Abstract CPA examination performance of two groups of candidates is analyzed, providing a basis for counseling students as to factors related to success in passing the CPA examination. Of key importance is the indication that a failing candidate who continues to retake the examination is likely to experience marked variation in examination scores on successive attempts as well as some improvement. Personal factors influencing success on the examination are also analyzed.
Abstract This article presents information on the Certified Internal Auditor (CIA) certificate program offered by the Institute of Internal Auditors Inc. The program of the Institute leading to the designation CIA is the newest of the three certificate programs that exist within the field of accountancy in the United States. The senior program, by a wide margin, is the Certified Public Accountant (CPA), which dates back to the initial enabling legislation in New York in 1896. The current number of CPAs holding certificates issued by 50 states and the District of Columbia is estimated by the AICPA as being more than 150,000. The CIA Program is intended primarily to achieve recognition of demonstrated competence in internal auditing. The Board of Directors of the Institute, an international association serving some 11,000 members throughout the world, under the direction of a nine-member Board of Regents appoints the Program. In contrast to the CPA certificate, which is essentially a license to practice and only secondarily a form of recognition of achievement, neither the CMA nor the CIA certificate has any licensing or other aspects of restricting the right to practice a particular form of accounting activity.
Abstract The article discusses an experiment in education for the profession. In terms of preparation for entrance into public accounting as a profession, there has been a tendency for professional considerations to "slip through the crack." This crack lies between the conceptual/theoretical orientation of the typical collegiate accounting program and the necessarily technical orientation of the staff training programs offered by CPA firms and the AICPA Professional Development Division for neophyte practitioners. Based on the success achieved with the seminar, the author urges others to consider a similar undertaking, especially if an inter-term period is available. There must be consideration, however, of the previously mentioned fact that the Board of Managers of the Professional Development Division of the AICPA has always had a policy of limiting the use of PD materials to its own seminars and courses that are offered at a fee to those in professional practice. The division is intended to be self-supporting, with the cost of developing program materials being recovered through the fees charged those who attend.
Abstract The article proposes accreditation of accounting programs in the U.S. colleges and discusses the strong demand for accounting graduates, with college placement centers reporting generally that demand exceeds the supply. The combination of a continuing high demand for accounting graduates and the minimal cost of providing accounting specialization at the collegiate level have led to a proliferation of programs leading to a degree for which accounting is the major field of study. Any school with minimum offerings in economics and business which would ordinarily include one or more accounting courses, is a prime candidate for the development of a degree based on a major in accounting. Despite the deficiencies of such a "program" in accounting, there tends to be a strong demand for accounting specialization among college students seeking to prepare themselves for careers in business. The diversity and confusion in accounting education today, coupled with the importance of such education at the collegiate level in gaining access to the better accounting jobs, point to the urgency for the development of the accreditation of college and university programs in accounting.
Abstract It might seem that auditing and accounting systems would be relatively unsuited for marriage, but consider these points of compatibility that suggest the possibility of wedded bliss. Firstly, both subjects are peripheral to the central core of accounting theory and practice. Secondly, the study of auditing presently includes, in most instances, the question of internal control, which is a key aspect in the consideration of accounting systems. Thirdly, auditing involves in large measure the audit of the accounting system that produces the figures that appear in the financial statements. Fourthly, the concept of constructive auditing is especially dependent on a knowledge of accounting systems and management advisory services that frequently result from constructive auditing recommendations similarly require a knowledge of accounting systems. Fifthly, audit trial considerations are a part in the design of accounting systems. The study of both these subjects can be covered together in less time than they can be covered separately.
Abstract Break-even analysis is capable of living up to its name and showing the volume level at which expenses and revenues are equal, but if, as contended, this is the only use generally made of such information, the use is not only deficient, but may involve an actual disservice as well. The purpose of this article is to point out the fallacies in the way break-even point information and break-even analysis have sometimes been used and to suggest more significant uses of these tools than as mere means of satisfying idle curiosity. Appropriate uses have been suggested as being primarily in the area of managerial planning and review, including detection of unplanned change, overall review of budget planning, and evaluation of new proposals and alternative actions. of the wealth of material that has appeared in recent years on the technical problems of break-even analysis, no consideration has been given to such matters as changes in product mix, price-level changes, allocation of fixed costs between plants or products, or non-linear cost factors. These factors are, however, of major importance and must be given due consideration in break-even point determinations.
Abstract The growth in the importance of evidence has been reviewed, factors affecting the amount of evidence the auditor should obtain have been set forth, and major classes or types of evidence have been suggested, as follows: physical evidence, documentary evidence originating outside the client's organization, evidence originating within the client's organization, the client's books of record, and ratios and comparisons. In general, some indication of the reliability of an item of evidence is apparent from the classification into which it falls, but there is great variation in the reliability of items within any given classification and some of the factors governing such variation have been suggested. The determination of how much evidence the auditor should obtain, and the matter of the reliability of the evidence he obtains are both important in relation to the generally accepted auditing standard that sufficient competent evidential matter must be obtained to afford a reasonable basis for an opinion regarding the financial statements under examination.