Congruence between Entry-Level Accountants' Required Competencies and Accounting Textbooks (2010)

INTRODUCTION Demand for professionals has increased dramatically in the wake of financial disasters at Enron, MCI WorldCom, Tyco, and Arthur Anderson. A survey conducted by the National Association of Colleges and Employers published in the March 1, 2005, issue of the Wall Street Journal, found that is the number one major employers are demanding in 2005. Additionally, the Bureau of Labor Statistics has predicted nearly 400,000 new jobs over the 10-year period ending in 2012. While there appears to be consensus that the demand for majors is on the rise, there is widespread concern that the gap between current education and the needs of industry are widening. Industry leaders are encouraging educators to adopt an curriculum that is more relevant and that focuses on real world situations. Specifically, they are asking educators to provide a greater emphasis on higher-order cognitive skills, teamwork, use of technology, exposure to global and ethical issues, and communication skills. Accounting textbooks have a major influence on most courses and the nature and type of learning activities used to prepare entry-level accountants (Davidson & Baldwin, 2005). There is evidence in the literature that indicates instructors rely heavily on textbooks and end-of-chapter (EOC) materials for homework assignments and coverage of course content. Accordingly, the cognitive skill set of an student is largely dependent on the EOC materials contained in the prescribed text. If instructors rely heavily on EOC materials from the text and the EOC materials mostly address lower-order thinking skills, there is substantial risk that mostly lower-level learning will occur. The purpose of this research is to evaluate the EOC materials in the leading text of five disciplines on a variety of criteria that are important for success in the profession. This paper examines the congruence between the end-of-chapter (EOC) materials in select textbooks and the cognitive and behavioral skills identified above. Specifically, the authors performed a systematic analysis of the leading text for Accounting Information Systems (AIS), Auditing, Cost, Intermediate, and Tax Accounting to determine the extent to which textbooks facilitate the move from the transmittal of knowledge to the development of the higher-order cognitive skills as well as the behavioral skills (e.g. communication, technology, etc). The next sections of the paper contain a review of the professional and academic literature. The research questions of this study, the methodology and results sections appear next. The paper concludes with the conclusion, limitations and suggestions for future research. PROFESSIONAL LITERATURE REVIEW Almost two decades ago, the Accounting Education Change Commission (AECC) was created by the American Accounting Association (AAA) to serve as a catalyst to improve the academic preparation of future accountants. More specifically, the AECC's purpose was to move education from the traditional transmittal of technical knowledge to the development of a deep understanding of concepts and policies, as well as developing skills and attitudes necessary for the successful practice of accounting (Gainen & Locatelli, 1995). The initial phases of this movement included a composite of knowledge and skills needed by graduates (AECC, 1990). Following the recommendations of the Bedford Committee Report (AAA, 1986) and the Big 8 White Paper (Arthur Anderson et al., 1989), the skills identified by the AECC (1990) include, but are not limited to, intellectual, interpersonal, and communication. Intellectual skills comprise the ability to think logically, solve unstructured problems, and the ability to identify ethical issues. Interpersonal skills incorporate the ability to work with others in groups and the ability to interact with culturally and diverse people. …