MEETING OF THE MINDS: Preparing Future Accounting Professionals: Part 2 of 2

CPA Journal, The, Apr 2008

Dialogue Between Practitioners, Educators, and Regulators

Effective August 1, 2009, candidates for CPA licensure in the State of New York will be required to have 150 credit hours of qualifying courses, increased from the previous requirement of 120 hours. Many other states have already implemented this change, approved by the National Association of State Boards of Accountancy (NASBA) as part of the Uniform Accountancy Act (UAA). The new requirement reflects the public's greater expectations of accountants, and the expanded role accountants play in the current business environment.

The different "sides" of the profession-typically taken to be the educator and practitioner communities-have been at odds concerning what accounting students should know, what educators should teach, and whether accounting graduates are adequately prepared for the business world. The CPA Journal editors convened a forum, "Preparing Future Accounting Professionals," moderated by Editor-in-Chief Mary-Jo Kranacher, in November 2007 to bring individuals representing all areas of the profession together to discuss these issues.

The first panel, "How the 150-Hour Requirement Is Affecting the Profession," discussed issues presented by the new requirement The second panel, "How Academics and Practitioners Can Work Together," discussed how to bridge the gap that has traditionally separated accounting education from accounting practice. Each of the panelists represented a specific perspective and was selected for their individual expertise. The following article represents the highlights of the second panel discussion, including the panelists' prepared remarks and a reaction written by an attendee of the event The March 2008 issue (online at www.cpajournal.com) included an article on the first panel discussion.

Panel Discussion: How Academics and Practitioners Can Work Together

We need to creatively address issues such as course format and class schedules.

Charles A. Barragato

An Educator's Perspective

I've had discussions with students at the C.W. Post School of Professional Accountancy at Long Island University, as well as at NYSSCPA events, student nights, mixers, and other functions. Through my involvement in the NYSSCPA and during our campus recruitment events, I've also listened to practitioners about what's going on in the profession, particularly in this transition period.

Students are very concerned about the costs and benefits of the 150-hour requirement. Practitioners are apprehensive about how many students will be coming out of the pipeline after August 1, 2009. Many firms are concerned about the pipeline drying up, in the short term. Some firms are considering ramping up their recruitment efforts-preparing themselves to hire more people to make sure they can service their clients during the transition period.

Some students are considering whether to accelerate their course work so they can earn their bachelor's degree and apply for the CPA exam before the new requirements become effective. This would help them to eliminate one year's worth of education as well as the related cost-a cost they may not be able to afford. Christie Dorsa [see Part 1 in the March 2008 CPA Journal] sees great value to having this additional education as well as an advanced degree. Students who opt to earn their bachelor's degree early and avoid the increased educational requirement may be eligible to sit for the CPA exam, but they'll always be competing with others who have advanced degrees, and that may limit their careers. So their cost/benefit analysis has to focus on the long-term and consider their skill-set on a competitive basis.

As for CPA firms, when they aggressively hire, that provides significant economic incentives to students in the short term. But there will be logistical problems. Educational institutions, for example, will be greatly disadvantaged by their tendency to adapt to change slowly. Because the demand for accounting professionals is already very high, this set of conditions could create a sort of "perfect storm" where the transition period is a real problem. This is documented in states that have already implemented the 150-hour requirement.

If students are concerned about the costs of this additional year of education, and firms want educators to keep the pipeline flowing with candidates, then firms and schools need to address these issues creatively. We need to be sensitive to students' issues, including the costs. That brings us to the structure of an accelerated degree program. Maybe we need to think about fifth-year "bridging" master's degree programs for students after they complete their fourth year of educational requirements, so they can work full time while they're completing their last year. That would also provide an opportunity for firms and students to work together to help finance the educational undertaking. Must students have a four-year bachelor's degree in hand before firms will hire them? This plan needs to include how firms will be affected: Will students who are completing an accelerated program and working part-time or full-time be considered interns, associates, or something else?