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Determining the feasibility of an internship program in public accounting
Journal of Accounring Vol. 2, No. I Spring 1984
Education
DETERMINING THE FEASIBILITY OF AN INTERNSHIP PROGRAM IN PUBLIC ACCOUNTING C. Bruce Swindle and
Eldon R. Bailey McNEESE
STATE
UNIVERSITY
Absfracr: In recognition of the desirability of practical experience for the accounting student, a pilot internship program was undertaken. This paper describes the structuring and implementation of that program and discusses the evaluation of the program by the student interns and the participating CPA firm. Requirements for student participation in the internship course and an outline for employer evaluation of the interns are included.
Public accounting firms are apare of the problems which exist for new employees during the transition from accounting student to professional accountant. Too much time in transition and too many errors in work are costly for the profession. At times junior accountants are given work which they are not ready to handle. The end result of this unfortunate circumstance may be frustration and noticeable decreases in self-confidence. One possible method of minimizing this problem is the establishment of a training program, beginning while the accountant is still in college. A person who is exposed to the practical applications of accounting before committing to full-time employment would likely have an easier transition from student to professional accountant. An internship program is a recognized means of providing practical experience to accounting students. In deciding whether to establish such a program at a university, however, a number of factors must be considered. The success and quality of a program will depend on the amount of university and faculty support and enthusiasm and the makeup of the student population (resident versus commuter, for example). Another critical factor is the number of accounting firms available and willing to participate as employers. These and many other considerations make the decision relative to instituting an internship a difficult one. The Department of Accounting at McNeese State University was reasonably certain of the desirability of an internship program but was unaware of its feasibility in the local situation. Lake Charles, Louisiana, is a relatively small city with only a few large CPA firms. No Big Eight nor major regional firms exist in the area. An intern program of a decade or so earlier had failed because of a shortage of employment openings. Therefore, in order to test the feasibility of a full-scale intern program, a pilot program was undertaken.
One local CPA firm, the accounting faculty, and selected accounting students would provide evidence to be considered in determining whether to offer a full-scale internship program.
DESCRIPTION
OF THE PILOT
PROGRAM
The pilot internship program at McNeese allowed students to work for and be supervised by an employing CPA firm. (The students were employed by the firm during the semester’on a part-time basis.) The accounting firm assigned students to tasks in such areas as basic bookkeeping procedures (computer and manual), compiIation of simple financial statements, quarterly returns and payroll taxes, simple corporate and individual tax returns, and various audit activities. A major concern of the accounting faculty was that interns actually perform significant accounting tasks rather than serving merely as clerks. The accounting firm, therefore, developed a carefully organized program of work experience with identified levels of progression. The levels of the pilot program were as follows: Level I Manual Journalizing and Posting to Ledger; Computer input; Bank and Check Stub Reconciliations; Calculator Skills. Level II Receipts Entries; Sales Tax Returns; Payroll Tax Reports; Manual Adjusting Entries; Manual Statement Drafts; Computer Input Forms; Inter-office Transmittal Forms. Level III Manual Adjusting Entries; Manual Statement Drafts; Computer Input Forms; Tax Returns - Corporations/ Partnerships; Tax Returns - Individual. Level IV Interim Financial Statements/ Computer Worksheets; YearEnd Financial Statements/ Computer Worksheets; Tax Returns - Corporations/ Partnerships; Tax Returns - Individual; Audit Work. Interns might or might not progress through all four levels during an academic year. An evaluation procedure incIuding the assignment of letter grades (A, B, C, D, F) by a supervisor was established. A sample of some of the evaluation forms is shown in the appendix. Accounting faculty members monitored the process through frequent contacts with the CPA firm and the student interns. Students who desired to participate in the pilot program interviewed with a partner from the firm and if accepted began work on a part-time basis. During the course of the pilot program, approximately 20 students participated during a period of six academic semesters and two summers.
The authors Jr.. Ltd.
gratefully
acknowledgr
the inmative
and cooperatmn
oi’the accounting
firm of Gus Schram,
157
REACTION
TO THE PILOT
INTERNSHIP
PROGRAM
Following implementation of this program, a follow-up study of the experiences of the participants in the internship program was undertaken. Persons at the CPA firm who were directly involved with the interns were interviewed. Most of the interns were interviewed, either in person or by telephone. Students The length of time participants were in the pilot program varied; some students worked for as long a period as Ii/z years and some for as short a period as 3 months. Most interns, however, worked approximately 6 months to one year prior to their graduation. Interns, most frequently, would progress to the third level of the program. The interns also indicated that they worked, on the average, at least 15 hours per week; at times, some interns responded that they worked 40 or more hours per week. Most often, however, interns worked 20-25 hours. All students responded that their internship experience was relevant to their academic training. One intern stated that the internship training “taught another side of accounting that the classroom cannot reach.” Every intern believed that the firm’s supervision of their activities was adequate. The accounting firm made offers of full-time employmentBfter graduation to many of the students. Those students who did not receive offers had already accepted offers from other companies prior to being offered a position with the participating accounting firm. Approximately one-half of the students stayed with the intern-employing firm for at least some time past their graduation. Most of the interns who left the firm accepted positions with other public accounting firms, both local and Big Eight. Others were hired by oil companies, utilities, and other types of firms. Accounting Firm, When questions were posed to the accounting firm similar to those asked the interns, the firm’s responses were consistent with those of the interns. The accounting firm responded that, on the average, interns would progress to Level III; that supervision was adequate because a person was in charge of the group and worked very closely with them; that most interns worked about 20 hours per week; and that the interns were academically prepared to do the tasks assigned them. The accounting firm also indicated that the firm made job offers to most of their interns upon their graduation from school. Approximately 50 percent of these offers were accepted. The firm was asked to respond to certain questions regarding the quality of the interns and the pilot program. The response of the firm was that the interns were of a very high quality. The students had an excellent job attitude. Also, the firm’s evaluation system was used and students appeared to react very well to that type of evaluation. Overall, the firm believed the interns would make better entrants into the profession than non-interns of the past. Pay levels for the internship program were left to the discretion of the
accounting firm. The pay for the interns was basically geared to their level of progression, starting somewhat above minimum wage and leading to a pay slightly lawer than the regular, full-time starting wage.
CONCLUSIONS
FROM
AND RESULTS
OF THE PILOT
PROGRAM
The intern students seemed to agree that their internship experience was a very valuable learning experience in their preparation for an accounting career. One intern stated that she achieved an understanding of many accounting concepts and procedures which had not been accomplished in the cramming-memorizing-forgetting process of getting past exams. The interns appeared, to the accounting faculty, to possess a more confident and professional attitude than students without similar experience. Therefore, the interns seemed to be a more “complete product” upon graduation. The participating CPA firm indicated to the faculty that the interns made significantly better employees when retained after their graduation They perhaps were even better workers during the intern period than “traditional” part-time student employees. In the firm’s opinion, interns were more professional, confident, and productive than non-interns. Relying on the consistent, favorable reactions to the pilot internship program, the McNeese intern program in public accounting evolved into two credit granting courses. Four local CPA firms began participating with the Department of Accounting to offer academic credit.
THE FULL
SCALE
INTERNSHIP
PROGRAM
Some of the requirements for students to participate in the program are: 1. Student must have a minimum of 3.0 grade point average in accounting and a 2.5 overall. 2. Student must furnish a reference from an accounting faculty member. 3. Student must be accepted by a ~ar~~c~pa~~~~employer. 4. To enroll in the second internship course, the student must have maintained the required grade point average standards and made no grade Iess than “c” while in the intern program. 5. Student must complete the application and receive notice ofacceptance from the Department of Accounting before registering for the course. Additionally, the university catalogue describes the course as, *‘A structured program of work experience with a participating employer. The student is supervised by employer and a coordinator from the Department of Accounting” Minimum of 150 clock hours of work experience for each course.” Prerequisites for entrance into the internship courses are completion of intermediate accounting and permission of the department head. The
159
catalogue lists the internship courses at the junior level. Other local firms, when contacted, appeared very interested in participating in a full-scale internship program. Many accounting firms employ accounting students on a part-time basis and are anxious to work more closely with the McNeese Department of Accounting to provide a more structured program of work experience for students. Each firm interviewed and presented with the internship concept agreed the project was worthwhile and also, if properly designed and supervised, deserved academic college credit.
160
APPENDIX Intern
Evaluation
Form
Date Name I. Is basic accounting knowledge sufficient to handle assignments? Sometimes Never Always _ Usually _ 2. Is accountant following office procedures? Sometimes ~ Never Always Usually 3. Are work habits good? Usually Sometimes Never Always 4. Is self-confidence building with level of work? No ~ Yes ___ 5. Is level of understanding increasing? Yes No ~ 6. Is accountant willing to take challenging assignments? Usually _ Sometimes Never Always _ 7. Does he/she try to work through problems alone before assistance? Usually _ Never Always Sometimes 8. Does worker follow instructions given by supervisors? Usually ~ Never Always Sometimes ~ 9. Does accountant project professionalism to clients in telephone sations and in person? No ~ Yes ~ 10. Are assignments completed swiftly and efficientIy? Usually Sometimes Never Always ~ I 1. Is general attitude good toward the firm and fellow employees? No ~ Yes Comments: Intern
Evaluation Level I
Form
Name Date Weeks In This Level LEVEL
I
Manual Journalizing and Posting to Ledger Computer Input Bank and Check Stub Reconciliations Calculator Skills Comments:
Grade
_ ~ -
_ seeking ~ _ conver-
_
Education
DETERMINING THE FEASIBILITY OF AN INTERNSHIP PROGRAM IN PUBLIC ACCOUNTING C. Bruce Swindle and
Eldon R. Bailey McNEESE
STATE
UNIVERSITY
Absfracr: In recognition of the desirability of practical experience for the accounting student, a pilot internship program was undertaken. This paper describes the structuring and implementation of that program and discusses the evaluation of the program by the student interns and the participating CPA firm. Requirements for student participation in the internship course and an outline for employer evaluation of the interns are included.
Public accounting firms are apare of the problems which exist for new employees during the transition from accounting student to professional accountant. Too much time in transition and too many errors in work are costly for the profession. At times junior accountants are given work which they are not ready to handle. The end result of this unfortunate circumstance may be frustration and noticeable decreases in self-confidence. One possible method of minimizing this problem is the establishment of a training program, beginning while the accountant is still in college. A person who is exposed to the practical applications of accounting before committing to full-time employment would likely have an easier transition from student to professional accountant. An internship program is a recognized means of providing practical experience to accounting students. In deciding whether to establish such a program at a university, however, a number of factors must be considered. The success and quality of a program will depend on the amount of university and faculty support and enthusiasm and the makeup of the student population (resident versus commuter, for example). Another critical factor is the number of accounting firms available and willing to participate as employers. These and many other considerations make the decision relative to instituting an internship a difficult one. The Department of Accounting at McNeese State University was reasonably certain of the desirability of an internship program but was unaware of its feasibility in the local situation. Lake Charles, Louisiana, is a relatively small city with only a few large CPA firms. No Big Eight nor major regional firms exist in the area. An intern program of a decade or so earlier had failed because of a shortage of employment openings. Therefore, in order to test the feasibility of a full-scale intern program, a pilot program was undertaken.
One local CPA firm, the accounting faculty, and selected accounting students would provide evidence to be considered in determining whether to offer a full-scale internship program.
DESCRIPTION
OF THE PILOT
PROGRAM
The pilot internship program at McNeese allowed students to work for and be supervised by an employing CPA firm. (The students were employed by the firm during the semester’on a part-time basis.) The accounting firm assigned students to tasks in such areas as basic bookkeeping procedures (computer and manual), compiIation of simple financial statements, quarterly returns and payroll taxes, simple corporate and individual tax returns, and various audit activities. A major concern of the accounting faculty was that interns actually perform significant accounting tasks rather than serving merely as clerks. The accounting firm, therefore, developed a carefully organized program of work experience with identified levels of progression. The levels of the pilot program were as follows: Level I Manual Journalizing and Posting to Ledger; Computer input; Bank and Check Stub Reconciliations; Calculator Skills. Level II Receipts Entries; Sales Tax Returns; Payroll Tax Reports; Manual Adjusting Entries; Manual Statement Drafts; Computer Input Forms; Inter-office Transmittal Forms. Level III Manual Adjusting Entries; Manual Statement Drafts; Computer Input Forms; Tax Returns - Corporations/ Partnerships; Tax Returns - Individual. Level IV Interim Financial Statements/ Computer Worksheets; YearEnd Financial Statements/ Computer Worksheets; Tax Returns - Corporations/ Partnerships; Tax Returns - Individual; Audit Work. Interns might or might not progress through all four levels during an academic year. An evaluation procedure incIuding the assignment of letter grades (A, B, C, D, F) by a supervisor was established. A sample of some of the evaluation forms is shown in the appendix. Accounting faculty members monitored the process through frequent contacts with the CPA firm and the student interns. Students who desired to participate in the pilot program interviewed with a partner from the firm and if accepted began work on a part-time basis. During the course of the pilot program, approximately 20 students participated during a period of six academic semesters and two summers.
The authors Jr.. Ltd.
gratefully
acknowledgr
the inmative
and cooperatmn
oi’the accounting
firm of Gus Schram,
157
REACTION
TO THE PILOT
INTERNSHIP
PROGRAM
Following implementation of this program, a follow-up study of the experiences of the participants in the internship program was undertaken. Persons at the CPA firm who were directly involved with the interns were interviewed. Most of the interns were interviewed, either in person or by telephone. Students The length of time participants were in the pilot program varied; some students worked for as long a period as Ii/z years and some for as short a period as 3 months. Most interns, however, worked approximately 6 months to one year prior to their graduation. Interns, most frequently, would progress to the third level of the program. The interns also indicated that they worked, on the average, at least 15 hours per week; at times, some interns responded that they worked 40 or more hours per week. Most often, however, interns worked 20-25 hours. All students responded that their internship experience was relevant to their academic training. One intern stated that the internship training “taught another side of accounting that the classroom cannot reach.” Every intern believed that the firm’s supervision of their activities was adequate. The accounting firm made offers of full-time employmentBfter graduation to many of the students. Those students who did not receive offers had already accepted offers from other companies prior to being offered a position with the participating accounting firm. Approximately one-half of the students stayed with the intern-employing firm for at least some time past their graduation. Most of the interns who left the firm accepted positions with other public accounting firms, both local and Big Eight. Others were hired by oil companies, utilities, and other types of firms. Accounting Firm, When questions were posed to the accounting firm similar to those asked the interns, the firm’s responses were consistent with those of the interns. The accounting firm responded that, on the average, interns would progress to Level III; that supervision was adequate because a person was in charge of the group and worked very closely with them; that most interns worked about 20 hours per week; and that the interns were academically prepared to do the tasks assigned them. The accounting firm also indicated that the firm made job offers to most of their interns upon their graduation from school. Approximately 50 percent of these offers were accepted. The firm was asked to respond to certain questions regarding the quality of the interns and the pilot program. The response of the firm was that the interns were of a very high quality. The students had an excellent job attitude. Also, the firm’s evaluation system was used and students appeared to react very well to that type of evaluation. Overall, the firm believed the interns would make better entrants into the profession than non-interns of the past. Pay levels for the internship program were left to the discretion of the
accounting firm. The pay for the interns was basically geared to their level of progression, starting somewhat above minimum wage and leading to a pay slightly lawer than the regular, full-time starting wage.
CONCLUSIONS
FROM
AND RESULTS
OF THE PILOT
PROGRAM
The intern students seemed to agree that their internship experience was a very valuable learning experience in their preparation for an accounting career. One intern stated that she achieved an understanding of many accounting concepts and procedures which had not been accomplished in the cramming-memorizing-forgetting process of getting past exams. The interns appeared, to the accounting faculty, to possess a more confident and professional attitude than students without similar experience. Therefore, the interns seemed to be a more “complete product” upon graduation. The participating CPA firm indicated to the faculty that the interns made significantly better employees when retained after their graduation They perhaps were even better workers during the intern period than “traditional” part-time student employees. In the firm’s opinion, interns were more professional, confident, and productive than non-interns. Relying on the consistent, favorable reactions to the pilot internship program, the McNeese intern program in public accounting evolved into two credit granting courses. Four local CPA firms began participating with the Department of Accounting to offer academic credit.
THE FULL
SCALE
INTERNSHIP
PROGRAM
Some of the requirements for students to participate in the program are: 1. Student must have a minimum of 3.0 grade point average in accounting and a 2.5 overall. 2. Student must furnish a reference from an accounting faculty member. 3. Student must be accepted by a ~ar~~c~pa~~~~employer. 4. To enroll in the second internship course, the student must have maintained the required grade point average standards and made no grade Iess than “c” while in the intern program. 5. Student must complete the application and receive notice ofacceptance from the Department of Accounting before registering for the course. Additionally, the university catalogue describes the course as, *‘A structured program of work experience with a participating employer. The student is supervised by employer and a coordinator from the Department of Accounting” Minimum of 150 clock hours of work experience for each course.” Prerequisites for entrance into the internship courses are completion of intermediate accounting and permission of the department head. The
159
catalogue lists the internship courses at the junior level. Other local firms, when contacted, appeared very interested in participating in a full-scale internship program. Many accounting firms employ accounting students on a part-time basis and are anxious to work more closely with the McNeese Department of Accounting to provide a more structured program of work experience for students. Each firm interviewed and presented with the internship concept agreed the project was worthwhile and also, if properly designed and supervised, deserved academic college credit.
160
APPENDIX Intern
Evaluation
Form
Date Name I. Is basic accounting knowledge sufficient to handle assignments? Sometimes Never Always _ Usually _ 2. Is accountant following office procedures? Sometimes ~ Never Always Usually 3. Are work habits good? Usually Sometimes Never Always 4. Is self-confidence building with level of work? No ~ Yes ___ 5. Is level of understanding increasing? Yes No ~ 6. Is accountant willing to take challenging assignments? Usually _ Sometimes Never Always _ 7. Does he/she try to work through problems alone before assistance? Usually _ Never Always Sometimes 8. Does worker follow instructions given by supervisors? Usually ~ Never Always Sometimes ~ 9. Does accountant project professionalism to clients in telephone sations and in person? No ~ Yes ~ 10. Are assignments completed swiftly and efficientIy? Usually Sometimes Never Always ~ I 1. Is general attitude good toward the firm and fellow employees? No ~ Yes Comments: Intern
Evaluation Level I
Form
Name Date Weeks In This Level LEVEL
I
Manual Journalizing and Posting to Ledger Computer Input Bank and Check Stub Reconciliations Calculator Skills Comments:
Grade
_ ~ -
_ seeking ~ _ conver-
_