Working With Partners to Enhance
the Accounting Profession
Presentation at the 14th Annual Accounting
Educators’ Seminar Meeting on March 6, 2015
By
John J. Morris, Ph.D.
Associate Professor of Accounting
Director, Masters of Accountancy Program
Center for Collaborative Applied Accounting Research
Kansas State University
A Balloon Story
25 Year Career in Accounting/Finance Management
• From:
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South Dakota
Wyoming
Indiana
Utah
Ohio
Kansas
• Industries:
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Agriculture
Mining
Manufacturing
Software
Services/Consulting
From Practice to Academia
• After 25 Years in Practice
 Converting Accounting Data (accurate & precise)
 Into Management Information (useful)
• Entered Academic Profession
 Accurate & Precise Data
 Useful???
• Earnings Management
 Anecdotal vs. Scientific Evidence
 169 Peer Reviewed Scholarly Journal Articles, with
“Earnings Management” in the Title (ProQuest; 3/2/15)
 One of them is mine
Funded Research??
• Other Disciplines do Funded Research
 Engineering, Computer Science, Agriculture, etc.
• Why not Business/Accounting?
 Compromise Independence (pay for results)
 Who would pay for another earnings management
study?
• If not Funded, why not at least Collaborate?
 Practice professionals don’t need our research
 We don’t do research that will help them
 Unlike other professions (i.e. medical)
The Pathways Commission on
Higher Education:
Charting a National Strategy for the
Next Generation of Accountants
Created by
The American Accounting Association (AAA)
The American Institute of Certified Public Accountants (AICPA)
In response to
Recommendation by the U.S. Department of the Treasury Advisory
Committee on the Auditing Profession (ACAP) 2008 Report
Pathways Commission Recommendations
1 – Build a
Learned
Profession for
the future
2 - Develop
Flexible
Doctoral
Education
3 – Respect
and Reward
Teaching
4 – Develop
and Share
Curriculum
Models
6 - Analyze
Markets for
Professionals
and Faculty
5 – Attract
high-potential
diverse
entrants
7 - Convert
Thought to
Action
Pathways Commission Recommendation #1
Build a learned profession for the future by purposeful
integration of accounting research, education, and
practice for students, accounting practitioners, and
educators.
Research
Education
Practice
Weak links
between
accounting
education,
practice and
research makes
for missed
opportunities…
Pathways Commission Recommendation #1
Build a learned profession for the future by purposeful
integration of accounting research, education, and
practice for students, accounting practitioners, and
educators.
Research
Education
Practice
Stronger links
between
accounting
education,
practice and
research could
lead to great
opportunities…
Objectives for Building a Learned Profession
1 - Integrate
professionally
oriented faculty more
fully…
2 - Focus more
academic research on
relevant practice
issues
3 – Enhance the value
of practitioner –
educator exchanges
4 – Integrate
accounting research
into accounting
courses and programs
Center for Collaborative Applied Accounting Research
Pathways
Commission
K-State
2025
CCAAR
Client/Consultant Model
Client Identifies
Problem Or
Issue
Addresses the problem of timing
Modify Report
for Academic
Publication
Solution
Presented to
Client
Client Takes
Problem to
CCAAR
Submit Report
to Peer
Reviewed
Journal
CCAAR Team
Works with
Client/Others
CCAAR Assigns
Research Team
Brainstorming Ideas
Data analytics
Talent retention
Firm mergers and future ownership alternatives
Resources / compute
Succession
Quality control function
CPE effectiveness
Balance between technical and management skills
Cost of quality control (high/low)
Management of firm growth
ESOPS – Long-term effect
Client satisfaction surveys & analysis
Fee sensitivity
Audit quality indicators & measurement
processes
Field testing of new standards
Cost savings for small firm standards vs. large
firm
Jobs Act (going public delayed – relaxed
requirements)
New standards impact
Optimal performance metrics
Work place productivity issues (working
from home, diversity & inclusiveness, etc.)
Literature review
Do problems really exist or are they
exaggerated?
Change in demographics (i.e. baby boomers
leaving the workplace)
Sales tax vs. income tax
Sustainability issues (cost vs. benefit)
Ethics & corporate responsibility
Client acceptance
Internal audit function (when to add, how
big?)
Tax related information
Tax policy issues
Trade groups
Health care industry (impact of changes)
Retention incentives (i.e. education
reimbursement)
Firm report card
Resistance/Opportunities
Faculty
(Publishing Issues)
• Top journals resist applied research
• Tenure requirements still tied to journal rankings
• Beyond tenure, impact on vitas for future employment
Larger Firms
(Don’t Need Us)
• Research issues addressed in house by staff specialists
• View relationship with Universities as “Talent Supply Chain”
• Interested if it helps recruit top talent
Smaller Firms
(Can’t Afford Us)
• Could really use the help, but…
• Scarce resources available (money and people)
• Need to show value added proposition
Alternative Approaches
Other Organizations (AICPA, NASBA, IMA, etc.)
Include Student Research Based Internships
Focus on Current Topics (i.e. GAAP Changes)
Expand Collaboration to Multiple Institutions
Pilot Project
NASBA
National Association of State
Boards of Accountancy
• RQ1 - What are State Boards of Accountancy’s policies regarding acceptance of
AP credit toward 150 hour requirement and what are attitudes of their
executive directors and board members?
• Behavioral Research Methodology
• Data Source = Survey
• RQ2 - How are students that have AP credits granted by colleges performing
relative to their peers on CPA exam?
• Archival Research Methodology
• Data Source = NASBA database (with survey to fill gaps)
• Contribution (who cares):
• Results will help support NASBA members’ decisions related to treatment of
AP credits
• Results will contribute to academic literature on the impact of AP courses
Potential Follow on Projects
GAAP
Changes
Looking for Potential Sponsors
• RQ – What is the impact of proposed changes in GAAP on Small to Midsized Firms (SMEs)
• Archival Research Methodology
• Data Source = Client data
• Contribution (who cares):
• Results would provide information that the sponsoring firm could use to consult with and
advise clients on how to prepare for coming changes in GAAP
• Results would provide data to support both a student thesis paper and an academic
research paper that will contribute to the literature on small to midsized firms
AICPA
Exploratory Discussions with AICPA’s CPEA
• CPEA – Center for Plain English Accounting
• Many possibilities including impact of GAAP changes as above
• Also similar research for tax law changes
Why do we do Research?
• Required by AACSB Accreditation Standards
 “Since the 1960s, AACSB has been a staunch advocate
for research in business schools. Research is central to
quality management education.”
 “Research by business school faculty helps develop
curricula and course content, contributes to the
intellectual climate of the institution, and elevates the
academic reputation of the business school on
campus.”
---Jan R. Williams, Chair, Board of Directors, AACSB International Impact of Research A Guide for Business Schools
Thank You
Questions / Discussion