Using Debate to Enhance Critical Thinking in the Accounting Classroom: The SarbanesOxley Act and U'S

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Using Debate to Enhance Critical Thinking in the
Accounting Classroom The Sarbanes-Oxley Act
and U.S. Tax Policy

• Anne Leah Jones
• Julia M. Camp
• University of Massachusetts - Boston

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Tax Policy Debate

• Overall Objective
• to enhance student awareness of current issues
  in taxation as well as their appreciation of the
  political process which creates the tax laws of
  our country

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The Assignment

• Each year, the Senate Finance Committee holds
  hearings to consider revisions to the IRC and to
  discuss specific provisions in the IRC which are
  due to expire in the coming years
• Students hold their own hearings (debates) on the
  viability of new tax proposals or expiring IRC
  provisions
• Students turn in a written paper (five pages
  max) presenting their position

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Examples of Tax Issues Debated

• Above-the-line deduction for certain expenses of
  elementary and secondary schoolteachers
• Deduction of State and local general sales taxes
• Above-the-line deduction for certain higher
  education expenses
• Dividends taxed at capital gain rates
• Reduced capital gain rates
• New Qualified Hybrid Motor Vehicle Credit
• Roth 401(k) plans
• Privatization of Social Security

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Debate Format

• Two teams assigned to each tax issue
• One for adoption or extension
• One against adoption or extension
• 4-7 minutes to
• Briefly explain proposal or existing provision
• Identify stakeholders
• Provide persuasive argument as to why proposal or
  existing provision should or should not be
  adopted or extended
• Other team gets same 4-7 minutes
• At least one round of rebuttals
• Class votes

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Requirements

• Oral Presentation and Written Paper must
• Demonstrate understanding of assigned proposal or
  expiring IRC provision
• Research should include both primary and
  secondary sources
• Identify appropriate Constituencies/Stakeholders
• Develop persuasive argument
• Properly cite resources

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Learning Objectives for Students

• To obtain an understanding of tax issues
  currently being discussed by legislators.
• To obtain an appreciation of the process which
  creates U.S. tax policy.
• To consider different stakeholders who are
  affected by tax laws.
• To learn how to research information in the
  Internal Revenue Code as well as in other tax
  related sources.
• To enhance their ability to develop persuasive
  arguments.
• To practice and improve oral presentation and
  writing skills.
• To enrich their teamwork and organizational
  skills.

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Suggestions for Instructors

• Hold debates ½ to 2/3 of the way through semester
• Adds variety to typical tax course
• Avoids end of semester crunch
• Gives instructors and students an opportunity to
  build on skills developed and to capitalize on
  enhanced comfort level in the classroom
• 3-4 students per group
• Involvement by all, but not all required to
  formally present. Give students an opportunity to
  grade each other
• Students may give preferences for topics, but
  ultimately there must be one team for each side
  of each topic
• Strict time and page limits
• Must provide focused argument which highlights
  the most important facts

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Suggestions for Instructors (contd)

• Be flexible
• Instructor stays hands off to allow for student
  creativity both in research and presentation
  style
• Written assignment should be due after debates
• Gives students an opportunity to learn from their
  oral presentation and improve written paper
• Have written assignment be a letter to the Senate
  Finance Committee instead of a research paper.
• Rounds out the realism of the assignment

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Feedback

• Students more engaged in policy issues
• Provided opportunity for development of teamwork
  and presentation skills
• Some students were more active in class after
  project
• Students enjoyed assignment
• Further discussion of topics after debate day
• Students actually Thanked professor for
  assignment. It was fun and I feel I learned
  something!
• International Students appreciated the
  opportunity to experience the American Way
  first-hand, some for the very first time.

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Other Areas of Accounting

• Similar Debates in Financial Accounting and
  Auditing
• Sarbanes Oxley
• Impact of SOX on different constituencies
• Suggested changes to the Act
• Effectiveness
• U.S. / International Accounting Convergence
  Projects
• New Financial Statement Project
• IFRS and SEC Filings
• Fair Value Accounting

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Further Interest?

• Contact
• Anne.Jones_at_umb.edu
• Julia.Camp_at_umb.edu
• A special thank you is extended to Dr. Stacy Wade
  of Western Kentucky University for her inclusion
  of this project in her coursework and her
  subsequent feedback to the authors.