Functional Competencies For Entry Into The Accounting Profession
In July 1999, the AICPA Board endorsed The AICPA Core Competency Framework for Entry into the Accounting Profession (the Framework). The Framework emphasizes skills and competencies universally applicable to a diverse and growing array of accounting career options rather than a more traditional content approach (i.e., topics tested on the CPA exam).
The Framework breaks these needed competencies into three broad categories (functional, personal, and broad business perspective). Functional Competencies relate to the technical competencies most closely aligned with the value contributed by accounting professionals. As such the AICPA's Functional Competencies are the goal of the SHSU BBA in Accounting. The AICPA has identified six Functional Competencies.
- Decision Modeling
- Risk Analysis
- Measurement
- Reporting
- Research
- Leverage Technology to Develop and Enhance Functional Competencies.
At the undergraduate level, the Department of Accounting has selected five of these six competencies as objectives. The five competencies that will be assessed at the undergraduate level are:
- Decision Modeling
- Risk Analysis
- Measurement
- Reporting
- Leverage Technology to Develop and Enhance Functional Competencies.
Objective
Decision Modeling Competency
Individuals preparing to enter the accounting profession must be able to use strategic and critical approaches to decision-making. They must objectively consider issues, identify alternatives, and choose and implement solution approaches in order to deliver services and provide value.
Elements (Sub-Objectives) include:
- Identifies problems and potential solution approaches
- Uses quantitative techniques to determine relative importance and likelihood of alternative scenarios
- Employs model-building to quantify problems or test solutions
- Evaluates the cost/benefit of alternative solutions
- Organizes and evaluates information, alternatives, cost/benefits, risks and rewards
- Links data, knowledge, and insights together for decision-making purposes
- Objectively identifies strengths, weaknesses, opportunities, and threats associated with a specific scenario, case, or business activity
Indicator
Course Embedded Measures Of Decision Modeling Competency
A mix of exam questions, projects, cases, and / or problem assignments, in multiple courses spread across the accounting curriculum, will be used to assess students' achievement on selected sub-objectives of the Decision Modeling competency. The mix depends on the course in which the assessment is being made and the instructor’s choice of instrument and selected sub-objectives. The results from the various classes will be forwarded to the Departmental Assessment Committee. This committee will compile the results and present the findings to the departmental faculty.
Criterion
Level Of Success Standard For Decision Modeling Competency
In each course, the instructor will determine a minimal acceptable score for each indicator used for assessment in that class. This minimal acceptable score may vary both across classes as well as inside a particular class. This variability is necessary due to the different type of indicators (exam questions, projects, cases, and / or problem assignments) used to assess students' achievement on selected sub-objectives of the Decision Modeling competency.
Once the assessment of Decision Modeling is completed in the appropriate courses, the percentage of successful student attempts (number of students successfully completing the specific outcome predetermined success level divided by the total number of students attempting the specific outcome) will be reported for each class. The Departmental Assessment Committee will then compile the reports into an aggregated report that will show the success percentage by classification (junior, senior, and graduate). The Department of Accounting has set different target standards based on classification. The standards are 60% for junior-level classes, 70% for senior-level classes, and 75% for graduate-level classes.
Finding
Decision Modeling Competency Finding
Junior
Successes 851 Attempts 1,404 Success Ratio 60.6%
Minimum Acceptable Rate 60%
Action
Decision Modeling Competency Action
The success ratio just barely meets the minimum acceptable level of 60%, about the same as last year. The faculty teaching courses where Decision Modeling is an objective should place additional emphasis on this item.
Objective
Risk Analysis Competency
Risk analysis and control is fundamental to professional service delivery. The identification and management of audit risk (that is, the risk that the auditor will fail to detect a misstatement, caused by inadvertent error or fraud, that is material to financial statements) is the basis for the conduct of a GAAS audit. The understanding of business risk (that is, the risk that an entity - either a client or the prospective accounting professionals employer - will fail to achieve its objectives) affects how business strategy is created and implemented.
Elements (Sub-Objectives) include:
- Identifies risks of negative outcomes (including fraud)
- Evaluates controls that mitigate risk of negative outcomes through prevention or detection and correction
- Assesses and controls unmitigated risks through, for example, designing and applying tests
- Communicates the impact of identified risks and recommends corrective action
Indicator
Course Embedded Measures Of Risk Analysis Competency
A mix of exam questions, projects, cases, and / or problem assignments, in multiple courses spread across the accounting curriculum, will be used to assess students' achievement on selected sub-objectives of the Risk Analysis competency. The mix depends on the course in which the assessment is being made and the instructor’s choice of instrument and selected sub-objectives. The results from the various classes will be forwarded to the Departmental Assessment Committee. This committee will compile the results and present the findings to the departmental faculty.
Criterion
Level Of Success Standard For Risk Analysis Competency
In each course, the instructor will determine a minimal acceptable score for each indicator used for assessment in that class. This minimal acceptable score may vary both across classes as well as inside a particular class. This variability is necessary due to the different type of indicators (exam questions, projects, cases, and / or problem assignments) used to assess students' achievement on selected sub-objectives of the Risk Analysis competency.
Once the assessment of Risk Analysis is completed in the appropriate courses, the percentage of successful student attempts (number of students successfully completing the specific outcome predetermined success level divided by the total number of students attempting the specific outcome) will be reported for each class. The Departmental Assessment Committee will then compile the reports into an aggregated report that will show the success percentage by classification (junior, senior, and graduate). The Department of Accounting has set different target standards based on classification. The standards are 60% for junior-level classes, 70% for senior-level classes, and 75% for graduate-level classes.
At the junior level, the success ratio exceeds the minimum acceptable level of 60% by over 25 percentage points, an improvement of over 10 percentage points from last year. At the senior level, the success ratio exceeds the minimum acceptable level of 70% by about 2 percentage points. The faculty teaching courses where Risk Analysis is an objective should place additional emphasis on this item, especially faculty teaching senior level courses.
Objective
Leveraging Technology To Develop And Enhance Functional Competencies
Technology is pervasive in the accounting profession. Individuals entering the accounting profession must acquire the necessary skills to use technology tools effectively and efficiently. These technology tools can be used both to develop and apply other functional competencies.
Elements (Sub-Objectives) include:
- Accesses appropriate electronic databases to obtain decision-supporting information
- Assesses the risk of technology and automated business processes
- Uses technology assisted tools to assess and control risk and document work performed
- Builds appropriate models and simulations using electronic spreadsheets and other software
Indicator
Course Embedded Measures Of Leveraging Technology To Develop And Enhance Functional Competencies
A mix of exam questions, projects, cases, and / or problem assignments, in multiple courses spread across the accounting curriculum, will be used to assess students' achievement on selected sub-objectives of the Leveraging Technology competency. The mix depends on the course in which the assessment is being made and the instructor’s choice of instrument and selected sub-objectives. The results from the various classes will be forwarded to the Departmental Assessment Committee. This committee will compile the results and present the findings to the departmental faculty.
Criterion
Level Of Success Standard For Leveraging Technology To Develop And Enhance Functional Competencies
In each course, the instructor will determine a minimal acceptable score for each indicator used for assessment in that class. This minimal acceptable score may vary both across classes as well as inside a particular class. This variability is necessary due to the different type of indicators (exam questions, projects, cases, and / or problem assignments) used to assess students' achievement on selected sub-objectives of the Leveraging Technology competency.
Once the assessment of Leveraging Technology is completed in the appropriate courses, the percentage of successful student attempts (number of students successfully completing the specific outcome predetermined success level divided by the total number of students attempting the specific outcome) will be reported for each class. The Departmental Assessment Committee will then compile the reports into an aggregated report that will show the success percentage by classification (junior, senior, and graduate). The Department of Accounting has set different target standards based on classification. The standards are 60% for junior-level classes, 70% for senior-level classes, and 75% for graduate-level classes.
Finding
Leveraging Technology To Develop And Enhance Functional Competencies Finding
Leveraging Technology To Develop And Enhance Functional Competencies Action
The success ratio at the junior level exceeds the minimum of 60% by about 22 percentage points, about the same as last year's almost 25 percentage points above the minimum. The senior level ratio is over 7 percentage points above the acceptable threshold of 70%, an improvement of over 18 percentage points over last year's deficit of 11 percentage points. The faculty teaching courses where Leveraging Technology is an objective should continue to place emphasis on this item, especially faculty teaching senior courses.
Objective
Measurement Competency
Measures used should be both relevant (that is, bear on the decision to be made) and reliable (consistently measure what they purport to measure). Various measurement and disclosure criteria used by accounting professionals - such as GAAP, OCBOA (Other Comprehensive Basis of Accounting) and tax reporting - have been codified to some degree. Other performance measures (such as Economic Value Added) or stated criteria (for example, investment performance) are used for special purposes. Some measurement criteria (such as effectiveness of internal control) are measured qualitatively, rather than quantitatively.
Elements (Sub-Objectives) include:
- Identifies what needs to be measured
- Determines an appropriate, relevant and reliable measure for the intended use
- Measures items using appropriate methods of measurement
- Presents the measurement results objectively using applicable standards of disclosure or reporting
- Resolves ambiguities when estimates are required
Indicator
Course Embedded Measures Of Measurement Competency
A mix of exam questions, projects, cases, and / or problem assignments, in multiple courses spread across the accounting curriculum, will be used to assess students' achievement on selected sub-objectives of the Measurement competency. The mix depends on the course in which the assessment is being made and the instructor’s choice of instrument and selected sub-objectives. The results from the various classes will be forwarded to the Departmental Assessment Committee. This committee will compile the results and present the findings to the departmental faculty.
Criterion
Level Of Success Standard For Measurement Competency
In each course, the instructor will determine a minimal acceptable score for each indicator used for assessment in that class. This minimal acceptable score may vary both across classes as well as inside a particular class. This variability is necessary due to the different type of indicators (exam questions, projects, cases, and / or problem assignments) used to assess students' achievement on selected sub-objectives of the Measurement competency.
Once the assessment of Measurement is completed in the appropriate courses, the percentage of successful student attempts (number of students successfully completing the specific outcome predetermined success level divided by the total number of students attempting the specific outcome) will be reported for each class. The Departmental Assessment Committee will then compile the reports into an aggregated report that will show the success percentage by classification (junior, senior, and graduate). The Department of Accounting has set different target standards based on classification. The standards are 60% for junior-level classes, 70% for senior-level classes, and 75% for graduate-level classes.
For juniors, the success ratio exceeds the minimum acceptable level of 60% by about 9 percentage points, an improvement of 3 percentage points over last year. For seniors, the assessment results exceed the minimum acceptable level of 70% by approximately 6 percentage points, and improvement over last year's 67%. While both ratios exceed the minimums, there is indication of room for improvement. The faculty teaching courses where Measurement is an objective should place additional emphasis on this item.
Objective
Reporting Competency
Communicating the scope of work and findings or recommendations is an integral part of a professional service. An accounting professional in public practice might issue an audit or attestation report, recommendations for improved services, or tax or financial planning advice. An accounting professional in business, industry, or government might analyze operations or provide communications to the board of directors. Communicating clearly and objectively the work done and the resulting findings is critical to the value of the professional service. Some forms of communication are governed by professional standards (such as the form and content of the standard auditor's report or the required communications to audit committees) or law. Others are based on the service applied and the needs of those to whom the accounting professional reports.
Elements (Sub-Objectives) include:
- Prepares reports with objectivity, conciseness and clarity
- Describes work performed and conclusions reached in a manner that enhances the reports' usefulness
- Employs appropriate media in report preparation and presentation
Indicator
Course Embedded Measures Of Reporting Competency
A mix of exam questions, projects, cases, and / or problem assignments, in multiple courses spread across the accounting curriculum, will be used to assess students' achievement on selected sub-objectives of the Reporting competency. The mix depends on the course in which the assessment is being made and the instructor’s choice of instrument and selected sub-objectives. The results from the various classes will be forwarded to the Departmental Assessment Committee. This committee will compile the results and present the findings to the departmental faculty.
Criterion
Level Of Success Standard For Reporting Competency
In each course, the instructor will determine a minimal acceptable score for each indicator used for assessment in that class. This minimal acceptable score may vary both across classes as well as inside a particular class. This variability is necessary due to the different type of indicators (exam questions, projects, cases, and / or problem assignments) used to assess students' achievement on selected sub-objectives of the Reporting competency.
Once the assessment of Reporting is completed in the appropriate courses, the percentage of successful student attempts (number of students successfully completing the specific outcome predetermined success level divided by the total number of students attempting the specific outcome) will be reported for each class. The Departmental Assessment Committee will then compile the reports into an aggregated report that will show the success percentage by classification (junior, senior, and graduate). The Department of Accounting has set different target standards based on classification. The standards are 60% for junior-level classes, 70% for senior-level classes, and 75% for graduate-level classes.
At the junior level, the success ratio exceeds the minimum acceptable level of 60% by nearly 11 percentage points, an improvement of about 6 points over last year. The senior level success ratio is also about 11 percentage points above the minimum acceptable level of 70%, an improvement of 16 points over last year. The faculty teaching courses where Reporting is an objective should continue to place emphasis on this item.