PICPA CPA Spring 2012 : Page 21

Education More Accounting Majors Could Be Short-Lived Success By Rose Marie L. Bukics, CPA A ccounting Education: Charting the Course through a Perilous Future , was written by W. Steve Albrecht PG#SJHIBN:PVOH6OJWFSTJUZBOE3PCFSU +&#0f;4BDLPGUIF6OJWFSTJUZPG7JSHJOJBJO 2000. The report said enrollments and degrees in accounting were in decline and the model of accounting education was CSPLFO&#0f;'VSUIFS&#0d;JUXBTVQUPUIFFEVDBUPST to ﬁx the disconnect identiﬁed as the un-derlying cause – namely that the lessons taking place and the skill sets needed of graduates were not aligned. One recom-mendation was the need to invest in faculty development to ensure that faculty remained current in the ﬁeld and could then structure relevant classes. Several critical changes have since occurred that shift the perspective of this analysis: t "DDPVOUJOHFOSPMMNFOUTBSFOPMPO -ger in decline. t 5FBDIJOHGBDVMUZBWBJMBCMFOPXJTJO decline. t ɩF"TTPDJBUJPOUP"EWBODF$PMMF -HJBUF4DIPPMTPG#VTJOFTT ""4$#&#0a; recognizes the diﬀerent ways in which accounting faculty are edu-cated as teaching professionals. t ɩFSFJTBOPUJDFBCMFJODSFBTFJOUIF demands on faculty time from a wide range of variables, and there may be a negative future impact as the ceiling has been reached in terms of productivity. t ɩFSFJTBOFFEUPSFDPHOJ[FUIBUOPU all faculty members ﬁt into a one-size-ﬁts-all algorithm. It is time to re-examine accounting education, but this time from a faculty perspective. As featured in an earlier education column, 1 the AICPA released a report in 2011 on national trends in accounting education, focusing on enrollments and degrees awarded. In the northeast region, enrollments are declining, but there has been signiﬁcant growth in both enroll-ments and degrees awarded elsewhere in the country. Since the 2000 Albrecht and Sack report, undergraduate enrollments have increased from 133,435 in 2001-2002 to 187,534, and total enrollments from all programs have increased from 154,510 to 226,108 for the same time period. 2 The key variable currently in decline is the number of accounting faculty. In BSFQPSUXSJUUFOCZ%BWJE-FTMJF of the College of William & Mary and published by the American Accounting Association, titled Accounting Faculty in U.S. Colleges and Universities: Status and Trends, 1993-2004 , several trends should raise signiﬁcant red ﬂags for accounting FEVDBUPST&#0f;'SPN&#1a;UP&#0d;UIFUPUBM number of accounting faculty declined 13.3 percent, while accounting enroll-ments increased 12.3 percent. The most TVCTUBOUJBMEFDMJOF QFSDFOU&#0a;UPPL place at four-year, nondoctoral programs; the types of programs oﬀered by many educational institutions in Pennsylva-nia. The number of faculty over age 55 increased, while those under 40 decreased by half. This indicates that planning for future staﬀ needs is critical, and it must be a continuous process before the shortage of accounting faculty becomes acute. An-PUIFSDPODFSOJTUIBUUIFOVNCFSPG1I% degrees in accounting is typically 140 per ZFBS&#0d;XIJMF1I%GBDVMUZSFUJSFNFOUTBSF more than 500 annually. 3 One way to help address the short-BHFJT""$4#TSFDPHOJUJPOPGUXPUZQFT of faculty: those who are academically RVBMJmFE "2&#0a;BOEUIPTFXIPBSFQSPGFT -TJPOBMMZRVBMJmFE 12&#0a;&#0f;ɩJTSFDPHOJUJPOJT DSVDJBMTJODFUIFOVNCFSPG1I%GBDVMUZ UIPTFUZQJDBMMZDPOTJEFSFE"2&#0a;JTJO TJHOJmDBOUEFDMJOF&#0f;'VSUIFS&#0d;JOJUTSFQPSU of November 2006, updated in 2010, the ""4$#JOEJDBUFEUIBUJUJTVQUPFBDI school to identify its unique mission and to prepare the operating strategy to support such a mission. This approach is consistent with a view of accounting scholarship advocated by Robert Kaplan PG)BSWBSE6OJWFSTJUZ&#0d;XIFSFIFiSFNJOET young scholars that accounting is more of a professional discipline than an academic TVCKFDU&#0f;w 4 An educational institution that has made these issues a clear focus is Wake 'PSFTU6OJWFSTJUZ&#0f;ɩSPVHIJUT'BDVMUZ Six-Path Model, it hopes to match the strengths of each individual faculty mem-ber with the needs of the institution. 5 Schools in Pennsylvania may not have dealt with the increased enrollments faced by others, but they undoubtedly will face the same challenges of a decline in ac-counting educators in the not-too-distant future. The time to begin comprehensive planning is now. 1 Rose Marie L. Bukics, CPA, “Trends in Accounting Education and Placement,” Pennsylvania CPA Journal , p. 19, Vol. 82, No. 3 (2011) 2 Scott Moore, Rebecca Mahler, Ruth Ashton, 2011 Trends in the Supply of Ac-DPVOUJOH(SBEVBUFTBOEUIF%FNBOEGPS Public Accounting Recruits , p. 11, AICPA 3 Ibid., p. 7 4 http://hbswk.hbs.edu/item/6571.html 5 Gordon McCray, Charles Iacovou, Mi-chelle Roehm, Matthew Phillips, and Steve Reinemund, “Paths to Performance,” #J[&E , pp. 42-46, January/February 2010 Rose Marie L. Bukics, CPA, is the Thomas Roy and Lura Forrest Jones Professor of Eco-nomics and Business at Lafayette College in Easton, and is a member of the Pennsylvania CPA Journal Editorial Board. She can be reached at bukicsr@lafayette.edu. Pennsylvania CPA Journal | Spring 2012 | www.picpa.org 21

Education

Rose Marie L. Bukics, CPA

More Accounting Majors Could Be Short-Lived Success Accounting Education: Charting the Course through a Perilous Future, was written by W. Steve Albrecht of Brigham Young University and Robert J. Sack of the University of Virginia in 2000. The report said enrollments and degrees in accounting were in decline and the model of accounting education was broken. Further, it was up to the educators to fix the disconnect identified as the underlying cause - namely that the lessons taking place and the skill sets needed of graduates were not aligned. One recommendation was the need to invest in faculty development to ensure that faculty remained current in the field and could then structure relevant classes. Several critical changes have since occurred that shift the perspective of this analysis: • Accounting enrollments are no longer in decline. • Teaching faculty available now is in decline. • The Association to Advance Collegiate Schools of Business (AASCB) recognizes the different ways in which accounting faculty are educated as teaching professionals. • There is a noticeable increase in the demands on faculty time from a wide range of variables, and there may be a negative future impact as the ceiling has been reached in terms of productivity. • There is a need to recognize that not all faculty members fit into a one-size-fits-all algorithm. It is time to re-examine accounting education, but this time from a faculty perspective. As featured in an earlier education column,1 the AICPA released a report in 2011 on national trends in accounting education, focusing on enrollments and degrees awarded. In the northeast region, enrollments are declining, but there has been significant growth in both enrollments and degrees awarded elsewhere in the country. Since the 2000 Albrecht and Sack report, undergraduate enrollments have increased from 133,435 in 2001-2002 to 187,534, and total enrollments from all programs have increased from 154,510 to 226,108 for the same time period.2 The key variable currently in decline is the number of accounting faculty. In a 2008 report written by David Leslie of the College of William & Mary and published by the American Accounting Association, titled Accounting Faculty in U.S. Colleges and Universities: Status and Trends, 1993-2004, several trends should raise significant red flags for accounting educators. From 1988 to 2004, the total number of accounting faculty declined 13.3 percent, while accounting enrollments increased 12.3 percent. The most substantial decline (31 percent) took place at four-year, nondoctoral programs; the types of programs offered by many educational institutions in Pennsylvania. The number of faculty over age 55 increased, while those under 40 decreased by half. This indicates that planning for future staff needs is critical, and it must be a continuous process before the shortage of accounting faculty becomes acute. Another concern is that the number of PhD degrees in accounting is typically 140 per year, while PhD faculty retirements are more than 500 annually.3 One way to help address the shortage is AACSB's recognition of two types of faculty: those who are academically qualified (AQ) and those who are professionally qualified (PQ). This recognition is crucial since the number of PhD faculty (those typically considered AQ) is in significant decline. Further, in its report of November 2006, updated in 2010, the AASCB indicated that it is up to each school to identify its unique mission and to prepare the operating strategy to support such a mission. This approach is consistent with a view of accounting scholarship advocated by Robert Kaplan of Harvard University, where he "reminds young scholars that accounting is more of a professional discipline than an academic subject."4 An educational institution that has made these issues a clear focus is Wake Forest University. Through its Faculty Six-Path Model, it hopes to match the strengths of each individual faculty member with the needs of the institution.5 Schools in Pennsylvania may not have dealt with the increased enrollments faced by others, but they undoubtedly will face the same challenges of a decline in accounting educators in the not-too-distant future. The time to begin comprehensive planning is now. 1 Rose Marie L. Bukics, CPA, "Trends in Accounting Education and Placement," Pennsylvania C PA Journal, p. 19, Vol. 82, No. 3 (2011) 2 Scott Moore, Rebecca Mahler, Ruth Ashton, 2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, p. 11, AlCPA 3 Ibid., p. 7 4 http://hbswk.hbs.edu/item/6571.html 5 Gordon McCray, Charles Iacovou, Michelle Roehm, Matthew Phillips, and Steve Reinemund, "Paths to Performance," BizEd, pp. 42-46, January/February 2010 Rose Marie L. Bukics, CPA, is the Thomas Roy and Lura Forrest Jones Professor of Economics and Business at Lafayette College in Easton, and is a member of the Pennsylvania CPA Journal Editorial Board. She can be reached at bukicsr@lafayette.edu.

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