An Inquiry Into Specialization for Certified Public Accountants. Jesse Tobias Barfield Louisiana State University and Agricultural & Mechanical College
Total Page：16
File Type：pdf, Size：1020Kb
Louisiana State University LSU Digital Commons LSU Historical Dissertations and Theses Graduate School 1971 An Inquiry Into Specialization for Certified Public Accountants. Jesse Tobias Barfield Louisiana State University and Agricultural & Mechanical College Follow this and additional works at: https://digitalcommons.lsu.edu/gradschool_disstheses Recommended Citation Barfield, Jesse Tobias, "An Inquiry Into Specialization for Certified Public Accountants." (1971). LSU Historical Dissertations and Theses. 2022. https://digitalcommons.lsu.edu/gradschool_disstheses/2022 This Dissertation is brought to you for free and open access by the Graduate School at LSU Digital Commons. It has been accepted for inclusion in LSU Historical Dissertations and Theses by an authorized administrator of LSU Digital Commons. For more information, please contact [email protected]. 72-3U58 BARFIELD, Jesse Tobias, 1938- AN INQUIRY INTO SPECIALIZATION FOR CERTIFIED PUBLIC ACCOUNTANTS. The Louisiana State University and Agricultural and Mechanical College, Ph.D., 1971 Accounting University Microfilms, A XEROX Company , Ann Arbor, Michigan © 1971 Jesee Tobias Barfield ALL RIGHTS RESERVED \ THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY AS RECEIVED AN INQUIRY INTO SPECIALIZATION FOR CERTIFIED PUBLIC ACCOUNTANTS A Dissertation Submitted to the Graduate pacultv of the Louisiana State University and Agricultural and Mechanical College in oartial fulfillment of the requirements for the decree of Doctor of Philosoohy in The Denartment of Accounting by Jesse T. Barfield B.S., Florida State University, 1961 M.Acc*, Florida State University, 1962 August, 1971 PLEASE NOTE: Some Pages have indistinct print. Filmed as received. UNIVERSITY MICROFILMS ACKNOWLEDGMENT The writer Is Indebted to Professor James W, Pattillo, Chairman of his Supervisory Committee, for guidance throughout this research, Appreciation is extended to Professors Fritz A, McCameron, William E, Swyers, and Charles 0, Walker for their many helpful suggestions as the work progressed. The advice and encouragement so willingly provided by Professors Edmund R. Gray, Robert A, Rentz, Jr., and Donald L. Woodland are gratefully acknowledged. It is a pleasure to acknowledge the extensive time, effort, and expertise so generously provided by Dr. Hite Bennett in advice and assistance regarding statistical tools and computer programming. To the University of West Florida computer center staff, thanks for their willing assistance. The writer appreciates the efforts of the 758 CPAs who took time from the rigors of their professional pur suits to complete and return the questionnaire. Finally, the writer is grateful to his wife for her typing efforts, proofreading, patience, and encour agement throughout the course of this work. li TABLE OF COMTENTS CHAPTER Pare ACKNOWLEDGMENT ................................ ii LIST OF TABLES............................vll LIST OF FIGURES......................... viii ABSTRACT......................................... I. INTRODUCTION............................. 1 Mature and Purnos« of the Study ...... 1 Background and present Status ....... 2 iiyoof.h ?3es. 5 Flr.it hvnothesis. ........... 5 Second hypothesis ......................... 5 Third hypothesis.................... 5 Fourth hypothesis ............ 6 Fifth hypothesis................... 6 Methodology of the Study............. 6 First phase ..................... ..... 6 Second phase........................ 7 Third nhr.se .............................. 8 Scope and Delimltations .............. 8 Definition of Tertn3 and Symbols ...... 10 II. MAJOR SURVEY RESULTS.................... 14 Introduction. , ........................... 14 Dissatisfaction with Ability to Remain Current............................. 16 Infrequency of Referrals............. 20 Implication of Individual 0^*3 Excellence in Every Area of Practice. • 20 Dissatisfaction with Referral Machinery . • 22 Difficulty of Maintaining Equal Level of Extensive Proficiency. ........ 23 Assessments bv larre firm practitioners * 25 Assessments by small firm nractitloners • 25 Assessment that CPAs Have M^re Expertise in Some Areas than Others ......... 28 Reduction of Scone of practlce Discussed, • 29 Composition of Profession with Reyard to Informal Specialization........ 29 iii CHAPTER Pacre Opinions Concerning Formal Certification. 30 Discussion of system contemplated .... 30 Effects of certification cn practice, . 31 Persons who benefit or who are adversely affected......................... 34 Preferences as to future nractlce .... 3*5 Total Imnact of certification............. 35 Polar Viewpoints with Respect to Certification....................... 35 Assessed Effects o** Certification on Practice Standards ................ 38 Viewpoints with ^esnect to Informal .Specialization ......... 40 Preferences as to Informal or Formal Specialization....................... *10 Presentation of Reasons for Ooiniott3 as to Effects of Certification............. 42 Chanter Summary ..... 48 III. IMPACT OF CHAMC.ES ON THE NEED FOR SPECIALIZATION............................. 50 Introduction............................ 50 Chanres in Educational Meed3.................. 52 Acquisition of Droficlencv in Accounting. 55 Changes In Accounting and Auditing........... 56 Chanmes in organizations and securities . 56 Interim financial reports ........... 58 Accountlnr for multinational firms. 60 Requirement of funds statement............. 61 Accounting and the computer ....... 61 Adoption of uniform lettal c o d e s ........... 62 Accounting Principles Hoard opinions. • 63 Impact of federal laws and regulations. 64 Displacement of firms in SEC enramements, 65 Chancres In Code of Professional Ethics, . 67 Auditors* leaal problems.................... 68 Recurring auditin*? problems . * ........... 69 Imnact of the computer on auditing. 70 Sampling in auditing......................... 71 Changes in Management Services................ 71 AICPA formal commitment .................... 71 Recent growth in management services. , • 72 EDP systems engagements .................... 73 Broadness of scope. ..... ......... 73 Certifying of non-CPA specialists .... 73 Chanre3 In Taxation.......................... 74 Causes of changes and complexities. 74 iv CHAPTER Pa me Amount of necessarv re ad In pr , .......... 77 Complexity of* r^adinfr ............... * . 77 Diacugnion of Hypotheses. * .......... 79 pir;:.t hypothesis.......................... 79 Second hypothesis ................ 81 Third h vno then is......................... 82 fourth hypothesis.................... 89 -\lfth hypothesis, .................. 85 Chanter Summary.................. 87 IV. SPKCIALIZATIOM IN OTHER PROFESSIONS ......... 89 Introduction................................ 89 Specialisation in the Medical Profession. 89 Background................................ 89 Ad van 130*? s ................................ 90 Disadvantage............. 92 Structure .............................. 95 Effects on profession................... 97 Implications for accounting ....... 98 Specialization in the Lenal Profession. 102 Background, 102 Advantages. .............................. 103 Disadvantages . , .........................108 Important results of California survey. Ill Current status of specialization.........113 Implications for accounting .............. 116 Specialization in the Engineering ’roTesgion..................................118 Background............................. 118 Advantages..................................121 disadvantages ..... .................. 121 Structure..................................121 Claimed effects on profession ............ 123 Implications for accounting .............. 123 Chanter Summary . ............ '...............129 V. IMPLEMENTATION..................................126 Introduction..................................126 Positions on the Specialization Continuum . 127 Extreme positions ............ 127 Recognition of informal specialization. 128 Accreditation for public practice with a singular requirement...........129 Accreditation for nubile practice with several requirements ....... 129 v CHAPTER Pane Accreditation for cooneratlve resource centers ....... .................. 130 Accreditation for CPA firms ....... 132 Lessons to Be Learned from Other Professions................................... 134 Plan Recommended by the Writer.................136 Important Oensl. derat ions of the Writer's Plan ........... ........ 139 Required reneral background ....... 139 Vrichinory for removing distrust............ 1*10 Extended tlnetaole.................... 142 popnal machinery.............................. 142 Reculrement of education and exnecience . 147 Continuing education...................... 149 Chapter Summary . ............................ 149 vi. surmRV and conclusions....................... 15 3 Summary.................. 153 Survev results.................................153 Changes in accounting .......... 155 Hypotheses. ..•••• .................. 155 Implications found in other professions . 157 Conclusions ................ 153 APPENDIX ..........................................161 Introduction.................... l6l Remaining Results of the S u r v e y .............. 161 Exhibit A - Letter of Transmittal............ 173 Exhibit B - Questionnaire..................... 174 Exhibit C - Standard Statistical Tests for Sirnificance of Differences in Sample Results.................................... 136 SELECTED BIBLIOGRAPHY ......................... 137 VITA.................................................196