The call for increasing the international component of accounting education.

Feucht, Frederick J. ; Imhof, Michael J. ; Smith, L. Murphy 等

INTRODUCTION

A multitude of changes have taken place in the accounting profession in recent years. Information technology is replacing many of the traditional duties of accounting, while increasingly complex business transactions are giving rise to new responsibilities for accountants and auditors. Global economic integration, the transnational activities of multinational corporations, and the convergence of financial reporting standards are internationalizing the accounting profession. With this internationalization comes an increased demand for intelligent, well-educated, highly versatile accountants and auditors that can quickly adjust to the dynamics of today's modern global business environment. Understanding of current international issues is critical to the future success of accounting students (Ashcroft et al., 2008; Smith 2008; and Smith et al. 2008).

During the 1990s the number of accounting graduates in the U.S. decreased. As a result, for a number of years the accounting profession experienced a shortage of capable graduates. The worldwide recession, starting in 2008, alleviated the shortage, at least in the short term. However, the gap between supply and demand is not just a game of numbers. Many in the profession feel that accounting education is not producing the quality of graduates that today's businesses demand. Observations of this problem were noted by Albrecht and Sack in their 2000 landmark study:

"A growing gap exists between what accountants do and what accounting educators teach....Accountants who remain narrowly educated will find it more difficult to compete in an expanding profession..." (Bedford Report, 1986, as cited in Albrecht and Sack, 2000, p. 2).

"In too many respects, accounting education is being delivered the same way today as it was 20 or 30 years ago" (Albrecht and Sack, 2000, p. 2).

"In the best case--the number of students majoring in accounting is down. In the worst case, both the quantity and quality of students electing to major in accounting have decreased" (Albrecht and Sack 2000, p. 23).

The purpose of this study is examine the call for accounting curricula to increase its coverage of international issues, evaluate future accountants' knowledge of international accounting issues, and consider the potential benefits resulting from including international accounting in the accounting curriculum. Due to the everchanging nature of modern business and the worldwide movement towards global accounting standards, U.S. accounting programs will likely benefit by broadening their curricula to include more international topics. This study supports the internationalization of the U.S. accounting curriculum since such a shift will enhance the capabilities of accounting graduates and may attract a larger, more diversified pool of students, including non-residents, a demographic group that has traditionally been smaller in accounting than in other functional business areas.

INTERNATIONAL BUSINESS AND THE ACCOUNTING PROFESSION

Recent decades have seen a steady increase in the number of business firms providing products and services to customers around the world. Exhibit 1 shows a model of information flows mediated by the various border crossings inherent in global operations. The complexity associated with multinational operations results from subsidiary operations in business settings that may differ substantially from the parent, thereby resulting in a complex operating, reporting, and information environment. Business firms engaged in international operations carry on business in a more complex environment than strictly domestic firms (Runyan and Smith, 2007). The movement toward global accounting standards, i.e., the IFRSs, will help alleviate some of this complexity, at least for accounting and financial reporting. In addition, use of IFRSs will facilitate efficiency in the global capital markets, including those in developing countries (Hunter and Smith, 2008).

The international business environment continues to evolve. According to Albrecht and Sack (2000), three major developments are affecting the number and type of services accountants perform and the way in which accountants perform them. The first of these is technology.

Modern information and communication technology allows firms to gather, organize, and utilize financial data at record speeds. Advances in information technology facilitate and even replace many first-stage accounting services. As a result, traditional accounting responsibilities can now be performed by fewer individuals using a host of software and data analysis programs (Albrecht and Sack, 2000).

[FIGURE 1 OMITTED]

The second major development affecting global business and the accounting profession is globalization. Increasingly integrated markets and cross-border transactions are giving rise to new types of financial reporting issues. Trade liberalization and communication technology have allowed the world's consumers to choose between an increasing array of international and domestic companies. Firms can quickly respond to the strategies of their competitors, resulting in fierce competition for customers and resources (Albrecht and Sack, 2000).

The globalization of accounting and corporate financial reporting has been profoundly affected by the increasing acceptance of International Financial Reporting Standards (IFRSs) in countries around the world. IFRSs are the accounting standards published by the International Accounting Standards Board (IASB). In recent years, IFRSs went from being little used to what is now the world's dominant set of accounting standards (Smith 2008).

A few pivotal events led to the dominance of IFRSs over US GAAP and other accounting standards. Pivotal events include the financial scandals occurring in the US in the early 2000s, notably Enron, which highlighted weaknesses in US GAAP. A second pivotal event was adoption of IFRSs for financial reporting by listed companies in the EU in 2005. A third pivotal event was the US Securities and Exchange Commission's announcement in late 2007 to accept IFRSs for financial reporting by non-US companies listed in the US stock market (Smith, 2008; Smith et al. 2008).

The third major change altering the way accountants perform their duties is the "concentration of power" in certain market participants. Mutual and pension funds control increasingly large stakes in international companies, adding to the competitive pressures to perform. Such control raises "the competitive bar very high and shorten(s) the periods over which success is measured" (Albrecht and Sack, 2000, p. 6).

Driven by these three major changes, the accounting profession is experiencing a pace of change never before seen. Product life cycles have been shortened and competitive advantages weakened. Managers and accountants must constantly adjust to ever-emerging trends and information. Global economic integration is giving rise to new companies and industries, which in turn, are giving rise to new accounting and auditing services. At the same time, increased competitive pressures are forcing companies to out-source non-value added activities that have traditionally been performed by accountants (Albrecht and Sack, 2000). Exhibit 2 highlights some of these changes.

Exhibit 2: Changes in the Global Business Environment
Noted by Albrecht and Sack's 2000 Study

* Increased pace of change in the business world

* Shorter product life cycles

* Emergence of new companies and new industries

* Emergence of professional services

* Outsourcing of non-value added services

* Increase uncertainty and the explicit recognition of risk

* Increasingly complex business transactions

* Changes in financial reporting

* Increase regulatory activity

* Increase focus on customer demand

Source: Albrecht and Sack (2000)

Not only are international business activities affecting the degree and type of services accountants and auditors perform, but also they are driving the convergence of national accounting standards. This convergence should have implications for accounting education. A high likelihood that accounting graduates will work in a multinational corporation at some point in the career means that new accounting students need to be familiar with both U.S. GAAP and international accounting standards.

According to McAllister, Orsini, and Gould (1997) globalization and technology are driving accounting standards convergence. Information technology, especially the Internet, has made access to financial statements quick and easy, putting important information into the hands of investors, regulators, even competitors at unprecedented speed. In its 2004 Review of International Accounting and Reporting Issues, the United Nations Center for Trade and Development (UNCTAD) states that the motivation for global accounting standards stems from the potential ability of localized or regional crises to affect the world economy. The report states that there is widespread recognition that global financial stability rests on robust national systems.

UNCTAD supports the convergence of global accounting standards for several reasons. First of all, global accounting standards promote transparency. Transparency lends to market efficiency and corporate discipline by assuring investors that financial reporting is accurate. Secondly, homogenized financial reporting practices allow for better comparability across international firms. Thirdly, transparency and comparability allow more accurate benchmarking and firm valuation. Lastly, assurance in company financial reports attracts investment, which is crucial for economic vitality (UNCTAD, 2004).

Countries worldwide are embracing accounting standards convergence. Since 2001, the International Accounting Standards Board (IASB), a London-based private standard setter, has been cooperating with national standards boards across the globe to facilitate the adoption of its International Financial Reporting Standards (IFRSs). Even the U.S. Financial Standards Accounting Board (FASB), a historically outspoken rival of the IASB, is now working towards the harmonization of IFRSs and U.S. GAAP (Gannon and Ashwal, 2004; FASB, 2006; Smith 2008).

The worldwide adoption of IFRSs requires accountants and auditors to be familiar with changes in international accounting standards. U.S. companies, even those not directly involved in operations overseas, may be required to report financial statements in IFRS format (Gannon and Ashwal, 2004). In addition, experts predict that the U.S. will eventually require use of IFRSs in place of U.S. GAAP for all firms trading on the U.S. stock market, both U.S.-based and non-U.S.-based firms (Smith 2008).

A SURVEY OF FUTURE ACCOUNTANTS' KNOWLEDGE OF INTERNATIONAL ACCOUNTING

How much do future accountants, i.e., students, know about international accounting? To assess future accountants' general knowledge of contemporary international accounting issues, a short survey of 161 students at two southwestern U.S. universities was completed in the spring 2008. Seven statements were prepared and students' level of agreement was obtained on a Likert scale from 1=strongly disagree to 5=strongly agree. All seven statements should have resulted in a "strongly agree" (5) or "agree" (4) response. Thus, the expected mean score is between 4 and 5. The mean scores to all seven statements is shown in Exhibit 3.

The first statement, of seven, was simply to ascertain students' understanding of a basic definition of accounting: Accounting is the recording, summarizing, and reporting of economic activities. Responses average 4.30. As this is a basic definition of accounting, a higher average might have been preferable. However, the mean score is between 4 and 5 and therefore indicates that the average student in the sample knows the definition of accounting.

For the next six statements, all but one had a mean score below 4 (agree); this indicates a general lack of understanding of international accounting issues. For the second statement: Accounting standards differ due to culture, politics, laws, and economic factors, the mean score was 3.99. Given the news and general media attention to the impact of national and cultural differences, students would have been expected to agree (4) or strongly agree (5) on this statement.

For the third statement: Globalization makes financial reporting technically demanding, the mean score was 3.78. For the fourth statement: One set of accounting standards would simplify accounting for MNEs, the mean score was 3.89. Accounting students should realize, even without the benefit of a course on international accounting, that accounting would be more complex for a company with global operations. Further, students should know that one set of standards, as opposed to multiple sets, would simplify accounting. Mean scores were below 4, which show that students do not have an adequate understanding of these concepts.

For the fifth statement: Consideration must be given to national differences in accounting standards, the mean score was 4.11. The average student understands that accounting is affected by differences among nations. For the sixth statement: The IASB is developing a single set of high-quality accounting standards, the mean score was 3.65. While this has been widely reported, the average student was well below "agree" (4) on this statement. For the seventh and final statement: The SEC is considering allowing use of International Financial Reporting Standards (IFRS) instead of US GAAP, the mean score was 3.56. This was widely reported in the news and especially in accounting publications throughout 2007 and early 2008. The fact that the mean student score was so low, the lowest of the seven statements, indicates a lack of knowledge of current events affecting accounting, specifically with regard to the International Financial Reporting Standards. Overall, based on the survey, future accountants' knowledge of international accounting is deemed inadequate. If the two schools in the study are representative of other accounting programs, then this suggests a need to expand coverage of international accounting issues within the accounting curriculum.

HISTORICAL SHORTAGE OF U.S. ACCOUNTING GRADUATES

While not a problem at the time of this writing, the accounting profession has periodically experienced substantial shortages of qualified graduate. Research by the AICPA in 2002 found that the number of undergraduate and graduate students majoring in accounting declined by 21.3%, from 59,110 in 1991, to 46,555 in 2001. Likewise, the number of candidates sitting for the CPA exam fell some 24%, from 140,042 in 1991 to 106,072 in 2001 (Hartwell, Lightle, and Maxwell, 2005).

Demand for accounting graduates however, remains strong. According to the U.S. Department of Labor the job market for accountants and auditors is expected to grow 18-26% through 2014 (U.S. Department of Labor 2006).

Salary differential was a major reason fewer students chose accounting in the 1990s. Traditionally, and especially in the 1990s, accounting graduates commanded lower starting salaries than graduates in other areas such as finance and management information systems (MIS). In 2000 most accounting graduates' salaries still lagged those of finance and MIS. Since the passing of Sarbanes-Oxley however, advances in accounting salaries have outpaced those of other functional areas. To attract the necessary skills they need compete in the global business environment, companies have been forced to raise offers to new graduates. In 2006, the average starting salary for a bachelor's degree in accounting was higher than both finance and MIS. According to the National Association of Colleges and Employers, 2006 salaries for accounting graduates were higher than business management, marketing and MIS, and only slightly below financial services. Exhibit 4 shows a comparison of accounting graduates to other majors (NACE 2007).

Accounting salaries have risen in recent years, possibly due to cyclical demographics (i.e. smaller number of business majors as a whole) (Billiot, Glandon, and McFerrin, 2004), or it could be due to students' perceptions of what life as an accountant is like. According to Hartwell, Lightle, and Maxwell (2005), the job of filling the increasing demand for accountants and auditors begins with an understanding the target pool of potential new hires.

Student perceptions about life as an accountant play a major role in their decision of whether or not to major in accounting. The typical stereotype pegs accountants as boring people who work alone, creating the impression that accounting is largely non-interactive. To gain a better understanding of how those planning to major in accounting view the profession versus those choosing other majors, Hartwell et al. (2005) surveyed 278 high school students from Indiana and Ohio in 2002, the majority of which (93%) planned to pursue post-secondary education. Among their respondents, 87 percent started thinking of a college major at the beginning of their senior year in high school, and 70% were considering a major in business.

The Hartwell et al. (2005) survey results indicate that accounting majors versus non-accounting majors were less likely to hold the 'Hollywood' stereotype of accountants as bland, detail-oriented persons doing tedious tasks. Accounting majors were also more likely to see accounting as challenging work than non-accounting majors, (Hartwell et al. 2005). The difference in perceptions between those planning to major in accounting versus nonaccounting majors may suggest the need for recruiters and faculty to highlight the challenging, interactive aspects of accounting. Doing so may help paint a more realistic picture of the accounting profession.

Another reason accounting may be attracting fewer students is the 150-hour rule. Intended to increase and broaden the training level of CPAs by increasing the number of college credits needed to sit for the CPA exam to 150, the 150-hour rule may actually be constraining the pool of potential accounting students. Some studies suggest that the 150-hour rule may negatively affect the number of students willing to pursue a career in accounting. To accommodate for the 150-hour rule some schools have implemented Masters of Accountancy degrees. This alone appears not to be attracting more undergraduate students (Billiot, Glandon, and McFerrin, 2004).

What is the value of an accounting degree? A study by Wilder and Stocks (2004) surveyed 114 company recruiters to determine how they viewed the potential of accounting graduates against graduates from other business disciplines. They found that the majority of recruiters preferred bachelor's of accounting graduates (mean rating of 75.13) over graduates with bachelor degrees in general business (67.00). Likewise, recruiters favored MBAs (72.75) over BBAs (69.00), and MBAs with bachelors in accounting (75.66) over BBAs in accounting (74.35).

Wilder and Stock's (2004) study finds that employers are seeking out accounting graduates, and prefer the combination of an undergraduate degree in accounting and an MBA. Such a combination tends to provide the best of both worlds. Though accounting skills are sought after, those students who combine the technical skills of undergraduate accounting with the critical thinking skills of an MBA were considered most ideal, an indicator of the need for accountants to be more broadly educated. The importance of Wilder's study is that accounting recruiters are seeking out the most versatile graduates from a pool that is not getting larger.

The number of international students seeking business-related degrees continues to climb. International students account for roughly 20-30% of U.S. business students. In European business schools the proportion of nondomestic students is higher. For example, in Barcelona's IESE, only 20% of the student population is of Spanish origin. At INSEAD, less than 10% of students are French. This applies to professors as well. Two-thirds of INSEAD's faculty are from countries other than France (Economist 2004).

Though the market for non-resident students in the U.S. remains strong, the ability of accounting programs to attract these students has been weak compared to other functional business areas. According to the U.S. Department of Education, Institute for Education Sciences, accounting has generally attracted fewer non-resident students as a proportion of total nonresidents pursuing BBAs in the U.S. than other disciplines. While this number is growing, it still lags behind general business, MIS, finance, and management science. Exhibit 5 shows how accounting has fared against other business disciplines for the number of bachelors and masters degrees awarded to non-residents in selected years 1994, 1997, and 2003 (USDE 2006).

Accounting attracts fewer non-resident accounting students as a proportion of total nonresident business students, than other functional business areas. The percentage has changed little in the last decade, from 3.24% in 1994 to 4.41% in 2003. At the same time, the percentage of non-resident business students majoring in international business has grown slightly from 12.94% in 1994 to 13.74% in 2003. This suggests that an international business degree holds more utility for non-resident students over traditional business degrees (USDE 2006).

PROBLEMS WITH CURRENT U.S. ACCOUNTING CURRICULA

The following observations summarize a joint study by the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), the Institute of Management Accountants (IMA), Arthur Anderson, Deloitte & Touche, Ernst & Young, KPMG, and Pricewaterhouse Coopers, and written by Albrecht and Sachs (2000) on the current state of U.S. accounting education:

"Most [accounting educators]...would not get an accounting degree if completing their education over again" (p.33).

"If those who practice and teach accounting cannot provide positive testimonials about the value of accounting degrees, then who can?" (p. 34).

According to Albrecht and Sack, the majority of accounting faculty and practitioners, if given the opportunity to decide again, would not major in accounting a second time. Only 4.3% and 6.4% of respondents said they would get a bachelor's degree in accounting and stop there. Most responded that they would continue on with a Master's degree, but only 31.5% of those in academia, and 5.9% of those in industry would pursue a Master's of Accountancy. A significant proportion of practicing accountants, 36.4 percent, and of faculty, 37.7 percent, preferred an MBA to a Masters degree in accounting (Albrecht and Sack, 2000).

The fact that the majority of respondents to Albrecht and Sack's study would not repeat their decision to major in accounting highlights the problems facing accounting education. If practitioners and academicians cannot positively attest to the value of an accounting degree then the future of accounting education may indeed be in trouble. A shortage of quality students, a shortage of properly trained faculty, an out-of-date curriculum, and a rapidly evolving business landscape raise legitimate challenges for the future of U.S. accounting education. Accounting programs unable to keep up with this changing landscape will have a difficult time attracting quality students. Any solution to the problem must include the modernization of accounting education to reflect today's international business environment.

INTERNATIONALIZING THE U.S. ACCOUNTING CURRICULUM

Major accounting firms such as PricewaterhouseCoopers have made substantial efforts to assist accounting educators in including international materials in their courses. An online video available from the company's website is: IFRS Ready--Why are International Financial Reporting Standards important to you? (http://www.pwc.com/us/en/careers/pwctv/ch3-ifrs-ready.jhtml) and (2) Global Opportunities--Working Half a World Away (http://www.pwc.com/us/en/careers/pwctv/ ch2-global-opportunities.jhtml).

According to a survey on the internationalization of U.S. business schools by Kwok et al. (1994), accounting education lags behind other functional areas in the internationalization process. Beed and Shooshtari (1998) identify several reasons why this might be. The foremost of these is lack of industry interest. Accounting education is so closely tied to practice, that a lack of industry interest has resulted in a lack of academic interest. For years U.S. industry and the Securities and Exchange Commission (SEC) resisted outside attempts to alter U.S. accounting practices. Only recently has the U.S. been working with the IASB and the International Organization of Securities Commissions (IOSC) to harmonize U.S. GAAP with IFRSs.

For U.S. schools to sufficiently internationalize, faculty members need to be familiar with international issues. The best method for training faculty in international accounting is during the doctoral process. Unfortunately, as with bachelors and masters programs, most doctoral programs in accounting offer few classes in international business (Beed and Shooshtari, 1998). Other ways to expose faculty to international issues is to get them involved in international research and conferences. This, however, may be an expensive alternative. An accounting department's funding is often dependent on the size of its student body. A shrinking pool of graduates means smaller budgets.

Another reason why accounting education may be slow to internationalize is the mutual relationship between textbooks and the CPA exam. As Beed and Shooshtari (1998) explain that books mimic the exam and the exam mimics the current textbooks. Their survey of the most commonly used textbooks in accounting classes found the majority to be void of international material. Those that did contain international information were 'superficial,' usually focusing on accounting systems in Canada, Australia, Britain, or New Zealand. If the material is not in the textbooks, students may get the idea that it is not relevant.

Educators should incorporate more international coursework into their accounting curriculums (Nix and Smith 2006). They can do this either by offering supplemental classes or by integrating international content into current classes. Students can also gain exposure to international accounting through international internships or international work-study projects. According to Kwok et al. (1994), schools can internationalize their accounting curriculums in several ways:

1. Infusion of international material into current coursework

2. Offering general International Business courses

3. Offering specialized International Business courses in functional fields

4. Offering non-business International topics courses

Internationalizing accounting education should involve broadening the traditionally narrow, domesticbased curricula. Today's market is demanding a different kind of accountant. Well-rounded graduates must be trained in domestic and international accounting fundamentals. They must possess good communication and analytical skills, and be able to interact with a variety of clients. Internationalizing the accounting curriculum would increase the value and versatility of an accounting degree. A more valuable and versatile accounting degree would increase the potential pool of accounting graduates. Not only would the resident pool of accounting graduates likely increase, so too would the pool of nonresidents students, since an 'international' accounting degree would hold more utility than a traditional degree focused solely on U.S. GAAP.

Exhibit 6 shows a model that conceptualizes the relationship between the changing world economy, its impact on the accounting profession, and the pressure both of these put on accounting education in the United States. This model builds off a previous model by Albrecht and Sack (2000) that shows how technology, globalization, and shifts in market power are changing the global business environment.

[ILLUSTRATION OMITTED]

Exhibit 6 conceptualizes how the changing business landscape is driving the emergence of IFRSs and placing new demands on the accounting profession. The consequence of these changes is the need for U.S. accounting education to internationalize. The internationalization of U.S. accounting education would make a U.S. accounting degree more valuable to both resident and non-resident students, which would attract a larger, more diverse pool of accounting majors.

A larger, more diverse pool of accounting majors would help alleviate student shortages and increase competition among students. The end result should be higher quality, well-rounded, internationally educated individuals with the skills necessary to prosper in the global work place.

LIMITATIONS AND FUTURE RESEARCH

The current study was limited to students at two southwestern US universities. Future research might include additional universities. In addition, future research could solicit perspectives on international issues from accounting professionals working in public accounting, industry, and not-for-profit organizations.

CONCLUSIONS

Technology, globalization, and shifts in market power have facilitated the free flow of inexpensive and easily attainable information across markets. The accounting profession is expanding to meet the needs of this dynamic business environment. Global economic integration has given rise to international accounting standard convergence. This convergence of IFRSs, and the new responsibilities of the modern accountant are forcing accounting educators to rethink current accounting curricula.

To evaluate knowledge of future accountants regarding international accounting, a survey was made of students at two southwest U.S. universities. Based on the survey, knowledge of international accounting appears inadequate. Given the limited sample, however, the findings may not be generalizable to other accounting programs. On the other hand, if the sample is representative, then the findings suggest that coverage of international accounting issues should be expanded within the accounting curriculum.

The internationalization of U.S. accounting education is both critical and overdue. By incorporating more international coursework into current accounting curriculums, educators would increase the utility and hence the value of U.S. accounting degrees for both resident and non-resident students. The impact of such changes would be twofold: First, they would be meeting the needs of the accounting profession by improving the quality of accounting graduates. Second, they may increase the pool of available accounting students by attracting students who would not have otherwise selected accounting as a career.

Today's accountants must be dynamic and versatile enough to succeed in the global workforce. An education that involves both international and domestic aptitude would better meet the demands of the modern business world.

REFERENCES

Albrecht, W. S., and R. Sack (2000). Accounting Education: Charting the Course Through a Perilous Future. Accounting Education Series, Vol. 16. American Accounting Association: Saratosa, Florida.

Ashcroft, P. Gia Chevis, and L.M. Smith (2008). Faculty Perspectives on International Accounting Topics. Advances in Accounting, Vol. 24: 139-144.

Beed, T. and N. Shooshtari (1998). International Accounting Education: Behind, But Catching Up? The National Public Accountant. 43(1) (Jan/Feb): 47-50.

Billiot, M., S. Glandon, and R. McFerrin (2004). Factors Affecting the Supply of Accounting Graduates. 19(4) (November): 443-467.

Economist (2004). But Can You Teach? The Economist Magazine online. (May 20, 2004). Retrieved from: http//www.economist.com/PrinterFriendly.cfm?story_id=2685892. FASB (Financial Accounting Standards Board) (2006). Fasb.org (September).

Gannon, D. and A. Ashwal (2004). Financial Reporting Goes Global. Journal of Accountancy. (September): 43-47. Hartwell, C., S. Lightle, and B. Maxwell (2005). High School Students' Perceptions of Accounting. The CPA Journal. 75(1) (January): 62-66.

Hunter, Shirley and L.M. Smith. 2008. Impact of Internet Financial Reporting on Emerging Markets. Journal of International Business Research, Forthcoming.

Kwok, C., J. Arpan, and W. Folks (1994). A Global Survey of International Business Education in the 1990s. Journal of International Business Studies. 25(3): 605-623.

McAllister, J., L. Orsini, and J. Gould (1997). Global Accounting and Accounting Confusion. Journal of Accountancy. (September): 89-91.

NACE (National Association of Colleges and Employers) (2007). Salary Survey. NACE Website: http://www.naceweb.org (April 10).

Nix, J. and L.M. Smith (2006). Chapter 5: Contributions of Accounting Education Research to International Accounting in Reflections on Accounting Education Research. American Accounting Association Teaching and Curriculum Section Monograph.

UNCTAD (United Nations Center for Trade and Development) (2004). Website: http://www.unctad.org/Templates/StartPage.asp?intItemID=2068 (December).

USDE (U.S. Department of Education) (2006). Institute of Education Sciences, Website: http://www.ed.gov/about/offices/list/ies/index.html (December).

U.S. Department of Labor (2006). Website: http://www.dol.gov/ (December).

Runyan, B. and L.M. Smith (2007). The Effect of Multinationality on the Precision of Management Earnings Forecasts. International Journal of Accounting, Auditing & Performance Evaluation, Vol. 4, No. 6: 572588.

Smith, L.M. (2008). Are International Financial Reporting Standards (IFRS) an Unstoppable Juggernaut for US and Global Financial Reporting? The Business Review, Cambridge, Vol. 10, No. 1 (Summer): 25-31. Available at SSRN: http://ssrn.com/abstract=1125069.

Smith, L.M., T. Sagafi-Nejad, and Kun Wang (2008). Going International: Accounting and Auditing Standards. Internal Auditing, Vol. 23, No. 4 (July): 3-14. Available at SSRN: http://ssrn.com/abstract=1263002.

Wilder, W. and M. Stocks (2004). Are Accounting Graduates Favorably Recruited for Entry-level Management Positions? Management Accounting Quarterly. 5(3) (Spring): 21-31.

Frederick J. Feucht, Prairie View A&M University

Michael J. Imhof, University of Missouri

L. Murphy Smith, Texas A&M University

Kun Wang, Texas Southern University

Exhibit 3
Survey of Accounting Students' Knowledge of International Accounting

1     Accounting is the recording, summarizing, and reporting   4.30
      of economic activities.

2     Accounting standards differ due to culture, politics,     3.99
      laws, and economic factors

3     Globalization makes financial reporting technically       3.78
      demanding.

4     One set of accounting standards would simplify            3.89
      accounting for multinational enterprises (MNEs).

5     Consideration must be given to national differences in    4.11
      accounting standards.

6     The International Accounting Standards Board (IASB) is    3.65
      developing a single set of high-quality accounting
      standards.

7     The Securities and Exchange Commission (SEC) is           3.56
      considering allowing use of International Financial
      Reporting Standards (IFRS) instead of US GAAP.

Note: Sample included 161 accounting students. Responses ranged from
1=strongly disagree to 5=strongly agree.

Exhibit 4: Average Starting Salaries By Degree Field

Degree Field                           Average Starting Salary

Accounting                                     $47,421
Business Management                            $44,048
Chemical Engineering                           $59,707
Civil Engineering                              $47,750
Computer Science                               $52,177
Management Information Systems (MIS)           $46,966
Marketing                                      $41,285
Financial Services                             $47,877
Economics                                      $53,449
Liberal Arts                                   $31,333

Source: NACE (2007).

Exhibit 5: Percent of total degrees awarded to non-residents
in the U.S.

                             Percent of Bachelors degrees

Discipline                    2003       1997       1994

Accounting                    4.41%      3.20%      3.24%
Business Administration       6.86%      5.49%      5.16%
MIS                           7.98%      7.22%      7.71%
Finance                       4.85%      8.04%      8.37%
Management Science            5.21%      5.27%      5.06%
Marketing                     2.90%      5.45%      5.59%
Human Resources               1.80%      2.49%      2.58%
International Business       13.74%     14.08%     12.94%

                              Percent of Masters degrees

Discipline                    2003       1997       1994

Accounting                   16.99%     14.75%     13.66
Business Administration      20.24%     18.01%     17.56
MIS                          28.71%     27.10%     26.36
Finance                      30.29%     34.16%     26.09
Management Science           25.19%     16.00%     13.26
Marketing                    27.29%     20.00%     11.41
Human Resources               8.34%      7.81%      9.22
International Business       33.69%     28.50%     30.13

Source: USDE (2006).