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American Institute of Certified Public Accountants. Board of Examiners. Content Oversight Task Force

Professional Examination Service. Department of Research and Development

English

eGrove (Univ. of Mississippi)

University of Mississippi eGrove Association Sections, Divisions, Boards, Teams American Institute of Certified Public Accountants (AICPA) Historical Collection 5-1999 Focus panel report : CPA general business knowledge study Professional Examination Service. Department of Research and Development American Institute of Certified Public Accountants. Board of Examiners. Content Oversight Task Force Follow this and additional works at: https://egrove.olemiss.edu/aicpa_assoc  Part of the Accounting Commons Recommended Citation Professional Examination Service. Department of Research and Development and American Institute of Certified Public Accountants. Board of Examiners. Content Oversight Task Force, "Focus panel report : CPA general business knowledge study" (1999). Association Sections, Divisions, Boards, Teams. 670. https://egrove.olemiss.edu/aicpa_assoc/670 This Book is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection at eGrove. It has been accepted for inclusion in Association Sections, Divisions, Boards, Teams by an authorized administrator of eGrove. For more information, please contact egrove@olemiss.edu. Focus Panel Report CPA General Business Knowledge StudyPrepared for American Institute of Certified Public Accountants Board of Examiners Content Oversight Task ForcePrepared by Professional Examination Service Department of Research and Development 475 Riverside Drive New York, NY 10115May 1999PurposeThis report describes two focus panels that Professional Examination Service (PES) conducted in April 1999 as part of the AICPA General Business Knowledge (GBK) Study. The focus panel methodology permitted specific and targeted data collection to supplement the draft delineation of business-related knowledge developed by the GBK Working Group.ProceduresEach focus panel was assembled to include manager and partner-level CPAs with a mix of experience in audit, other assurance, and tax service; CPAs working in local, regional, and national firms; and CPAs employed in business and industry. Panelists were selected from a pool of nominees recruited by AICPA staff.Twelve individuals attended the first panel, held on April 9, 1999 in New York, NY. Eleven individuals attended the second panel, held on April 19, 1999 in Denver, CO. Appendix 1 contains rosters of the participants at each panel. Appendix 2 describes the demographic and professional background of all 23 focus panel participants.Each focus panel lasted 3 hours and was facilitated by a moderator and assistant moderator from PES. A representative of the GBK Working Group attended each meeting, as did AICPA staff.A protocol was prepared to guide the discussion among participants. The protocol was designed to elicit descriptions of the business-related knowledge base used by CPAs. The protocol was refined and enhanced based on the conduct of a pilot test of the Focus Panel procedures with the members of the COTF on February 23, 1999. Participants responded to general and specific questions, and reviewed and commented on materials distributed during the meeting. (See Appendix 3 for copies of the revised protocol and the stimulus materials used at the focus panel meetings.)Follow-up and results of the Focus Panel MeetingFollowing the conclusion of each focus panel, the representative of the GBK Working Group, the AICPA staff, and PES reviewed the conduct and outcomes of the meeting. Subsequently, PES combined the results of the focus panels with those of critical incident interviews that were conducted in April 1999 as part of the study. The results of both procedures are contained in the document, Revised Delineation of General Business Knowledge: Results of Critical Incidents Interviews and Focus Panels.PES Report to the AICPA 1 GBK Focus PanelsAppendix 1 Focus Panel ParticipantsApril 9, 1999 New York, New YorkName Firm StateJeanette Addington Jones, Cochenour & Co OHJames Broker KMPG NYWilliam Cox Aldridge, Borden & Co ALDavid DuBois Baird, Kurtz, & Dobson OKMichael Farm Ernst & Young NYRachel Holmes Fitts, Roberts, & Co, PC TXDavid E. Hunt Entergy ARJohn Lambers Plante & Moran MINancy Lester Thompson & Kreitzberg WAJames C. Norfleet Urbach, Kahn, & Werlin PC NYPatricia Valladares-Foo FLCharles Rick Yager DB Aviation ILApril 19, 1999 Denver, ColoradoName Firm StateJustin Amico Feeley & Driscoll, PC MAMichael Combs Crowe, Chizek & Co KYMichael Feinstein Grobstein, Horwath & Co, LLP CAHeather Grech Bradshaw, Sodith & Co NVDarryl Lewis Clark, Nuber PS WAErnestine Mann RJ Pile Company, LLC INCraig Miller OHAngela Roby Larsen, Allen, Weishair & Co, LLP MNRobert Sawyer Ernst & Young, LLP OHTammy Wilson Arthur Anderson, LLP CAMarc Zwick Zwick & Solomon, PLLC MIPES Report to the AICPA 2 GBK Focus PanelsAppendix 2Professional and Background Information of Focus Panelists (N=23)1. In what type of firm do you work?10 Local6 Regional4 National/Intemational3 Other2. What is the number of professional accountants that work for your firm, in total?0 13 2-109 11-1005 101-10006 1000+3. What is your present position in your firm?0 Sole practitioner4 Partner or stockholder11 Manager or equivalent3 Supervisor or equivalent4 Senior or equivalent0 Staff accountant1 Other4. How many years of experience to you have in public accounting?3 05 1-511 6-104 10+5. How many years of experience do you have in non-public accounting?15 05 1-52 6-101 10+PES Report to the AICPA GBK Focus Panels6. What is your highest level of education?8 Bachelor’s degree <150 credit hours5 Bachelor’s degree 150 credit hours9 Master’s degree1 Other7. What is your gender?9 Female14 Male8. During the past year, what percentage of your work time was devoted to each of the practice areas listed below?Practice Area Mean S.D.Auditing (includes reviews and compilations) 40% 29Taxation 16% 21Governmental 8% 22Not-for-profit 5% 9Managerial (cost) accounting 5% 16Legal Issues 3% 7Professional responsibilities 4% 5Other 19% 27PES Report to the AICPA 4 GBK Focus PanelsAppendix 3 Protocol/Stimulus Materials AICPA General Business Knowledge/Broad Business Perspective StudyWe’d like to introduce ourselves and welcome you to a Focus Panel conducted on behalf of the AICPA. We’re employed at Professional Examination Service in the Department of Research and Development.The AICPA is committed to ensuring that the Uniform CPA Examination accurately reflects the knowledge base required of CPAs. A Content Oversight Task Force appointed by the AICPA identified general business knowledge and broad business perspectives as a knowledge base that that is important to the successful practice of public accounting.The AICPA contracted with us (PES) to gather more-specific information on how general business knowledge, and a broad business perspective, impact accounting practice. You were invited to be here today because you are CPAs who can help us understand the essential business knowledge required of the CPA.Our discussions will focus on your own experiences and opinions, so there are no right and wrong responses. Before we begin, we have to review the ground rules for the session:• The session will last 3 hours; we’ll take a brief break about ½ way through.• Light refreshments are available; please help yourself anytime you wish.• We’ll be recording the session and we’ll also be taking notes throughout the session. Forthose reasons, we ask you to make sure that only one person speaks at a time. On the other hand, be assured that your comments are completely confidential—no names will be attached to the summary report of the session.• Finally, before we begin, we do need you to read and sign a form indicating that you agree to be recorded. Further, we ask that before you leave, you complete a brief survey regarding your background.Introductory DiscussionTo get us started, I’d like each of you to briefly describe your employment situation, including the type of firm you work for and the type of work that you perform.As you know, we are interested in learning about the type and extent of general business knowledge that CPAs need in public practice. When I use the phrase General Business Knowledge, what are the areas that come quickly to mind?Transition QuestionsWhat generic (not industry specific) business knowledge does a newly licensed CPA need? Take a few moments to jot down the elements of a general business knowledge base you would like to see in newly licensed CPAs.(Present stimulus - the 18 categories of General Business Knowledge) This green sheet lists 18 categories of general business knowledge. Reading through this list, does it call to mind additional testable topics for the Uniform CPA examination? Take a moment to write them down. [Debrief] What did you add to your list of the business knowledge a newly-licensed CPA needs?What categories of general business knowledge are weakest in the newly licensed CPAs you see or supervise? Where have you seen problems, for instance, situations where items of significance were missed or overlooked during an audit?Key Questions(Present stimulus - the detailed list of General Business Knowledge)This handout lists specific knowledge bases associated with each of the categories of general business knowledge we discussed previously. Take a few moments to read the entire list, thinking about what generic (non-industry specific) business knowledge a CPA needs to have. Jot down any item that should be added to the list. Draw a line through anything that does not belong.What were your overall reactions to the list?Did you add any statements? Eliminate any?We are interested in evaluating the extent of knowledge a newly licensed CPA needs in connection with each of these topics. Is it basic familiarity? Or skill in applying/using the concepts? Is the level of understanding needed by new CPAs the same or different within each category and across the categories?(Present stimulus - auditing and FARE CSOs)Read the list of tasks and activities performed in audit engagements and in financial accounting and reporting. These lists are taken from the current CSOs for the Uniform CPA Examination. On each page, circle the activities wherein a CPA employs General Business Knowledge/Broad Business Perspective. [Debrief.]Think about the tax area—planning, compliance, and representation. How would you apply general business knowledge in these areas?(Present stimulus - the Business Law and Professional Responsibilities CSOs)These are the topics currently tested on the Business Law and Professional Responsibilities portion of the Uniform CPA examination. Take a minute to review the specific topics listed within each of the seven areas of business law. Would you support or delete any content in this section of the Uniform CPA Examination?Let us return to the green sheet. How would you re-organize it?What changes would you make to the sequence?What changes would you make to the category headings/labels?Which categories would you cluster together?Ending QuestionsIf you were to design a required college course related to General Business Knowledge/Broad Business Perspective, what content would you include in the syllabus?AICPA Focus Panel Meeting Denver, CO April 19, 1999NameTitleAddressPhone  Faxe-mail ________________________________________________I, (Print name)hereby consent to the recording of my discussion remarks at the AICPA focus panel meeting in Denver, CO. I understand that my recorded discussion remarks are completely confidential, and that my name will not be used in connection with my comments.Signature  Date

Focus panel report : CPA general business knowledge study

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Focus panel report : CPA general business knowledge study

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