Once established, the schools themselves evolve. Collective, repetitive experiences increasingly yield inductive knowledge, generalizations extracted from multiplicities of cases and, once extracted, (are made) applicable to cases yet to come. Research begins, from which there flows a yet higher order of knowledge through deduction, yielding laws, principles, postulates, theories, all applicable to the spectrum of the professional phenomena to which they apply.
This progression of experience, induction and deduction is accompanied by continual increases in the total body of applicable knowledge. The professional schools respond to these growing accretions of relevant knowledge seriatim: by adding to the burdens of their students, by winnowing out subjects deemed less essential, by increasing the rigor of subjects retained and, ultimately, by insisting upon graduate training as a requirement for admission to the profession. Medicine, theology and law, defined as the "traditional learned professions," already require post-baccalaureate training, supplemented in the case of medicine by post-doctoral exposure as well. There are indications that engineering also is on the threshold of a graduate requirement.
Accounting, it will be noted, is also on the threshold of a graduate requirement. The prelude to the current thrust in accounting education is to be found in two historic inquiries into business education which are referred to commonly as the Ford and Carnegie studies. The studies were completed at approximately the same time, and their findings are surprisingly similar. They reported "widespread and acute" dissatisfaction with the quality of undergraduate education, and concluded that it was impossible to provide both general and specialized training in the management disciplines within the framework of four-year undergraduate programs.
Graduate education in business fared no better. One of the studies observed that "the majority of students currently studying for the master's degree in business are enrolled in make-shift programs which are generally unsatisfactory. This unhappy situation arises from the fact that most graduate business curricula were originally conceived as merely another year of specialization and electives for students whose undergraduate majors were in business." Referring specifically to accounting the authors of the same study observed that "the most difficult problem exists in accounting, and it is this field that will probably require the longest transitional period."
In the period since these findings were reported in 1959, strenuous efforts have been made to improve the quality of management and accounting education. These efforts have been most successful at the graduate level as seen (a) in the development of a growing number of graduate schools of management; (b) the quality of research; and (c) the quality of faculty.
Concern with the quality of accounting education in this same period led to the commissioning of a major study sponsored jointly by the Carnegie Corporation of New York and the American Institute of Certified Public Accountants. Robert H. Roy of Johns Hopkins University and James H. MacNeill of Fordham University were selected to author the project which has come to be known briefly as the Horizons study.
Horizons called for a substantial improvement in accounting education, with increased attention to such subjects as mathematics, statistics, communications, and computer technology. It noted the difficulties of attempting to improve the substance of accounting education without increasing the years of schooling. It also noted that "tomorrow's beginning CPA must have mathematical facility beyond that possessed by his professional fore-bearers; he must also be given fundamental knowledge and skill to understand and use computers and to keep pace with their further development in the years to come. We further believe that these requirements, when added to the qualitative factors previously postulated, indicate that preparation for public accounting should come to include graduate study. These conclusions are fundamental to this report."
Attempts to implement the recommendations of the Horizons study began soon after its publication. An AICPA Committee on Education and Experience Requirements for CPAs was formed under the chairmanship of Elmer G. Beamer in September 1966 to "restudy the Institute's policies pertaining to [education and experience] requirements, which set standards for admission to the accounting profession, and to recommend what the policies should be in the light of current and foreseeable conditions."
The Beamer Report was published in March 1969. Its principal recommendations were as follows:
- The CPA certificate is evidence of basic competence of professional quality in the discipline of accounting. This basic competence is demonstrated by acquiring the body of knowledge common to the profession and passing the CPA examination.
- 'Horizons for a Profession' is authoritative for the purpose of delineating the common body of knowledge to be possessed by those about to begin their professional careers as CPAs.
- At least five years of college study are needed to obtain the common body of knowledge for CPAs and should be the education requirement. For those who meet this standard, no qualifying experience should be required.
- The states should adopt this five-year requirement by 1975. Until it becomes effective, a transitional alternative is four years of college study and one year of qualifying experience.
- The college study should be in programs comparable to those described in "Academic Preparation for Professional Accounting Careers." The transitional qualifying experience should be in public practice or equivalent experience in industry, government, or college teaching acceptable to state boards of accountancy.
- Candidates should be encouraged to take the CPA examination as soon as they have fulfilled education requirements and as close to their college graduation dates as possible. For those graduating in June, this may involve taking the May examination on a provisional basis.
- Student internships are desirable and are encouraged as part of the educational program.
- The Report of the Standing Committee on Accounting Education, which provides that the accreditation of academic programs is the responsibility of the academic community, is endorsed.
- Educational programs must be flexible and adaptive and this is best achieved by entrusting their specific content to the academic community. However, the knowledge to be acquired and abilities to be developed through formal education for professional accounting are proper and continuing concerns of the AICPA.
- The AICPA should review periodically the standards of admission requirements for CPAs.
The cumulative effect of these studies among educators who attend them has brought about very significant changes in accounting education.
