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Recommended microcomputer knowledge for accounting graduates: A survey
Journal of Accounting Education, Vol. 12, No. 3, pp. 205-210, 1994 Copyright 0 1994 Elsevier Science Ltd Printed in the USA. All rights reserved 074%5751/94 $6.00 + .OO
Pergamon
074%5751(94)00009-3
RECOMMENDED MICROCOMPUTER FOR ACCOUNTING GRADUATES:
KNOWLEDGE A SURVEY
Cynthia D. Heagy Rebecca A. Gallun UNIVERSITY
OF HOUSTON
- CLEAR
LAKE
Abstract: Accounting educators are aware of the need to integrate computer skills into their curricula to help prepare students for the work environment they will be entering. To gain insight into what these skills should be, a study was conducted to determine the desired knowledge of broad and specific microcomputer topics for entry-level accountants from the perspective of accountants in public practice and in industry. The results of this study are presented according to the size and market of firms in public practice and industry.
INTRODUCTION Educators are aware of the need to integrate computer skills into the accounting curriculum to prepare accounting graduates for the work environment they will be entering. It is difficult, however, to ascertain what these computer skills should be. The first-hand experience of practicing accountants gives them an excellent perspective from which to make recommendations. However, little or no information is available as to the actual computer knowledge considered necessary or desirable for the accounting graduate. Therefore, this paper describes the desired knowledge of broad and specific microcomputer topics for entry-level accountants from the perspective of accountants in public practice and in industry. The information described in this paper will assist accounting educators in determining what computer skills should be integrated into their accounting curricula to meet the demands of the accounting profession.
RESEARCH METHODOLOGY A national survey was conducted by the authors, using questionnaires mailed to (a) a random sample of 652 AICPA members in public accounting who are partners, principals, or sole practitioners; and (b) a random sample of 454 AICPA members in industry who are senior executives. Two hundred twenty-nine usable responses were received from accountants in public practice, for a 35.1% response rate. One hundred forty-four usable responses were received from accountants in industry, for a 31.7% response 205
C. D. Heagy and R. A. Gallun
206
rate. Nonresponse bias was tested by using chi-square to compare the early responses to late responses. No bias was found. To obtain a better indication of the desired proficiency level for entrylevel accountants from the perspective of different types of employers, the results are discussed for respondents grouped into different categories based on the size of their firm or a combination of size and the market their firm serves. Public accounting and industry respondents are grouped as follows: Public accounting groups: l l
l
National and international firms (Pl), Large local firms with 20 or more professionals and all regional firms (P2), Small local firms with 19 or fewer professionals (P3).
Industry groups: l l l
Companies with sales of $500 million and over (Il), Companies with sales of $100 to $499 million (12), Companies with sales of less than $99 million (13). KNOWLEDGE
OF MICROCOMPUTER
TOPICS
Information gathered on the desired level of computer knowledge for entry-level accountants provides a framework for educators in planning which computer concepts to include in accounting curricula. Respondents were asked to indicate the desired level of knowledge of both broad microcomputer topics and related specific topics. A scale ranging from 1 to 5 was used, with 1 indicating no knowledge; 2, an overview knowledge; 3, a knowledge of fundamentals; 4, a working knowledge; and 5, an in-depth knowledge. The broad topics included were (1) spreadsheets, (2) database management systems, (3) telecommunications, (4) accounting systems, (5) systems development, and (6) other topics. Table 1 summarizes the responses to the desired knowledge for these broad topics and the related specific topics. Spreadsheets
Of all the topics included in the questionnaire, spreadsheet concepts and features in general received the highest recommended level of knowledge from all public accounting and industry groups except the small local public accounting firms. The respondents from both public practice and industry report that they want accounting graduates to have, on average, either slightly more or slightly less than a working knowledge of the general topic of spreadsheets. The specific spreadsheet topic receiving the highest recommended level of knowledge from all groups is spreadsheet strategy and
Recommended Microcomputer Knowledge
207
Table 1. Desired level of knowledge of microcomputer topics Public
Industry
Pi
P2
P3
II
I2
I3
4.24 3.67 3.36 3.24 3.21 2.67 2.59
3.77 3.22 3.06 2.60 2.66 2.38 2.22
3.41 3.24 2.76 2.56 2.24 2.12 2.09
4.06 3.69 3.12 3.12 2.96 2.77 2.32
3.76 3.79 3.30 3.21 2.67 2.67 2.48
3.68 3.57 3.03 3.00 2.79 2.57 2.51
2.39 2.39 2.31 2.23 2.22 2.07 2.06 1.96
1.78 1.89 1.84 1.76 1.58 1.64 1.53 1.60
1.80 1.80 1.79 1.77 1.60 1.80 1.55 1.58
1.86 1.76 1.81 1.76 1.77 1.64 1.68 1.67
2.28 2.16 2.20 2.12 2.08 1.92 2.08 2.00
2.27 2.23 2.15 2.22 2.12 1.95 1.71 1.84
1.85
1.47
1.55
1.73
1.96
1.71
1.78
1.42
1.48
1.59
1.84
1.65
2.21 2.48 2.16 2.11 2.10
1.71 1.95 1.76 1.42 1.63
1.67 1.98 1.83 1.55 1.77
1.96 1.92 2.08 1.50 1.75
1.96 2.08 1.85 1.62 1.72
1.98 2.09 2.10 1.61 1.86
2.00 1.73 1.55 1.55
1.68 1.42 1.26 1.26
1.67 1.55 1.44 1.35
1.50 1.38 1.29 1.42
1.62 1.54 1.33 1.42
1.63 1.62 1.45 1.42
Accounting systems Accounting system concepts and features in general Internal controls Audit trails Evaluation of accounting systems Coding system for accounts
3.23 3.40 3.33 3.18 3.07
3.18 3.26 3.03 2.90 3.16
3.56 3.51 3.45 3.27 3.56
2.92 2.72 2.84 2.52 2.56
2.96 2.96 3.04 2.65 2.91
3.36 3.23 3.11 2.72 3.21
Systems development Identification of new system requirements Evaluation of computer software Design of system
2.00 1.93 1.88
1.68 1.82 1.66
2.33 2.44 2.23
2.12 1.96 1.96
1.83 1.71 1.71
2.04 2.04 1.97
Spreadsheets Spreadsheet concepts and features in general Spreadsheet strategy and design Conditional or logical functions Using multiple worksheets Macros, programming Graphics Database management functions Database management systems Database management system concepts in general Using report generator Sorting and indexing records Creating and modifying databases Query by example Using multiple files Structured Query Language (SQL) Using branches, loops, subroutines Developing programs using application generators Developing programs using programming language Telecommunications Telecommunication concepts and features in general Transferring files between programs Uploading and downloading data External databases Local area networks Processors (modems, multiplexers, front-end processors) Transmission speed, mode, direction Media (cables, fiber optics, satellites) Architectures and protocols
(Table 1 continued on next page)
208
C. D. Heagy and R. A. Gallun
Table 1. Desired level of knowledge of microcomputer topics Public
Evaluation of computer hardware Conversion to new system
Industry
Pl
P2
P3
I1
12
13
1.86 1.84
1.76 1.71
2.21 2.24
1.96 1.84
1.58 1.62
1.92 1.96
3.52 3.42 3.26 2.74 2.67 2.54 2.38
2.74 3.36 2.72 2.77 1.95 2.03 2.20
3.24 3.42 3.30 3.32 2.34 2.19 2.48
2.64 3.21 2.96 1.80 2.44 2.24 2.36
3.14 3.17 3.32 1.80 2.62 2.38 2.60
3.13 3.26 3.01 1.90 2.39 2.30 2.58
2.30 2.30 2.23 2.07 1.65
2.28 2.03 1.90 1.67 1.34
2.56 2.28 2.07 1.91 1.38
2.00 2.28 1.96 1.88 1.54
2.58 2.04 2.27 2.04 1.23
2.32 2.15 1.97 1.96 1.65
Other topics Word processing Typing Backup procedures Tax software Microcomputer security File operations Data entry validation Installation of programs, automatic program execution Documentation of programs Memory organization/location Multitasking Programming language 1 2 3 4 5
= = = = =
No knowledge. Overview knowledge. Knowledge of fundamentals. Working knowledge. In-depth knowledge.
design. The national and international accounting firms recommend a higher level of knowledge than all the other groups for all of the spreadsheet topics except graphics. For this topic, the largest industry group recommends the highest level of knowledge. These results support the idea that universities should include spreadsheets in their curriculum, with an emphasis on spreadsheet strategy and design. Some of the more complicated topics such as macros and graphics may receive considerably less emphasis. Database Management
Systems
Respondents’ recommendations for database management systems range around an overview knowledge, significantly less than their recommendations for spreadsheets. The recommendations of all groups for the specific database management systems topics indicate that a knowledge of the basics of database management systems is desired versus a knowledge of the more advanced features. Again, the knowledge level recommended by the national and international public accounting firms is among the highest. In contrast, the largest industry group recommends a lower level of knowledge of all the database management system topics than do the smaller industry groups.
Recommended Micr~omputer
Knowledge
209
Telecommunications Less than an overview knowledge of telecommunication concepts and features in general is recommended by all groups except the national and international accounting firms, which recommend slightly more than an overview. For the most part, the specific topics of transferring files between programs and uploading and downloading data received higher knowledge recommendations than the broad category of telecommunication concepts. Accounting Systems In general, more than a knowledge of the fund~entals of accounting systems concepts and features is recommended by all groups except the two largest industry groups, who recommend slightly less than a knowledge of the fundamentals. The smallest public accounting group and the smallest industry group recommend a higher level of knowledge of this topic than the other public accounting groups and the other industry groups, respectively. The specific topic of internal controls received comparable recommendations. Systems Development Knowledge recommendations for systems development topics range around an overview by all groups of respondents, with the smallest groups in public accounting and industry again recommending the highest knowledge level. Other Topics As can be seen in the “other topics” category, all respondents recommend slightly more or less than a knowledge of fundamentals for typing, word processing, and backup procedures. Interestingly, of all the topics listed in Table 1, typing received one of the highest knowledge level recommendations from both public accountants and industry accountants. In contrast, knowledge of a programming language received one of the lowest recommended knowledge levels from both public accounting and industry respondents. Only certain telecommunication topics received lower recommendations. CONCLUSION Overall, the general topics receiving the highest recommendations from all groups are spreadsheets, accounting systems, and word processing. Specific topics receiving high recommendations from most or all of the groups are spreadsheet strategy and design, typing, backup procedures, and internal controls. The results of this study suggest that universities should place the greatest
210
C. D. Heagy and R. A. Gallun
emphasis on spreadsheets, followed by accounting systems and word processing. In addition, students should be encouraged to learn how to type. Considerably less emphasis-just an overview-should be placed on database management systems, telecommunications, and systems development. For both spreadsheets and database management systems, attention should be focused on the basic features rather than the more complicated features such as macros and programming. As the market for accounting graduates contracts, it is even more important that graduates have the technological skills recommended in this paper. For academics who are striving to update and improve their accounting curriculum, the insights gleaned in this study should provide valuable guidance.
Pergamon
074%5751(94)00009-3
RECOMMENDED MICROCOMPUTER FOR ACCOUNTING GRADUATES:
KNOWLEDGE A SURVEY
Cynthia D. Heagy Rebecca A. Gallun UNIVERSITY
OF HOUSTON
- CLEAR
LAKE
Abstract: Accounting educators are aware of the need to integrate computer skills into their curricula to help prepare students for the work environment they will be entering. To gain insight into what these skills should be, a study was conducted to determine the desired knowledge of broad and specific microcomputer topics for entry-level accountants from the perspective of accountants in public practice and in industry. The results of this study are presented according to the size and market of firms in public practice and industry.
INTRODUCTION Educators are aware of the need to integrate computer skills into the accounting curriculum to prepare accounting graduates for the work environment they will be entering. It is difficult, however, to ascertain what these computer skills should be. The first-hand experience of practicing accountants gives them an excellent perspective from which to make recommendations. However, little or no information is available as to the actual computer knowledge considered necessary or desirable for the accounting graduate. Therefore, this paper describes the desired knowledge of broad and specific microcomputer topics for entry-level accountants from the perspective of accountants in public practice and in industry. The information described in this paper will assist accounting educators in determining what computer skills should be integrated into their accounting curricula to meet the demands of the accounting profession.
RESEARCH METHODOLOGY A national survey was conducted by the authors, using questionnaires mailed to (a) a random sample of 652 AICPA members in public accounting who are partners, principals, or sole practitioners; and (b) a random sample of 454 AICPA members in industry who are senior executives. Two hundred twenty-nine usable responses were received from accountants in public practice, for a 35.1% response rate. One hundred forty-four usable responses were received from accountants in industry, for a 31.7% response 205
C. D. Heagy and R. A. Gallun
206
rate. Nonresponse bias was tested by using chi-square to compare the early responses to late responses. No bias was found. To obtain a better indication of the desired proficiency level for entrylevel accountants from the perspective of different types of employers, the results are discussed for respondents grouped into different categories based on the size of their firm or a combination of size and the market their firm serves. Public accounting and industry respondents are grouped as follows: Public accounting groups: l l
l
National and international firms (Pl), Large local firms with 20 or more professionals and all regional firms (P2), Small local firms with 19 or fewer professionals (P3).
Industry groups: l l l
Companies with sales of $500 million and over (Il), Companies with sales of $100 to $499 million (12), Companies with sales of less than $99 million (13). KNOWLEDGE
OF MICROCOMPUTER
TOPICS
Information gathered on the desired level of computer knowledge for entry-level accountants provides a framework for educators in planning which computer concepts to include in accounting curricula. Respondents were asked to indicate the desired level of knowledge of both broad microcomputer topics and related specific topics. A scale ranging from 1 to 5 was used, with 1 indicating no knowledge; 2, an overview knowledge; 3, a knowledge of fundamentals; 4, a working knowledge; and 5, an in-depth knowledge. The broad topics included were (1) spreadsheets, (2) database management systems, (3) telecommunications, (4) accounting systems, (5) systems development, and (6) other topics. Table 1 summarizes the responses to the desired knowledge for these broad topics and the related specific topics. Spreadsheets
Of all the topics included in the questionnaire, spreadsheet concepts and features in general received the highest recommended level of knowledge from all public accounting and industry groups except the small local public accounting firms. The respondents from both public practice and industry report that they want accounting graduates to have, on average, either slightly more or slightly less than a working knowledge of the general topic of spreadsheets. The specific spreadsheet topic receiving the highest recommended level of knowledge from all groups is spreadsheet strategy and
Recommended Microcomputer Knowledge
207
Table 1. Desired level of knowledge of microcomputer topics Public
Industry
Pi
P2
P3
II
I2
I3
4.24 3.67 3.36 3.24 3.21 2.67 2.59
3.77 3.22 3.06 2.60 2.66 2.38 2.22
3.41 3.24 2.76 2.56 2.24 2.12 2.09
4.06 3.69 3.12 3.12 2.96 2.77 2.32
3.76 3.79 3.30 3.21 2.67 2.67 2.48
3.68 3.57 3.03 3.00 2.79 2.57 2.51
2.39 2.39 2.31 2.23 2.22 2.07 2.06 1.96
1.78 1.89 1.84 1.76 1.58 1.64 1.53 1.60
1.80 1.80 1.79 1.77 1.60 1.80 1.55 1.58
1.86 1.76 1.81 1.76 1.77 1.64 1.68 1.67
2.28 2.16 2.20 2.12 2.08 1.92 2.08 2.00
2.27 2.23 2.15 2.22 2.12 1.95 1.71 1.84
1.85
1.47
1.55
1.73
1.96
1.71
1.78
1.42
1.48
1.59
1.84
1.65
2.21 2.48 2.16 2.11 2.10
1.71 1.95 1.76 1.42 1.63
1.67 1.98 1.83 1.55 1.77
1.96 1.92 2.08 1.50 1.75
1.96 2.08 1.85 1.62 1.72
1.98 2.09 2.10 1.61 1.86
2.00 1.73 1.55 1.55
1.68 1.42 1.26 1.26
1.67 1.55 1.44 1.35
1.50 1.38 1.29 1.42
1.62 1.54 1.33 1.42
1.63 1.62 1.45 1.42
Accounting systems Accounting system concepts and features in general Internal controls Audit trails Evaluation of accounting systems Coding system for accounts
3.23 3.40 3.33 3.18 3.07
3.18 3.26 3.03 2.90 3.16
3.56 3.51 3.45 3.27 3.56
2.92 2.72 2.84 2.52 2.56
2.96 2.96 3.04 2.65 2.91
3.36 3.23 3.11 2.72 3.21
Systems development Identification of new system requirements Evaluation of computer software Design of system
2.00 1.93 1.88
1.68 1.82 1.66
2.33 2.44 2.23
2.12 1.96 1.96
1.83 1.71 1.71
2.04 2.04 1.97
Spreadsheets Spreadsheet concepts and features in general Spreadsheet strategy and design Conditional or logical functions Using multiple worksheets Macros, programming Graphics Database management functions Database management systems Database management system concepts in general Using report generator Sorting and indexing records Creating and modifying databases Query by example Using multiple files Structured Query Language (SQL) Using branches, loops, subroutines Developing programs using application generators Developing programs using programming language Telecommunications Telecommunication concepts and features in general Transferring files between programs Uploading and downloading data External databases Local area networks Processors (modems, multiplexers, front-end processors) Transmission speed, mode, direction Media (cables, fiber optics, satellites) Architectures and protocols
(Table 1 continued on next page)
208
C. D. Heagy and R. A. Gallun
Table 1. Desired level of knowledge of microcomputer topics Public
Evaluation of computer hardware Conversion to new system
Industry
Pl
P2
P3
I1
12
13
1.86 1.84
1.76 1.71
2.21 2.24
1.96 1.84
1.58 1.62
1.92 1.96
3.52 3.42 3.26 2.74 2.67 2.54 2.38
2.74 3.36 2.72 2.77 1.95 2.03 2.20
3.24 3.42 3.30 3.32 2.34 2.19 2.48
2.64 3.21 2.96 1.80 2.44 2.24 2.36
3.14 3.17 3.32 1.80 2.62 2.38 2.60
3.13 3.26 3.01 1.90 2.39 2.30 2.58
2.30 2.30 2.23 2.07 1.65
2.28 2.03 1.90 1.67 1.34
2.56 2.28 2.07 1.91 1.38
2.00 2.28 1.96 1.88 1.54
2.58 2.04 2.27 2.04 1.23
2.32 2.15 1.97 1.96 1.65
Other topics Word processing Typing Backup procedures Tax software Microcomputer security File operations Data entry validation Installation of programs, automatic program execution Documentation of programs Memory organization/location Multitasking Programming language 1 2 3 4 5
= = = = =
No knowledge. Overview knowledge. Knowledge of fundamentals. Working knowledge. In-depth knowledge.
design. The national and international accounting firms recommend a higher level of knowledge than all the other groups for all of the spreadsheet topics except graphics. For this topic, the largest industry group recommends the highest level of knowledge. These results support the idea that universities should include spreadsheets in their curriculum, with an emphasis on spreadsheet strategy and design. Some of the more complicated topics such as macros and graphics may receive considerably less emphasis. Database Management
Systems
Respondents’ recommendations for database management systems range around an overview knowledge, significantly less than their recommendations for spreadsheets. The recommendations of all groups for the specific database management systems topics indicate that a knowledge of the basics of database management systems is desired versus a knowledge of the more advanced features. Again, the knowledge level recommended by the national and international public accounting firms is among the highest. In contrast, the largest industry group recommends a lower level of knowledge of all the database management system topics than do the smaller industry groups.
Recommended Micr~omputer
Knowledge
209
Telecommunications Less than an overview knowledge of telecommunication concepts and features in general is recommended by all groups except the national and international accounting firms, which recommend slightly more than an overview. For the most part, the specific topics of transferring files between programs and uploading and downloading data received higher knowledge recommendations than the broad category of telecommunication concepts. Accounting Systems In general, more than a knowledge of the fund~entals of accounting systems concepts and features is recommended by all groups except the two largest industry groups, who recommend slightly less than a knowledge of the fundamentals. The smallest public accounting group and the smallest industry group recommend a higher level of knowledge of this topic than the other public accounting groups and the other industry groups, respectively. The specific topic of internal controls received comparable recommendations. Systems Development Knowledge recommendations for systems development topics range around an overview by all groups of respondents, with the smallest groups in public accounting and industry again recommending the highest knowledge level. Other Topics As can be seen in the “other topics” category, all respondents recommend slightly more or less than a knowledge of fundamentals for typing, word processing, and backup procedures. Interestingly, of all the topics listed in Table 1, typing received one of the highest knowledge level recommendations from both public accountants and industry accountants. In contrast, knowledge of a programming language received one of the lowest recommended knowledge levels from both public accounting and industry respondents. Only certain telecommunication topics received lower recommendations. CONCLUSION Overall, the general topics receiving the highest recommendations from all groups are spreadsheets, accounting systems, and word processing. Specific topics receiving high recommendations from most or all of the groups are spreadsheet strategy and design, typing, backup procedures, and internal controls. The results of this study suggest that universities should place the greatest
210
C. D. Heagy and R. A. Gallun
emphasis on spreadsheets, followed by accounting systems and word processing. In addition, students should be encouraged to learn how to type. Considerably less emphasis-just an overview-should be placed on database management systems, telecommunications, and systems development. For both spreadsheets and database management systems, attention should be focused on the basic features rather than the more complicated features such as macros and programming. As the market for accounting graduates contracts, it is even more important that graduates have the technological skills recommended in this paper. For academics who are striving to update and improve their accounting curriculum, the insights gleaned in this study should provide valuable guidance.