AICPA Core Competencies in Tax Curriculum

Author:

Caroline D. Strobel, Ph.D., CPA
Professor
University of South Carolina
Columbia, SC

Editor's note: For more information about this column, contact Professor Strobel at strobel@darla.badm.sc.edu .

The AICPA Pre-certification Education Executive Committee, through the work of the Pre-Professional Competency Task Force, developed core competencies that graduates should possess on entry into the accounting profession. The AICPA Core Competency Framework for Entry into the Accounting Profession (Framework) applies to all entry-level positions, whether in public accounting, industry, government or nonprofit organizations. In developing the competencies, the task force used the CPA Vision Process and AICPA professional competency models, including the New Financial Model. The core competencies support the idea that learning is a continuum that begins in an academic setting and continues through life-long educational and professional experience. The task force hopes that the inclusion of the core competencies in accounting curriculum will ease students' transition from school to work.

While the Framework is primarily for accounting educators, other interested parties include employers, state CPA societies, professional associations, accrediting bodies and the public. The Framework is not meant to supplant subject matter in the current curriculum; rather, it will allow educators to teach traditional subject matter in ways that instill core competencies simultaneously.

Not all core competencies are equally important; a particular accounting program's mission and whether there is a 150-hour education requirement will determine which core competencies are most relevant. Professional constituencies can help accounting educators determine appropriate competencies, as not all are appropriate for every course. An AICPA Curriculum Evaluation Task Force is developing tools to help educators (1) prioritize competencies based on an accounting program's mission and objectives; (2) plan educational strategies to integrate competencies into courses and programs; and (3) assess student performance on competencies. Several competencies are appropriate for tax curriculum, both undergraduate and graduate.

Educators can obtain guidance on developing competencies from "Educational Practices," a component of the Framework, scheduled for release in 2001. It will be made available online. "Educational Practices" will provide links to general guidance on learning strategies and recommend specific strategies and classroom techniques for each competency. Strategies and classroom techniques will help educators develop the competencies particular courses emphasize. "Educational Practices" will also assist education committees spread the learning process across curricula.

Evaluation tools are being developed to improve the efficiency of administrative planning and review, and the effectiveness of educational strategies. The tools will enable educators to compare courses and programs with the Framework, guide student assessment, and facilitate curriculum planning and reform. The tools will also generate reports that can be made available to stakeholders, such as employers, students, accreditation boards and faculty. They can be used as a measure to continuously improve and reevaluate a single course or an entire program. No prior assessment experience is needed to use the evaluation tools. They will generate documentation of the evaluation process, resulting in better records of findings. Availability of a beta version of the tools is expected by spring 2001, with an online version due out by late fall.

Competency definitions and guidelines are available online at www.aicpa.org/edu/corecomp.htm. These definitions and guidelines are designed to assist educators in helping students achieve the competencies. "Educational Practices" and the evaluation tools will each provide links to the competency descriptions. The evaluation tools will also provide links to educational practices for each competency.

Several teaching strategies for instilling the core competencies will also be available. These include interactive lectures, question and discussion periods, writing, problem-based cases and guided design, group learning, cooperative learning, debates, drama, visual- and computer-based instruction, technology-based delivery and fieldwork service projects and accounting internships. All of these strategies have been used successfully for some time in accounting curricula. They have not, however, been specifically connected to the core competencies, and a systematic evaluation of their effectiveness has never been performed.

To match a particular accounting program's aims and goals, a matrix is available that can assist educators to:

• Prioritize competencies;
• Identify courses and activities for specific competencies;
• Prioritize the development of competencies within specific courses and activities; and
• Indicate an assessment method and provide a summary of findings based on teaching strategies and evaluation tools.

The process should be one of continuous improvement. Teaching methods and curriculum cannot be changed overnight.

The Framework for competencies is broken down into three major areas. Several competencies fit well in tax programs.

Functional Competencies

Functional competencies focus on developing skills for decision-making, risk analysis, measurement, reporting and research, while also leveraging technology. Tax programs are an ideal place to develop skills for using electronic databases. Functional competencies also help students learn to identify problems and potential solutions. Using case studies, students can identify strengths, weaknesses, opportunities and threats associated with specific scenarios. As an example, preparing letters and ruling requests can enhance students' ability to report objectively and concisely.

Personal Competencies

Personal competencies relate to the attitudes and behavior of individuals preparing to enter the accounting profession. Developing personal competencies will enhance the handling of professional relationships and facilitate individual learning and personal improvement. These competencies include skills for professional de-meanor, problem-solving, decision-making, interaction, leadership, communication and project management, and also leveraging technology. Well-crafted, open-ended cases will develop and enhance students' problem-solving and decision-making abilities. Group projects are aimed at developing students' ability to interact and work effectively in a group setting. An interactive classroom environment promotes the development of oral communication skills. Writing projects and presentation opportunities enhance written and media presentation skills.

The effectiveness of teaching strategies needs to be enhanced through appropriate electronic technologies. A move from a lecture format to an interactive classroom setting and en-hancement of electronic teaching methods to augment the learning process need to be encouraged at all levels of instruction.

Broad Business Perspective Competencies

These competencies relate to how professionals perform their services in both internal and external business environments. The competencies include strategic/critical thinking, industry/sector perspective, international/global perspective and resource management. Using case studies, upper-class students learn to gather and use data from a wide variety of sources and to identify strengths, weaknesses, opportunities and threats. They also learn how tax savings can be a source of capital in a business. Emphasis is placed on how these competencies can help students understand the interaction between financial accounting and tax considerations in structuring business combinations and expanding existing businesses into global markets.

Conclusion

As pedagogical and assessment tools are developed and made available to accounting programs at all levels, instructors and curriculum developers will be able to begin to change the way that accounting and tax are taught. Competencies can be developed in the classroom that will aid the transition from school to a work environment. Adopting the Framework does not mean that instructors should ignore subject matter. Rather, academicians have to change their teaching methods and course content if they are to move forward in providing entry-level professionals with the basic skills necessary to compete in the dynamic environment in which the accounting profession finds itself.