Sitting Requirements and the CPA Exam

2015 ◽  
Vol 32 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Jared S. Soileau ◽  
Spencer C. Usrey ◽  
Thomas Z. Webb
Keyword(s):  
Data Availability ◽  
Graduate Degree ◽  
Pass Rates ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Cpa Exam ◽  
Potential Benefits ◽  
Educational Requirements

ABSTRACT This study examines the association between jurisdictions' CPA exam educational requirements and exam pass rates, scores, and number of candidates from 2006 to 2013. More specifically, we examine provisional candidacy to sit for the CPA exam. Provisional status allows a candidate to sit for the CPA exam prior to obtaining the required number of hours or graduate degree. Our results indicate that while 150-hour exam jurisdictions outperform 120-hour jurisdictions, provisional jurisdictions outperform both 150- and 120-hour jurisdictions for pass rates and average scores. We also find that the number of candidates sitting for the exam is significantly lower for provisional and 150-hour jurisdictions than for 120-hour jurisdictions. Our study contributes to the literature by considering the potential benefits of sitting in provisional jurisdictions and is likely to be of interest to accounting educators, state boards, and public accounting firms. Data Availability: Data are publicly available from sources indicated in the text.

Materiality Guidance of the Major Public Accounting Firms

2014 ◽  
Vol 34 (2) ◽  
pp. 3-26 ◽  
Author(s):  
Aasmund Eilifsen ◽  
William F. Messier
Keyword(s):  
Data Availability ◽  
Future Research ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Qualitative Factors ◽  
Research And Education ◽  
High Level ◽  
Implementation Of Standards

SUMMARY This paper examines the materiality guidance for eight of the largest U.S. public accounting firms. Knowledge of how materiality guidance is integrated into a firm's methodology is important for accounting and auditing researchers as well as for practitioners, regulators, and educators. Our results show a high level of consistency across the firms in terms of the quantitative benchmarks (e.g., income before taxes, total assets or revenues, and total equity) used to determine overall materiality, the related percentages applied to those benchmarks, the percentages applied to overall materiality for determining tolerable misstatement, and what constitutes a clearly trivial misstatement. We also find that the firms' guidance for evaluating detected misstatements, including qualitative factors and firm guidance for group audits, is consistent across firms. However, there are differences in how the firms consider the possibility of undetected misstatements when evaluating detected misstatements. The results of this study provide important insights into implementation of standards and valuable information for future research and education. Data Availability: The data used are proprietary to the firms and are not available for distribution.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB Rulemaking Docket Matter 029: PCAOB Release No. 2011-007, Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits

2012 ◽  
Vol 6 (1) ◽  
pp. C1-C6 ◽  
Author(s):  
Keith L. Jones ◽  
Jagadison K. Aier ◽  
Duane M. Brandon ◽  
Tina D. Carpenter ◽  
Paul Caster ◽  
...  
Keyword(s):  
Exposure Period ◽  
Data Availability ◽  
Audit Report ◽  
Public Accounting ◽  
Accounting Firms ◽  
The Public ◽  
Public Comment ◽  
Public Company ◽  
Public Accounting Firms ◽  
Auditing Standards

SUMMARY In October 2011, the Public Company Accounting Oversight Board (PCAOB or Board) issued a release to solicit public comment on amendments to its standards that would improve the transparency of pubic company audits. The objective of the release was to solicit public comments on a proposed standard that would (1) require registered public accounting firms to disclose the name of the engagement partner in the audit report, (2) amend the Board's Annual Report Form to require registered firms to disclose the name of the engagement partner for each audit report already required to be reported on the form, and (3) require disclosure in the audit report of other independent public accounting firms and other persons that took part in the audit. The PCAOB provided for a 91-day exposure period (from October 11, 2011, to January 9, 2012) for interested parties to examine the release and provide comments. The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the PCAOB on PCAOB Rulemaking Docket Matter 029: PCAOB Release No. 2011-007, Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits. Data Availability: Information about and access to the release is available at: http://pcaobus.org/Rules/Rulemaking/Docket029/PCAOB_Release_2011-007.pdf

An Exploratory Study into the Use of Audit Data Analytics on Audit Engagements

2020 ◽  
Vol 34 (4) ◽  
pp. 75-103 ◽  
Author(s):  
Aasmund Eilifsen ◽  
Finn Kinserdal ◽  
William F. Messier ◽  
Thomas E. McKee
Keyword(s):  
Institutional Theory ◽  
Professional Practice ◽  
Exploratory Study ◽  
Data Analytics ◽  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
It Systems ◽  
Audit Data ◽  
Public Accounting Firms

SYNOPSIS This study explores the use of audit data analytics (ADA) in current audit practice. First, we interviewed the heads of professional practice of five international public accounting firms in Norway. We find that they differ in strategies on how to implement ADA and the heads report significant uncertainty about the supervisory inspection authorities' response to the use of ADA. Second, we administered a questionnaire to 216 engagement partners and managers about their perceptions of ADA and their actual ADA use on 109 audit engagements. Overall, the attitudes toward ADA usefulness are positive. Analysis of the audit engagements suggests use of ADA is relatively limited and use of more “advanced” ADA is rare. More ADA are used for clients with integrated ERP/IT systems and for newly tendered audit engagements. We also provide details of ADA use on each phase of the audit. We discuss our findings from an institutional theory perspective. Data Availability: The data used in this study are confidential by agreement with the participants.

The 150-Hour Requirement and the Number of CPA Exam Candidates, Pass Rates, and the Number Passing

2006 ◽  
Vol 21 (3) ◽  
pp. 173-193 ◽  
Author(s):  
Arthur Allen ◽  
Angela M. Woodland
Keyword(s):  
Audit Quality ◽  
Opportunity Costs ◽  
Pass Rates ◽  
Barriers To Entry ◽  
Large Drop ◽  
Public Accounting ◽  
Accounting Firms ◽  
Cpa Exam ◽  
Additional Education ◽  
First Time

This study examines the association of the 150-hour education requirement with the number of CPA exam candidates, pass rates, and the number passing. Proponents of the 150-hour requirement argue that additional education produces higher quality students who are better prepared for the CPA exam and accounting careers. Opponents argue it imposes opportunity costs on students and costly barriers to entry into public accounting. On average we find a large drop (36 percent) in the number of candidates in each state taking each exam, a small increase in pass rates for first-time candidates only (3 percent), and a large drop (31.5 percent) in the number passing the CPA exam after the 150-hour requirement. Our results may be useful to accounting educators evaluating the success of their 150-hour programs, state boards considering revisions of their 150-hour requirements, and public accounting firms setting strategies to achieve audit quality.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on PCAOB Release No. 2013-009, Proposed Rule on Improving the Transparency of Audit: Proposed Amendments to PCAOB Auditing Standards to Provide Disclosure in the Auditor's Report of Certain Participants in the Audit

2014 ◽  
Vol 8 (2) ◽  
pp. C1-C7 ◽  
Author(s):  
Urton L. Anderson ◽  
Lisa Milici Gaynor ◽  
Karl E. Hackenbrack ◽  
Ling Lei Lisic ◽  
Yi-Jing Wu
Keyword(s):  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
The Public ◽  
Related Information ◽  
Public Company ◽  
Public Accounting Firms ◽  
Auditing Standards

SUMMARY On December 4, 2013 the Public Company Accounting Oversight Board (PCAOB) solicited public comments on its reproposed amendments to its standards that would improve the transparency of public company audits. The amendments would require (1) disclosure in the auditor's report of the name of the engagement partner, and (2) disclosure in the auditor's report of the names, locations, and extent of participation of other independent public accounting firms that took part in the audit and the locations and extent of participation of other persons not employed by the auditor that took part in the audit. The comment period initially ended on February 3, 2014, but was subsequently extended to March 17, 2014. This commentary summarizes the contributors' views on these amendments. Data Availability: The exposure drafts of the proposed and reproposed rules and related information are available at: http://pcaobus.org/Rules/Rulemaking/Pages/Docket029.aspx

An Investigation of Ethical Environments of CPAs: Public Accounting versus Industry

2016 ◽  
Vol 29 (1) ◽  
pp. 43-56 ◽  
Author(s):  
Donna D. Bobek ◽  
Derek W. Dalton ◽  
Brian E. Daugherty ◽  
Amy M. Hageman ◽  
Robin R. Radtke
Keyword(s):  
Ethical Decision ◽  
Ethical Decision Making ◽  
Data Availability ◽  
Certified Public Accountants ◽  
Public Accounting ◽  
Accounting Firms ◽  
Research And Practice ◽  
Work Settings ◽  
Big 4 ◽  
Public Accounting Firms

ABSTRACT The purpose of this paper is to investigate certified public accountants' (CPAs) perceptions of their ethical environments. More specifically, we compare the perceptions of CPAs in (1) public accounting firms to those in industry, and (2) perceptions of CPAs at Big 4 public accounting firms to those at non-Big 4 firms. The ethical environment is one component of overall organizational culture and is important for encouraging ethical decision making. Based on responses from 904 CPAs, we find CPAs working at public accounting firms perceive their ethical environments as significantly stronger than CPAs in industry (and other nonpublic accounting work settings). Additionally, within public accounting, CPAs at Big 4 firms perceive their ethical environments as significantly stronger than those working at non-Big 4 accounting firms. Implications for research and practice are discussed. Data Availability: Please contact the authors.

scholarly journals Audit Firm Perspective on Audit Firm Rotation and Enhancing Independence: Evidence from PCAOB Comment Letters

2016 ◽  
Vol 11 (1) ◽  
pp. A22-A44
Author(s):  
L. Tyler Williams ◽  
W. Mark Wilder
Keyword(s):  
Audit Committee ◽  
Auditor Independence ◽  
Overwhelming Majority ◽  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Firm ◽  
Public Accounting Firms ◽  
Comment Letters ◽  
Alternative Solutions

SUMMARY This study examines practitioners' perspectives on audit firm rotation and alternative solutions to enhance independence in the audit industry as solicited by the PCAOB's “Concept Release on Audit Firm Rotation and Auditor Independence.” Accordingly, we synthesize the opinions found in comment letters of 15 American public accounting firms—eight of which are annually inspected by the PCAOB and seven of which are inspected tri-annually. Altogether, we find the firms generally offer homogenous rationale for opposition to audit firm rotation. However, most importantly, we note that the overwhelming majority of the alternative solutions offered by the firms to enhance the independence relationship between auditor and client lies with fortifying the audit committee. To that end, while regulators have generally attempted to strengthen independence by introducing regulation at the auditor level, our review indicates that perhaps a shift in regulatory philosophy is warranted—one that suggests progressing regulation at the client level. Data Availability: Publicly available.

scholarly journals Financial Incentives For Graduate Tax Education Offered By Public Accounting Firms

2011 ◽  
Vol 9 (3) ◽  
pp. 21
Author(s):  
Paul Shoemaker ◽  
Nancy Stara
Keyword(s):  
Financial Incentives ◽  
Service Area ◽  
Graduate Degree ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Account ◽  
Graduate Degrees ◽  
Public Accounting Firms ◽  
Tax Education

Partners in public accounting firms recognize the benefit of a graduate degree for future advancement in the tax service area. To study if firms are offering financial incentives to encourage and reward individuals in the tax service area who seek graduate degrees, a questionnaire was sent to 592 personnel partners in public accounting firms. The results indicate the types of support that public account firms are willing to provide for graduate tax education.

Leveraging Organizational Knowledge through Electronic Knowledge Repositories in Public Accounting Firms: An Empirical Investigation

2011 ◽  
Vol 23 (2) ◽  
pp. 147-167 ◽  
Author(s):  
Hui Lin ◽  
Weiguo Fan
Keyword(s):  
Knowledge Management ◽  
Behavioral Intention ◽  
Perceived Usefulness ◽  
Data Availability ◽  
Research Model ◽  
Public Accounting ◽  
Accounting Firms ◽  
Knowledge Repositories ◽  
Public Accounting Firms ◽  
Electronic Knowledge Repositories

ABSTRACT We investigate one of the most widely used knowledge management tools in public accounting firms, electronic knowledge repositories (EKRs), using a research model theoretically grounded in the expectation-confirmation theory (ECT). The research model was tested with survey data collected from 230 employees from four large public accounting firms. The results indicate that perceived usefulness and subjective norms exhibit a sustained positive influence on individuals' EKR behavioral intention, while individual satisfaction has no significant impact on EKR behavioral intention. The supplementary group analyses on firm type, individual experience level, and individual usage level reveal that individual and firm characteristics affect individual EKR usage intention. We contribute to knowledge management research by being one of the first studies to explore the use of EKRs in public accounting firms. The results offer insights on the factors that impact individuals' attitude and intention to use EKRs, and elucidate how firms can leverage EKRs to promote knowledge reuse and retention. Data Availability: Data may be requested from Professor Lin.

WARREN W. NISSLEY: A CRUSADER FOR COLLEGIATE EDUCATION

1996 ◽  
Vol 23 (1) ◽  
pp. 89-116 ◽  
Author(s):  
Elliott L. Slocum ◽  
Alfred R. Roberts
Keyword(s):  
Independent Schools ◽  
College Graduates ◽  
Accounting Education ◽  
Graduate Level ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
College Programs

Warren W. Nissley's intense dedication to public accounting led him to crusade for development of schools of accountancy and improvement of education of accountants. Nissley conceived and championed the Bureau for Placements, 1926–1932, which resulted in: public accounting firms recruiting college graduates and developing permanent professional staffs, publishing the first Institute career publication, academic and student awareness of public accounting, and improved quality of college programs and graduates. Nissley's campaign for independent schools of accountancy, 1928–1950, influenced the Institute's committee on education. Many elements of his recommendations may be recognized in the evolution and current developments of accounting education. However, Nissley would continue to express disappointment in the failure to establish separate professional, graduate level, schools of accountancy for public accounting.

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