Pathways Commission Update - PowerPoint Presentation

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Pathways Commission UpdateCharting a National Higher Education Strategy for the Next Generation of Accountants

Sponsored by the American Accounting Association (AAA) and the American Institute of CPAs (AICPA)

AAA Annual Meeting, Denver

August 2011Slide2

All views presented today are our own and do not reflect the official views of the Pathways Commission, our organizations, AAA, or AICPA.Official Statement

Pathways Commission (AAA and AICPA)

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In 2008, the U.S. Department of Treasury Advisory Committee on the Auditing Profession (ACAP) made a number of recommendations. Part VI. Human Capital recommendation #5 was:“Encourage the AICPA and the AAA jointly to form a commission to provide a timely study of the possible future structure of higher education for the accounting profession.”

U.S. Treasury RecommendationPathways Commission (AAA and AICPA)

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AAA – Gary Previts, Case Western Reserve University, Former AAA PresidentAAA – Tracey Sutherland, Executive DirectorAICPA – Denny Reigle, Former Director Academic and Career Development Team

AICPA – George Krull, Grant Thornton (Retired)Sponsoring Committee

Pathways Commission (AAA and AICPA)

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Globalization of business and marketsEscalating complexity of businessLack of financial literacyHigh profile frauds eluding regulatory scrutinyIncreasingly sophisticated technologyIncreasing need for fair value, predictive and non-financial information

Pathways Commission (AAA and AICPA)

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Challenges for Profession and AcademiaSlide6

To meet these challenges we need to develop strategies and then structures to ensure that we have an adequate supply of the best, diverse talent to sustain the accounting profession, broadly defined, over the long-term.

Pathways Commission (AAA and AICPA)Pathways Commission Objective

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Bruce Behn - Chair (University of Tennessee)Bill Ezzell (Deloitte)Leslie Murphy (Murphy Consulting, Inc.)Judy Rayburn

(University of Minnesota)Jerry Strawser (Texas A&M University)Mel Stith

(Syracuse University)

Pathways Commissioners

Pathways Commission (AAA and AICPA)

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Scope of the CommissionAttract individuals with high potential to excel in accounting, at any point in their livesEnable higher education to provide the best possible educational experienceSupport the need for ongoing educational experiences throughout the professional accountants’ careers

Three Supply Chains each to focus on several different aspects of the challengesWork Groups emerged within and across the three Supply Chains

Pathways Commission (AAA and AICPA)

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A Collaborative StructureSlide9

Supply Chain 1

Supply Chain

2

Supply Chain 3

Santa Fe College

U.

of Rhode Island

North Carolina

State U.

Ernst & Young

KPMG Foundation

PricewaterhouseCoopers

Wake Forest University

Dixon-Hughes

Bailiwick Data Systems

Belmont University

DiSanto

, Priest & Co.

CitiGroup

Austin Comm. College

Univ. of Arkansas

Univ. of Memphis

Kansas State Univ.

Arizona State Univ.

FSA

DeVry

University

Creighton University

AACSB

National

Business Education Association

Financial

Executives InternationalNASBAColorado State Univ.Association of Government Accts.Institute of Management AccountantsBeta Alpha PsiNational Association of Black AccountantsInstitute of Internal AuditorsColorado State SocietyAssoc. of Latino Professionals in F&A Minnesota State Board

Supply Chain Organizations

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Supply Chain 1Supply Chain 2

Supply Chain 3Susan Crosson (L)Mark

Higgins (L)

Scott Showalter

(L)

Ken

Bouyer

Bernard J. Milano

Holly Paul

Jack Wilkerson

Larry Evans

Bill Travis

Del

DeVries

Ernie

Almonte

Steve Young

Tracie Nobles

Karen

Pincus

Carolyn Callahan

Dan

Deines

Harriet

Maccracken

Martha Doran

Beth

Rescigno

Jack Krogstad Jan Williams Madge Gregg Robert WalkerMelanie Thompson Margarita Lenk Jeanette FranzelDave BurrittCindy Cruz Gregory Johnson Paul SobelMary Medley Manny Espinoza Kate Mooney

Pathways Commission (AAA and AICPA)

Supply Chain Representatives

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639 Years of Practice Experience585 Years of Education ExperienceMany people wear different hats (examples)Ernie Almonte, past AICPA chair, former Rhode Island Auditor General, now DiSanto

, Priest & Co.Jack Krogstad, Creighton University, former Academic Fellow at the Office of the Chief Accountant

Pathways Commission (AAA and AICPA)

Overall Pathways Statistics

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Supply Chain #1---Susan Crosson, (Santa Fe College)Supply Chain #2---Mark Higgins, (University of Rhode Island)

Supply Chain #3---Scott Showalter, (Retired KPMG partner and N.C. State University)

Supply Chain Leaders

Pathways Commission (AAA and AICPA)

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A Collaborative ProcessInformation gathering and sharing to level-set all participantsDevelopment of key questions for explorationBuild-out of perspectives on key issuesLeading to implementable recommendations

Pathways Commission: Charting a National Strategy for the Next Generation of Accountants

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Pathways Commission (AAA and AICPA)14

Feedback Received from Presentations by M

embers of the Pathways Commission

AAA 2010 Annual Meeting San Francisco

TSCPA Accounting Education & Career Awareness Meeting

Tennessee Accounting Educators Conference

AAA 2010 Northeast Region Meeting

2010 AICPA Fall Council Meeting

AAA 50th Anniversary Region Meeting

NASBA 2010 Annual Meeting

Michigan Association of CPAs Educators Conference

AAA November 2010 Executive Council Meeting

AICPA Board of Directors Meeting

Accounting Sponsoring Organizations

2011 Maryland Accounting Educators Conference

2011 AICPA Board of Directors Meeting

2011 AAA FARS and IAS Section Meetings

3rd Annual On-Line TLC Section Midyear Meeting

2011 APLG/FSA Annual Meeting

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Pathways Commission (AAA and AICPA)15

Feedback Received from Presentations by

M

embers of the Pathways Commission

20 11 South Carolina Association of Accounting Educators

Tennessee High School Educators’ Symposium

NASBA CPE Conference

AAA 2011 Southwest Region

AAA 2011 Southeast Regional

AAA 2011 Mid-Atlantic Region Meeting

AAA 2011 Western Region Meeting

Indiana CPA Society’s

2011 Educators Conference

Michigan Association of CPAs Spring Advisory Forum

AAA 2011 Ohio Region Meeting

2011 TACTYC – Keynote Speaker

AICPA Spring Council Meeting

2011 Virginia Society of CPAs Educators’ Symposium

CPE Society Executives Interchange ConferenceSlide16

Commission and Supply Chains have Developed the Following Working Issuesusing Feedback from Presentations

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1.What is the Value Proposition of a Broadly Defined Accounting Profession?

Issues

Definition of our profession

Define a signature pedagogy

Identify benefits and contributions of accounting to our economy

Stress the breadth of the profession - accounting goes beyond auditing

Impediments

Public perception of accounting careers as “less than exciting”

Lack of understanding of important role of accounting to our economy

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2. Identify Current and Forecast Future Markets for Accounting Information And Professionals

Issues

Gather supply and demand data for all accounting professionals

Identify necessary current and future competencies for each area of practice

Conduct research to identify demand, considering outsourcing trends

Impediments

Currently bits and pieces of job market are tracked

Lack of national data base to track job market for all accounting students and careers

No “Meta”-Professional accounting organization that cuts across functional areas

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3. Strengthen quality and quantity of high potential accounting students

Issues

Career Perceptions

Brand identity and careers beyond auditing

High schools: Dual enrollment and AP

The first course as a recruitment tool

Placement of accounting course in curriculum

Impediments

Students discover accounting too late in their career choice process

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IssuesCurriculum

Educational paths for less “traditional” entrants and career options (paraprofessionals)Less traditional educational paths for traditional entrants (Rutgers program)Diversity

Impediments

Diversity of accounting professionals does not mirror diversity of US population

Under represented populations lack role models and mentors

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3. Strengthen quality and quantity

of high potential accounting students Slide21

4. Broaden and improve the speed of curricula and pedagogy innovation

in a rapidly changing complex global environment

Issues

Inventory accounting curricula at high schools, community colleges, and universities

Integrate cutting edge practices, IT/systems, and global/cultural experiences

Impediments

Cost of development of teaching materials (simulations) to facilitate experiential learning

Difficulty of integrating IT changes into the classroom

Lack of national clearinghouse for innovation in curricula and pedagogy.

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IssuesUnderstand learning patterns of different generations of studentsRethink textbooks and other learning materials

Impediments

Inadequate integration of educational research findings into PhD programs and faculty awareness

Slow process of updating textbooks and integrating new material

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4. Broaden and improve the speed of

curricula and pedagogy innovation

in a rapidly changing complex global environmentSlide23

5. Assess Faculty Supply/Demand Status

Issues

Continue to actively recruit Ph.D. students from practice for specialized disciplines (audit and tax)

Review current Ph.D. programs and processes (program length and foci)

Improve integration of professionally and academically qualified faculty

Gather data on supply and demand for Ph.D. graduates

Impediments

One-size fits all PhD program design

Lack of national (global) PhD program clearinghouse

Distance between accounting research and practice

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6. Strengthen bi-directional links between

business/profession and the educational community (research and teaching)

Issues

Internships/externships

Collaborative research and data sharing

Integration of professionals into classrooms and academe

Professional experiences for faculty by specializations

Impediments

Research disconnect between accounting professionals and academia

Difficulty of obtaining data for research

Narrow focus of academic accounting research reward systems

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IssuesContinuing educational opportunities for facultyAdvanced, professional degrees (post-MS specialist, leadership Ph.D.)

Professional certifications and licensureImpediments

Faculty time constraints

Lack of easily available and affordable mechanisms to update faculty

Only partial integration of clinical faculty into academia

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6. Strengthen bi-directional links between

business/profession and the

educational community (research and teaching)Slide26

Initial recommendations by Summer/Fall 2011Final recommendations by November/December 2011Final Report targeted for January 2012Phase 2 planning in process now – focus on implementation

Pathways Commission (AAA and AICPA)

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Next StepsSlide27

How do we overcome impediments?Higher education?Practice?Sustaining change is hardHow can innovation become institutionalized?Other?

Pathways Commission: Charting a National Strategy for the Next Generation of Accountants

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Potential Discussion QuestionsSlide28

We Need Your InputSend your input via the Pathways Commission space:

http://pathwayscommission.orgOr send your input to Bruce Behn (bbehn@utk.edu)

Pathways Commission (AAA and AICPA)

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