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Accounting Department

College of Business

Prepared by Dr. Dan Schisler, Chair

Introduction: The five majors with 10 concentrations in the College of Business differ by only 18 credit hours; thus, every department in the College is intimately linked to every other department. This linkage allows us to not only share resources, but also to share strategies, ideas and aspirations. The ACCT department could not exist without the other four departments in the College, for the degree offered is a Bachelor of Science in Business Administration, not a BS in Accounting. As such, the degree consists of xx classes in ACCT (two of which are in the common body) along with 2 from FINA, 2 from MGMT, 2 from MIS, and 3 from MSCM.

All students also take an international perspectives course, and are encouraged to consider participating in the Summer Study Abroad Program. This program provides an international business experience to students throughout the university. Courses are offered in MIS and other College of Business areas and these can satisfy the requirements of both the College Common Body of Knowledge and the business administration minor. Thus this global experience is open to all ECU students with an interest in business, irrespective of their major.

Productivity The Department of Accounting continues to be extremely productive in terms of quality student education, quality research, and FTE produced. The faculty consists of 14 tenured/tenure track and 7 teaching instructors. Below is a breakdown of the current accounting faculty (Fall 2011):

4 Assistant Professors 19%

7 Associate Professors 33%

3 Full Professors 14%

1 Teaching Associate Professor 5%

6 Teaching Instructors 29%

All of the tenured/tenure track personnel have 3/3 teaching loads with the exception of new hires who have a 2/2 load for their first two years on faculty. The teaching instructors have a 4/4 load. All of our sophomore level classes are at or near room capacity each semester (with few exceptions). The Page 2 of 4 accounting upper level classes (3000 and 4000 level) have an average capacity of 33 students per section in the face to face sections. For accounting graduate classes, the department averages 32 students per section.

On the research side, the faculty in the department are extremely productive. Since 2006, the department has published 91 items of “intellectual contribution.” This includes 77 peer reviewed publications and six books or chapters in books. Of the 77 peer reviewed publications, over 25% of the studies are in journals considered in the top of the field. The level of research is especially significant in that only 13 faculty members are expected to published (one Assistant Professor was hired beginning Fall 2011). The “Teaching” faculty are evaluated on teaching only.

Centrality The Department of Accounting has four courses that are predominately service courses: ACCT 2101, 2401, 2521, and 6241. As noted on the data template, these accounting courses are required by 13 other programs in the university. ACCT 2401 and 2521 are also included in the common body of knowledge for all business majors.

Accounting students are required to complete the College of Business Leadership and Professional Development program. This program requires that all business majors complete and document, utilizing an electronic portfolio, the twelve components below.

1. Personal Reflection

2. Service Learning Requirement

3. Professional Reading

4. Leadership Speaker Series

5. Leadership Personality Assessment

6. EDGE Perspective Statement (Ethics, Diversity, Global, & Environment)

7. Active Participation in Professional Organization

8. Professional Writing

9. Group Involvement

10. Professional Presentations

11. Professional Behavior/Etiquette and Appearance

12. Employer Informational Events. Page 3 of 4

In additional to the Leadership Program, the two accounting student groups are especially active service organizations. Recently, both organizations (Beta Alpha Psi and the Student Accounting Society) participated in charitable work/service with the Greenville Food Kitchen, Adopt-a-Mile, Habitat for Humanity, and the Ronald McDonald House of Eastern North Carolina.

The external demand for accounting majors has been steady (even in the economic downturn) and is expected to grow much faster than the average growth for other job areas from 2008-2018. According to the Occupational Outlook Handbook, 2010-11 Edition, published by the U.S. Bureau of Labor Statistics (www.bls.gov/oco/ocos001.htm), “employment of accountants and auditors is expected to grow by 22 percent between 2008 and 2018 (pp 8).” The accounting program is growing to meet that need.

Quality From 2005 to 2009, nearly 100% of MSAs and 80% of undergraduate accounting majors found employment in the accounting field prior to or just subsequent to graduation. In 2010 and early 2011, those numbers dropped to nearly 80% for MSAs and 60% from undergraduate accounting majors. The forecast for the Fall and Spring 2011/2012 is better with more than 15 firms scheduled to attend our major accounting recruiting function in the fall. Seven firms attended in the Fall of 2010.

The ECU Accounting Major has performed well on a national scale. The best benchmark of performance is the CPA exam. On the 2005 examination, ECU students with advanced degrees (MSA) were ranked 21st in the nation on the CPA pass rate. On the 2007 CPA examination, ECU students with advance degrees were tied for 16th in the nation. For the most recent reporting period (2009 CPA exam), East Carolina University had the third-highest CPA exam pass rate among North Carolina colleges and universities. The ranking is based on candidates who passed all parts of the exam. Only Wake Forest University (almost always #1 in the nation) and Davidson College (n = 7) had higher pass rates; ECU’s pass rate was 48.28%; the national average is typically in the low to mid teens.

The department and the College is committed to excellence in its online programs, offers significant support services to faculty beginning to teach online, ensures continuing education of faculty teaching online, and monitors the quality of its courses. All faculty teaching online have gone through significant training – both pedagogical and technological. SOIS results are reviewed every semester. A peer review of the course is conducted every three years. To provide additional assurance that courses and faculty are kept up-to-date, online faculty must complete four hours of continuing education each year. This education ensures our instructors remain knowledgeable of the latest technologies and methods to enhance online learning. Students are required to take proctored exams and all online courses are required to have significant interaction between the instructor and students ‒ and also among students. Online programs have become an integral and material part of the College of Business. Quality and rigor are the foundation of our distance education courses, and significant work, resources, and effort have gone into ensuring that this foundation is solid. While the resources required to maintain a high-quality program are significant, the commitment is well worth it as we successfully graduate increasing numbers of distance education students. Page 4 of 4

Opportunity Analysis Effective Fall 2009, the Department of Accounting finished a fairly drastic curriculum revision. The changes shortened our MSA, allowed easier access to financial aid for our students progressing from the undergraduate program to the graduate program, and allowed students to take the CPA exam sooner. These changes (along with the economic downturn) resulted in a more than 30% increase in our graduate program from Fall 2008 to Fall 2011. This increased demand has led to the lack of capacity both in terms of class size and number of faculty. To offer more sections of graduate courses, more faculty are needed. Unfortunately, there is a drastic shortage of accounting Ph.D.s coming out of quality programs and those new Ph.D.s graduating are entertaining offers at significantly higher salaries.

The biggest area for growth would be to offer our MSA program online. Modest estimates are that we could nearly double our MSA enrollment with an online program. Of course, that would mean the addition of five faculty lines. Assuming the lines were available to the department (5 positions at approximately $140,000 per nine months on the low end), there is little likelihood that all five lines could be filled due to the lack of supply of accounting Ph.D.s.

The biggest threat to the quality of our program is the loss of faculty. Right now (Fall 2011), the Accounting Department has several upper level classes with 45 or more students registered (optimal no more than 30) and several graduate classes with more than 40 students registered (optimal no more than 15). Our faculty (as with other departments) are seeing substantially increased workloads due to these enrollment increases and graduate assistant reductions. Coupled with the increased workloads, lack of raises, and the availability of numerous positions nationwide that would offer $25,000 to $30,000 raises with less teaching load, productive faculty will start leaving soon. Those positions will be very difficult, if not impossible, to fill in accounting.