The Cpa Of The 21st Century
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The Cpa Of The 21st Century
Business practices have changed during the past millenium. Businesses have
evolved over time from bartering goods and riverside trading, to small local
stores, mega malls, and business over the Internet. Through all these
changes, companies needed to keep records of their equity, assets,
liabilities, and cash flows in order to remain competitive in their field.
Accounting standards have also changed over the years, through FASB, CAP, and
APB, issuing updated efficient standards called GAAP. Due to the drastic
changes in the business world, CPA requirements for the twenty-first century
are being updated to reflect current business demands; these changes will
affect undergraduates, graduate students, and professionals in the accounting
Requirements for sitting for the CPA exam are changing in Ohio as well as in
other states. William Bentz, OSU Professor and Legislative Task Force Member
says, "A total of 41 states, including New York, Florida, Ohio, Illinois, and
Texas have passed similar legislation.1" The change requires candidates to
have 150 semester hours or 225 quarter hours, a college degree, and the
equivalent number of credit hours needed for an accounting major to sit for
the CPA exam. This requirement will begin in Ohio with the May, 2000
examination. Any candidate who began the CPA exam process on or before
November 1999 will be covered under the old exam requirements. However, in
order for candidates to be successful in the accounting field, further
education will be needed to adapt to changing business standards and to
compete with accountants who passed the exam under the new requirements.
There are many reasons for the implementation of the 225-hour requirement.
Donald Tidrick, Senior Lecturer University of Texas says, "In 1989 a
publication was issued from the Big Eight Accounting Firms to Higher
Education. The point of the publication was to inform higher education
personnel that students were not learning the right methods and skills needed
in the accounting field.2" Since then changes have been made in the business
track curriculum. Team projects and presentations in class develop written,
verbal, problem solving and interpersonal skills. There is a need for
accountants to relate to more broadly educated executives and operate in a
more complex environment. Accounting firms have a desire to sell more
value-added services to their clients in order to remain competitive. The
AICPA web page states, "With increased demands on CPAs to offer diversity in
the business world for clients, the 225-Hour Requirement is necessary to be a
broadly prepared Certified Public Accountant.3" CPAs of the twenty-first
century must be well educated, possess superior accounting skills, and strive
for excellent quality work in order to remain competitive in the accounting
The requirement increase of 225-quarter hours can be acquired in three
different processes: The hours can be accumulated by obtaining a master\'s
degree, pursuing a second undergraduate major or minor in any field relevant
to the student\'s career goals, or taking extra courses in areas of interest
to the student. The method in which the candidate earns the extra hours to
sit for the CPA exam is up to his or her discretion; however, the hours must
be earned in order to qualify.
Undergraduate students have multiple pathways to choose from in order to
fulfill the 225-quarter hour requirement. Students may decide on a five-year
accounting program that is offered at many universities in the United States.
William Bentz said, "Ohio State should have their five year accounting
program activated by September 2000.4" Students may also pursue an
undergraduate accounting degree, and then proceed to a masters program. A
final option for the undergraduate student is to achieve the accounting
degree, and then decide on another major, minor, or elective courses to
fulfill the requirement. Finance and Management Information Systems are two
majors that compliment an accounting degree. Which pathways the
undergraduate student chooses is not of great importance; the key point is
that the student must be well-educated and well-diversified in order to
succeed in the accounting profession.
Graduate students enrolled in a masters program have many options and may
gain valuable benefits. A masters degree in accounting will develop enhanced
technical expertise. A masters degree in business administration will
provide a tremendous amount of business knowledge useful in all areas of
accounting. Other masters degrees will provide
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Professional accounting bodies, Certified Public Accountant, Uniform Certified Public Accountant Examination, Accounting, Accountant, Master of Accountancy, Master of Business Administration, Minnesota Society of Certified Public Accountants, Institute of Chartered Accountants Australia
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