REFORMING THE UNIFORM CPA EXAMINATION

1
REFORMING THE UNIFORM CPA EXAMINATION

• A Study
• Conducted for
• THE AICPA
• by
• The OSR Group
• August 2002

2
CONTENTS

• Background 5
• Research Objectives 7
• About the Study 10
• Executive Summary 20
• About the Respondents and Their Institutions
  33
• Computer Resources 44
• Use of the Accounting Professional Literature
  53

3
CONTENTS(continued)

• Awareness of the Changes to the Exam
  62
• Familiarity With the Proposed Changes
  63
• Curriculum Changes 70
• How Students Will Be Affected 75
• Whether the Institution Will Be Ready
  86

4
CONTENTS(continued)

• The Pre-Testing Initiative 94
• Awareness of the Initiative 95
• Benefits to Participating 100
• Obstacles to Participating 106
• Likelihood to Participate 112
• Incentives for Participation 123
• Additional Comments About the Pre-Testing
  130
• Study Materials 135

5
BACKGROUND

• The Uniform CPA Examination, as administered by
  the American Institute of Certified Public
  Accountants (AICPA), is the gateway to the
  accounting profession for many thousands of
  accounting students each year.
• This Exam is designed to ensure that the
  accountants of tomorrow will be prepared for the
  challenges facing the accounting industry. Only
  those who demonstrate (by passing the Exam) that
  they have the requisite knowledge and skills are
  admitted to the profession.

6
BACKGROUND(continued)

• The Uniform CPA Exam is revised periodically so
  that it can continue to meet current needs. The
  Exam is currently being redesigned to be
  administered in a computer-based format. The new
  Exam -- in its new format -- is scheduled to be
  ready for use in November 2003.
• Much work needs to be done before that date. The
  format must be tested extensively, and individual
  questions and question modules must be created
  and pre-tested before they can be included in the
  Exam. This will require the cooperation of
  accounting and IT faculty within Accounting
  Departments throughout the country, both to
  comment on the proposed changes to the Exam, and
  to recruit students to participate in the
  pre-testing process.

7
RESEARCH OBJECTIVES

• Understand the degree to which accounting faculty
  and Accounting Department administrators are
  aware of the AICPAs planned changes to the
  Uniform CPA Exam.
• Evaluate the degree to which accounting programs
  at colleges and universities throughout the
  country believe they are ready to participate in
  a computerized accounting exam.
• Assess the use of computers and online resources
  among accounting students in participating
  schools.

8
RESEARCH OBJECTIVES(continued)

• Evaluate awareness of accounting faculty and
  administrators of the AICPAs plans to pre-test
  the Uniform CPA Exam at colleges and
  universities.
• Measure the likelihood that schools will be
  willing to participate in the pre-testing
  initiative.
• Assess the views of the faculty and
  administration respondents about the willingness
  of individual students to participate in the
  pre-testing initiative.

9
RESEARCH OBJECTIVES(continued)

• Explore the possibility that incentives might be
  helpful in encouraging student participation,
  and seek suggestions about the types of
  incentives that might be effective.
• Measure how all of these issues might vary by key
  subgroups of accounting faculty and
  administrators, including (among other
  dimensions)
• Teachers vs. administrators
• Respondents from various types of institutions
  and
• Respondents whose schools offer significant PC
  access and online resources vs. schools that do
  not offer these capabilities.

10
ABOUT THE STUDY
11
PROJECT OVERVIEW

• This study includes two components
• An online survey among a sample of 679 Accounting
  Department faculty and administrators.
• A telephone survey, including 150 in-depth
  telephone interviews, again among Accounting
  Department faculty and administrators.
• All of the respondents were contacted using a
  database supplied by the AICPA.
• Interviewing dates
• Online survey May 22 - June 10, 2002.
• Telephone survey May 28 - June 6, 2002.

12
INTERVIEWING PROCEDURES -- ONLINE SURVEY

• Potential respondents from the AICPAs academic
  database were sent an advance e-mail describing
  the objectives of the online survey and
  encouraging their participation.
• A second e-mail was sent several days later.
  This second e-mail contained a link to the online
  survey.
• A third e-mail went to those who had not yet
  responded to the survey, again encouraging them
  to participate, and again containing a link to
  the survey. (For those who had already completed
  the online survey, the third e-mail was replaced
  by a fourth, thank you e-mail.)

13
INTERVIEWING PROCEDURES -- TELEPHONE SURVEY

• The advance e-mail and the thank you e-mail for
  the online survey also included information about
  the telephone survey, and encouraged the faculty
  and administrators to participate if they were
  contacted.
• Potential respondents for the telephone survey
  were contacted by telephone and asked to
  participate in this in-depth interview. When
  respondents were not available, multiple
  callbacks were made to reach them at convenient
  times.

14
INTERVIEWING PROCEDURES --BOTH SURVEYS

• The potential survey respondents to both the
  online survey and the telephone survey were
  clearly told that the project was sponsored by
  the AICPA. At the same time, they were promised
  that all of their responses will be kept
  completely confidential, and that no college or
  individual names would be used in reporting the
  survey results.
• The questionnaires used for both surveys were
  developed jointly by the AICPA and The OSR Group.
  Copies of the two questionnaires (and of the
  four e-mails sent for the study) appear at the
  end of the hard-copy version of this volume.

15
DATA ANALYSIS

• The data for the online survey have been
  tabulated both in total and by 17 sub-categories
  of the total, presented as one volume (banner) of
  data. These tabulations have already been
  presented to the AICPA.
• In addition, all of the data for the online
  survey have been compiled into an SPSS database.
  This database has been provided to the AICPA as
  well.
• The telephone survey data were compiled into an
  Excel database, including the responses to each
  of the survey questions. This database has also
  been provided to the AICPA.

16
STATISTICAL SIGNIFICANCE

• Technically, the rules of statistical
  significance and sampling variation do not apply
  to the online survey. All of the accounting
  faculty and administrators in the AICPA database
  (who had valid e-mail addresses) were invited to
  participate in the survey. The opinions of those
  who chose not to participate cannot be inferred
  based on statistical rules or on extrapolations
  from the opinions of those who did participate.
• Even so, it is helpful to understand the sampling
  tolerances that would apply to random sample
  surveys of a similar size. These tolerances can
  provide useful parameters for analyzing the
  results of the online survey.

17
STATISTICAL SIGNIFICANCE(continued)

• The online survey included 679 interviews. The
  maximum sampling tolerance associated with a
  random-sample survey of 679 is 4.
• The rules of statistical significance do apply to
  the telephone survey, because the sample of 150
  was selected at random from the AICPAs academic
  database. The maximum sampling tolerance
  associated with a random sample of 150 is 8.
• Complete details about the methodology for the
  online survey are included in the introduction to
  the online survey tabulations. Details about the
  methodology for the telephone survey appear in a
  written summary of the telephone survey results.

18
A NOTE TO READERS

• This report presents the findings of two separate
  surveys on the same subject. In some cases, the
  online survey covered some aspects of an issue,
  while the telephone survey covered other aspects.
  
• Each chart has been labeled at the top (as
  appropriate) to indicate whether the data in that
  chart come from the online survey or from the
  telephone survey.
• Differences between the findings of the two
  surveys are generally minor. Where appropriate,
  these differences have been highlighted.

19
WHO TO CONTACT FOR MOREINFORMATION

• Questions or comments about this study may be
  referred to Josh Libresco at The OSR Group, as
  follows
• Joshua D. Libresco
• Executive Vice President
• The OSR Group
• 619 Biscayne Drive
• San Rafael, CA 94901
• Phone [phone]
• Fax [phone]
• E-mail jlibresco_at_osrgroup.com

20
EXECUTIVE SUMMARY
21
COMPUTER RESOURCES

• Ninety-nine percent of the online survey
  respondents say there is an established, fixed
  computer lab at their institutions 95 of the
  telephone survey respondents provide a similar
  response.
• Eighty-seven percent of the institutions in the
  online survey say PC access to the Internet is
  very available at their institutions. Similarly,
  85 say PCs in a computer lab are very available.
  For electronic (PC) access to library and
  accounting literature, 59 say this is very
  available an additional 26 report moderate
  availability. Seventy-three percent provide
  Accounting majors with online resources.
• Ninety percent of the respondents say their
  students computer proficiency is at least
  average 28 rate it above average.

22
USE OF THE ACCOUNTING PROFESSIONAL LITERATURE

• Two-thirds (68) of the online survey respondents
  require their students to access or utilize the
  accounting professional literature. For the
  telephone survey respondents, an almost identical
  66 say this is required.
• A large majority of those who do require the
  professional literature (in both surveys) say
  that both paper-based access and computer-based
  access are required.
• Among those who do not require use of the
  professional literature, the main reasons are
  that the professional literature is not believed
  to be necessary for their courses, and that the
  literature is beyond the capabilities of their
  students.

23
FAMILIARITY WITH THE PROPOSED CHANGES TO THE EXAM

• Among the online survey respondents, 26 say they
  are very aware of the proposed changes to the
  content of the Uniform CPA Exam. Slightly more
  (33) say they are very aware of the changes to
  the structure of the Exam. A 57 majority say
  they are very aware of the plan to change the
  Exam to computer-based delivery. Only 2 say
  they are not aware of this change.
• Among the telephone survey respondents, 15 are
  very familiar with the changes overall, and an
  additional 45 claim to be somewhat familiar with
  the changes. A majority (59) say they are very
  aware of the move to computer-based delivery.

24
CURRICULUM CHANGES

• Just over one in five (22) of the telephone
  survey respondents say they have considered
  changing the Accounting curriculum to accommodate
  the restructuring of the CPA Exam and the move to
  computer-based testing. Half (53) say they have
  not considered any curriculum changes. The rest
  either are not sure or say the question does not
  apply to them, presumably because they are not
  involved in curriculum decisions for their
  institutions.
• Most of the potential changes focus on improving
  the ways that technology is integrated into the
  curriculum. Other changes relate to improving
  writing skills and increasing the focus on
  business applications.

25
HOW STUDENTS WILL BE AFFECTED

• In response to an open-ended question, 35 of the
  online survey respondents offer reasons why their
  students will be affected positively by the
  changes to the structure of the Uniform CPA Exam.
  The principal positive comments are that the
  respondents already use cases in their courses,
  that they encourage integration of concepts,
  and/or that they already emphasize the use of
  technology.
• On the other side, 28 offer negative comments.
  The principal concerns are that the students will
  not be prepared, that they have not been exposed
  to case studies, that they have limited access to
  technology, that they have trouble with writing,
  and/or that non-native English speakers will
  have trouble.

26
WHETHER THE INSTITUTION WILL BE READY

• Almost two-thirds (65) of the respondents say
  they believe their institutions will have made
  any changes that are required before the revised
  exam is ready in November 2003. Only about one
  in ten (12) say their institutions will not be
  ready.
• Those who believe their institutions will be
  ready are most likely to note that their
  institutions have a history of responding
  successfully when changes are needed. Some also
  focus on their advanced computer resources.
• Those who do not expect to be ready generally say
  that there is not enough time. In addition, some
  cite budget concerns.

27
AWARENESS OF THE PRE-TESTING INITIATIVE

• Almost two-thirds (65) of the online survey
  respondents say they have heard about the AICPAs
  pre-testing initiative for the changes to the
  Uniform CPA Exam.
• The telephone survey respondents were asked the
  same question. A slightly lower percentage (but
  still a 54 majority) say they have heard about
  the pre-testing initiative.

28
BENEFITS TO PARTICIPATING

• The telephone survey respondents were asked if
  they believe that participating in the AICPAs
  pre-testing initiative would bring benefits to
  their institutions. A majority (53) say yes,
  there would be benefits. Thirty-one percent do
  not expect benefits from participating the rest
  (16) are not sure.
• Most think the primary beneficiaries will be the
  students, because they will have some advance
  knowledge of the format and content of the test.
  Others think it would be helpful for faculty to
  have some exposure to the test, so that
  curriculum can be adjusted. Still others think
  the AICPA would benefit, because the organization
  would receive feedback from the pre-testing.
  Finally, some believe there could be favorable
  publicity for their institutions.

29
OBSTACLES TO PARTICIPATING

• The telephone survey respondents were also asked
  if they see obstacles to having their
  institutions participate in the AICPAs
  pre-testing process. One-third say they do see
  obstacles. A 51 majority see no obstacles.
  (The remaining 16 are not sure.)
• The primary obstacle to participating in the
  pre-testing is faculty time. In addition, some
  are concerned about the possible cost of
  participating, the motivation of the students to
  participate, and the administrative burden. A
  few also mention technology requirements.

30
LIKELIHOOD TO PARTICIPATE

• Among the online survey respondents, 18 believe
  their institutions will be very likely to
  participate in the pre-testing. An additional
  35 believe their schools will be somewhat
  likely. This is extremely close to the
  likelihood to participate found in the telephone
  survey (15 very likely 37 somewhat likely).
  
• According to both surveys, the decision to
  participate is most likely to be made by a Head
  or Chair of a Department or by a Dean.
• Twenty-nine percent of the online survey
  respondents think their students will be very
  interested in participating an additional 51
  say their students will be somewhat interested.

31
INCENTIVES FOR PARTICIPATION

• Sixty-one percent of the online survey
  respondents believe incentives will be required
  to persuade students to participate in
  pre-testing the new CPA Exam. Thirty-nine
  percent do not favor incentives.
• The telephone survey participants are more evenly
  divided they favor incentives by 51-38. (The
  rest are not sure.)
• In both surveys, money is by far the incentive
  suggested most often, with the payments possibly
  tied to the hours required. Other frequent
  suggestions include reduced fees for the CPA
  Exam, course credit, extra credit toward a grade,
  free professional literature, and free membership
  in the AICPA.

32
ADDITIONAL COMMENTS ABOUT THE PRE-TESTING

• Near the end of the online survey, the
  respondents were asked if they have any
  additional comments for the AICPA that might help
  to make the pre-testing program more effective.
• While the comments are quite diverse, the
  comments group most often into three categories
  1) Facilitate faculty and/or student preparation
  (provide sample questions, allow faculty to see
  the test) 2)Increase awareness of and
  communication about the pre-testing and 3)
  Pre-test broadly (among diverse schools and a
  variety of different students).

33
ABOUT THE RESPONDENTS AND THEIR
INSTITUTIONS
34
PRIMARY RESPONSIBILITY --ONLINE SURVEY

• Among the online survey respondents, 82 say
  their primary responsibility
• is teaching, and 14 say it is administration.
  This proportion probably
• reflects the composition of the AICPAs
  academic database as a whole.

35
PRIMARY RESPONSIBILITY --TELEPHONE SURVEY

• By design, the sample for the telephone survey
  was set up differently.
• Administrators were oversampled, so that half
  of the sample say
• administration is either their primary
  responsibility or an equal
• responsibility with teaching. The
  oversampling allows the views of
• administrators to be heard in the open-ended
  responses.

36
GENDER --ONLINE SURVEY

• Two-thirds of the online survey respondents are
  male one-third are female.

37
GENDER --TELEPHONE SURVEY

• The distribution of the respondents by gender
  for the telephone survey
• matches almost exactly with the distribution
  in the online survey.

38
TYPE OF INSTITUTION --ONLINE SURVEY

• Eighty-six percent of the online survey
  respondents say they are from
• four-year schools. Only 9 claim to be from
  community colleges or junior
• colleges. Among the four-year schools, most
  are state institutions.

39
NUMBER OF ACCOUNTING FACULTY --TELEPHONE SURVEY

• The telephone survey respondents schools range
  from having no faculty
• dedicated specifically to Accounting to having
  60 Accounting faculty. For
• the schools as a whole, the median number of
  Accounting faculty is 10.

40
FACULTY WITH THE CPA CREDENTIAL --TELEPHONE
SURVEY

• All but one of the 150 telephone survey
  respondents claim to hold the CPA
• credential. (They are, after all, on the
  AICPAs lists.) For the schools as a
• whole, the median estimate is that 80 hold
  the CPA credential.

41
REGIONAL DISTRIBUTION OF THE SURVEY RESPONDENTS

• All 50 states (plus the District of Columbia) are
  represented among the 679 respondents to the
  online survey.
• In total, 41 states (plus the District of
  Columbia) are represented among the 150
  respondents to the telephone survey.
• The distributions of the respondents to each
  survey are shown in the maps on the next two
  pages. In percentage terms, the regional
  distributions for the online survey and for the
  telephone survey are extremely close.

42
DISTRIBUTION OF THE ONLINE SURVEY RESPONDENTS
BY REGION
East 14
Midwest 29
West 17
South 39
43
DISTRIBUTION OF THE TELEPHONE SURVEY RESPONDENTS
BY REGION
East 16
Midwest 25
West 18
South 41
44
COMPUTER RESOURCES
45
PRESENCE OF COMPUTER LABS

• Ninety-nine percent of the online survey
  respondents say there are established, fixed
  computer labs at their institutions. Even among
  community/junior colleges, 97 report that their
  institutions have computer labs.
• In response to a similar question on the
  telephone survey, 95 say there is an
  institution-based computer lab at their colleges
  or universities. Three percent say there is no
  such lab the rest are not sure.

46
AVAILABILITY OF PCs IN ACOMPUTER LAB -- ONLINE
SURVEY

• Among the online survey respondents, 85 say it
  is easy for Accounting
• majors to access PCs in computer labs at their
  institutions. An additional
• 12 say there is moderate availability of PCs.

47
AVAILABILITY OF PC ACCESS TOTHE INTERNET --
ONLINE SURVEY

• Eighty-seven percent of the online survey
  respondents say it is easy for
• Accounting majors to access the Internet using
  PCs at their institutions. An
• additional 10 say there is moderate
  availability of Internet access.

48
ELECTRONIC (PC) ACCESS TO LIBRARYAND ACCOUNTING
LITERATURE -- ONLINE SURVEY

• Finally in this section, 59 of the online
  survey respondents say it is easy
• for Accounting majors to access library and
  accounting literature. An
• additional 26 say there is moderate
  availability of this literature.

49
AVAILABILITY OF VARIOUS TECHNOLOGIES -- ONLINE
SURVEY

• Summarizing the previous three charts, access
  to the Internet is most likely
• to be available, followed by access to PCs in
  a computer lab.

50
ONLINE RESOURCES IN THE MAJOR --ONLINE SURVEY

• Three-fourths (73) of the online survey
  respondents say their institutions
• provide online resources to Accounting
  students in the area of their major.
• Twenty-seven percent do not do this. Even
  among community colleges/
• junior colleges, 68 provide these resources.

51
COMPUTER PROFICIENCY OF ACCOUNTING MAJORS --
ONLINE SURVEY

• Nine out of ten of the online survey
  respondents say the computer
• proficiency of their Accounting majors is
  average or better 28 rate it
• above average. Only one in ten say computer
  proficiency is below average.

52
PERCEPTIONS OF COMPUTER PROFICIENCY BY TYPE OF
INSTITUTION

• Respondents from community colleges/junior
  colleges are much less likely
• to see their students as above average in
  computer proficiency.

53
USE OF THE ACCOUNTING PROFESSIONAL
LITERATURE
54
WHETHER STUDENTS ARE REQUIRED TO ACCESS
PROFESSIONAL LITERATURE -- ONLINE SURVEY

• Two-thirds (68) of the online survey
  respondents say their institutions
• require their students to access or utilize
  the accounting professional
• literature. Similarly, 66 of the telephone
  survey respondents give this
• response.

55
WHETHER STUDENTS ARE REQUIRED TO ACCESS
PROFESSIONAL LITERATURE BY TYPE OF INSTITUTION

• Respondents from community colleges/junior
  colleges are much less likely
• to require their students to access the
  accounting professional literature.

56
WHETHER STUDENTS ARE REQUIRED TO ACCESS
PROFESSIONAL LITERATURE BY PRIMARY
RESPONSIBILITY

• It is interesting to note that teachers are
  less likely than administrators to
• believe that use of the accounting
  professional literature is required.

57
WHETHER STUDENTS ARE REQUIRED TO ACCESS
PROFESSIONAL LITERATURE BY AVAILABILITY OF
INTERNET ACCESS

• Schools that offer their students PC access to
  the Internet are much more
• likely to require use of the accounting
  professional literature.

58
HOW PROFESSIONAL LITERATURE IS ACCESSED -- ONLINE
SURVEY

• Among those in the online survey who do require
  access to the accounting
• professional literature, most (69) say both
  paper-based and computer-
• based access is required. This is true in
  the telephone survey as well.

59
REASONS FOR NOT REQUIRING THE ACCOUNTING
PROFESSIONAL LITERATURE -- ONLINE SURVEY

• The respondents to the online survey who do not
  require their students to access or use the
  accounting professional literature were asked (in
  an open-ended way) to explain why this is not
  required. Their responses have been coded into
  categories.
• Generally, the primary reasons are that the
  respondents do not teach courses that would
  benefit by using the professional literature (44
  provide this response) or that the students are
  not qualified to use the professional literature
  (32 provide a response in this category).
• In addition, 12 cite time constraints, 12 cite
  costs, and 8 mention lack of access to the
  literature.

60
REASONS FOR NOT REQUIRING THE ACCOUNTING
PROFESSIONAL LITERATURE -- TELEPHONE SURVEY

• The telephone survey respondents provide similar
  answers to an identical question. Their most
  frequent responses are 1) that the textbooks are
  sufficient and that the professional literature
  is not necessary and 2) that the professional
  literature is beyond the capabilities of their
  students.
• Some illustrative verbatim comments are shown on
  the next page.

61
REASONS FOR NOT REQUIRING THE ACCOUNTING
PROFESSIONAL LITERATURE -- TELEPHONE
SURVEY(continued)

• Its not necessary with the textbooks I use.
• Its already in the textbooks.
• Because it's not necessary at that level. We're
  a community college.
• I teach intro it's not necessary.
• I'm not teaching in that area. The text I use
  is pretty thorough, and I provide supplements
  with it.
• I feel it is just not necessary for the level of
  my students.
• My students are too low-level it would be over
  their heads.
• Most of my students aren't Accounting majors. I
  have one Accounting major for every
  non-Accounting major. I feel they need a broader
  background, a broader base.

62
AWARENESS OF THE CHANGES TO THE EXAM
63
FAMILIARITY WITH THE PROPOSED CHANGES
64
AWARENESS OF CHANGES TO THE CONTENT OF THE EXAM
-- ONLINE SURVEY

• Among the online survey respondents, 26 say
  they are very aware of the
• proposed changes to the content of the Uniform
  CPA Examination. An
• additional 48 are somewhat aware of these
  changes. Only 5 say they
• are not aware.

65
AWARENESS OF CHANGES TO THE STRUCTURE OF THE EXAM
-- ONLINE SURVEY

• A third of the online survey respondents say
  they are very aware of the
• proposed changes to the structure of the
  Uniform CPA Examination. Only
• 4 say they are not aware.

66
AWARENESS OF CHANGES TO THE DELIVERY OF THE EXAM
-- ONLINE SURVEY

• A 57 majority of the online survey respondents
  say they are very aware of
• the proposed changes to the delivery of the
  Uniform CPA Examination.
• Only 2 say they are not aware of the move to
  computer-based delivery.

67
AWARENESS OF CHANGES -- ONLINE SURVEY

• Summarizing the previous three charts, the
  respondents are most aware
• that the new Exam will be delivered by
  computer, and least aware of
• changes to the content.

68
FAMILIARITY WITH PENDING CHANGES TO THE EXAM --
TELEPHONE SURVEY

• In response to a broader question, 15 of the
  telephone survey
• respondents say they are very familiar with
  the proposed changes to the
• Uniform CPA Examination. An additional 45
  are somewhat familiar.
• Fourteen percent say they are unfamiliar with
  the changes.

69
AWARENESS OF THE MOVE TO COMPUTER-BASED TESTING
-- TELEPHONE SURVEY

• As was true in the online survey, awareness of
  the move to computer-based
• testing is much higher in the telephone survey
  than is overall familiarity with
• changes to the Exam.

70
CURRICULUM CHANGES
71
WHETHER CURRICULUM CHANGES HAVE BEEN CONSIDERED
-- TELEPHONE SURVEY

• Among the telephone survey respondents, one in
  five (22) say they have
• considered changing the Accounting curriculum
  to accommodate the
• changes to the Exam. Half (53) have not
  considered curriculum changes.

72
SPECIFIC CHANGES THAT HAVE BEEN CONSIDERED --
TELEPHONE SURVEY

• Those who have considered curriculum changes were
  asked to describe the changes they have
  considered. This question was asked in an
  open-ended way, so that the respondents could
  answer in-depth, and in their own words.
• While the open-ended responses to this question
  cover a variety of topics, most focus on
  improving the ways that technology is integrated
  into the curriculum. Other changes relate to
  improving writing skills and increasing the focus
  on business applications.
• A sampling of the comments is shown on the next
  two pages.

73
SPECIFIC CHANGES THAT HAVE BEEN CONSIDERED --
TELEPHONE SURVEY(continued)

• More technology in the classroom.
• Adding some IT-type classes, and integrating
  more material into the classes.
• Changing the content of the upper-level courses
  in the entire program. Increased use of
  technology. Much more integration and use of
  technology, and integration of case studies and
  teamwork.
• More emphasis on spreadsheets and computerized
  computation.
• Integrating more technology. More research in
  courses that use the Internet and holding classes
  that we currently do not have.

74
SPECIFIC CHANGES THAT HAVE BEEN CONSIDERED --
TELEPHONE SURVEY(continued)

• Primarily in terms of more online research.
  Probably the main thing is the attempt to
  integrate the material into the curriculum.
• I'm trying to get students more aware of the
  cases on the Exam and to improve their writing
  skills. Thats the main thing. There is going
  to be more emphasis on auditing on the Exam, so
  we may be adding auditing classes.
• Better use of research and writing skills.
• Getting back to basics. More Business courses
  and fewer Accounting courses.

75
HOW STUDENTS WILL BE AFFECTED
76
HOW THE QUESTION WAS WORDED

• One important open-ended question from the online
  survey relates to how students will be affected
  by the changes in the structure of the Exam. The
  complete question wording was as follows
• How do you feel the accounting students at your
  institution will be affected by the AICPAs move
  to skills assessments and simulations (case-based
  questions)?
• The responses have been coded into categories.
  The principal categories appear on the next three
  pages.

77
POSITIVE COMMENTS ABOUT HOW STUDENTS WILL BE
AFFECTED

• Positive comments in total 35
• The students will be prepared 19
• We use cases in our courses 7
• Our curriculum is aligned with the new test 5
• We encourage critical/analytical thinking 3
• We use technology in our courses 2
• This move is positive/Will have a positive
  effect 11
• They will do well/Will do very well 9
• They will do better with the new test 5

78
NEGATIVE COMMENTS ABOUT HOW STUDENTS WILL BE
AFFECTED

• Negative comments in total 28
• The students will not be prepared 15
• Students have limited exposure to cases/analysis
  5
• Students have limited access to technology 3
• The test is not aligned with our curriculum 3
• Our students have difficulty with English 1
• Our students have difficulty writing 1
• This move will be difficult for the students 10
• The transition will be difficult/It will be hard
  initially 4

79
NEUTRAL COMMENTS ABOUT HOW STUDENTS WILL BE
AFFECTED

• Faculty/Institutions will need to adjust their
  courses 10
• We will need examples of the new questions to
  prepare 4
• Our students do not sit for the Exam (two-year
• institution/few Accounting majors) 4
• The students will adjust 4
• The students will do ok 4
• It depends on the student (experience level,
• way of thinking) 3
• Difficult to determine the effect without more
  information 3

80
SAMPLE POSITIVE COMMENTS ABOUT HOW THE STUDENTS
WILL BE AFFECTED

• Listed on the next three pages are some sample
  comments from the online survey that have been
  coded as positive comments about how students
  will be affected by the new Exam structure
• I use case-based instructional methods.
  Additionally, I make every effort to develop and
  improve students critical thinking skills.
  Accordingly, I feel my students will not be
  adversely affected.
• Our students are exposed to real-world
  situations, where an integration of knowledge and
  skills is required to develop an answer. I
  believe our students will do well on this type of
  exam.
• In a variety of classes, both Accounting and
  other Business classes, we require our students
  to analyze companies and prepare written and/or
  oral reports. I believe our students will hold
  their own on these types of questions.

81
SAMPLE POSITIVE COMMENTS ABOUT HOW THE STUDENTS
WILL BE AFFECTED(continued)

• Overall, I think our students will be positively
  impacted, as we currently try to provide
  integration of all topics and how they relate to
  accounting.
• It should improve our students' performance,
  since numerous cases are required in all of our
  business-related courses.
• Several current homework assignments given to
  the Accounting students at our institution are
  case-based, so I think they will be able to
  handle the new Exam.
• Our students would be better equipped due to
  their technical education, which incorporates
  both skills assessments and simulations into the
  learning process.
• We highly emphasize technology. Our students
  will be prepared for the challenge.

82
SAMPLE POSITIVE COMMENTS ABOUT HOW THE STUDENTS
WILL BE AFFECTED(continued)

• They should do well, because cases and Excel
  work are integrated into some of the required
  Accounting courses.
• Our students and classes are computer-oriented.
  Our students would take the changes very well.
• They should do well, as this is the sort of
  curriculum we have here.
• I think they would perform well, because their
  accounting skills are frequently assessed in the
  classroom, and case studies are utilized in many
  courses, including a case competition in
  accounting for all juniors and seniors.
• The change will reflect what is going in the
  classroom and be more representative of what
  students can expect once they are out in the
  workplace.

83
SAMPLE NEGATIVE COMMENTS ABOUT HOW THE STUDENTS
WILL BE AFFECTED

• Listed on the next three pages are some sample
  comments from the online survey that have been
  coded as negative comments about how students
  will be affected by the new Exam structure
• Our best students will be unaffected. Other
  students will struggle because not all courses
  emphasize cases rather, students are still
  being taught to memorize rules.
• I predict they will have some difficulty, mainly
  because their exposure to case-based analysis is
  somewhat limited (and when I assign cases, they
  tend to struggle)..
• Our students may suffer, because they are weak
  in writing skills, and presently we do not
  integrate cases in most of our Accounting
  classes. With effective guidance from the AICPA,
  we could better integrate cases into our courses.

84
SAMPLE NEGATIVE COMMENTS ABOUT HOW THE STUDENTS
WILL BE AFFECTED(continued)

• They probably have more exposure to case-based
  questions in their non-Accounting courses.
  Assignments and exams in their Accounting courses
  tend to be problem-solving, short-answer, and
  objective-type questions. I do not believe they
  have much exposure to simulations.
• They will have to be exposed to more
  professional literature searches.
• The test will be harder for them. It seems to
  me that this shift will leave out the small
  colleges that cannot afford the new technology.
• Unless the curriculum is changed very quickly,
  they will be hurt. The students must be taught
  how to use the required databases.
• Computer literacy varies across our student
  body, and that will hinder some students with the
  simulations.

85
SAMPLE NEGATIVE COMMENTS ABOUT HOW THE STUDENTS
WILL BE AFFECTED(continued)

• Very affected. I think the pass rate will
  decline with the new content. We need more time
  to reevaluate our courses, so the students can
  get the knowledge necessary, especially in
  computer-based research and business simulations
  and applications.
• We will need to focus more on preparing students
  to utilize computer-based research sources.
• Initially, there will be some difficulty in
  adjusting to the new test, but I anticipate that
  the change will be successful eventually.
• Fewer students will sit for the Exam.
• Writing is a problem for some students.
• It could be problematic, in that probably 60 of
  our students are not 100 proficient in the
  English language.

86
WHETHER THE INSTITUTION WILL BE READY
87
WHETHER THE INSTITUTION WILL MAKE THE CHANGES BY
NOVEMBER 2003 -- TELEPHONE SURVEY

• Among the telephone survey respondents,
  two-thirds (65) believe their
• institutions will have made any changes that
  are required before the revised
• exam is ready in November 2003. Only 12 say
  they will not be ready.

88
WHY THE INSTITUTIONS WILL BE READY -- TELEPHONE
SURVEY

• A follow-up question asked the telephone survey
  respondents why they believe their institutions
  will or will not be ready by November 2003. This
  question was asked in an open-ended way, so that
  the respondents could answer in-depth, and in
  their own words.
• Those who believe their institutions will be
  ready are most likely to note that their
  institutions have a history of responding
  successfully when changes are needed. Some also
  focus on their advanced computer resources.
  There are also some respondents who point out
  that they do not teach to the Exam, and do not
  intend to start to do so now. A sampling of
  these comments is shown on the next three pages.

89
COMMENTS ABOUT WHY THE INSTITUTIONS WILL BE READY
-- TELEPHONE SURVEY

• Its a major university, and I feel our faculty
  will be ready.
• Because we're small enough to make changes, and
  I have some control. We have two full-time
  faculty who teach Accounting and are CPAs, and
  we're both constantly changing our courses.
• Just based upon our previous track record
  accommodating changes in specialized programs.
  Mainly just because of our track record. All of
  our programs will periodically change the
  requirements for testing in the medical field,
  legal field, etc.
• We continue to monitor what's going on. A
  majority of our curriculum corresponds with the
  CPA Exam, and we are happy with the changes.
• We are a two-year program, so it is not
  difficult to change.

90
COMMENTS ABOUT WHY THE INSTITUTIONS WILL BE READY
-- TELEPHONE SURVEY(continued)

• We review our curriculum on a consistent basis,
  so I don't see a problem of switching over when
  the time comes. Well do what it takes to help
  our students.
• We're known as being one of the best Accounting
  schools around. We respond pretty well to
  changes when they occur.
• We're good about change and transitioning. I'm
  sure the Accounting Chair will be able to make
  changes and we do have an astute faculty. We'll
  be able to present the IT angle within the
  Accounting classes.
• We are already basically doing it. Projects are
  becoming more common in the curriculum. I teach
  intermediate classes, and everybody on the
  faculty is adding a written and visual project.

91
COMMENTS ABOUT WHY THE INSTITUTIONS WILL BE READY
-- TELEPHONE SURVEY(continued)

• We are in the process of doing a revision of the
  Accounting Program, and we are taking this into
  consideration.
• The instructors would be able to adapt to
  whatever changes may arise. We're always ready to
  help our students prepare for changes.
• Because were a young faculty, and we have a lot
  of technology and the ability to use it.
• We're set up in the computer area very well, so
  we would be able to handle any changes.
• Most of my students have a computer or at least
  have access to the Internet..
• We really shouldn't cater to the Exam. This
  shouldn't be just about being a CPA. It should
  be done on the students own time.

92
THOSE WHO BELIEVE THE INSTITUTIONS WILL NOT BE
READY -- TELEPHONE SURVEY

• Those who do not expect to be ready by November
  2003 generally say there is not enough time
  before then. In addition, some cite budget
  concerns. A sampling of these comments appears
  below and on the next page
• We would have to add curriculum and that takes
  time.
• We are going to have to make changes for our
  computer courses. We want to be 100 ready.
  Generally, universities are very slow. It's a
  large process to get approval for any change. It
  takes a minimum of an academic year.
• It's too short a time period.

93
COMMENTS ABOUT WHY THE INSTITUTIONS WILL NOT BE
READY -- TELEPHONE SURVEY

• Its probably just too late. I think they have
  already planned for what they are going to do.
  Unless they would have been notified a year ago,
  they wouldn't be able to make the changes on
  time.
• It takes time for the university to change.
• The biggest issues are being able to afford the
  improvements to technology and the professors
  that have the knowledge in these fields.
• The budget.
• I think that the magnitude of the change, as to
  content and the method of testing. Overall in
  our state, we have a budget problem. This is
  really not a time for new courses. The
  legislators have been talking about budget cuts.

94
THE PRE-TESTING INITIATIVE
95
AWARENESS OF THE INITIATIVE
96
AWARENESS OF THE PRE-TESTING INITIATIVE -- ONLINE
SURVEY

• Almost two-thirds of the online survey
  respondents say they have heard
• about the AICPAs pre-testing initiative for
  the changes to the Uniform CPA
• Exam.

97
AWARENESS OF THE PRE-TESTING INITIATIVE BY TYPE
OF INSTITUTION

• There are only minor differences in awareness
  of the pre-testing initiative
• by type of institution.

98
AWARENESS OF THE PRE-TESTING INITIATIVE BY
PRIMARY RESPONSIBILITY

• Those whose responsibilities include both
  teaching and administration are
• more likely to have heard of the pre-testing
  initiative than are those who
• have only one of the two responsibilities.

99
AWARENESS OF THE PRE-TESTING INITIATIVE --
TELEPHONE SURVEY

• The telephone survey respondents were asked the
  same question about
• awareness of the AICPAs pre-testing
  initiative. Fifty-four percent say they
• have heard about this initiative.

100
BENEFITS TO PARTICIPATING
101
WHETHER THERE WOULD BE BENEFITS TO PARTICIPATING
IN THE PRE-TESTING -- TELEPHONE SURVEY

• The telephone survey respondents were asked if
  they believe that
• participating in the AICPAs pre-testing
  initiative would bring benefits to
• their institutions. A majority (53) say yes,
  there would be benefits.

102
WHAT BENEFITS MIGHT BE EXPECTED -- TELEPHONE
SURVEY

• Those who anticipate benefits from participating
  in the pre-testing initiative were asked to
  describe the benefits they might expect. As was
  true for many of the other questions in the
  telephone survey, this question was asked in an
  open-ended way, so that the respondents could
  answer in their own words.
• Most think the primary beneficiaries will be the
  students, because they will have some advance
  knowledge of the format and content of the test.
  Others think it would be helpful for faculty to
  have some exposure to the test, so that
  curriculum can be adjusted. Still others think
  the AICPA would benefit, because the organization
  would receive feedback from the pre-testing.
  Finally, some believe there could be favorable
  publicity for their institutions. Comments are
  shown on the next three pages.

103
COMMENTS ABOUT THE BENEFITS TO BE EXPECTED --
TELEPHONE SURVEY

• The students seem to really enjoy the
  opportunity to be exposed to the new Exam format.
  Also pre-testing would provide the faculty with
  more awareness of the new format.
• Exposure to what our students will be tested
  on.
• Basically just getting an understanding of what
  the test will look like.
• Gives us some feedback as to how our students
  are doing, to let the students practice for the
  test.
• The students could see whats ahead, and the
  faculty could see the Exam too.
• It will help us to redesign the curriculum and
  would benefit the students.

104
COMMENTS ABOUT THE BENEFITS TO BE EXPECTED --
TELEPHONE SURVEY(continued)

• This will be able to guide faculty as well as
  the students. Shaping class content. To do well
  so the students can go on to have successful
  careers.
• It will give us a better understanding of how to
  prepare the students for the main test.
• Students and faculty will be better informed and
  knowledgeable about questions.
• The main thing is we would know just whats on
  the test and be able to get feedback from the
  students.
• Making sure the Exam is reasonable. If they're
  changing the content, we would have to make sure
  that it's covered in our curriculum.

105
COMMENTS ABOUT THE BENEFITS TO BE EXPECTED --
TELEPHONE SURVEY(continued)

• We could get more feedback from the students as
  we're preparing them. The benefit to AICPA would
  be to work out the kinks to help the Exam when it
  goes full-blown, to help it run smoother. Also,
  if you participate, you're on the leading edge.
• The AICPA will learn what should be revised.
• It reduces uncertainty on the part of the
  student and helps the AICPA. It helps students
  with their apprehension about the Exam.
• Certainly to have a better idea as to whether
  the test is objective or narrative. There is a
  very big difference between writing down your
  thoughts and placing Xs in boxes.
• Getting some knowledge, improving the learning
  curve, maybe some recognition for the college.

106
OBSTACLES TO PARTICIPATING
107
WHETHER THERE WOULD BE OBSTACLES TO PARTICIPATING
IN THE PRE-TESTING -- TELEPHONE SURVEY

• The telephone survey respondents were also
  asked if they see obstacles
• to having their institutions participate in
  the AICPAs pre-testing process.
• One-third say they do see obstacles. A 51
  majority see no obstacles.

108
WHAT OBSTACLES MIGHT BE EXPECTED -- TELEPHONE
SURVEY

• As before, those who expect obstacles to
  participating in the pre-testing initiative were
  asked to describe the obstacles they might
  expect. Once again, the question was asked in an
  open-ended way, so that the respondents could
  answer in their own words.
• The primary obstacle to participating in the
  pre-testing is faculty time. In addition, some
  are concerned about the possible cost of
  participating, the motivation of the students to
  participate, and the administrative burden. A
  few also mention technology requirements.
• Selected comments are shown on the next three
  pages.

109
COMMENTS ABOUT THE OBSTACLES TO BE EXPECTED --
TELEPHONE SURVEY

• The lack of faculty availability. Normal
  scheduling of the faculty is done 18 months in
  advance, so to allow time in the schedule will be
  tough.
• Only how much time it will take.
• Time is the main obstacle. You can only prepare
  so much. There are only 24 hours in a day, and
  sometimes that isn't enough.
• I would say the main obstacle would be faculty.
  Our main work is research, and these changes
  would take away from that.
• The time that would have to be committed.
• Time constraints. There is heavy emphasis on
  research and they are in the process of
  developing a new textbook.
• It would be expensive and time-consuming.

110
COMMENTS ABOUT THE OBSTACLES TO BE EXPECTED --
TELEPHONE SURVEY(continued)

• The cost would be an issue.
• Limited funding. Limited faculty. If we could
  incorporate it into classes it could work well.
  If we had to have it as a separate activity, that
  could pose problems.
• If there was cost involved.
• The fact that the students might not want to
  participate.
• It would depend on how we're choosing to test
  the material at that time and whether it is
  consistent with what the AICPA is looking for. I
  don't know what the administration of the
  pre-test would require, in terms of
  record-keeping and testing.

111
COMMENTS ABOUT THE OBSTACLES TO BE EXPECTED --
TELEPHONE SURVEY(continued)

• When you use students as human subjects you need
  approval by the school and you have to submit
  reasons. It's just a very laborious process.
• Technology what kind of technology is needed.
  Also faculty time.
• It depends. If it's administered via computer,
  there would be technical problems. Also, we're a
  non-traditional school, which means that we have
  computers, which makes scheduling difficult.
• The only thing I can think of is we may not have
  computer capacity.
• There could be some obstacles with higher
  administrative burdens and also lack of
  technology.

112
LIKELIHOOD TO PARTICIPATE
113
LIKELIHOOD TO PARTICIPATE IN THE PRE-TESTING --
ONLINE SURVEY

• Eighteen percent of the online survey
  respondents say it is very likely that
• their institutions will participate in the
  pre-testing program. In total, 53 say
• this is at least somewhat likely.

114
LIKELIHOOD TO PARTICIPATE IN THE PRE-TESTING
BY TYPE OF INSTITUTION

• There are large differences by type of
  institution. Respondents from
• four-year state schools are most likely to
  participate in the pre-testing.
• Community/junior colleges are least likely to
  participate.

115
LIKELIHOOD TO PARTICIPATE IN THE PRE-TESTING
BY PRIMARY RESPONSIBILITY

• Respondents who are responsible for both
  teaching and administration are
• most likely to believe their institutions will
  participate in the pre-testing.

116
LIKELIHOOD TO PARTICIPATE IN THE PRE-TESTING
BY INTERNET ACCESS

• Institutions that are most likely to make PC
  access to the Internet available
• to their students are also most likely to
  expect to participate in the pre-
• testing program.

117
LIKELIHOOD TO PARTICIPATE IN THE PRE-TESTING --
TELEPHONE SURVEY

• The telephone survey respondents were asked an
  almost identical
• question, and their responses are the same.
  Fifteen percent say it is very
• likely that their institutions will
  participate in the pre-testing program. In
• total, 52 say this is at least somewhat
  likely.

118
WHO WOULD MAKE THE DECISION ABOUT PARTICIPATING
IN THE PRE-TESTING

• The online survey participants were asked who in
  their institutions -- by title -- would make the
  decision about whether or not the institution
  would participate in the pre-testing initiative.
  They are most likely to name a Department Chair
  or Department Head (27 offer this response) or a
  Dean (19). Program Directors (6) and
  Professors (3) are less likely to be named, as
  are various higher-level administrators.
• The telephone survey respondents were asked the
  same question. They also believe that a
  Department Head or Chair is most likely to make
  the decision. Deans are named next most often,
  followed by higher-level administrators.

119
STUDENTS INTEREST IN PARTICIPATING IN THE
PRE-TESTING -- ONLINE SURVEY

• The online survey respondents were asked how
  interested they believe the
• Accounting majors at their institutions would
  be in participating in the pre-
• testing. Twenty-nine percent answer very
  interested an additional 51
• say somewhat interested.

120
STUDENTS INTEREST IN PARTICIPATING BY TYPE OF
INSTITUTION

• Consistent with earlier data, respondents from
  four-year state schools are
• most likely to believe their students would be
  interested in participating in
• the pre-testing. Community/junior college
  respondents are least likely to
• anticipate interest.

121
STUDENTS INTEREST IN PARTICIPATING BY PRIMARY
RESPONSIBILITY

• Respondents who are both teachers and
  administrators are most likely to
• believe their students will be very
  interested in participating.

122
STUDENTS INTEREST IN PARTICIPATING BY
LIKELIHOOD TO PARTICIPATEFOR THE INSTITUTION

• Those who believe their schools will want to
  participate are much more
• likely to believe their students will be very
  interested in participating in the
• pre-testing.

123
INCENTIVES FOR PARTICIPATION
124
WHETHER INCENTIVES SHOULD BE OFFERED -- ONLINE
SURVEY

• Sixty-one percent of the online survey
  respondents say they believe some
• kind of incentive would need to be offered to
  students to get them to
• participate in the pre-testing. Thirty-nine
  percent disagree.

125
WHETHER INCENTIVES SHOULD BE OFFERED -- TELEPHONE
SURVEY

• The telephone survey respondents are split more
  evenly as to whether or
• not incentives should be offered. They
  support incentives by 51-38.

126
POSSIBLE TYPES OF INCENTIVES -- ONLINE SURVEY

• The respondents to the online survey who do think
  incentives will be needed were asked (in an
  open-ended way) to explain what types of
  incentives they would recommend. As before,
  their responses have been coded into categories.
• The primary suggestion for an incentive is money
  -- 38 offer this response. A distant second is
  a reduced fee (or no fee) for the CPA Exam
  (suggested by 13).
• The next most popular suggestions are free study
  materials or study guides (9), course credit
  (8), extra credit toward a higher grade (6),
  recognition or awards (6), and assistance with
  preparation for the CPA Exam (6).

127
POSSIBLE TYPES OF INCENTIVES -- TELEPHONE SURVEY

• The telephone survey respondents provid