working with partners to enhance the accounting profession presentation at the 14 th annual...
TRANSCRIPT
Working With Partners to Enhance the Accounting Profession
Presentation at the 14th Annual Accounting Educators’ Seminar Meeting on March 6, 2015
ByJohn J. Morris, Ph.D.
Associate Professor of AccountingDirector, Masters of Accountancy Program
Center for Collaborative Applied Accounting ResearchKansas State University
• From:– South Dakota– Wyoming– Indiana– Utah– Ohio– Kansas
• Industries:– Agriculture– Mining– Manufacturing – Software– Services/Consulting
25 Year Career in Accounting/Finance Management
From Practice to Academia• After 25 Years in Practice
Converting Accounting Data (accurate & precise) Into Management Information (useful)
• Entered Academic Profession Accurate & Precise Data Useful???
• Earnings Management Anecdotal vs. Scientific Evidence 169 Peer Reviewed Scholarly Journal Articles, with
“Earnings Management” in the Title (ProQuest; 3/2/15) One of them is mine
Funded Research??• Other Disciplines do Funded Research
Engineering, Computer Science, Agriculture, etc.• Why not Business/Accounting?
Compromise Independence (pay for results) Who would pay for another earnings management
study?• If not Funded, why not at least Collaborate?
Practice professionals don’t need our research We don’t do research that will help them Unlike other professions (i.e. medical)
The Pathways Commission on Higher Education:
Charting a National Strategy for the Next Generation of Accountants
Created byThe American Accounting Association (AAA)
The American Institute of Certified Public Accountants (AICPA)In response to
Recommendation by the U.S. Department of the Treasury Advisory Committee on the Auditing Profession (ACAP) 2008 Report
Pathways Commission Recommendations
4 – Develop and Share Curriculum
Models
1 – Build a Learned
Profession for the future
3 – Respect and Reward
Teaching
6 - Analyze Markets for
Professionals and Faculty
7 - Convert Thought to
Action
5 – Attract high-potential
diverse entrants
2 - Develop Flexible Doctoral
Education
Build a learned profession for the future by purposeful integration of accounting research, education, and practice for students, accounting practitioners, and educators.
Research
PracticeEducation
Weak links between accounting education, practice and research makes for missed opportunities…
Pathways Commission Recommendation #1
Build a learned profession for the future by purposeful integration of accounting research, education, and practice for students, accounting practitioners, and educators.
Research
PracticeEducation
Stronger links between accounting education, practice and research could lead to great opportunities…
Pathways Commission Recommendation #1
Objectives for Building a Learned Profession
1 - Integrate professionally oriented faculty more fully…
2 - Focus more academic research on relevant practice issues
3 – Enhance the value of practitioner – educator exchanges
4 – Integrate accounting research into accounting courses and programs
Client/Consultant ModelClient Identifies
Problem Or Issue
Client Takes Problem to
CCAAR
CCAAR Assigns Research Team
CCAAR Team Works with
Client/Others
Solution Presented to
Client
Modify Report for Academic Publication
Submit Report to Peer Reviewed Journal
Addresses the problem of timing
Data analyticsTalent retentionFirm mergers and future ownership alternativesResources / computeSuccessionQuality control functionCPE effectivenessBalance between technical and management skillsCost of quality control (high/low)Management of firm growthESOPS – Long-term effectClient satisfaction surveys & analysisFee sensitivityAudit quality indicators & measurement processesField testing of new standardsCost savings for small firm standards vs. large firm Jobs Act (going public delayed – relaxed requirements)New standards impact
Optimal performance metrics Work place productivity issues (working from home, diversity & inclusiveness, etc.)Literature reviewDo problems really exist or are they exaggerated?Change in demographics (i.e. baby boomers leaving the workplace)Sales tax vs. income taxSustainability issues (cost vs. benefit)Ethics & corporate responsibilityClient acceptanceInternal audit function (when to add, how big?)Tax related informationTax policy issuesTrade groupsHealth care industry (impact of changes)Retention incentives (i.e. education reimbursement)Firm report card
Brainstorming Ideas
Resistance/Opportunities(Publishing Issues)Faculty
• Top journals resist applied research • Tenure requirements still tied to journal rankings• Beyond tenure, impact on vitas for future employment
(Don’t Need Us)Larger Firms• Research issues addressed in house by staff specialists• View relationship with Universities as “Talent Supply Chain”• Interested if it helps recruit top talent
(Can’t Afford Us)Smaller Firms• Could really use the help, but… • Scarce resources available (money and people)• Need to show value added proposition
Alternative Approaches
Other Organizations (AICPA, NASBA, IMA, etc.)
Include Student Research Based Internships
Focus on Current Topics (i.e. GAAP Changes)
Expand Collaboration to Multiple Institutions
Pilot Project
National Association of State Boards of AccountancyNASBA
• RQ1 - What are State Boards of Accountancy’s policies regarding acceptance of AP credit toward 150 hour requirement and what are attitudes of their executive directors and board members? • Behavioral Research Methodology• Data Source = Survey
• RQ2 - How are students that have AP credits granted by colleges performing relative to their peers on CPA exam? • Archival Research Methodology• Data Source = NASBA database (with survey to fill gaps)
• Contribution (who cares):• Results will help support NASBA members’ decisions related to treatment of
AP credits• Results will contribute to academic literature on the impact of AP courses
Potential Follow on Projects
Looking for Potential SponsorsGAAP Changes
• RQ – What is the impact of proposed changes in GAAP on Small to Midsized Firms (SMEs)• Archival Research Methodology• Data Source = Client data
• Contribution (who cares):• Results would provide information that the sponsoring firm could use to consult with and
advise clients on how to prepare for coming changes in GAAP • Results would provide data to support both a student thesis paper and an academic
research paper that will contribute to the literature on small to midsized firms
Exploratory Discussions with AICPA’s CPEAAICPA
• CPEA – Center for Plain English Accounting • Many possibilities including impact of GAAP changes as above• Also similar research for tax law changes
Why do we do Research?
• Required by AACSB Accreditation Standards “Since the 1960s, AACSB has been a staunch advocate
for research in business schools. Research is central to quality management education.”
“Research by business school faculty helps develop curricula and course content, contributes to the intellectual climate of the institution, and elevates the academic reputation of the business school on campus.”
---Jan R. Williams, Chair, Board of Directors, AACSB International - Impact of Research A Guide for Business Schools