The effect of the level of accounting degree obtained on recruiters' perceptions of accounting graduates.

Metrejean, Eddie ; Metrejean, Cheryl T. ; Stocks, Morris H. 等

ABSTRACT

Most states have a 150-hour coursework requirement to qualify to take the CPA exam or become licensed, but the requirements do not mandate a master's degree. Students planning to take the CPA exam must obtain additional hours by taking more courses, but not all students pursue a master's degree.

This study is divided into two phases. The first phase examines whether recruiters of accounting graduates pursue a student receiving a master's degree more aggressively than a student receiving a bachelor's degree. The results show no difference in how actively a graduate is recruited based on the level of degree obtained. The second phase examines the relative importance that recruiters place on certain characteristics of the recruit. The results show that recruiters feel that a master's degree is not important, but communication skills and computer skills are important.

Master's degree programs need revision to make them valuable to recruiters, and accounting programs need to broaden the goals of their curricula. The results provide useful information to administrators who are making changes to their curricula because of the 150-hour requirement. The results also provide students and companies that plan to hire accounting graduates with useful information to plan their education and recruiting tactics, respectively.

INTRODUCTION

For several years, individuals in many states have been required to earn 150 semester hours of coursework to qualify to take the CPA exam or for licensure. This 150-hour requirement has been hotly debated almost since its inception. Supporters of the 150-hour requirement argue that new accounting hires should perform their jobs better if they are required to take the extra courses before beginning their careers. By performing their jobs better, the public will be better served (Nelson, 1991). Detractors feel that some accounting students may not be willing to forego employment for another year of college (Bernard, 1996). Anecdotal evidence from accounting students at a regional university in the southeastern U.S. indicates that starting salaries for students with a bachelor's degree are not much lower than for students with a master's degree, so students might not feel that spending another year in school is worth the small reward. Either way, the 150-hour requirement is probably here to stay in most of the jurisdictions that currently have such a requirement.

This study examines whether recruiters of accounting students perceive a difference between students who graduate with 150 hours of credit and a bachelor's degree in accounting and those who graduate with a master's degree in accounting. Prior studies regarding graduate versus undergraduate hours in accounting seem to have contradicting results. Clarifying previous results will provide useful information to administrators who plan to make changes to their curricula because of the 150-hour requirement and recent criticisms of accounting education. This study also examines the relative importance of certain characteristics of accounting graduates to recruiters. These results will provide useful information to students who plan to major in accounting and to potential employers who plan to hire accounting graduates.

According to the American Institute of Certified Public Accountants (AICPA), the purpose of requiring students to have 150 semester hours of coursework is to improve the overall quality of the work performed by CPAs (AICPA, 1999). The 150-hour requirement is one of three initiatives (the 150-hour requirement, continuing professional education (CPE) and peer review) started by the AICPA to ensure future quality of the work performed by CPAs. CPAs in today's business environment are confronted with advancing technology, an increasingly complex business environment, and a continuous demand for accounting and assurance services. In many cases, the services that society wants require specialization, technical knowledge, and general knowledge of how businesses work. To acquire the requisite knowledge, the AICPA recommends that students should take a minimum of 24 hours each of accounting and other business courses. The remainder of the hours should be as diverse as possible so that students receive the most well rounded education possible (AICPA, 1999).

The argument for requiring accounting students to have 150 semester hours of coursework certainly has its merits, but should the additional 30 hours of courses be at the graduate or undergraduate level? Some supporters of the 150-hour requirement suggest that the additional hours should be graduate hours, but currently, no jurisdictions require graduate hours.

PRIOR RESEARCH

The 150-hour requirement is not a new issue. The accounting profession first envisioned such a requirement in the 1950s, and the topic has been debated ever since. Table 1 shows a brief history of the 150-hour requirement. The 150-hour requirement progressed slowly at first, but since the late 1980s, most jurisdictions have passed legislation that requires candidates for the CPA exam to have 150 semester hours of coursework. Currently, 47 of the 54 licensing jurisdictions (87%), which include the 50 states plus Guam, Puerto Rico, the U.S. Virgin Islands, and Washington, D.C., have such a requirement in place. Also, New York has passed legislation that includes a 150-hour requirement that will go into effect in the 2009 (AICPA, 2005a).

In the late 1980s and early 1990s, the accounting profession began examining the state of accounting education. In 1990, The Accounting Education Change Commission (AECC) reported that accounting programs were not keeping up with the pace and requirements of the accounting profession. Other studies (for example, Nelson, 1991; Novin et al., 1997; Albrecht and Sack, 2000) support this finding. Albrecht and Sack (2000) argue that the 150-hour requirement was designed to address certain areas missing from accounting curricula, such as communication, problem solving and critical thinking skills, but in many cases, accounting programs have simply added more technical instruction to their curricula.

The AECC (1990) suggested that an accounting education should have three components: skills, knowledge, and professional orientation. Accounting graduates should be able to communicate effectively, think critically, provide leadership and work in groups, possess technical accounting knowledge and general analytical skills, and address professional issues with integrity, competence, and concern for the public interest. Presumably, requiring accounting students to obtain 150 semester hours of coursework would allow them to develop these desired characteristics. Klein and Levy (1993) found that firms expect new hires with 150 hours of coursework to be better prepared than those with fewer hours of coursework.

The importance of accounting to the business world and the diversity of accounting programs have been factors in determining whether students should be required to obtain 150 semester hours of coursework. The AICPA has been at the forefront of this effort. In 1988, AICPA members voted to make such a requirement mandatory after January 1, 2000. What the AICPA does not mandate is whether the additional hours should be at the graduate or undergraduate level. Donelan and Philipich (2001) found that although the 150-hour requirement does not specify the type of degree to be obtained, a graduate degree was the most popular means of getting 150 credit hours. However, not all accounting programs offer graduate degrees. Offering only a five-year bachelor's degree could certainly affect enrollment in such programs if a graduate degree is the preferred path to becoming a CPA.

Many schools have revised their accounting curricula to reflect the additional required hours. However, according to Nelson (1991) and Sage and Sage (1990), these revisions should not eliminate a four-year bachelor's degree for students who plan to work as management accountants or who do not want to take the CPA exam. Klein and Levy (1993) found that while large CPA firms prefer the 150 hour requirement, small firms fear that they will not be able to afford accounting students who obtain master's degrees. However, the anecdotal evidence from accounting students mentioned above indicates that small firms are still competing with larger firms on the basis of salaries. Some practitioners also feel that 150 hours of courses is better than four years of courses and a two-year apprenticeship or even a master's degree (Reinstein et al., 2000). These practitioners do not appear to be sold on the idea that all accounting students should obtain a master's degree. CPAs are also evenly split in terms of their perceptions of overall satisfaction with the 150-hour requirement and whether the additional coursework improves the services offered by CPAs (Leinicke et al., 1992).

On the other hand, CPA candidates who worked for Big Five (at the time) CPA firms were more likely to have completed graduate degrees, so the bigger firms appear to prefer new hires with master's degrees (Donelan and Philipich, 2001). However, a survey completed by the Illinois CPA Society and Illinois College found that 95 percent of Illinois' largest CPA firms would continue to hire graduates with only bachelor's degrees (Illinois Survey and Forum, 2000). In a study that examined the perceptions of recruiters in industry, Wilder and Stocks (2004) found that recruiters for entry-level accounting positions preferred a BBA in accounting to an MBA. While this study examined the perceptions of recruiters for jobs in industry, it still points to the fact that many recruiters may not perceive that a graduate degree is necessary.

An interesting aspect of this discussion is the perception of students, who are most directly affected by the 150-hour requirement. Antenucci and Heal (1999) found that accounting students do believe that the 150-hour requirement will help them in passing the CPA exam and will improve their careers in the long run. CPA firms in their study expressed only lukewarm support for a master's degree versus additional bachelor's hours, but educators in their study stressed master's degrees. Students in their study stated that they preferred more undergraduate hours to meet the 150-hour requirement, but they contradicted themselves by stating that their preferences for degrees were a Master's in Accountancy, an MBA, and a five-year bachelor's degree, respectively. Donelan and Philipich (2001) observed that new accountants who met the 150-hour requirement through bachelor's degrees were less satisfied with their accounting education than new accountants who had master's degrees. Donelan (1999) found that in Tennessee, 57 percent of CPA exam candidates had obtained graduate degrees. Interestingly, of the candidates who did not obtain graduate degrees, over ten percent attended universities that offered graduate degrees. Results from the student's perspectives are mixed at best.

The present study is designed to address these issues and is divided into 2 phases. The first phase attempts to clarify the contradicting results of previous studies by investigating whether recruiters of new accounting graduates feel that there is a difference in the attractiveness of students who obtain master's versus five-year bachelor's degrees. Accordingly, this study tests the following research hypothesis, stated in the alternative:

Hypothesis: The level of degree obtained (master's versus five-year bachelor's) affects recruiters' perceptions of how actively accounting graduates will be recruited.

The second phase of the study attempts to confirm the results of this hypothesis by asking subjects to consider the importance of several characteristics that a recent accounting graduate should possess. This phase of the study also attempts to confirm the results observed by Hardin and Stocks (1995) regarding the characteristics that employers of accounting graduates feel are necessary. Specifically, this phase attempts to confirm that communication skills, both accounting and overall grade point averages (GPA), and compatible career aspirations are important criteria to recruiters while university reputation, AACSB accreditation and willingness to travel were much less so.

The characteristics in the second phase are expanded to include computer skills and qualification to take the CPA exam, which are two criteria mentioned in the research by Albrecht and Sack (2000). Technology has drastically changed our profession, and practitioners are consistently indicating that certain technology skills are critical in our curricula (Albrecht and Sack, 2000). Clearly, the importance of computer skills to potential accounting employers has increased over the past several years. This study attempts to confirm these prior research findings by including the computer skills as a characteristic in phase two.

The second characteristic added is qualification to take the CPA exam. Albrecht and Sack (2000) repeatedly stress that accounting education is not appropriate because it contains too much technical accounting content and not enough skill development. The CPA exam traditionally covered technical accounting content, but the computerization of the exam has also allowed the testing of other skills such as those mentioned by Albrecht and Sack (2000). If the accounting content has lost value, the CPA exam and brand may have also lost value with recruiters. Albrecht and Sack (2000) cite a loss in value of the CPA brand as one of the reasons that practitioners and educators would not major in accounting if they were to start their education again. The addition of the CPA qualification characteristic is designed to test the importance of future certification to recruiters.

RESEARCH METHODOLOGY

Phase One

To test the hypothesis, a research instrument was mailed to subjects drawn from two pools: recruiters for CPA firms and recruiters for companies in industry. The recruiters were asked to evaluate a potential recruit who had recently been interviewed by the respondent. The requested response was a numerical rating indicating how actively the respondent would recruit the hypothetical student. The subjects were also asked to provide data regarding the type and size of the firm for which they worked and the number of accounting professionals employed.

The research instrument for the first phase of the study was a one-page document with several characteristics of a hypothetical entry-level accounting recruit. The instrument is adapted from the Hardin and Stocks (1995) study with a few items modified to address the research questions in this study. The subjects were asked to assume that they were recruiting to hire an entry-level accountant to fill a position in their firm. They were also asked to assume that the hypothetical recruit described on the instrument had been interviewed briefly by the recruiter and that the recruiter had read the student's resume and had taken notes during the interview.

The main portion of this research instrument contained descriptions of nine characteristics of the hypothetical student. The research instruments for the first phase of the study are included in Appendices 1 and 2. The characteristics included on the research instrument were developed in previous literature examining the factors that recruiters feel are most important in their new hires (for example, Hardin and Stocks, 1995; Seigel, 2000; Baker and McGregor, 2000; Siegel and Sorensen, 1994; Palmer et al., 1997; Dinius and Rogow, 1988; Johnson and Johnson, 1995; Lau and Rans, 1993). The characteristic regarding the final degree that the hypothetical student would obtain upon completion of coursework was added as the primary manipulation in the research instrument. For one treatment, the item stated that the student is currently in an accounting program that grants a bachelor's degree after five years of coursework and will be qualified take the CPA exam upon graduation. The other treatment stated that the student is currently in an accounting program that grants a master's degree after five years of coursework and will be qualified to take the CPA exam upon graduation. In other words, the research instruments were identical except for the level of degree obtained by the hypothetical student. The different versions of this item allowed the examination of whether the subjects perceived a difference in an accounting student who obtained a bachelor's degree versus a master's degree, each with the five years of coursework.

After reading the nine characteristics of the hypothetical student, the subjects were asked to rate how actively they would recruit the student by placing an "X" on a scale of zero to 100. The scale was shown on a line containing a scale with the numbers one through ten placed every ten dashes as points of reference. A rating of zero indicated that the subject would not recruit the hypothetical student very actively; a rating of 100 indicated that the subject would recruit the hypothetical student very actively. Once the rating task was completed, the research instrument asked the subjects to complete information regarding their firms and accounting employees.

As stated above, subjects for this study consisted of recruiters from CPA firms and from companies in industry. One hundred CPA firms were chosen at random from the membership lists of the state CPA societies or from the licensee lists from the state boards of accountancy for Alabama, Arkansas, Louisiana, Mississippi, and Tennessee. In addition, 100 businesses were chosen at random from the listings in Ward's Business Directory for each of the same five states. Thus, our sample consisted of 500 public accounting subjects and 500 business subjects.

Each pool of 500 subjects was then randomly assigned to three groups so that each group consisted of approximately 1/2 public accounting subjects and 1/2 business subjects. Each of the two groups used in the first phase contained 333 subjects (approximately 166 public and 166 private) and the remaining group used in the second phase contained 334 subjects (167 public and 167 private). Members of one group received the Phase One instrument that included the bachelor's degree student, members of another group received the Phase One instrument that included the masters' degree student, and members of the remaining group received the Phase Two instrument. Each of the subjects received only one instrument. For both the CPA firms and the other businesses, the research instrument was mailed to the attention of the recruiter. For this phase, 666 total instruments were mailed to the CPA firms and businesses. Of those, 184 (27.6%) completed instruments were returned.

Descriptive statistics for the respondents of both phases are presented in Table 2. CPA firm recruiters were asked to indicate the size of the firm and whether they believed their firm to be local, regional or national. Businesses recruiters were asked to indicate whether their companies were small or medium sized or large. The instruments sent to business recruiters included a definition to help them determine the appropriate size in a consistent manner. Specifically, the instrument used the Small Business Administration's (SBA) definition of a small or medium sized business as one with fewer than 500 employees.

The majority of responses were from local CPA firms and small or medium sized companies for both phases. The average number of accountants working for the firm or company varied greatly. Specifically, the average number of accountants for the CPA firms in Phase One of the study was much larger than for CPA firms in Phase Two and for the companies. This is explained by the inclusion of 6 responses from national firms. The number of accountants reported by the national firm respondents ranged from 65 to 103,000. The highest number seems unlikely and may be reporting the number of employees rather than the number of accountants. Trimming the mean by removing the highest number (103,000) decreased the mean number of accountants for this group to 1,427, which is still quite large.

The public accounting respondents for both phases overwhelmingly represent local firms, with no representation from national firms in Phase Two. However, according to the AICPA (2005b), 53,760 students graduated with a bachelor's or master's degree during the 2003-2004 academic year. Of those who graduated in that year, 19,705 (36.7%) were hired by public accounting firms. Firms with fewer than 50 AICPA members (presumably local firms) hired 11,500 (58.4%) of those graduates. Fifty-eight percent of accounting graduates hired by public accounting firms, or 21.4 percent of all accounting graduates, were hired by public firms with fewer than 50 AICPA members (AICPA, 2005b). Thus, the fact that most responses to the study came from local firms should not be problematic and appears in line with trends in public accounting.

The research hypothesis was tested by comparing the respondents' ratings on the hypothetical student. Table 3 shows the results of t-tests of the average ratings by degree. The results show that the differences in the average ratings by degree obtained are not statistically significant, so the level of degree obtained does not appear to be a factor in recruiters' ratings. Therefore, the research hypothesis is not supported. The level of degree obtained was expected to be less important to the recruiters from companies, but an analysis of ratings by type of firm does not support this expectation either. The responses were also analyzed to see if the hypothetical student was rated differently by large or small firms, but no significant differences were noted.

Phase Two

For the second phase the subjects were asked to rate the importance of each of the criteria used in the first phase. The research instrument was a one-page document that asked the subjects to rate ten characteristics on their importance in the recruiting process. Such a rating should indicate what characteristics of accounting graduates the recruiters look for in their new hires. Seven of these characteristics were taken from the research instrument from the Hardin and Stocks (1995) study. The characteristic regarding computer proficiency was added as described above. A characteristic stating that an applicant was qualified take the CPA exam was added to determine the extent to which employers of accounting graduates expect their accountants to become CPAs. Being qualified to take the CPA exam was included in the item with the type of degree manipulation on the research instrument for the first phase; it was not included separately because it may have confounded the results in that phase. Finally, a characteristic regarding a master's degree was added to confirm the results from the first phase of the study. The research instrument for the second phase of the study is included in Appendix 3.

Subjects were asked to allocate 100 points among the ten characteristics. The subjects were asked to assign zero points to the five items that they felt were the least important. The subjects were to then allocate 100 points among the remaining five characteristics based on their relative importance. In employment decisions, forced choice data collection procedures result in higher validities than other formats (Bernardin and Beatty, 1984) and follow the methodology used by Lewis et al. (1983). Again, the research instrument asked the subjects to complete information regarding their firms or companies and accounting employees.

A total of 334 research instruments were mailed to CPA firm and business recruiters, as described above. Of these, 85 (25.2%) completed instruments were returned.

Table 4 indicates that the most important factors, as rated by subjects, are communication skills and computer skills. The other characteristics that are included in the "Top 5" are accounting GPA, overall GPA, and compatible career aspirations. The characteristics included in the "Top 5" are the same when analyzed by type of firm. As expected, these results are consistent with prior research, specifically Hardin and Stocks (1995).

The recruiters feel that computer skills are very important for new hires. As discussed above, technology and computer skills are increasingly important in today's business environment, and smaller firms, which are the makeup of the respondents in this study, are less likely to have a training environment and facilities available and may be unwilling to invest in such training if the skills can be "purchased" in the hiring process.

The recruiters do not indicate that a student's qualification to take the CPA exam is an important attribute in the hiring decision. The degree of this result, though, was a startling finding. One possibility is that the results are characteristic of the overwhelming number of small firms in the sample. Smaller firms may be less concerned with this characteristic because they assume that recruits who are not prepared for the CPA exam can be hired for less money than those who hope to become licensed. Alternatively, the firms may be assuming that the students are already qualified to take the exam and are discounting that item, as discussed below.

The ratings were then analyzed by separating them according to type of recruiter. Public accounting firms are expected to value different characteristics than private firms, particularly with respect to the CPA exam characteristic, even though the overall rating for this characteristic was surprisingly low. The results indicate that the only differences in ratings between CPA firm and company recruiters were for the AACSB school, computer skills, and CPA exam characteristics. As expected, the public accounting firms rated the CPA exam characteristic as being significantly more important than the private firms did (at p<0.10), but the rating by public accounting firms is still quite low. This may reflect the profession's acceptance of the standard attrition rate from public accounting, an expectation that the recruit will continue his or her education after employment to qualify take the CPA exam, or the decline in value of the CPA brand suggested by Albrecht and Sack (2000).

A comment from a large firm recruiter received after a presentation of this paper at a national conference may provide a more encouraging explanation for this result. According to this recruiter, if students will not be qualified to sit for the CPA exam upon graduation, they may not even be interviewed. If the students are interviewed, the firm will not pursue the candidates past that point if they do not plan to pursue CPA licensure. Recruiters in our study may have assumed that the hypothetical student was qualified to sit for the exam since the recruit had passed an initial screening to be selected for interview. In addition, other items on the form indicated that a student was completing 150 hours by graduation. Recruiters in the study may have thought the CPA exam item referred to other qualifications to sit for the exam, such as a residency requirement.

The results in the second phase of the study provide further support for the results in the first phase. The master's degree characteristic received the lowest average score. These results should be alarming to accounting academics involved in developing and administering master's degree programs. If accounting faculty want to continue selling these programs as more valuable than other routes to the 150 hour requirement, re-evaluation and change are necessary. Graduate work is generally more difficult than undergraduate elective-type classes that can also be used to fulfill the requirement. The extra effort and additional year must be perceived as valuable, or we risk losing students in our graduate programs.

Other characteristics that are unimportant to recruiters are graduation from an AACSB accredited institution, willingness to travel, and graduation from a well-respected accounting program. These results are consistent with Hardin and Stocks (1995).

Companies rated both AACSB school and computer skills significantly higher than public accounting firms (at p < 0.01), although the company ratings for AACSB school were still quite low. The higher rating for computer skills by companies may indicate that these firms have fewer computer training opportunities available for employees and would rather hire candidates who are already trained and avoid the training investment.

Table 5 reports the frequency distributions of the ratings for the three new characteristics being directly tested in this study. The distributions in that table provide additional support for the results above. More than 90 percent of recruiters gave the master's degree characteristics a rating of zero, indicating that that they do not consider a master's degree to be one of the most important characteristics for a new hire. Only seven percent of the respondents indicate that computer skills are not important, while over 45 percent gave that characteristic a rating of greater than 20. Finally, 47 percent of respondents gave qualification to take the CPA exam a rating of zero. Again, there may have been some confounding reasons, as discussed above, why recruiters gave this characteristic such a low rating.

OBSERVATIONS, LIMITATIONS AND CONCLUSION

This study examines the perceptions that recruiters have regarding levels of accounting degrees by examining whether recruiters would pursue a candidate differently if the candidate has a master's degree or a bachelor's degree assuming that both degrees contain the required coursework to take the CPA exam. The study also examines what characteristics, adapted from previous studies, are important to recruiters. The study adds three new characteristics to the existing literature: level of degree, computer skills, and qualification to take the CPA exam. The results of the study show that recruiters do not perceive a difference in a recruit with a master's degree versus a recruit with a five-year bachelor's degree. Perhaps with the shortage of accounting graduates in the post-Sarbanes-Oxley era, firms are more willing to hire almost any competent graduate that will work for them, so the degree that the graduates obtain may not matter to the firms. The results also show that computer skills are highly valued by recruiters, but qualification to take the CPA exam is not highly valued.

This study is limited by the self-selection bias inherent in any survey methodology. Those who did not return the surveys may rate these characteristics differently than our sample. Also, our sample is comprised mainly of small firms, both public accounting and businesses, and the sample for the second phase contains no large national firms. This fact may limit the external validity of the results because larger firms may value different characteristics than smaller firms. Future research could specifically target those large CPA firms to determine if their responses would be different from those reported here.

The sample was also drawn from 5 southern states. However, no reason exists to suspect that recruiters in other areas of the country would rate characteristics differently than those in our study, but these results may not extend to other geographic areas.

The research instrument also did not specify what type of master's degree was being obtained. It is possible that some recruiters were unsure of whether the graduate degree being pursued was a Master of Accounting (MAcc) or a Master of Business Administration (MBA). This study did not investigate whether recruiters perceive a difference in the value of a MAcc versus an MBA (See Wilder and Stocks (2004) for such a study.). If recruiters do perceive a difference, our results may be affected by the recruiters' assumption of which degree was being obtained. Future studies in this area should clearly specify which degree is being sought or seek to determine if recruiters value the two degrees differently.

This study was designed to address the value of a master's degree vs. a bachelor's degree with extra hours to reach the 150-hour requirement. Future research could attempt to determine whether recruiters or employers feel that the additional hours are a worthwhile investment in our profession.

Accounting academics have been re-evaluating the education we provide students for several years. Albrecht and Sack (2000) made strong statements about the problems with accounting education and the degree of change that is needed. The methodology in the current study is different from Albrecht and Sack's but tests several of their conclusions. The results confirm that graduate accounting education is not meeting the needs of recruiters and employers. Master's degrees are not perceived to be as important to recruiters nor as valuable to students as accounting educators would like to believe, while computer and communication skills are. The academic community must reevaluate its programs, both graduate and undergraduate. A focus on content-based education geared toward the CPA exam is perhaps no longer valuable. If master's degrees in accounting are to survive as a preparation tool for future accountants, we must work to ensure that these programs add value that recruiters and employers appreciate.

The study may also have implications for those responsible for defining the requirements to take the CPA exam. The original proposals and discussion of the 150-hour requirement indicate that the perceived benefit was in students gaining more relevant knowledge. The AICPA and state societies may want to work with recruiters and employers to define what additional skills and knowledge should be included in the additional hours. Requirements should be more specific regarding what accounting programs should be providing for their students. If graduate degree requirements for all candidates are not feasible for all schools to offer, a requirement that students have at least some graduate hours could help to address the education needs while still offering varied educational opportunities for students.

Appendix 1

Assume that your firm is in the process of recruiting an entry-level staff accountant. In the process of your recruiting, you have conducted preliminary interviews at several mid-sized regional universities. At one of these interviews, you have met the student described below.

After briefly speaking with the student and reading the student's resume, you have made the following observations:

The student is 23 years old with a professional appearance and presence.

The student has expressed a willingness to travel.

The student's grade point average in accounting courses is 3.75 on a 4.0 scale.

The student is currently in an accounting program that grants a bachelor's degree after five years of coursework and will be qualified take the CPA exam upon graduation.

The accounting program in which the student is enrolled is well respected in the business community and has an above average academic reputation.

The student is proficient in several common microcomputer applications such as spreadsheets, word processors, and databases.

The student has expressed career aspirations that are compatible with your firm.

The student's grade point average in all courses attempted is 3.7 on a 4.0 scale.

The student has demonstrated excellent communication skills.

HOW ACTIVELY WOULD YOU RECRUIT THIS STUDENT?

Not very actively Very actively

0--1--2--3--4--5--6--7--8--9--10

PLEASE INDICATE YOUR ANSWER (ON A 0-100 SCALE) BY PLACING AN "X" ON THE ABOVE LINE.

Please classify your firm as:

--Local

--Regional

--National

Please indicate the number of accounting professionals in your firm.--

Appendix 2

Assume that your firm is in the process of recruiting an entry-level staff accountant. In the process of your recruiting, you have conducted preliminary interviews at several mid-sized regional universities. At one of these interviews, you have met the student described below.

After briefly speaking with the student and reading the student's resume, you have made the following observations:

The student is 23 years old with a professional appearance and presence.

The student has expressed a willingness to travel.

The student's grade point average in accounting courses is 3.75 on a 4.0 scale.

The student is currently in an accounting program that grants a master's degree after five years of coursework and will be qualified take the CPA exam upon graduation.

The accounting program in which the student is enrolled is well respected in the business community and has an above average academic reputation.

The student is proficient in several common microcomputer applications such as spreadsheets, word processors, and databases.

The student has expressed career aspirations that are compatible with your firm.

The student's grade point average in all courses attempted is 3.7 on a 4.0 scale.

The student has demonstrated excellent communication skills.

HOW ACTIVELY WOULD YOU RECRUIT THIS STUDENT?

Not very actively Very actively

0--1--2--3--4--5--6--7--8--9--10

PLEASE INDICATE YOUR ANSWER (ON A 0-100 SCALE) BY PLACING AN "X' ON THE ABOVE LINE.

Please classify your firm as:

--Local

--Regional

--National

Please indicate the number of accounting professionals in your firm.--

Appendix 3

The following is a list of attributes that are commonly sought in entry-level staff accountants. 1. Place a zero (0) in the blank for the five (5) attributes that you feel are not important in entry-level staff accountants.

2. Allocate 100 points among the five (5) attributes that, in your opinion, are the most important. The more important an attribute, the more points you should assign.

-- Willingness to travel

-- Career aspirations that are compatible with your firm

-- Oral and written communication skills

-- Grade point average in accounting courses

-- Overall grade point average in all classes attempted

-- Accounting program that grants a master's degree after five years of coursework

-- Accounting program is well respected in the business community and has an above average academic reputation

-- Accounting program is accredited by the American Assembly of Collegiate Schools of Business

-- Proficiency in microcomputer applications such as spreadsheets, word processors, and databases

-- Qualified to sit for the CPA exam upon graduation

100 TOTAL

Please classify your firm as:

-- Local

-- Regional

-- National

Please indicate the number of accounting professionals in your firm. --

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Eddie Metrejean, Georgia Southern University

Cheryl T. Metrejean, Georgia Southern University

Morris H. Stocks, University of Mississippi Table 1.: A Brief History of the 150 Hour Requirement 1959 The AICPA published Special Coordinating Committee to Study the Report of the AICPA Commission on Standards of Education and Experience for CPAs, which embraced a policy that a post baccalaureate education was important and should be adopted as a requirement for becoming a CPA. 1967 Horizons of a Profession, published by the AICPA, defined a body of knowledge that accountants should possess and suggested that accounting students should have a graduate degree to prepare them for their careers. 1969 The AICPA stated that a CPA certificate is evidence of basic competence in the body of knowledge common to all members of the accounting profession. The AICPA also stated that five years of college were needed to obtain that competence and should be the educational requirement for obtaining a CPA certificate. 1978 In Education Requirements for Entry into the Accounting Profession, the AICPA Council reaffirmed its support for five years of college and endorsed 150 semester hours as the minimum education requirement to take the CPA exam. The AICPA further said that the 150 hours should lead to a graduate degree. 1981 The AICPA Board of Directors authorized the appointment of a study group, the Commission on Professional Accounting Education, to gather evidence and suggest strategies to move accounting programs from four-year bachelor's degree to five-year graduate degree requirements. 1983 Florida became the first state to require applicants to have 150 semester hours of education to obtain a CPA license. 1986 The American Accounting Association issued its Bedford Report that concluded that the emphasis in education should be to teach students to learn and that accounting education should be increased from four to five years. 1987 The AICPA Council approved the Plan to Restructure Professional Standards, which included a provision that new members after the year 2000 have 150 hours of education. 1988 The general membership of the AICPA approved the change with 83 percent of the vote in favor of the 150-hour requirement. 1989 The Big Eight accounting firms issued Perspectives on Education: Capabilities for Success in the Accounting Profession (the so called White Paper) which said that to effectively meet the challenges of the business world, practitioners should develop a wide range of professional skills. This report led to the formation of the Accounting Education Change Commission. 1990s More and more states and licensing jurisdictions began -2000s requiring the 150 hour education and requirement for CPA licensure. Source: Background Information on the 150-Hour Education Requirement for CPA Certification and Licensure found at http://www.aicpa.org/members/div/career/150bkg.htm, retrieved October 24, 2003. Table 2: Demographic Statistics for Phase One and Phase Two Phase One Phase Two CPA Firms Local Firms 85 37 Regional Firms 3 7 National Firms 6 0 Mean Number of Accountants 2531.2 * 9.9 Number of Respondents 94 46 Companies Small or Medium-sized Companies 70 27 Large Companies 19 12 Mean Number of Accountants 20.3 26.7 Number of Respondents ** 90 39 Total Number of Respondents 184 85 * This mean includes the responses from one CPA firm that indicated that it had 103,000 accountants, which seems unlikely. By excluding that firm's response, the mean is trimmed to 1,427.2. ** The number of responses categorized by size does not match the total because some respondents did not complete the demographics section of the instruments. Table 3: Rating by Degree Obtained by Recruit and Type of Respondent: Phase One Bachelors Masters p-value Average Rating 76.385 76.632 0.95 Average by Type of Respondent CPA Firms 77.673 75.289 0.69 Companies 75.043 78.071 0.55 Table 4: Mean Weights Assigned for Recruiting Characteristics: Phase Two All Respondents Recruiting Characteristic Mean Rank Travel 2.5 8 Career 8.9 5 Communication 22.1 1 Accounting GPA 16.2 3 Overall GPA 9.6 4 Masters Degree 1.3 10 Respect 5.4 7 AACSB School 2.3 9 Computer Skills 21.7 2 CPA Exam 8.1 6 CPA Firms Recruiting Characteristic Mean Rank Travel 2.2 8 Career 10.6 5 Communication 23.6 1 Accounting GPA 16.2 3 Overall GPA 11.0 4 Masters Degree 1.2 9 Respect 5.7 7 AACSB School 0.5 * 10 Computer Skills 17.5 * 2 CPA Exam 9.7 ** 6 Companies Recruiting Characteristic Mean Rank Travel 2.7 9 Career 7.2 5 Communication 20.8 2 Accounting GPA 16.2 3 Overall GPA 8.2 4 Masters Degree 1.3 10 Respect 5.2 7 AACSB School 4.5 * 8 Computer Skills 26.0 * 1 CPA Exam 6.3 ** 6 * Significant at p<0.01 ** Significant at p<0.10 Table 5: Frequency Distributions of Reported Weight Placed on Recruiting Characteristics by Recruiters: Phase Two Characteristic Weight (Out of 100) Frequency Percent Masters Degree 0 77 90.59 1-10 3 3.53 11-20 4 4.71 > 20 1 1.18 Computer Skills 0 6 7.06 1-10 9 10.59 11-20 31 36.47 > 20 39 45.89 CPA Exam Qualified 0 40 47.06 1-10 18 21.18 11-20 21 24.71 > 20 6 7.06 Characteristic Weight Cumulative Cumulative (Out of 100) Frequency Percent Masters Degree 0 77 90.59 1-10 80 94.12 11-20 84 98.82 > 20 85 100.00 Computer Skills 0 6 7.06 1-10 15 17.65 11-20 46 54.12 > 20 85 100.00 CPA Exam Qualified 0 40 47.06 1-10 58 68.24 11-20 79 92.94 > 20 85 100.00