Accounting skills and programs needed for the next century as viewed by colleges and universities

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ACCOUNTING SKILLS AND PROGRAMS NEEDED
FOR THE NEXT CENTURY AS VIEWED BY
COLLEGES AND UNIVERSITIES

RALPH W. RUMBLE

A Dissertation Submitted in Partial
Fulfillment of the Requirements
for the Degree of
DOCTOR OF PHILOSOPHY
Department of Educational Administration and Foundations
ILLINOIS STATE UNIVERSITY
1998

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DISSERTATION APPROVED:

Date

Edward R. Hines, Chair

Robert Arnold

Date

^

James E. Moon

7/ 2 /%
Date

*++*/
Kenneth H. Strand

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ACCOUNTING SKILLS AND PROGRAMS NEEDED
FOR THE NEXT CENTURY AS VIEWED BY
COLLEGES AND UNIVERSITIES

Ralph W. Rumble
140 Pages

August 1998

Concerns by the accounting profession about accountants lacking necessary skills
and competencies to meet the demands of a changing society became the basis for the 150semester hour requirement. Through several major studies, the accounting profession
identified areas where accountants lacked necessary skills and competencies to meet the
accounting demands of business. After the year 2000, accounting students must complete
150 semester hours to be eligible to take the CPA examination. The accounting profession
and the Accounting Education Change Commission provided recommendations and models
on how to change accounting programs and curricula that met the 150-hour requirement
These recommendations were suggestive and not prescriptive, giving colleges and uni­
versities flexibility on how to change accounting programs and curricula that met the 150hour requirement.
A questionnaire was utilized to determine how respondents at Midwestern colleges
and universities viewed the relative importance of the 150-hour requirement Respondents
were asked to indicate the relative importance o f changes to accounting programs and cur­
ricula as defined by the literature and the 150-hour requirement Descriptive statistics, one­
way multivariate analysis of variance, and multiple regression analyses were utilized to
analyze the collected data from private and public colleges and universities.

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Private and public colleges and universities both viewed the 150-hour accounting
requirement as important Private and public institutions changed accounting programs and
curricula to meet the requirements to take the CPA examination and to meet student expecta­
tions. Private and public colleges and universities determined communication skills,
problem solving skills, and analytical skills were important skills and competencies for
accountants. Findings were compatible with the accounting profession and literature on the
150-hour requirement Colleges and universities had not used a particular model in
changing accounting programs and curricula that met the 150-hour requirement Signifi­
cant statistics were obtained with regard to the linear relationship between enrollment size in
four-year bachelors accounting programs and responses to 9 of the 55 importance of
program change variables.

APPROVED:

Edward R. Hines, Chair

Robert Arnold

ames E. Moon

Date

Kenneth H. Strand

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CONTENTS

CONTENTS
TABLES
CHAPTER
I. THE PROBLEM AND ITS BACKGROUND
Purpose Statement
Definition of Terms
Assumptions of the Study
Delimitations of the Study
Research Questions
Background of the Study
150-Hour Accounting Program Justification
Studies Supportive of the 150-Hour Requirement
Role of the Accounting Education Change Commission
Private versus Public Accounting Conflict
Need for the Study
Methodology
Sample
Instrumentation
Data Collection
Data Analysis
Organization o f the Study
II. REVIEW OF THE LITERATURE
Review of the 150-Hour Requirement
Bedford Committee Report
Accounting Education Change Commission
Support and Objectives for 150-Hour Programs
Support for 150-Hour Programs

Enrollment History
i

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Objectives of 150-Hour Accounting Programs
Bedford Committee Report
Arthur Anderson Study
Accounting Education Change Committee
General and Specific Proposals for 150-Hour Programs
General Proposals
Specific Proposals
Accounting Education Change Commission
Objectives of Introductory Accounting Courses
Proposals for Fifth-Year Courses
Changes to Classroom Delivery Systems
Advantages and Disadvantages of 150-Hour Programs
Proponents’ Arguments for 150-Hour Programs
Arguments and Rebuttals Against 150-Hour Programs
Summary
m . RESEARCH METHDOLOGY

31
31
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34
37
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41

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50
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55
59
59
60
67
69

Research Procedures

69

Sample
Instrumentation
Data Collection
Data Analysis

69
71
72
73

Respondents’ Demographics
Summary

74
75

IV. ANALYSIS OF DATA
Research Question 1
Research Question 2
Research Question 3
Research Question 4
Research Question 5
Research Question 6
Research Question 7
Research Question 8
Research Question 9
Research Question 10
Summary
V. SUMMARY, CONCLUSIONS, DISCUSSION, AND
RECOMMENDATIONS
ii

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86
90
92

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Overview of the Study
Statement of the Problem
Purpose of the Study
Research Methodology
Summary of Findings
Conclusions and Discussion
Perceptions of the 150-hour Requirement as Indicated
by Sampled Colleges and Universities
Use of Accounting Models by Colleges and Universities
in Changing Accounting Programs and Curricula
Relative Importance of Identified Accountant Skills and
Competencies
Recommendations
Recommendations for Further Research
Recommendations for Institutional Policy-Making
REFERENCES

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104
105
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APPENDIX A:

Accounting Education Change Commission Mission Statement

APPENDIX B:

American Accounting Association Objectives

123

APPENDIX C:

American Assembly of Collegiate Schools o f Business
Purpose Statement

125

American Institute of Certified Public Accountants
State of Policy

127

APPENDIX E:

Federation of Schools of Accountancy Charter

129

APPENDIX F:

Study Questionnaire

131

APPENDIX G:

Study Cover Letter

137

APPENDIX H:

Postcard Follow-up Reminder

139

APPENDIX D:

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121


TABLES
Page

Table
1. Common Body o f Knowledge—General Education

47

2. Common Body of Knowledge—Business Education

48

3. AICPA’s Illustrative Program—Accounting Education

49

4. State Requirements for 150-Hour Accounting Programs

70

5. Survey Instrument Response Demographics

74

6. Frequencies and Percentages for Each Item
Relative to Instrument Question 7

77

7. Means and Standard Deviations for Each Item
Relative to Instrument Question 8

79

8. Means and Standard Deviations for Each Item
Relative to Instrument Question 9

80

9. Means and Standard Deviations for Each Item
Relative to Instrument Question 10

81

10. Means and Standard Deviations for Each Item
Relative to Instrument Question 11

82

11. Means and Standard Deviations for Each Item
Relative to Instrument Question 12

84

12. Means and Standard Deviations for Each Item
Relative to Instrument Question 13

85

13. Means and Standard Deviations for Each Item
Relative to Instrument Question 14

86

14. Results Concerning MANOVAs Relative to Private
and Public Institution Differences for Sets of
Importance of Program Change Instrument Items

87

15. Means, F, and Other Statistics Concerning Selected
Public and Private Institution Differences

88

16. Results Concerning Multiple Regression Analyses Pertaining to
Relationship between Number of Students in Four-Year Bachelors
Programs and Sets of Importance of Program Change Instrument Variables

90

iv

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CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Accounting services are becoming both broader and more specialized.
Services demanded of accountants are no longer simply those based on
understanding, interpreting, and applying standards. Creativity and inno­
vation are increasingly required to meet the changing demands of an

internationally competitive world. (Bedford Committee, 1986)
As the United States economy has become more complex, so have the complexities
and requirements of the accounting profession in order to support the changing informa­
tional needs of business. Professional accounting organizations, such as the American
Institute of Certified Public Accountants (AICPA) and American Accounting Association
(AAA), commissioned several studies in the 1980s for the purpose of identifying skills and
competencies needed by professional accountants to serve properly the needs of clients.
The accounting profession used these studies in recognizing that accounting graduates did
not possess some of the skills and competencies needed for providing high quality, profes­
sional services to clients as well as the skills necessary for successful careers in accounting.
Based upon the conclusions of these studies, the professional accounting organiza­
tions called upon colleges and universities to address the identified needs for accountants
by implementing changes to accounting programs and curricula. Specifically, the
professional accounting organizations called for an increase in accounting programs to 150
semester hours. The 150-hour requirement had the most impact on accounting students
who, after graduation, intended to enter public accounting. For those graduating accounting
students who planned on entering public accounting, after the year 2000, eligibility to take
the Certified Public Accountant (CPA) examination would be 150 semester hours of
college. While the need was specific in regard to 150-hour accounting programs, the
1

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professional accounting organizations provided only general guidance to colleges and
universities on how accounting programs were to be changed to meet the expanded require­
ments of professional accountants. The professional accounting organizations left it to the
colleges and universities to determine how to change accounting programs and curricula

that met the 150-hour requirement Colleges and universities had latitude to determine how
to change accounting programs and curricula that met the 150-hour requirement
Colleges and universities had to determine how to effectively change accounting
programs that met the 150-hour requirement The largest, so-called “big six” public
accounting firms aided some colleges and universities by providing funds to the
Accounting Education Change Commission (AECC), who then awarded these monies to
selected schools for the purpose o f examining and changing accounting programs. The
funds supported the colleges’ study of how to change accounting programs and curricula
that met the profession’s 150-hour requirement Difficulties faced by colleges and
universities were identifying critical skills and competencies needed by accountants,
determining how to change accounting programs and curricula, and deciding how to
implement the changes.
Colleges and universities faced the critical problem o f how to change accounting
programs and curricula that met the 150-hour requirement Specifically, colleges needed to
adjust accounting programs and curricula that met the new requirement by the accounting
profession, while recognizing that these changes primarily impacted only those graduates
who entered the public accounting realm. An AICPA study indicated that only 26% of
accounting graduates entered public accounting work (Seigel & Kulesza, 1996). If the
colleges and universities did not change accounting programs that met the 150-hour
requirement, then this decision may impact the status of the college and prospective
students. This was the dilemma faced by colleges and universities.

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Purpose Statement
The purpose of the study was to determine if public and private colleges and univer­
sities in the Midwest changed accounting programs and curricula to be in accordance with
the 150-hour requirement. Other purposes of the study were to determine how colleges
and universities interpreted the relative importance of necessary accountant skills and

competencies as defined by the 150-hour requirement and supporting literature, and how
these identified skills and competencies resulted in changes to colleges’ accounting pro­
grams and curricula. Another purpose of the study was to ascertain the relative importance
o f reasons why some colleges and universities did not change accounting programs and
curricula that met the 150-hour requirement Purpose of the study also was to determine
the difference between public and private institutions’ responses to the importance of pro­
gram change questions. A further purpose of the study was to determine the relationship
between enrollment size of accounting programs and the importance of program change
questions.
Definition of Tenns
The following definitions were used throughout the study. They have been
included to facilitate consistency in the use of these terms as used in this study.
Accounting Curriculum. The collection of courses that have been formally estab­
lished by the college as presenting the requirements of knowledge, principles, values, and
skills as defined by the accounting program. The professional accounting organizations
have called for changes in accounting curricula to include more emphasis on liberal arts
courses in years one and two, and teaching of specialized accounting courses in year five.
Accounting Education Change Commission (AECC). The AECC is a not-for-profit
organization that was appointed in 1989 by the American Accounting Association. The big
six accounting firms financially support the AECC The objective of the AECC (Appendix
A) is to be a catalyst for improving the academic preparation of accountants so that entrants

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4

to the accounting profession possess the skill, knowledge, and attitudes required for
success in accounting career paths. The AECC administered the process of selecting and
distributing funds to chosen colleges.

Accounting Education Change Commission fAECQ Funded Colleges. Thirteen
colleges were chosen through a selection process for receipt of funds to assist them to bring
about needed changes in accounting education. Included in the total o f 13 colleges were 2
community colleges. Selection criteria, by the AECC, for colleges to receive funding were
based on a variety of different factors. More than one criterion was used by the AECC for
awarding of funds to selected colleges.
Accounting Practitioner. An accounting professional, usually a CPA, that is
employed by a public accounting firm. The practitioner is subject to the professional and
ethical standards of the accounting profession while providing auditing, accounting, tax,
and management advisory services to clients.
Accounting Program. Programs of accounting studies that are within an accredited
institution of higher education. Completion of the accounting program culminates in a
terminal degree. The accounting program consists of courses in general education,
business, and accounting related areas.
American Accounting Association (AAA). An association of people, primarily in
academia, that is interested in promoting the knowledge of accounting among qualified stu­
dents and the public. The objectives o f the AAA (Appendix B) are to initiate, encourage,
and sponsor research in accounting, and to advance accounting instruction. In addition, the
AAA encourages qualified individuals to enter into careers in accounting education. Also,
the AAA advances the development and adoption of accounting concepts for financial
statement preparation for external reporting as well as the development and uses of
accounting for internal management purposes.

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American Assembly of Collegiate Schoolsof Business (AACSB). Established as a
not-for-profit corporation composed of member organizations and institutions devoted to

the promotion and continuous improvement of higher education for business administration
and management (Appendix C). The AACSB is recognized by the Commission on Recog­
nition of Postsecondary Accreditation as the sole accrediting agency for programs in busi­
ness adm inistration and accounting. In 1980, the AACSB adopted additional standards for
bachelor’s and master’s programs in accountancy that address the special needs o f the pro­
fession. The AACSB and its member schools share a common purpose of preparing the
student to enter useful professional and societal lives. Note that the AACSB is now known
as the International Association of Management Education.
American Institute of Certified Public Accountants (AICPA). The AICPA is the
national professional organization for all certified public accountants. The mission
(Appendix D) of the AICPA is to act on behalf of members and to provide support in
ensuring that CPAs serve the public interest by providing the highest-quality professional
service. The AICPA works with higher education and state boards of accountancy to
improve the pre-licensure education required of CPAs.
Big Six Accounting Firms. The largest international accounting firms that provide
auditing, accounting, taxation, and management advisory services to clients. These firms
employ professional accountants, e.g., CPAs. These accounting firms are supporters of
150-hour accounting programs as a requirement for taking the CPA examination.
Certified Public Accountant (CPA) Examination. A uniform national examination
for professional accountants administered by the respective state boards of accounting.
The examination encompasses two days of tests in areas of financial accounting, auditing,
business law, and taxation, managerial, and government The CPA examination is the
recognized standard for entrance of accountants into public accounting work.

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Federation of Schools of Accountancy (FS A). Established in 1977 with a primary

objective (Appendix E) to encourage and assist in the development of quality professional
accounting programs culminating in postbaccalaureate degrees within universities (Bloom,
Debessay, & Markell, 1986). Its primary membership requirement is the achievement of
accreditation of a graduate program in accounting. The FS A is committed to preparing welleducated accounting professionals having a broad intellectual base and in-depth training in
professional accounting courses that concentrate more on the conceptual than the technical
and procedural aspects of accounting practice. As of 1994, the FSA had over 60 members
with more than 25 affiliates.
Illinois Certified Public Accountants Society (TCPAS). Established in 1903, the
ICPAS is the premier association for CPAs in Illinois. The ICPAS is a professional
organization of CPAs which, as part o f its activities, assists the students of today, to
become the accounting professionals of tomorrow. The ICPAS also sponsors programs to
help accounting students become well prepared for a rapidly changing and challenging
accounting work environment.
Institute of Management Accountants (TMA1. A professional association of private
accountants that represents management accountants. The IMA represents accountants that
work in for profit, government, or not-for-profit organizations. More than 70% of
accounting graduates enter management accounting careers.
Private Accounting. Accounting graduates who, upon graduation from college, go
to work for profit, government, or not-for-profit organizations. The prevalent professional
credential for private accountants is the Certified Management Accountant (CMA) designa­
tion. More than 70% of all accounting graduates go into private accounting (Seigel &
Kulesza, 1996). The private accountants’ activities include preparing financial statements,
auditing company records, developing accounting systems, preparing tax returns, and
providing financial information for management decision making.

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Public Accounting. Professional accountants who are self-employed, or employed
by a public accounting firm and provide accounting services to the public. The typical pro­
fessional credential for public accountants is the CPA designation. The CPA serves clients
by providing services in the realm of accounting, auditing, tax, and management consulting
areas. Currently, less than 30% of all accounting graduates enter the public accounting
area.
Assumptions of the Study
The following assumptions were used in this study as the basis for the investigation
that was conducted at public and private four-year colleges and universities. The study
focused on how Midwestern four-year colleges and universities changed accounting pro­
grams and curricula as a result of the 150-hour requirement that met accountant skills and
competencies levels required by the professional accounting organizations. The assump­
tions used for this study were:
1. The four-year colleges and universities addressed the degree to which the 150hour accounting program requirement changed the colleges’ accounting programs and
curricula.
2. The four-year colleges and universities addressed the degree to which traditional
classroom delivery systems by faculty changed to meet the AECC’s recommendations.
3. The colleges and universities finalized changes to accounting programs to
accommodate these accounting students graduating after the year 2000 that were subject to
the 150-hour requirement
4. Colleges and universities considered the needs of all constituents affected by the
150-hour requirement before making changes to accounting programs.
5. New accounting skills and competencies, as identified by the accounting
profession, can best be identified and integrated into accounting curricula by the colleges’
administration and faculty for accounting programs.

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6. Some colleges and universities that did not change accounting programs and
curricula that met the 150-hour requirement formed articulation agreements with other
schools to satisfy the 150-hour program requirement
7. Colleges and universities interpreted and defined from the 150-hour require­
ment and supporting literature what were the relative importance of necessary accountant
skills and competencies.
Delimitations of the Study
In this study, changes were investigated in accounting programs and curricula at 10
Midwestern four-year private and public colleges and universities that occurred as a result
of the 150-hour accounting program requirement by the professional accounting organiza­
tions. Study delimitations were:
1. Larger private and public colleges and universities had more incentive than
smaller colleges to change accounting programs that met the 150-hour requirement in order
to maintain image and status quo. The results of accounting program changes at the larger
colleges and universities may be different than changes made at smaller colleges as a result
of the 150-hour requirement This study, however, was delimited to those institutions in
the states that were sampled.
2. Another factor impacting smaller colleges, more than the larger schools, was the
use of articulation agreements with other colleges and universities as a means of satisfying
the 150-hour requirement Smaller colleges would typically make arrangements with larger
colleges as a cost/benefit effective means of satisfying the 150-hour requirement Due to the
cost of changing accounting programs and curricula, some colleges chose not to change
accounting programs that met the 150-hour requirement Another reason for not imple­
menting changes to the colleges’ accounting programs and curricula that met the 150-hour
requirement might have been because of low student enrollment in accounting programs.
Also, some colleges may focus more on private, rather than public accounting, in the

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colleges' accounting programs and, thus, did not have an incentive to change accounting
programs that met the 150-hour requirement. This study, however, was delimited by the
questions contained within the survey instrument
3.

Disparity in identification of critical skills and competencies for accountants will

evolve as each college and university make their own interpretation o f needed skills and
competencies that met the 150-hour requirement
These factors provide a rationale to the colleges and universities for not changing
accounting programs and curricula. These considerations may apply more to the smaller,
rather than larger, colleges and universities in this study.
Research Questions
Research questions were formulated to determine the degree to which Midwestern
four-year colleges and universities identified the level of importance of accountant skills and
competencies and how these skills and competencies were incorporated into accounting pro­
grams and curricula that met the 150-hour requirement. The research questions also
addressed how accounting programs and curricula changed as a result of meeting the 150hour requirement.
1. What accounting models were used to change accounting programs and curricula
that met the 150-hour requirement?
2. What was the level of importance o f reasons for not changing accounting pro­
grams and curricula that met the 150-hour requirement?
3. What was the level of importance o f the accountant skills and competencies
identified by colleges and universities from the 150-hour requirement and accompanying
literature?
4. What was the level of importance for each of the groups of people that identified
the necessary accountant skills and competencies?

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5. What was the level of importance of reasons for changing accounting programs
and curricula that met the 150-hour requirement?
6. What was the level of importance for changes made to the structure and content
of accounting courses that resulted from adding hours to accounting programs and curricula
that met the 150-hour requirement?
7. What was the level of importance for added areas to accounting programs and
curricula to include identified accountant skills and competencies?
8. What was the level of importance of changes made to faculties’ classroom
delivery methods for teaching of identified important accountant skills and competencies?
9. What were the differences between sampled public and private colleges and
universities responses to the importance of program change questions?
10. What was the relationship between the enrollment size of accounting programs,
and the seven sets of importance of program change variables?
Background of the Study
150-Hour Accounting Program Justification
In 1988, the American Institute of Certified Public Accountants (AICPA) passed a
resolution stating that, after the year 2000, to be eligible to take the Certified Public
Accountant (CPA) examination, accounting graduates must complete 150 semester hours of
college. The 150-hour requirement did not mandate that the CPA exam candidates complete
a master’s degree in accounting. The AICPA’s educational requirements for meeting the
CPA examination requirements were a bachelor’s degree plus 30 semester hours. Other
professional accounting organizations, such as the American Accounting Association
(AAA), concurred with the AICPA’s 150-hour requirement for a CPA candidate to meet the
eligibility requirements of the CPA examination (Needles & Powers, 1990).

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Studies Supportive of the 150-Hour Requirement
The need for 150-hour accounting program requirement resulted from the conclu­
sions of several studies sponsored in the 1980s by the professional accounting organiza­
tions. One study, the Bedford Committee report, indicated a need for a 150-hour program
that would prepare accounting professionals to meet the changing needs of accounting
clients (American Accounting Association, 1986). The Committee’s findings showed the
need for accounting professionals to have better communication, analytical, and inter­
personal skills that met the challenges of the dynamic accounting profession. The report
indicated the need for colleges and universities to prepare accounting students with skills
and competencies that extended beyond traditional technical expertise. The Committee
reported that the challenges facing accountants and colleges and universities came about as a
result of the rapid growth of new accounting concepts and applications and the need for edu­
cation to close the gap between what accountants practiced and what accounting educators
taught. Colleges and universities were charged with changing the focus of accounting pro­
grams from a preparer’s perspective to that of a user concept and with increased emphasis
on accounting programs that prepared accounting graduates for life-long learning. Another
recommendation from the Committee’s report was for more general education emphasis in
the curriculum. The Bedford Committee and the accounting profession called for a more
liberal arts undergraduate education with specialized accounting courses offered in the fifthyear of education.
The Perspectives on Education: Capabilities for Success in the Accounting Profes­
sion booklet published by the “big six” accounting firms supported the Bedford Commit­
tee’s findings (Andersen et al., 1989). Conclusions from the Perspectives on Education:
Capabilities for Success in the Accounting Profession report were that accountants needed
broader skills to meet the future challenges o f the accounting profession. The report
findings showed a need for greater attention in accounting programs by colleges and

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universities to communication, intellectual, and interpersonal skills. This study outlined the
challenges that educational institutions faced in terms of changing curriculum, and the need
for faculty to meet the demands of a changing profession.
The Bedford Committee report and Perspectives on Education: Capabilities for
Success in the Accounting Profession booklet findings became the foundation and support
for 150-hour accounting programs for accounting students. These reports indicated that
accounting graduates had the necessary technical expertise, but lacked other skills needed
by professional accountants to provide quality professional service to clients. These reports
listed critical areas where educational institutions were deficient, and where improvements
were to be made to bring accounting students up to the skill levels established by the pro­
fessional accounting organizations. These noted deficiencies of accounting graduates were
in part to be resolved by the move to 150-hour accounting programs. Some of the
deficiencies of accounting graduates, and where the accounting profession looked to
colleges and universities to remedy, included the following:
1. Accounting students need to develop analytical, synthesis, problem-solving, and
communication capabilities that include written, oral, and interpersonal skills.
2. Greater program and curriculum focus on the skills and capacities needed for
life-long learning and to become successful accounting professionals.
3. Helping students learn to leam, to think, and to be creative.
4. Accounting students are to be procedurally orientated in their approach to
solving problems.
5. The traditional classroom delivery systems and focus of course material does not
expose accounting students to real-world accounting situations in the classrooms.
The areas of deficiency for accounting students were discussed and defined by the
Bedford Committee report, the Perspectives on Education: Capabilities for Success in the

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13

Accounting Profession booklet, and by the professional accounting organizations. Further
descriptions of these areas of deficiencies are provided in the following paragraphs.
Com m unication skills identified by the accounting profession were the ability to

transfer and receive information with ease. Accounting practitioners were to be able to
present and defend accounting positions to clients through formal and informal, written and
oral, presentation. Practitioners needed the ability to locate, obtain and organize information
from both human and electronic sources.
Intellectual skills involved the use of problem solving skills where practitioners
solved diverse and unstructured problems in unfamiliar settings. Intellectual skills involved
inductive thought processes, and good judgment capabilities. Additionally, practitioners
were to identify ethical issues and apply a value-based reasoning system to these ethical
questions and situations.
The interpersonal skill area recognized the need to work with other people as an im­
portant part of public practice. The practitioners were to possess skills to influence others,
organize and delegate tasks, motivate and develop other people, and withstand and resolve
conflict.
Accounting practitioners worked in a dynamic profession with changing demands
that required accountants to be problem solvers with analytical skills and a wide knowledge
base to meet the professional demands of clients. Knowledge skills were classified into the
areas of general knowledge, organizational and business knowledge, and accounting and
auditing knowledge.
These were the areas identified by the accounting profession as lacking in
accounting graduates. Colleges and universities prepared the accounting graduate with

sufficient technical skills, but it was other skills, such as analytical, communication and
interpersonal skills, that the accounting profession identified as areas for improvement
The professional accounting organizations looked to colleges and universities to remedy

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14

these deficiency areas by making appropriate changes to accounting programs and
curricula.
Colleges’ schools of business supported the need for change and improvement in
accounting programs and curricula that met the accounting profession’s recommendations.
The challenges to colleges and universities were identifying needed accountant skills and
competencies as a result of the 150-hour requirement, and how to change accounting
programs and curricula that met the 150-hour requirement
Role of the Accounting Education Change Commission
The “big six” accounting firms established funding, amounting to about $5 million,
to create the Accounting Education Change Commission (AECC) (Accounting Education
News. June 1993). The AECC was charged with reviewing proposals from schools on
how these colleges and universities proposed to change accounting programs and curricula
that supported changes in accounting education. The AECC reviewed submittals from 111
colleges on proposed changes to accounting programs (Ernst & Young, 1992). From these
111 proposals, the AECC selected 13 colleges, including 2 community colleges, for receipt
of funds. The awards were to financially support colleges and universities to bring about
needed changes in accounting education.
The AECC proposals contained diverse suggestions on how to meet the accounting
profession’s objectives. That is, the selected college and university proposals had different
objectives and targeted different areas for changes that met the 150-hour requirement. There
was not consensus among the selected 13 colleges and universities on how accounting

programs were to be changed that met the 150-hour requirement, since each college and
university’s proposal was different. Some of the colleges and universities that received
AECC grants published the results o f their study, and subsequent changes to accounting
programs and curricula, so that other colleges and universities could utilize the results.

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