possess the three types of general skills desired by accounting firms, whether there is a difference between the accounting and non-accounting students, and whether knowing an accountant personally moderated the degree to which they attribute these skills to the professional accountant. This should help the professional accountant and the accounting educator determine whether there is a difference in the degree to which the groups recognize the need for accountants to possess the characteristics firms value in employees.

If it can be shown that there is no difference between the degree to which accounting and non-accounting students attribute a need for these characteristics to accountants, it supports the premise that both groups accept the same stereotype of accountants. Whether knowing an accountant personally has a moderating effect will provide additional knowledge about possible sources of information used by students to form opinions that affect their choice of accounting as a career.

The three areas chosen for consideration were communication, verbal and writing skills; socialization skills; and creative problem solving skills. These are the areas in which public accounting firms report they most often find new CPA's lacking. The responses were evaluated based on whether or not the respondent was an accounting student, and on whether or not the student personally knows a professional accountant. This measures the moderating effect of these two conditions on the degree to which the students attribute a need for these skills to accountants. The results of this study will be significant in determining whether students are adequately informed about the necessity for successful public accountants to possess these skills, and whether or not this knowledge is greater in students who are accounting majors or who know accountants personally.

METHODOLOGY

A questionnaire was completed by 146 students in introductory accounting, management and marketing classes in a mid-sized southern university. The instrument consisted of a series of statements about the characteristics of accountants. The statements were designed to determine the degree to which the respondent attributed a need for accountants to possess communication skills, socialization or interpersonal skills, and creative problem solving skills. These responses were recorded on a 7-point Lacerate scale. Demographic statements indicated whether the participant was or was not an accounting student, and whether or not the student had a family member or close friend who is an accountant.

Two sets of hypothesis were tested. Stated in the null they are:

H1: Accounting and non-accounting students exhibit no difference in the degree to which they recognize a need for practicing accounting to possess communication skills.

H2: Accounting and non-accounting students exhibit no difference in the degree to which they recognize a need for practicing accounting to possess socialization skills.

H3: Accounting and non-accounting students exhibit no difference in the degree to which they recognize a need for practicing accounting to possess creative problem solving skills.

H4: Students who know an accountant personally, and those who do not, exhibit no difference in the degree to which they recognize a need for practicing accounting to possess communication skills.

H5: Students who know an accountant personally, and those who do not, exhibit no difference in the degree to which they recognize a need for practicing accounting to possess socialization skills.

H6: Students who know an accountant personally, and those who do not, exhibit no difference in the degree to which they recognize a need for practicing accounting to possess creative problem solving skills.

The data was analyzed by use of Analysis of Variance to determine if there was a difference in the perception of accountant's possession of the three areas of skills between accounting majors and non-accounting majors and between those who know an accountant personally and those who do not. The mean aggregate score on the combined statements concerning these three abilities or personal characteristics of accountants sought by public accounting firms and upon which accounting firms base hiring and promotion were then compared.

The mean response of the groups is presented in tabular form.

Mean Response by Group

 Interpersonal
 Communication & Socialization Creative Problem
 Skills Skills Solving Skills

Accounting Majors 2.6066 4.0861 3.7377
Other Majors 3.125 3.25 3.0104
F 2.11 10.25 8.74
P--Value 0.1484 0.0017 0.0036
Know a CPA 2.6697 4.0688 3.7454
Do Not Know a CPA 2.7568 3.5946 3.2432
F 0.08 4.37 5.62
P--Value 0.7766 0.0383 0.0191

If it is assumed that accounting students should have a better knowledge of the need for accountants to possess high levels of communication skills, interpersonal skills, and creative problem solving skills, then accounting students should attribute these skills to accounting professionals to a greater degree than do non-accounting students. As is seen from the table the accounting students surveyed attached a lower importance to accountants use of communication skills than did non-accounting students. This result was not significant at the chosen level of alpha = .05. The accounting students surveyed did attach a higher importance to the possession of socialization skills and problem solving skills for professional accountants than did the non-accounting majors, and the differences between accounting and non-accounting students were significant at alpha = .05.

If it is assumed that knowing a CPA personally would provide the student with better insight into the need for accounting professionals to possess high levels of the skills in question, then those students who know an accountant personally or have a family member who is an accountant should have rated these skills higher. Again, the need for professional accountants to possess strong communication skills was given more importance by those students who did not know an accountant personally, but this difference was not significant at the chosen level of alpha = .05. Students who knew an accountant personally did rate the need for accountants to possess interpersonal or social skills and creative problem solving skills as being more important to the practice of accounting than did those students without a personal relationship with an accountant. These differences were significant at a level of alpha = .05.

Hypothesis I and Hypothesis 4 dealing with the perceived need for communication skills could not be rejected. In fact, the difference in the mean response of the groups was in the opposite direction than that which was expected. All of the other hypotheses could be rejected. This supports the conclusion that, as a group, accounting students do not recognize a need for successful accountants to possess strong communication skills. Further, the results suggest that students who know an accountant personally are no better informed about the need for these skills than are those who do not know an accountant. The results indicate that accounting students are more cognizant of the need for professional accountants to possess interpersonal skills and creative problem solving skills than are non-accounting students. Likewise, students who know an accountant personally are aware of the need for accountants to possess these skills.

The results of this survey, although very limited, indicates that those students who know an accountant personally have a better knowledge of the skills required of professional accountants than students who do not. This seems to reinforce the need for accountants as individuals to be involved in the promotion of accounting as a career choice. Accounting students appear to be aware of the need for accountants to possess interpersonal and creative problem-solving skills, but lack information on the necessity for accountants to be skilled in communications. This problem is currently being addressed by accounting education with attempts to promote writing assignments and reinforce the need for communication skills in the accounting curriculum. These results reinforce the need for these programs. With the possible exception of the need for communication skills, the results indicate that accounting students are more aware of the non-technical demands of a successful accounting profession than are non-accounting students. This survey supports the conclusion that accounting students do not perceive professional accountants to be socially inept introverts. One might draw from that conclusion that accounting students do not perceive themselves as being below average in socialization skills or creative-problem solving skills.

It is still unclear why accounting firms are unable to hire sufficient numbers of young accountants possessing the degree of communication, socialization, and creative problem-solving skills they require. This work does indicate that it is not because accounting students perceive these skills to be unnecessary in the practice of accounting.

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Martha L. Sale, Morehead State University

Ronald G. Cheek, Morehead State University

Robert Hatfield, Morehead State University