CPAs' two tracks of AIS use: implications for AIS classes.

Foster, Benjamin P. ; Levitan, Alan S. ; Karcher, Julia N. 等

INTRODUCTION

This paper presents findings of two different tracks in which CPAs work with accounting information systems (AIS). Our findings have implications for accounting education in the selection of which topics to cover and whether we should concentrate on machine-oriented technology skills or user-oriented systems analysis skills. We analyzed and performed factor analysis on survey responses from CPAs in public practice and industry to determine if patterns of AIS use/performance existed among CPAs. Results show that relatively few CPAs were performing or using AIS tasks and tools beyond the basics. Those CPAs who worked more extensively with AIS tended do so on two different tracks. The AIS tasks and tools included in these two tracks contain implications for appropriate course content in AIS classes. Comparison of the demographic characteristics of CPAs working on the two tracks also provides some useful information for accounting educators and students. The following sections discuss: the motivation for this study, background on the survey, the factor analysis performed and results, ANOVA and results from comparison between demographic groups of CPAs, and the implications and conclusions from the study.

MOTIVATION FOR STUDY

Future of Accounting

Since the Bedford Report was issued in 1986 (AAA), the American Accounting Association, the American Institute of CPAs (AICPA) and other accounting organizations have reviewed the skill set of accounting graduates and made suggestions for improvement. Recently, Albrecht and Sack (2000) noted that accounting educators have not heeded the suggestions of these groups and have not sufficiently changed their courses or curricula. As part of a list of ways accounting education can be improved, Albrecht and Sack (2000, 43) state: "Our students are not exposed enough to the impact of technology on business and ways in which technology can be leveraged to make business decisions." To succeed in the future, accountants trained today will need a variety of information technology skills and tools that go beyond traditional accounting skills and tools. As part of its Vision Project, the AICPA formally recognized this need by specifying the ability to work with information systems and across functions within an organization as skills necessary to keep the CPA credential viable and prestigious in the future (AICPA, 1999).

The results of a survey of 1,400 chief financial officers (CFOs), conducted by Robert Half International (2001), dramatically confirmed that AICPA vision. The CFOs noted that many accounting professionals have dropped the word "accountant" from their titles. They expressed the need for accountants to help their organizations and clients understand the interaction between technology and business and, as experts in business processes, explain how technology can be used to improve those processes, enhance strategic initiatives, and increase value. The study specifically mentioned that tomorrow's financial professionals will have to mine data, safeguard assets in the digital realm, be conversant with computer code and programming language, and develop familiarity with Internet engineering and web-deployed applications.

AIS Education

The Robert Half (2001) study foresaw that the accounting curricula of the future would be revised and expanded. Ideally, accounting educators should develop a strategy for changing course content and accounting curricula. However, professional, academic, and educational literature has provided little insight into the structure and specifics of AIS tasks and applications currently performed and used by CPAs. Also, because most AIS instructors are self-trained, not having concentrated in information systems in their own studies (Groomer and Murthy, 1996, 108), they often have little evidence on which to base curriculum and course content decisions related to necessary AIS knowledge.

The CFO study and the various reports of accounting educators and practitioners all highlight the importance of technology and information systems in the accounting knowledge set. They also stress that different types of knowledge and skills add different levels of value. In an editorial in the Journal of Information Systems, Borthick prioritized the AIS topics given the limited time available in AIS classes. Borthick (1996, 82) stated that AIS courses should focus on items "directly on the critical path of preparing students to be users of information technology and to be managers, the designers and evaluators of information systems."

In their survey of AIS instructors, Groomer and Murthy (1996, 111) report that most AIS courses emphasize transaction cycles, controls, and auditing, which is consistent with coverage in popular AIS textbooks. By comparison, they found that relatively little emphasis is placed on technology, data modeling and databases. These studies point to the need for updating the content of the AIS course(s) to ensure that our students have the appropriate knowledge and can use the appropriate tools.

To make sensible recommendations on what AIS content should be included in accounting curricula, we surveyed CPAs in both public accounting and in other areas to learn the frequency with which they performed various AIS tasks and the types of AIS tools they used most often. We performed factor analysis on survey responses to help identify critical paths with AIS on which current CPAs may be working. The results should help us identify the most important AIS tasks and tools.

BACKGROUND ON THE SURVEY

To determine the types of AIS applications CPAs were currently using, we mailed a survey questionnaire to 500 randomly selected members of the AICPA. One-half of our sample worked in public practice and one-half worked in other types of organizations. Over 200 CPAs (40%) responded. In the questionnaire, we asked for some limited demographic data. Demographic information for CPAs responding to the survey is summarized in Table 1.

The survey asked about the frequency of their performance of various AIS-related activities. Foster et al. (2001) describes the applications and tools CPAs use most frequently as well as their perceptions about future use, but did not include the factor and other statistical analyses discussed in this paper. Identifying the types of tasks CPAs perform and the tools they use should lead to suggestions about AIS course content. The responses indicated how frequently CPAs were using/performing the AIS tools and tasks listed in Table 2 (in descending order of use).

Many CPAs reported using electronic spreadsheets, word processors, and tax software daily or weekly. Many also are often involved in assessing controls and designing or modifying the design of an accounting system at least quarterly. The remaining AIS applications and tasks were used or performed much less frequently.

FACTOR ANALYSIS

We used factor analysis to determine whether respondents' use of AIS tools and techniques "loaded" together into a few separate factors/dimensions. We applied orthogonal (Varimax) rotation, which produced the results presented in Table 3, revealing three distinct factors/dimensions.

The three dimensions included two sets of related accounting information systems items (marked with an asterisk in Table 3 and listed in Table 4) we labeled as (1) "systems" and (2) "technology" applications or tasks, and (3) the common tasks of using spreadsheets and word processors and assessing controls. Accountants involved with tasks included in factors 1 and 2 are working beyond the stereotypical accounting function. Using tax software and using or designing an expert system did not load on any specific dimension.

We used the Cronbach's coefficient alpha to test the appropriateness of combining each factor's questions into one scale. The Cronbach's alphas were .808, .743 and .419 for the systems, technology, and common factors, respectively. Because the commonly performed activities (with the low Cronbach's alpha score of .419) were not a focus of this study, we performed no further analysis with the common tasks factor. However, the Cronbach's alphas increased our confidence in the validity of constructing composite variables for systems and technology, as listed in Table 4, to use in further analysis.

Systems versus Technology Applications and Tasks

The "systems" items are associated with tasks that require a user orientation, management skills, and working with non-systems professionals. Items 1, 3, 4, 5, and 6 require working with top management and users to understand the enterprise's long-term strategy, establish its needs, determine the shortcomings of the current systems, and design reports users find understandable and useful. These items closely match the job description of computer systems analysts (California Employment Development Department, 1995). Item 2, preparing or interpreting forms of system documentation other than the more technological ones, probably involves writing user manuals or narrative descriptions.

Preparing or interpreting the types of documentation listed in the first four "technology" items requires special expertise, particular technical skills, and a machine orientation. Performing these tasks would entail hierarchical data flow diagrams, drilling down progressively to greater detail of the internal logic of a computer program. The attributes of data entities would be defined, along with their sizes, formats, and other characteristics. CPAs possessing this expertise may have the ability to create database schemas and to normalize a relational database, eliminating anomalies. They would take the broad, general ideas from the systems analyst and operationalize them in the appropriate systems software and hardware. Coding in a programming language is the most technical item in the entire questionnaire. All of the activities in this list are detail-oriented, and do not necessarily require interacting with non-systems managers.

In a recent study sponsored by the Accounting Program Leadership Group, Reckers and Solomon (2002) conclude "the current level of exposure that accounting students have to accounting related technologies, across types of institutions, is very limited." Thus, students are unlikely to be able to select a specific AIS track. However, each school, based on its mission, can use the information in this study to determine what AIS topic coverage is appropriate for its students and whether additional courses need to be added to its programs.

ANOVA TESTS: DIFFERENCES BETWEEN GROUPS OF CPAS

Based on the two factors identified, we developed two composite variables, systems and technology. (Respondents' answers to the questions were coded: 1 = no use, 2 = quarterly use, 3 = monthly use, 4 = weekly use, and 5 = daily use. To develop the composite variables we added a respondent's score for all questions included in the factor and divided by six.) Those two composite variables were used to examine what demographic attributes lead CPAs to more likely be in one, or both, of the tracks.

Table 5 includes the means and standard deviations for the systems track and technology track variables for three different sub-groups of CPAs based on educational background and employment area. The level of these composite variables demonstrates that currently, relatively few CPAs regularly work in these non-traditional areas. We used ANOVA to test for significant differences between the means of the subgroups.

AIS Courses Taken

Responses on the technology track variable differed little based on the number of AIS courses taken in college by respondents. However, as the number of AIS courses taken increased from zero to three, a steadily increasing trend in the systems track variable was produced (p < .088 in the ANOVA model). Thus, as seen in figure 1, a higher number of AIS courses apparently does not impact CPAs' performance, or use, of technical tasks, but does prepare CPAs for tasks that require management skills and/or working with other professionals. This may result from more advanced AIS courses' emphasis on broad-based systems design from the users' perspective, rather than on the technical details of building the system. Schools whose mission focuses on creating graduates with the ability to interface between the technology and upper management might consider increasing the number of AIS courses in the curriculum.

[FIGURE 1 OMITTED]

Types of Degree Held

Only a few CPAs held degrees other than bachelors or MBAs. Consequently, we restricted our analysis to examining the differences between CPAs who held MBAs and those who held only bachelors degrees. The comparison produced interesting results. CPAs with MBA degrees exhibited significantly more use of technology items (p < .067 in the ANOVA model) and were significantly more likely to use system track items (p < .004 in the ANOVA model) than CPAs with just undergraduate degrees. Figure 2 illustrates this relationship. After including the number of AIS courses taken in the model, the difference between groups is only marginally significant for the technology factor, but is still highly significant for the systems factor.

[FIGURE 2 OMITTED]

The significance of the MBA degree concurs with the Robert Half International (2001) survey finding that CFOs believe advanced degrees and certifications will become increasingly important for consultants. This finding may also support the 150-hour requirement. Given that accounting is greatly affected by technology advances, accountants who can successfully blend technology and accounting will be in great demand. An advanced degree may provide that edge.

Specialization and Employment Area

Within public accounting, tax specialists used AIS tools and applications (except for tax software) significantly less frequently than their colleagues specializing in assurance services, management advisory services, a combination of specializations, or with no specialization. No other differences existed among the specialization areas within public accounting. Thus, schools with tax tracks may not need additional systems coverage in those tracks.

Employment sector does impact CPAs' involvement with AIS tools and applications. ANOVA revealed highly significant differences between the technology and systems track scores for CPAs working in public accounting compared to CPAs working in other organizations. (Analysis not reported here.) We were concerned that these significant differences might be solely due to tax specialists' low scores, as mentioned in the previous paragraph. Consequently, ANOVA was performed on scores by employment sector after deleting tax specialists from the analysis.

Omitting tax specialists from the public accounting group produced ANOVA results that indicate little difference in use of the technology items by employment sector. In contrast, CPAs in other organizations still scored significantly higher than CPAs in public practice on the systems track variable (p < .016 in the ANOVA model). Figure 3 illustrates this relationship. This finding has implications for students who do not plan a career in public accounting. Schools that place many of their students in industry, government, or not-for-profit accounting should review the content in their AIS course(s) to determine whether it develops skills and abilities related to the systems track.

[FIGURE 3 OMITTED]

IMPLICATIONS AND CONCLUSIONS

Accounting professionals are becoming more involved in systems and technology fields. The information in this study should enable accounting programs to adjust their AIS course offerings and topics so that students are better prepared for their future responsibilities. Accounting programs that are interested in maximizing their students' career opportunities should know that some CPAs apparently perform work in two distinct areas of AIS-related work: a systems track and a technology track.

While both tracks extend beyond the tasks traditionally performed by accountants, the systems track involves more high-level and cross-disciplinary tasks and applications than the technology track. CPAs employed outside of public accounting are more likely to work on the systems track. Also, the systems track may provide more professional satisfaction and rewards than the technology track. Our findings present some evidence that taking additional AIS courses and obtaining an MBA degree could assist students wanting to pursue careers involving systems track activities. Schools should consider these findings in light of their missions as they evaluate curriculum and AIS course content decisions.

For example, faculty may wish to modify some existing accounting courses and/or add new required or elective courses. Perhaps an understanding of the two AIS tracks will provide a better basis for advising accounting students on which IS courses they should take as electives, or if they should obtain an IS minor or double major.

The current basic AIS course, with its emphasis on transaction cycles and controls, remains an important foundation. But students with an interest in working on an AIS track and a desire to increase their human capital should look beyond traditional accounting topics. Students may choose to take courses in the IS department, particularly if they have an aptitude for the technology track. In IS, they could pursue courses such as Database Design, and Internet Computing. On the other hand, to position themselves to advance along the systems track, students could consider Analysis and Design (using Computer-Aided Software Engineering tools), Management of Information Systems, or Telecommunications and Networking. Graduate or undergraduate programs can be designed with these objectives in mind.

Depending on faculty skill sets, some accounting departments may choose to strategically review their mission and learning objectives, perhaps adding an advanced AIS course emphasizing systems track topics. Our analysis of AIS use in the accounting profession should provide assistance to accounting programs reviewing their coverage of AIS topics.

One limitation of this study is that we did not ask whether respondents' AIS courses were taken at the graduate or undergraduate level. However, even after controlling for the number of AIS classes taken, we found significant differences between students with an MBA degree and those with only an undergraduate degree for technology and systems track use. APPENDIX What is the year of your most BA/BS or MBA/Masters in recent degree? -- Accountancy or Other In college, how many accounting information systems courses did you take? 0 1 2 more than 2 (<--please circle-->) Your gender: M F If you are a CPA in public practice, please circle the area in which your work is concentrated? Assurance services Tax Management No concentration advisory services If you are not in public practice, please circle whether you are in Private industry Not-for-profit Other In the past 12 months, how In 5 years, for one in your frequently have you performed the position, do you expect that following activities? frequency to-- (Please circle) (Please circle) Working with electronic spreadsheets Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Working with word processors Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Working with tax software Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Designing or assessing controls Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Designing, or modifying the design of, an accounting system Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Preparing or interpreting flowcharts Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Preparing or interpreting data flow diagrams Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Preparing or interpreting record layouts of files, or data dictionaries, to design or to document files or databases Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Preparing or interpreting data models (abstract representations of a data base) In addition to the frequency, please circle the model(s): enterprise diagrams, REA models, entity-relationship, or data structure diagrams. Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all In the past 12 months, how In 5 years, for one in your frequently have you performed the position, do you expect that following activities? frequency to--(Please circle) (Please circle) Preparing or interpreting other forms of systems documentation? Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Please specify the form -- Using a relational data base system Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Using or designing a decision support system Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Using or designing an expert system (or other artificial intelligence system) Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Participating in the design of a computer network Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Using human information processing concepts to design reports Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Managing system development projects Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Coding in a programming language? Daily Weekly Monthly Increase Decrease Stay the same Quarterly Not at all Please specify the language -- Are other important accounting information systems topics, which should be emphasized in college, not mentioned above? Please describe:

REFERENCES

Albrecht, W.S. & R. J. Sack. (2000). Accounting education: Charting the course through a perilous future, Accounting Education Series, No. 16.

American Accounting Association. (1986). Committee on the Future Structure, Content, and Scope of Accounting Education (The Bedford Committee), Future accounting education: Preparing for the expanding profession, Issues in Accounting Education, Spring, 168-195.

American Institute of Certified Public Accountants. (1999). AICPA Core Competency Framework for Entry into the Accounting Profession. www.aicpa.org.

Borthick, A. F. (1996). Helping accountants learn to get the information managers want: The role of the accounting information systems course. Journal of Information Systems, Fall, 75-85.

California Employment Development Department. (1995). California Occupational Guide Number 541. www.calmis.cahwnet.gov/file/compusys.htm.

Foster, B. P., J. N. Karcher & A. S. Levitan. (2001). CPAs' use of accounting information systems tools. The Review of Business Information Systems, 5(3), 7-16.

Groomer, S. M. & U. S. Murthy. (1996). An empirical analysis of the accounting information systems course. Journal of Information Systems, Fall, 103-127.

Reckers, P.M.J. & L.M. Solomon. (2002). The state of accounting curriculum: Where it is and where it needs to be. Working paper. Arizona State University.

Robert Half International. (2001). Next Generation Accountant. www.nextgenaccountant.com.

Benjamin P. Foster, University of Louisville

Alan S. Levitan, University of Louisville

Julia N. Karcher, University of Louisville Table 1: Demographic Information Gender Employment Area Female 43 26% Public 106 54% Male 125 74% Private 92 46% Total 168 Total 198 Degree Type AIS Courses Bachelor 130 66% 0 46 23% MBA 49 25% 1 66 34% Other 17 9% 200% 50 25% Total 196 3 or more 36 18% Total 198 CPA Service Specialization Tax 51 48% Assurance Service 29 27% No Specialization 17 16% MAS 5 5% Double Specialization 4 4% Total 106 Table 2: AIS Application or Task Application Tool or Task Percent Usage Electronic Spreadsheets 98% Word Processor 98% Assessing Controls 71% Designing or Modifying the Design of an Accounting System 67% Tax Software 61% Using a Relational Data Base System 41% Preparing or Interpreting Flowcharts 40% Preparing or Interpreting Data Flow Diagrams 40% Participating in the Design of a Computer Network 69% Preparing or Interpreting Record Layouts or Data Dictionaries 30% Managing System Development Projects 27% Preparing or Interpreting Other Forms of Systems Documentation 24% Using Human Information Processing Concepts to Design Reports 23% Using or Designing a Decision Support System 21% Preparing or Interpreting Data Models 14% Using or Designing an Expert System 8% Coding in a Programming Language 4% Table 3: Factor analysis results Varimax Rotation Factor Pattern Factor 1 Factor 2 Factor 3 Systems Technology Common Designing Acct. Sys. 0.57880 * 0.11686 0.30362 Preparing Sys. Doc. 0.63903 * 0.27168 0.20344 Dec. Support Sys. 0.61482 * 0.24976 0.14873 Design of Comp. Network 0.69402 * 0.04074 -0.14799 HIP Report Design 0.60996 * 0.04405 0.14302 Sys. Dev. Projects 0.70601* 0.30759 0.00634 Preparing Flowcharts -0.03128 0.61887 * 0.56225 Preparing Data Flow Diag. 0.07777 0.74953 * 0.42589 Record Layouts/Data Dicts. 0.10492 0.73216 * 0.05886 Preparing Data Models 0.19970 0.72972 * -0.12682 Relational Data Base Sys. 0.33206 0.50027 * 0.13951 Coding in Programming Lang. 0.29954 0.51642 * -0.16289 Electronic Spreadsheet 0.09076 0.02608 0.58148 * Word Processors -0.08626 0.09455 0.55521 * Assessing Controls 0.38073 0.00624 0.61835 * Tax Software -0.17511 0.00325 -0.43323 Expert Systems 0.37196 0.34819 0.18305 * Variable loads on this factor. Table 4: Applications and Tasks Associated With Each AIS Factor SYSTEMS TECHNOLOGY 1. Designing, or modifying the 1. Preparing or interpreting design of, an accounting system flowcharts 2. Preparing or interpreting other 2. Preparing or interpreting data forms of systems documentation flow diagrams 3. Using or designing a decision 3. Preparing or interpreting support system record layouts of files, or data dictionaries, to design or document files or databases 4. Participating in the design of 4. Preparing or interpreting data a computer network models 5. Using human information 5. Using a relational database processing concepts to design system reports 6. Managing system development 6. Coding in a programming projects language Table 5: Means and Standard Deviations of Systems and Technology Variables for Subgroups of CPAs Systems Technology Stand. Stand. Mean Dev. Mean Dev. Panel A AIS Courses 0 1.403 0.432 1.576 .748 1 1.500 0.752 1.456 .556 2 1.656 0.685 1.500 .586 > 3 1.746 0.792 1.707 .881 Panel B Degree Bachelor's 1.460 0.569 1.465 .597 MBA 1.772 0.799 1.660 .705 Panel C Employment Public Acct.-all 1.394 0.487 1.432 .603 Public Acct.-nontax 1.467 0.559 1.603 .724 Other 1.771 0.820 1.684 .747