ROLE OF TAX KNOWLEDGE AND SKILLS WHAT ARE THE …...commercially oriented accounting services is...

JournaloftheAustralasianTaxTeachersAssociation2018Vol.13No.1

152

ROLEOFTAXKNOWLEDGEANDSKILLS:WHATARETHEGRADUATESKILLSREQUIREDBYSMALLTOMEDIUMACCOUNTINGFIRMS

SHARONHAYES,BRETTFREUDENBERGANDDEBORAHDELANEY*

ABSTRACT

Smallandmediumaccounting(SMA)firmscanaccountforapproximately40percentofgraduaterecruitmentinAustralia.DoesthecontextofobtainingemploymentwithaSMAfirm require graduates to have certain knowledge and skills? This article reports thefindings of a study into the technical and generic skills required by graduatescommencing employment within an Australian SMA firm. The findings suggest thattogether with financial statement and reporting, tax knowledge is highly valued forgraduatestoaSMAfirm.Intermsoftax,thisalsoincludestheabilitytousetaxsoftware.Also,thegenericskillsofcommunication,teamworkandethicsarehighlyregarded.Thisraises the question as towhether current university degrees are providing adequatetechnicalandgenericskilldevelopmentforthosegraduatesseekingemploymentwithaSMAfirm.Keywords: Accounting; Graduates; Technical skills; Generic skills; Small to mediumaccounting;Employment;Work-ready.

*SharonHayes,GriffithUniversity,Email:[email protected];BrettFreudenberg,AssociateProfessor,Griffith University, Email: [email protected]; Deborah Delaney, Senior Lecturer, GriffithUniversity,Email:[email protected].


153

I INTRODUCTION

It has been argued that undergraduate degrees are currently unable to completelyprepare Commerce graduates, because the learning outcomes of most accreditedundergraduatedegreesinAustraliadonotalignwiththeprofession’srequirementsorexpectations.1Thisinpartisduetotheroleoftheprofessionalaccountantcontinuingtoundergosignificantchange,adaptingfromitstraditionalroleofinformationproviderandrecord-keeper, to the roleofbusinessadvisorand informationanalyst.2 Freeman andWells suggest these changes are attributable to business globalisation and taskautomationduetotechnologicaladvancements.3Thesechangesrequirecriticalreflectionofthegraduateskillsofstudentsenteringintotheaccountingprofession.Theliteraturedemonstratesanelementofuncertaintyastowhichskillsarerequiredfornewlypreparedgraduatesenteringtheprofession.4Thisiscompounded by the fact that graduates may gain employment in a wide variety ofemployment contexts, including public accounting practices of different sizes, orcorporate or government environments. Greater challenges are also predicted as thetrend of outsourcing basic accounting services continues, as these entry level taskscommonlyprovideasourceofskillenhancementanddevelopmentfornewaccountingemployees.5Small tomedium accounting (SMA) firms are responsible for a significant portion ofgraduate employment. Figure 1 illustrates the destination in 2015 of 1830 domesticAustralian accounting graduates, and demonstrates that more than 40 per cent ofgraduatesattainedemploymentwithineitherasmall(2–19employees)ormedium(20–99employees)accountingfirm.6Consequently,SMAfirmsareasignificantemployerof

1LeopoldBayerleinandMelTimpson,‘DoAccreditedUndergraduateAccountingProgrammesinAustraliaMeettheNeedsandExpectationsoftheAccountingProfession?’(2017)59(3)Education+Training305.2WSteveAlbrechtandRobertSack,AccountingEducation:ChartingtheCoursethroughaPerilousFuture(AAA,2000);NasAhadiatandRoseMMartin,‘Attributes,PreparationsandSkillsAccountingProfessionalsSeek inCollegeGraduates forEntry-LevelPositionsvs.Promotion’ (2015)8(1) JournalofBusinessandAccounting179.3MarkFreemanandPaulWells,‘ReducingtheExpectationGap:UsingSuccessfulEarlyCareerGraduatestoIdentifytheCapabilitiesthatCount’inElaineEvans,RogerBurrittandJamesGuthrie(eds),FutureProofingthe Profession: Preparing Business Leaders and Finance Professionals for 2025 (RMIT and CharteredAccountantsANZ,2015)67–78.4 BryanHowieson, Phil Hancock,Naomi Segal, Marie Kavanagh, Irene Tempone and Jenny Kent, ‘WhoShouldTeachWhat?AustralianPerceptionsoftheRolesofUniversitiesandPracticeintheEducationofProfessional Accountants’ (2014) 32 Journal of Accounting Education 259–75; Irene Tempone, MarieKavanagh,NaomiSegal,PhilHancock,BryanHowiesonandJennyKent,‘DesirableGenericAttributesforAccountingGraduatesintotheTwenty-FirstCentury:TheViewsofEmployers’(2012)25(1)AccountingResearchJournal41;SeedwellTMSithole,‘QualityinAccountingGraduates:EmployerExpectationsoftheGraduateSkillsintheBachelorofAccountingDegree’(2015)11(22)EuropeanScientificJournal165.5SallyChaplin,‘AccountingEducationandthePrerequisiteSkillsofAccountingGraduates:AreAccountingFirmsMovingtheBoundaries?’(2017)27(1)AustralianAccountingReview61.6ThescopeofthisstudyisrestrictedtoSMAfirmemployers.Thedefinitionofa‘large’employer,accordingtotheAustralianBureauofStatistics(ABS),isonewithmorethan200full-timeemployees,whilstGraduateCareersAustralia(GCA)identifies‘large’employersashaving100ormoreemployees.Whilstthiscreatesaconflictingdefinition,thisresearchstudyaccordswiththeGCAdefinitionandfocusesuponSMAfirmemployerswith2–99employees.


154

Australianaccountinggraduates,anditisimportanttoconsidertheirperspectiveastotheskillsrequiredbygraduates.Figure1:Accountingundergraduateemploymentdestinationbyemployersize7

Currentliteratureindicatesthataccountingemployersrequirebothtechnicalandgenericskillsforaccountinggraduatescommencingemployment.8However,moststudieshaveinvestigated the skills of accounting graduates in accounting firms of all sizes,government employers, private corporations, public corporations, and other non-accountingindustryemployers.PriorresearchhasnotadequatelyconsideredgraduateattributesspecifictoSMAfirms,anditisrecognisedthattheskillemphasisforSMAfirmsmay not be compatible with other employment contexts due to the differences ingraduateduties.9Howieson identifies that theexpectations forgraduateswilldifferdramaticallyacrossdifferent employer groups, reinforcing the view that the required skills to make agraduatework-readywilldependupontheemploymentrole.10Arecentcomparisonofaccountingpracticesconfirmedthatsmallerfirmsusuallyhavealargernumberofsmallbusinessclientsacrossvariousindustries,exposinggraduatestoabroaderrangeoftasksand skill requirements.11 The expansion by SMA firms to providemore complex and

7GraduateCareersAustralia,‘GraduateOutlook2015’inTheReportofthe2015GraduateOutlookSurvey:Perspectives on Graduate Recruitment (2014) Graduate Destinations Report Table T24<www.graduatecareers.com.au>.8 John Bowden, Gail Hart, Bruce King, Keith Trigwell and Owen Watts, ‘Generic Capabilities of ATNUniversity Graduates’ (Department of Education, Australian Government, Training and Youth Affairs,2000);BeverleyJacklingandKimWatty,‘GenericSkills’(2010)19(1–2)AccountingEducation1;Temponeetal,aboven4.9BinhBuiandBrendaPorter,‘TheExpectation-PerformanceGapinAccountingEducation:AnExploratoryStudy’(2010)19(1–2)AccountingEducation:AnInternationalJournal23;MaryLow,VidaBotes,DavidDeLaRueandJackieAllen,‘AccountingEmployers’Expectations–TheIdealAccountingGraduates’(2016)10(1)e-JournalofBusinessEducation&ScholarshipofTeaching36.10Howiesonetal,aboven4.11DanielBishop,‘Context,AgencyandProfessionalWorkplaceLearning:TraineeAccountantsinLargeandSmallPractices’(2017)59(5)Education+Training516.

Small 21.1%2-19

employees

Medium 19.8%20-99

employees

Large 59.1%100+

employees

Accounting Graduates 2015


155

commerciallyorientedaccounting services is also leading to changes in the skills andattributesawork-readyaccountinggraduateshouldexhibit.12In aiming to provide work-ready accounting graduates to SMA firms, an improvedunderstandingoftherequiredskillsfortheSMAemploymentcontextisneeded.GiventheproportionofgraduatessecuringemploymentwithinSMAfirms,itisimportanttoensurethatgraduatesdevelopthenecessaryskills.Thisissignificant,asSMAfirmsmayhavelimitedfinancialresourcestosupportandtraingraduatesduringtheinitialstagesofemploymentastheytransitionfromgraduatetoprofessional.Acontinuedfailuretoprovide sufficiently skilledwork-readygraduates toSMA firmemployersmay lead tofurtherdecreasesingraduateemployment.13A‘work-ready’graduateisseenasagraduatewhohasobtainedthedesiredskillsuponcompletionoftheirtertiaryeducationtocompetentlycommenceemployment.14Theseconsistofbothgenericandtechnicalskills,withBuiandPorterarguingthatthenecessityforeachattributerequiresconsiderationtobegiventothespecificemploymentcontext,and suggesting that SMA firms place relativelymore importance on technical skills.15However,inasmallstudybyLowetalfromNewZealandwithemployersofvarioussizes,theyfoundnoevidenceuponwhichtoinferthatSMAfirmsplacemoreimportanceonparticularskillswhencomparedtolargerfirms.16Incontrast,Temponeetalintheir2012studydidfindthesizeofaccountingfirmemployerandassociatedemploymentcontextwassignificant.17Thisstudyseekstoinvestigatethetechnicalandgenericskillsrequiredforawork-readygraduatecommencingspecificallywithinaSMAaccountingfirm.Theoverarchingresearchquestionthatthisarticleseekstoaddressis:‘Whatarethetechnicalandgenericgraduate skillsrequired inanAustralianSMA firm?’The findingssuggestthat,unlikelargerfirms,taxknowledgeandtheabilitytousetaxsoftwareisadesiredgraduateskillforamajorityofSMAfirms.SectionIIofthisarticlewillprovideadiscussionofgraduateskillsandtheirclassificationas technicalorgenericskills, followedbyabroadsummaryofrecentgraduatetrends.SectionIIIwillprovidetheresearchmethodologyundertakenandthedemographicsoftheparticipants,whichwillbefollowedbytheresultsinSectionIV.ThroughtheanalysisoftheresultsrecommendationswillbeproposedinSectionV,withfutureresearchbeingoutlinedintheSectionVIofthearticlebeforeconcluding.

12 Samantha Sin andNicholasMcGuigan, ‘Fit for Purpose: A Framework for Developing and AssessingComplex Graduate Attributes in a Changing Higher Education Environment’ (2013) 22(6) AccountingEducation522.13DepartmentofEmployment,AustralianGovernment,LabourMarketResearch–AccountantsAustraliaJune Quarter 2017 (Labour Market Research and Analysis Branch, 2017)<https://docs.employment.gov.au/system/files/doc/other/ausaccountants_1.pdf>.14Temponeetal,aboven4.15BuiandPorter,aboven9.16Lowetal,aboven9.17Temponeetal,aboven4.


156

II GRADUATESKILLS

Graduateattributesaredefinedasthequalities,skillsandunderstandingsthatstudentsshould develop during their time with a university.18 The literature demonstratesgraduateattributesasdiverselyunderstoodbyacross-sectionofacademics,19consistingofabroadrangeofskillsandattributesacquiredthroughcompletionofanundergraduatedegree.DelaHarpeandDavidarguethattheyareacriticaloutcomeofamoderntertiaryeducation,andgraduatesneedtobecapableofdemonstratingthenecessaryskillswhenseekinggraduateemployment.20Theseskillsgobeyond just thedisciplinaryexpertiseandtechnicalknowledgethathavetraditionallybeenafocusforuniversitycourses,andextendtoparticularhumanbehaviours,dispositionsandcapabilities.21

Graduate skills can be classified as either generic or technical skills, with variousemployment duties and responsibilities ultimately requiring different graduateattributes.Technicalskillshavebeendescribedascontext-specificandpractical,22andrepresent for accounting such things as debits and credits, taxation knowledge andpreparingfinancialaccounts,aswellasbook-keepingskills,informationtechnology,andtheabilitytounderstandaccountingconcepts.23Technicalskillsareconsiderednecessarytoperformthetasksthatarespecifictoaccountantsandshouldbedevelopedfromtheknowledge of content areas as prescribed. In comparison, generic attributes includethosenon-accountingskillsthatmaybeusedacrossavarietyofindustriesandincludecommunication, teamwork and problem-solving. A more detailed discussion of theseconceptsfollows.

A TechnicalattributesBayerleinandTimpsonarguethatwhilsttertiaryaccountingeducationisboundbyclearstandards through the use of accreditation, graduates can continue to lack adequateknowledgeandskills.24Technicalskillssuchasbook-keeping, informationtechnology,analysis, and basic accounting concepts, are recognised as desirable.25 Dale argues,however, that the role for graduates is becoming more complex because they areexpected to apply judgement and problem-solve across a whole range of areas, and

18Bowdenetal,aboven8.19SimonBarrie,‘AConceptualFrameworkfortheTeachingandLearningofGenericGraduateAttributes’(2006)32(4)StudiesinHigherEducation439;SinandMcGuigan,aboven12;CalvinSmith,SoniaFernsandLeoniSRussell,‘ConceptualisingandMeasuring“Employability”–LessonsfromaNationalOLTProject’(ACENNationalConference,AustralianCollaborativeEducationNetworkLimited,GoldCoast,2014)1.20BarbaraDeLaHarpeandChristinaDavid,‘MajorInfluencesontheTeachingandAssessmentofGraduateAttributes’(2012)31(4)HigherEducationResearch&Development493.21SinandMcGuigan,aboven12.22MarieKavanaghandLyndalDrennan,‘WhatSkillsandAttributesDoesanAccountingGraduateNeed?’(2008)48AccountingandFinance279.23 Beverley Jackling and Paul De Lange, ‘Do Accounting Graduates’ Skills Meet the Expectations ofEmployers?AMatterofConvergenceorDivergence’(2009)18(4–5)AccountingEducation369;BuiandPorter,aboven9;Lowetal,aboven9.24BayerleinandTimpson,aboven1.25BuiandPorter,aboven9.


157

simplyreportingdataisnolongersufficientforthedesiredsolutionsandinsight.26Othershaveconfirmedthattheabilitytouseaccountingsoftwareisnecessaryduetotherecentintroductionofadvancedhardwareandsoftwaretechnologyintoaccountingpractices,andthedramaticchangestodataprocessing.27ChaplinconcludesthatSMAfirmstypicallyidentify that future graduates will require more specialised skills as a result ofoutsourcingtrends,withanalyticskillsdeemedasthemostimportant.28Sitholesurveysofthetechnicalskillsrequiredofgraduatesacrossabroadrangeofaccountingemployersin Swaziland found that of the technical skills listed, employers rated computingtechniques, reporting skills, functional competencies and measurement skills asimportant.29PanandPereracontendthatsimplyaligningtheaccountingprogrammeswithexistingaccreditation guidelines will not ensure graduates are work-ready, due to a lack ofconsensus between typical employer requirements and current accountingprogrammes.30Agrowinggapbetweenaccountingeducationand the requirementsofpractitioners,particularlyinrelationtopreparinggraduatesandaccountingknowledge,wasidentifiedbyRebeleandStPierrewhenanalysingaccountingeducationliteraturerangingfrom1991to2015.31Itappearsthatuntilrecentlytaxasdisciplineknowledgehastoanextentreducedinitsimportancewithaccountingprofessionalbodies.JuchauandNealetracedthehistoryoftaxinAustralianaccountingdegreesfrom1945to1995.32Theirobservationsnotedthatduringthese50years,taxvariedfrombeinginitiallyexternaltodegreestothenbeinga‘regularfeature’inthelate1950s.33Taxwaspresentinmostcommercedegreesinthe1960s even if not a separate course and instead intermingled with other law oraccountingcourses.34Thisdevelopedfromthe1970stothelate1980swithtaxgenerallypartofthecurriculumduetoaccreditationrequirements.35However,bytheendofthe1980stherewassomereconsiderationaboutwhatextentwastaxcoverageinaccountingdegreesrequired,withaTaskForceReportsuggestingaweightingof11percentto15percentindegreestocoverlegalstructuresandprocesses,aswellasrevenuelaws.36It

26 Jason Dale, ‘PreparingBusiness Leaders and Accountants for Future Financial Leadership’ in ElaineEvans,RogerBurrittandJamesGuthrie(eds),FutureProofingtheProfession:PreparingBusinessLeadersandFinanceProfessionalsfor2025(RMITandCharteredAccountantsANZ,2015)88.27AliYaftian,SoheliaMirshekaryandDessalegnMihret,‘LearningCommercialComputerisedAccountingProgrammes:PerceptionsandMotivations’(2017)30(3)AccountingResearchJournal312.28Chaplin,aboven5.29Sithole,aboven4.30PeipeiPanandHectorPerera, ‘MarketRelevanceofUniversityAccountingPrograms:Evidence fromAustralia’(2012)36AccountingForum91.31JamesRebeleandEKentStPierre,‘StagnationinAccountingEducationResearch’(2015)33(2)JournalofAccountingEducation128.32RogerJuchauandRayNeale,‘TaxationinAustralianUndergraduateAccountingCourses:AReviewandCaseNote’(2001)10(1)AccountingEducation27.33Ibid.34 Ibid, citing F Devonport, ‘The Place of Taxation in a Commerce Degree’ (Proceedings of the AAUTAConvention,UniversityofNewcastle,August1968).35Ibid29.36WilliamPBirkett,‘TheDemandfor,andSupplyofTaxationEducation:ADelphiStudy’(TaskForceforAccountingEducation inAustralia, sponsoredby theAustralianSocietyofAccountants, theInstituteof


158

appearsthatthismayhavebeentheimpetusforsometertiaryinstitutionstoreducetheirtaxcoursesfromafull-yearcourse(consistingoftwounits)toahalf-yearcourse(ofoneunit).Curiously,thiswasoccurringatapointintimewhenAustraliawasexperiencingextensivetaxreformincludingthe introductionofcapitalgainstax, fringebenefits taxand the imputation system for corporations. The threat of the reduced length of taxcourses in accounting degrees was in part the impetus for the formation of theAustralasianTaxTeachersAssociation(ATTA),withthe firstATTAConferenceheldattheUniversityofNSWin1989.37Nevertheless,bytheendof1995taxwasaspecifiedareaof which accounting accreditation required a demonstrated understanding andknowledge,althoughnotnecessarilycoveredover12months.38However, by the end of the first decade of the third millennium this was furtherthreatenedasCPAAustralia(CertifiedPractisingAccountants)removedtherequirementfortax(andaudit)asarequiredcourseinanundergraduatedegreetoseekmembership.Thecurrentuniversitycurriculumrequires13knowledgeareastobecoveredtoensurethat anAustralian accounting degreewill be eligible for professional accreditation asprescribed by CPA Australia and Chartered Accountants Australia and New Zealand(CAANZ).39Table1providesabriefexplanationofeachcontentareatobeincludedforaccreditation, with themost recent amendment to the curriculum occurring in 2012(whichwasrelevantatthetimeofthisstudy).ItisnotedthatatthetimeofthisstudyforCPA Australia audit and taxation were not required as a compulsory inclusion (asindicatedwith a cross in Table 1), instead requiring that a non-compulsory course ismadeavailableforstudents.However,startingfrommid-2018CPAAustraliahaschangeditsaccreditationrequirementssothatnowitonceagainrequiresanundergraduatetaxcourse.40Thischangeappearslargelytobeinresponsetotheeducationalrequirementsof the Tax Practitioner Board that includes requiring two courses in tax law forregistrationasaTaxAgent.41

ItshouldbenotedthatTable1onthewholeincludesonlythetechnicalknowledgeareas,exceptforthegenericskillrequirementfor‘ethics’.

Chartered Accountants in Australia with the Accounting Association of Australia and New Zealand,Melbourne,1989).37 Fiona Martin, ‘A History of the Australasian Tax Teachers Association’ (2013) 8(1) Journal of theAustralasianTaxTeachersAssociation31;BrettFreudenberg,‘ConferenceDinnerAddress’(Presentedatthe Annual ATTA Conference, ATTA Newsletter, February 2018)<https://www.business.unsw.edu.au/About-Site/Schools-Site/Taxation-Business-Law-Site/AttaNews/ATTA-News-Feb-2018.pdf>.38JuchauandNeale,aboven32,29.39CPAAustraliaandInstituteofCharteredAccountantsinAustralia,‘ProfessionalAccreditationGuidelinesfor Australian Accounting Degrees’ (2012) <http://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/international-accreditation-guidelines.pdf>.40SeeCPAAustralia,ChangestoAdvancedTaxation<https://www.cpaaustralia.com.au/cpa-program/cpa-program-candidates/your-enrolment/advanced-taxation/changes-to-advanced-taxation>.41Theeducationrequirementsforataxagentincludeoneaccountingcourse,threecommerciallawcourses,andtwotaxlawcourses.SeeTaxPractitionersBoard,AustralianGovernment,QualificationsandExperienceforTaxAgents(5March2018)<https://www.tpb.gov.au/qualifications-and-experience-tax-agents>.


159

Table1:CoreknowledgeareasrequiredforaccreditationofaBachelor’sdegreewithCPAAustraliaorCAANZ(upto30June2018)

Knowledgearea Descriptionand/orexamples CPA CAANZAccountinginformationsystems

Productivitysoftware;fileanddatabasemanagementsystems;accountinginformationsystemsinbusiness;systemsdevelopmentandmaintenance;e-commerce

ü ü

Accountingsystemsandprocesses

Understandingfinancialstatementsandrecordingfinancialtransactions,includingdifferenttypesoffinancialstatements;usingaccountingsoftwaretorecordandreportbusinesstransactions

ü ü

Accountingtheory Theoreticalissuesandconceptsunderlyingthepracticeofaccounting,financeandrelateddisciplines;roleoftheconceptualframeworkincontemporaryaccounting

ü ü

Auditandassurance

Natureandprocessofauditing;regulatoryandprofessionalenvironment;auditingstandardsandauditprocess

û ü

Commerciallaw Generallegalknowledgerelatingtothebusinessenvironment;understandingrisksandresponsibilitiesthatimpactthatenvironment

ü ü

Corporationslaw Nationalcorporatelawframeworkaslegislated;itscommercialapplicationtothebusinessenvironment

ü ü

Economics Micro–demandandsupply;marketsandpricing;factormarkets;incomedistributionandmarketfailure.Macro–performancestructure;behaviourofthefinancialeconomy

ü ü

Ethicsacrossthecurriculum

Ethicaldecision-makingmodels,principlesandvaluesacrossthecurriculum;encouragingdebateonethicalissuesusingpracticalcaseswherepossible

ü ü

Finance Businessfinanceandtreasuryfunction;analysisandmeasurementofanentity’sfinancialposition;currenttreasurydevelopmentsandrelevantissues

ü ü

Financialaccounting Recordingandreportingfinancialtransactionsincludinggroupsandcompanies;theoreticalissuesandconceptsunderlyingaccountingpractice;currentfinancialaccountingandanalysisissuesforinternationalaccounting

ü ü

Managementaccounting

Budgeting;productandservicecosting;controlandperformanceevaluation;strategicmanagementaccounting;relevantnumericalandanalyticalskillsandcurrenttheoreticalknowledge

ü ü

Quantitativemethods

Descriptivestatistics;frequencyandprobabilitydistributions;hypothesistesting;simplelinearregressionandcorrelation

ü ü

Taxation Australiantaxationknowledgeandadministration û ü

Osmani et al conducted an extensive literature review on graduate attributes andemployability across accounting, business andmanagement, and computer science.42Thirty-ninestudieswereconsidered,withmanyrecognisingtheconcernofgraduates’skills failing to meet employer expectations and requirements, and noting theexacerbationduetolackofcommunicationbetweeneducationandindustry.Themost

42MohamadOsmani,VishanthWeerakkody,NithamHindi,RajabAl-Esmail,TillaEldabi,KawaljeetKapoorandZahirIrani,‘IdentifyingtheTrendsandImpactofGraduateAttributesonEmployability:ALiteratureReview’(2015)21(4)TertiaryEducationandManagement367.


160

commonlycitedtechnicalgraduateskills included: technicalexpertise; financialskills;analytical skills; practical and professional skills; technological skills; knowledge ofbusinessfunctions;generalknowledge;andaccountingresearchskills.43Yap,RyanandYongrecognisethatacademicresearchfocushastendedtoshifttogenericskillsduetoapresumption that technical skills will already be adequate.44 The definition andidentificationofgenericattributesisdetailednext.

B GenericattributesGeneric skills canbe referred toasnon-technical skills,45 soft skills46 or employabilityskills,47andhavebeendescribedas thenon-accountingskillsnecessarytoadvanceorapply the technical skills within the accounting employment context.48 Examples ofgeneric skills include: teamwork, written and oral communication, self-management,criticalthinking,interpersonalskillsandproblem-solving.49Researchaboutgenericskillshas typically highlighted concerns with the generic skills obtained by accountinggraduates,whilstreaffirmingthe‘expectationgap’betweentheskilllevelsattainedandemployerexpectations.50Hancock et al recognised the sought-after generic skills for graduates as including‘written and verbal communication, self-management, teamwork, initiative andenterprise, problem-solving, technological competence and planning and organisingskills’.51Criticalthinking,problem-solvingandcommunications,52aswellasteamskills,interpersonal skills and verbal communication have also been identified as lackingamongst accounting graduates.53 Tempone et al used a frequency analysis to rate theimportance of non-technical skills amongst employers for the twenty-first century,

43Ibid371,Table6.44ChristineYap,SuzanneRyanandJackieYong,‘ChallengesFacingProfessionalAccountingEducationinaCommercialisedEducationSector’(2014)23AccountingEducation562.45Lowetal,aboven9.46RDeVilliers,‘TheIncorporationofSoftSkillsintoAccountingCurricula:PreparingAccountingGraduatesforTheirUnpredictableFutures’(2010)18(2)MeditariAccountancyResearch1.47DeniseJackson,RuthSibsonandLindaRiebe,‘DeliveringWork-ReadyBusinessGraduates–KeepingOurPromisesandEvaluatingOur Performance’ (2013) 4(1) Journal of Teaching andLearning forGraduateEmployability2.48Ibid.49DeniseJacksonandElaineChapman,‘Non-TechnicalCompetenciesinUndergraduateBusinessDegreePrograms:AustralianandUKPerspectives’(2012)37(5)Studies inHigherEducation541;PhilHancock,BryanHowieson,MarieKavanagh,JennyKent,IreneTemponeandNaomiSegal,‘AccountingfortheFuture:MoreThanNumbers’(FinalReport,AustralianLearningandTeachingCouncil,2009)vol1;JacklingandWatty,aboven8.50KavanaghandDrennan,aboven22;JacklingandDeLange,aboven23;LynDaff,PaulDeLangeandBeverley Jackling, ‘AComparisonofGenericSkillsandEmotional Intelligence inAccountingEducation’(2012) 27(3) American Accounting Association 627; Tempone et al, above n 4. Diane Bunney, ElaineSharplinandChristineHowitt,‘GenericSkillsforGraduateAccountants:TheBiggerPicture,aSocialandEconomic Imperative in the New Knowledge Economy’ (2015) 34(2) Higher Education Research &Development256.51Hancocketal,aboven49.52JacklingandWatty,aboven8.53JacklingandDeLange,aboven23.


161

identifyingcommunication,teamworkandinterpersonalskills,andself-managementasthemostcriticalforaccountinggraduates.54

C RecentgraduatetrendsThe recentGraduateOutlookReport identifiesoverone-quarterofsurveyedgraduateemployers(26.8percent)asexperiencingtroublesourcinggraduates,withaccountinglistedasthethirdhighestdisciplinaryareacausingconcern.55Inaddition,arecentreportonaccountantsdemonstratedthatwhilstasurplusofaccountinggraduatesexists,only76.2percentobtainedfull-timeemploymentin2016(downfrom88.6percentin2008),of which only 52.3 per cent were employed as accountants.56 According to industrycommentary, this could be due to the insufficiency of tertiary training and themisalignmentofaccountinggraduateswiththeneedsofmodernaccountingpractice.57Arecentstudy,inwhich97percentofsurveyparticipantsfallwithintheSMAcategory,notedthat21percentofall firmscurrentlyoutsource,withanadditional35percentlooking to outsource in the future, a factor that may further contribute to declininggraduateemployment.58Previousresearchthusfarhasnotfocusedonidentifyingtherequiredgraduateattributesfor Australian SMA firm employers. Instead, research has been conducted across allemployment environments including SMA firms and Big Four accounting firms,corporations, government and private employers, with little or no consideration ordistinctionoftheemploymentcontexts.59Thismeansthatthereisagapthatremainstobeinvestigated,sothatspecifictechnicalandgenericattributescanbeidentifiedasbeingpreferableforanaccountinggraduatewhoseekstocommenceemploymentwithinaSMAfirm.Thepurposeoftheresearchreportedinthisarticleistoaddresstheliteraturegap.

III RESEARCHMETHODOLOGY

Theliteraturedemonstratesthattheattributesobtainedbygraduatesarecriticaltotheirsuccessfulemployment,andemployersrequireamixofskillsthatareeithertechnicalorgeneric.Theresearchquestiontobeaddressedthereforeis:‘WhatarethetechnicalandgenericskillsrequiredbyanAustralianSMAfirm?’AmixedmethodsinvestigationofthedesiredgraduateattributeswithrespecttoSMAfirmemployerswasused,involvingthecompletionofanonlinesurvey,followedbysemi-structuredinterviewstoanswertheresearchquestion.Themixedmethodsdesignwasconsideredappropriateasitcaninvestigatethephenomenoninitsreal-lifecontext,60as

54Temponeetal,aboven4.55GraduateCareersAustralia,aboven7,6.56DepartmentofEmployment,AustralianGovernment,aboven13.57Ibid6.58Chaplin,aboven5.59 Kavanagh andDrennan, aboven 22;Hancocket al, above n 49; JacklingandDeLange, aboven 23;Temponeetal,aboven4.60MargaretMcKerchar,DesignandConductofResearchinTax,LawandAccounting(ThomasReuters,2010)103.


162

well as provide rich and detailed information through a variety of data collectionmethods.61

A SampleselectionThesampleincludesSMAfirmslistedwithinonlinemembershipdirectoriesofthethreeAustralianprofessional accountingbodies:CAANZ;CPAAustralia; and the InstituteofPublicAccountants(IPA).ThesamplingframeincludesSMAfirmsemployingbetween1and99full-time(orequivalent)employees,aligningwiththeGCAdefinitionofbothsmallandmediumaccountingfirmemployers,havingarangebetween2and99employees.Conveniencesamplingwasusedtoselectfirmslocatedwithin100kmoftheGoldCoast(Australia)region,62whichwasconsideredtobesufficienttoprovideabroadviewpointofrequiredgraduateskills,andincludedemployerswithintheGoldCoastandBrisbaneregionsofQueensland.Selectionwas furtherlimitedbytherequirementthat theSMAfirmhadpreviouslyhiredacommercegraduatewithinthepast10years.Prospectiveparticipantswerecontactedviaemail.TheunitofanalysistobesampledwasidentifiedasaseniorstaffmemberwithintheSMAfirmwho isactively involvedwithgraduaterecruitmentdecision-making.63Thirty-foursuitableparticipantswere invitedtoattendaninterviewwithinthetimeframeofthestudy,with12participantsultimatelyparticipating in theproject.Whilst thenumberofparticipants issmall, itequatestoaresponserateof35.2percent,andprovidedarichanddetailedinterviewinformationtobesupportedbysurveyfindings.64Semi-structuredinterviewswereusedandincludedopen-endedquestionstoaddresstheoverarching research question. An interview guide was used at each interview forconsistency, and including scripted interview questions along with an introduction,explanatorynotes,andpre-interviewchecklist.Exampleswerealsolistedtobeusedtoensure the participant understood the questions in context, with care taken by theinterviewernottoleadtheparticipantwiththeirresponses.Thedatageneratedbythesemi-structured interview questions was eclectically coded amongst a number ofdevelopingthemestoenablereflectionandanalysis,65andusedtoidentifykeythemesandpatternstodrawconclusionsfromthem.66Datawasalsocollectedfromtheinterviewparticipantsviaanonlinesurvey, includingdemographic information, followedbythedesirabilityof20commonlyidentifiedcommercegraduateskills.Toprovidesupportforthequalitativeresponses,surveyparticipantswereaskedtouseLikert-typeresponsestoprovide information in relation to the desirable attributes that make an accountinggraduatework-readyinaSMAfirm.

61ShanLPanandBarneyTan,‘DemystifyingCaseResearch:AStructured–Pragmatic–Situational(SPS)ApproachtoConductingCaseStudies’(2011)21InformationandOrganisation161.62RosalindEdwardsandJanetHolland,WhatIsQualitativeInterviewing?(A&CBlack,2013).63MelvinEmberandCarolREmber, ‘TestingTheoryandWhythe“UnitsofAnalysis”ProblemIsNotaProblem’(2000)39(4)Ethnology349.64Unfortunately,duetotherandomsamplingtechniqueoveranextendedperiodoftime,itisnotpossibletotestforanon-responsebias.Accordingly,theresultsneedtobeconsideredwiththislimitationinmind.65 JaneTowers-Clarke, ‘UndergraduateAccountingStudents:Prepared for theWorkplace?’ (2015)8(1)JournalofInternationalEducationinBusiness37.66MarkNKSaunders,PhilipLewisandAdrianThornhill,ResearchMethodsforBusinessStudents(Pearson,7thed,2015).


163

Thesurveydataisusedforcomparativeanalysisbetweenthetwosourcestofacilitateadeeperunderstanding,andcanbeusedtofurthersupporttheinterviewfindingsaspartofthemixedmethodsresearch.

B DescriptivestatisticsTable2presentsthedemographicdetailsofthe12participants,includingthelocationoftheirfirm,thesizeofthefirmbyreferencetofull-timeemployees,thepositiontheyholdwithinthefirm,andthenumberofgraduatesemployedwithinthepast10years.ThedatainTable2indicatesthatallparticipantshaveanofficewithinthegreaterGoldCoastorBrisbaneregions,withfirmsclassifiedaseithersmall(n=3),verysmall(n=3),ormedium(n=6).Table2:Demographicinformation

Participant Firm location Firm size Job title Number of graduates (past 10 years)

1 Southern Gold Coast/ Northern NSW Mid/ Central Gold Coast and Hinterland

Very small (<5) Owner/Sole practitioner

1–2 graduates

2 Mid/ Central Gold Coast and Hinterland Northern Gold Coast/ Logan

Small to medium (21–100)

Other: HR Business partner

10+ graduates

3 Brisbane City and Surrounds


Chief Operations Officer (CEO)

10+ graduates

4 Brisbane City and Surrounds Small to medium (21–100)

Partner 6–10 graduates


Accountant 6–10 graduates


Senior management 10+ graduates

7 Mid/ Central Gold Coast and Hinterland


Partner 6–10 graduates


Small (6–20) Owner/Sole practitioner

6–10 graduates


Small (6–20) Owner/Sole practitioner

3–5 graduates


Small (6–20) Partner 10+ graduates


164

11 Brisbane City and Surrounds Very small (<5) Owner/Sole practitioner

1–2 graduates


Very small (<5) Owner/Sole practitioner

10+ graduates

Table3illustratestheservicesprovidedbyeachparticipatingfirm.Participantsselectedallapplicableservicesfromthe10categorieslisted,andprovideddetailsofanyadditionalservicesofferedbyselecting‘Other’.Thisdemonstratesmostofthefirmsinvolvedwithfinancial statements, tax compliance, business set-up and book-keeping services. Anumber of firms were more specialised, such as firm #3 that focused on forensicaccountingandinsolvency.ThishighlightsthatnotallSMAfirmsarehomogenous,withsome SMA firms being boutique firms with key specialisations rather than a broadpractice base. It can be expected that those specialised firms could have differentgraduateneedscomparedwiththosefirmswithabroaderpractice.Consequently,thisneedstobeconsideredwhenanalysingtheresults.Table3:Servicesprovidedbytheaccountingfirm

ServicesprovidedParticipantnumber

1 2 3 4 5 6 7 8 9 10 11 12

Financial statement and reporting

û û - û û û û û û û û û

Tax compliance and GST û û - û û û û û û û û û

Business setup and structuring û û - û û û û û û û û û

Book-keeping û û - û û û - û û û û û

Cash flow and budgeting - û - û û û û û û - û -

Registered Office services û û - û û û û û û û û -

Due diligence reports - û - - - û û - - - û -

Forensic accounting - - û - - - û - - - - -

Financial planning - û - - û û - û û - û -

Auditing û û - - - û û - û - - -

Other – SMSF - û - û - - û - - - - -

Other – Finance and legal - - - - - - - - - - û -

Other – Management and KPI - - - - û - - - - - - -

Other – Insolvency and restructure

- - û - - - - - - - - -

ûIndicatestheserviceisprovidedbytherespondent


165

AdiscussionofthedetailedsurveyandinterviewresultsastheyrelatetothetechnicalandgenericskillsrequiredbyanAustralianSMAfirmisnext.

IV RESULTS

A Desiredtechnicalgraduateattributes

1 Interview:TechnicalskillsSMAfirmparticipantswereinterviewedtodiscussthetechnicalattributestheydesirefora graduate accountant commencing with their firm. Whilst many themes emerged,participantstypicallyindicatedfinancialstatements,accountingsoftware,andtaxationskills(eachofwhichisdiscussedbelow)asimportantforgraduates.

(a) FinancialstatementsOver91percent(n=11)ofparticipantsdiscussedtheability toprepareand interpretfinancial statements, making financial statements as the most prominent technicalattribute identified, in front of taxation (n=10, 83 per cent). Participants commonlyreferredtothemainservicestheirfirmprovidesinreferringtowhattechnicalskillsarerequired,andincludeddiscussionssurroundingthepreparationoffinancialstatements,which also referred to the understanding of ‘basic accounting’ or ‘debits and credits’necessarytoachievethis:

The core knowledge in a lot of firms in business services is doingpeople’s financialstatementsandtaxreturns(P4).

Definitelyadeepunderstandingofaccountingprinciples,sothedebitsandcredits,thenatureofthetransactions,andtheunderlyingtransactionsthattakeplaceinaccountingsystems(P5).

Theability to interpret the financial informationcontained inthe financialstatementswas noted as significant, including the capacity to understand and break down thefinancials of a company, and to understand how they are comprised in terms ofaccountingtreatment, includingdebitsandcredits.Participantscommonlyreferredtothemainservicestheirfirmprovidesinreferringtowhattechnicalskillsarerequired:

Weexpectifyouarecallingyourselfanaccountantthenyoushouldatleastunderstandhow to work the financial statements of a business and also reverse engineer thatprocess(P3).

Interpretingfinancialstatementsandhavingamorethoroughunderstandingofprofitandloss,balancesheet,generaljournalentries(P2).

(b) AccountingpackagesoftwareGiven the desirability of financial statement preparation skills, familiarity with theaccountingsoftwareusedbymanyclients torecordtheir financial information isalsorequired.Accountingsoftwareisoftenusedtoobtaintheclient’sfinancialinformationfor use in preparing or interpreting financial statements and information due to the


166

popularityofbusinessaccountingsoftware,aswellastheproposedAustralianTaxationOffice(ATO)electronicsmallbusinessreporting(SBR)requirements:

Xero isverypopular softwarenow…MYOBdesktop software isdefinitely stillrampantintheSMEbusinessarena(P5).

However, it was stated that knowing one accounting software package will assist inunderstandingand learninganotherone,withparticipants identifying ‘smallbusinessaccountingsoftwarelikeXero,MYOB,orQuickbooks’(P6)ascommonlyused.Two-thirdsofparticipantsincludedknowledgeofaccountingsoftwarepackagesasarequiredskill(n=8), listing MYOB, Xero and Quickbooks as currently used accounting softwarepackages. The popularity of accounting software used by small business typicallyrequires one ‘to be able to get on there and print profit and loss reports, look into ageneral ledger and see what’s happened’ (P1) in using the information to preparefinancialstatements.

(c) TaxationandtaxationsoftwareOver83percentofparticipantsidentifiedbasictaxationknowledgeasrequiredwiththeemphasison‘peoplebeingabletoactuallydoataxreturn’(P8)or‘confidentlyfilloutataxreturn’(P2),alongwithfocusingontheskillsfor‘currentsoftwarethattheindustryuses,particularlyfortax’(P10),sothattheycan‘completeaverybasictaxreturn’(P11)orare‘abletocompleteataxreturnfromdayone’(P4).Itwasalsoacknowledgedthat‘technicalskillssuchasknowingthebasicsofthetaxsystem’(P12)aredesirable.Itwasnotedthat‘graduatesstartwithindividualtaxreturnsandconcepts’(P5)beforeadvancingtomorecomplexsituations,andthat‘beingabletousethesoftwarewouldbea plus’, so that graduates can ‘go into various tax programs and complete a basic taxreturn’ (P12). The tax softwarewas identified as another technical skill that is ‘veryimportant,whichwedon’tgetanyoneoutofuniversityhavingit,isthecurrentsoftwarethattheindustryuses,particularlyfortax’(P10),aswellasdesirable:‘tohavesomesortofworkingknowledgeofthatiscertainlyadvantageous’(P1).

(d) AdditionaltechnicalattributesMinorthemesthatwereraisedincludedthedesirabilityforgraduatestopossessskillsforpreparingspreadsheetsinExcel,alongwithdouble-entrybook-keeping.Thisoverlapswiththepreviousrequirementsrelatingtofinancialstatementsandaccountingsoftware(includingdebitsandcredits).Whilstagraduate isunlikely toberesponsible fordataentryandbook-keepingassuch,theymaystillberequiredto‘useprogramslikeMYOBand Quickbooks and be able to process transactions in those’ (P12). One participantexplainedthisas:

Ifabusinessdoesn’thavefinancialstatements,they(thegraduate)cangothroughthedouble-entrybook-keeping,sotheyneedtounderstandhowthatworkstobeabletobreakitdown(P3).

Itisarguedthatbook-keepingknowledgeisusefulforinterpretationpurposes,asitwillbeimportantforthegraduatetounderstandwhathappensinthebackgroundtobeabletointerprettheresultingdata:


167

Spreadsheetswererecognisedasausefultoolindataanalysisandcommonlyusedbyaccountingfirms,anditwasnotedthatitisimportantthatbusinesssoftwarelikeExcelisunderstood(P3).

One technical attribute identified as not critical for a work-ready graduate was theknowledgeofaccountingstandards,indicatingthatthiswillnotbepartofthegraduate’simmediateemploymentwithinatypicalSMAfirm,andmayonlybeneededforagraduateinamorespecialisedrole:

A highly advanced knowledge of the accounting standards is probably not all thatnecessaryinafirmwithaclientbasesuchasours,withthekindofreportsthatneedtobeproduced(P5).

Youdon’tneedtoknowthatmuchaboutfinancialaccountingstandards…aslongasyoudisclosethemforspecialpurposeaccounts…Whereyou’vegotanauditpractice,eventhoughthepartnerusuallyhandlesit,unlessyouhaveanauditsectionwewon’tneedtobereadingtheAASB’stofindoutifwearekeepingupwiththeregulationsforreporting(P4).

ItwasrecognisedthatformostSMEaccountingfirmspreparingfinancialstatements,‘oursoftwarealreadyproducesthereportsthatweprovidetoourclients’(P1),andthat:

Wearenotpreparingaccountsforauditoranything,allwedoarebasicnotedisclosureswhicharealreadyprogrammed into theaccountingsoftwareso thestandardsaren’treallynecessary...Ifyouweredoingauditingtheywouldbe,butanSMEwhereyouaredoing tax preparation, and financial statements that aremanagement accounts, youwouldn’tneedthestandards(P12).

This highlights how the specific nature of SMA firms means that the technical skillsrequiredcanbedifferenttoalargefirm.

2 Survey:TechnicalskillsParticipantsundertakingthesurveywereinformedthateachquestionreferstoaspecificgraduate attribute and requires the statement to be considered in the context of agraduate commencing within their SMA firm. A summary of responses pertaining totechnicalskillsisshowninTable4,andgenericskillsinTable5inthefollowingsection.Eachcolumnincludesthenumberofresponsesforeachselectionandskill,withthefinalcolumnincludingaweightedaveragescore(WA),whichiscalculatedbyallocatingthevaluestoeachparticipant’sresponseinrelationtoeachskill.67Duetothesmallsamplesize itcannotbedefinitivelyconcludedthataskillshowingahigherWAscorewillbepreferredoveronewithalowerscore.68

67ThevaluesshownareusedtodeterminetheWAscoreforeachskill:aWAscoreof7.0wouldindicateallrespondentsverystronglyagreewiththestatement,whilstascoreof1.0wouldshowallrespondentsverystronglydisagree(VeryStronglyDisagree(1);StronglyDisagree(2);Disagree(3);Neutral(4);Agree(5);StronglyAgree(6);VeryStronglyAgree(7)).68 L Douglas Ried, ‘Using Likert-type and Ipsative/Forced Choice Items in Sequence to Generate aPreference’(2014)10ResearchinSocialandAdministrativePharmacy598.


168

Table4:Survey:Technicalskills

Technical skill Very

Strongly Disagree

Strongly Disagree Disagree Neutral Agree Strongly

Agree

Very Strongly

Agree

WA score (1–7)

Financial statement preparation 0 0 0 2 1 3 6 6.08

Spreadsheets/book-keeping 0 0 0 1 2 3 6 6.08

Taxation 0 0 0 2 2 2 6 6.00

Accounting industry software 0 0 0 1 2 6 3 5.92

Accounting intern/work experience 0 0 0 3 5 2 2 5.25

Business law 0 0 1 2 6 2 1 5.00

Accounting research 1 0 0 3 4 2 2 4.92

Taxation planning 0 0 2 5 1 2 2 4.75

Accounting standards and IFRS 1 0 0 3 7 0 1 4.58

Audit 0 0 0 8 3 0 1 4.50

Weighted average all responses 5.31

Consistentwiththeinterviews,thetoptechnicalskillsrequiredbyawork-readygraduateofaSMAfirmwerefinancialstatementpreparation(6.08),spreadsheets/book-keeping(6.08),taxation(6.0),andaccountingindustrysoftware(5.92).Thissupportsthatacoreunderstandingoftaxprinciplesishighlydesirableforagraduatetobework-readywhencommencing with a SMA firm (although it should be noted there were two neutralresponses).Interestingly,themoreadvancedconceptof‘TaxPlanning’wasnotasdesiredforawork-readygraduate(4.75).Thiscouldreflectthatagraduateatthecommencementoftheircareerismorelikelytobeinvolvedin‘compliance’workratherthanstrategictax‘advisory’work.Itmaybethatastheircareeradvancesthenmoreadvancedtaxplanningknowledgecouldberequired.Thesecondgroupofskillsinvolvedaccountingintern/workexperience(5.25),businesslaw(5.0),accountingresearch(4.92),andtaxationplanning(4.75),andthethirdgroupof skills were accounting standards and International Financial Reporting Standards(IFRS)(4.58)andaudit(4.50).Thesurveydatasupports the interviewfindings,with financialstatementpreparationachievingtheequalhighestWAscoreof6.08,confirmingthatitisaskillmostparticipantsstronglyagree isrequired forgraduates.ThesignificanceofExcelandspreadsheets isalsonoted,alsoachievinganequalhighestWAscoreof6.08.


169

0

3

6

9

12

4

7

12

2

10

2

9

Surveyresultssupporttheinterviewfindings,withaWAof6.00fortaxation,whichisalsointhehighestscoringgroup,indicatingastrongagreementoverallthattaxationisarequiredskillforagraduate.Accounting software received a high scoringWA of 5.92. Taxation software was notseparatelynoted;however the interviewshowed thatparticipantspresumed this asacomponent of taxation skills due to the prominence of electronic preparation andreporting.Accounting standards and IFRS were indicated as one of the less critical technicalattributes,receivingaWAscoreof4.58.Alongwithaudit(WA=4.50),thiswasinthelowest scoring group. This supports the argument that SMA firms do not consideraccountingstandardsarequisitetechnicalskillforacommencinggraduate,notingalsothataccountingstandardapplicationwilltypicallybelinkedtoauditskill.Overall,itappearsthattax,financialstatementpreparationandsoftwareknowledgearethe top technical skills required for work-ready SMA graduates. The generic skillrequirementsofagraduatecommencingataSMAfirmareconsiderednext.

B Desiredgenericgraduateattributes

1 Interview:GenericskillsParticipantswerealsoaskedtoconsiderthegenericattributestheyfinddesirableforagraduateaccountant.Genericskillsincludecommunicationskills,leadership,teamworkand interpersonal skills. Figure 2 shows the seven most frequently noted genericattributes discussed by participants during the interview process. The responseshighlighted the different methods, and contexts for the overwhelmingly desirablecommunication skills, with some discussions notably overlapping with other genericskills.TheattributesshowninFigure2areconsideredbelow.Figure2:DesirablegenericattributesforanidealSMAfirmgraduateaccountant


170

(a) CommunicationCommunicationskillswerefoundtobeperceptivelybroad,includingverbalandwrittencommunicationaswellaslisteningskills.Thedesiredcommunicationskillsmayrelatetointeractionswith clients, aswell as colleagues and senior staffwithin the firm.Wheninterviewparticipantswereaskedwhatspecificgenericattributes,theydesireinanidealgraduate within their SMA firm, 100 per cent of participants (n=12) includedcommunicationskills.Written communication skillswere identified as important for the drafting emails orletterstoclients,withparticipantsclarifyingtheirconcernsregardingspelling,grammarand general coherency, noting that ‘if the spelling and grammar are wrong, it isembarrassing’ (P12). Employerswant a graduatewho can ‘draft coherent emails andadvice…becausesomepeoplejustdon’thavetheskills’(P4).Itisnotedthatgraduatesare typically only drafting communications upon commencing employment, with theemail usually forwarded to a ‘manager for checking’ (P12) so the more experiencedpersoncanmakesure‘theyhavegotthosebusinesscommunicationskillsandcanwritethingstoclientswell,andbeveryclearinwhattheyareaskingfor’(P7).Whetherclientsmeetwithgraduatesinaface-to-facesituationuponcommencementisapracticethatisparticulartoeachSMAfirm.Oneparticipantnotedthatclientmeetingsandoralcommunicationswithclientswouldn’tbeoccurringyetbecause‘atthatlevelyouwouldn’tneedface-to-faceclientcommunication’(P12).However,adifferentSMAfirmparticipantstatedthatthey‘expectthegraduatetobeabletotalktoclientsstraightaway,socommunicationskillsarereallyimportant’(P7).Itwasalsoemphasisedthattheroleof the accountant remains very service-focused, requiring graduates to not only beknowledgeable but to be able to communicate that knowledge, noting that‘communicationisbecomingfarmoreessential,therearen’tmanyrolesforpeoplewhoarejustsmart’(P4).Writtenandoralcommunicationskillsalsoincludeeffectivecommunication,whichmustbe ‘worthwhileanduseful,so thatpeopledon’thave to thenkeepaskingquestions…beingabletoaskaneffectivequestionoftheclient’(P5).Effectivecommunicationmayrequiresimplicity,wheregraduatesusejargoninsteadof‘simpleEnglish…explainthingsclearly and slowly so that the client understands’ (P9). Communicating criticalinformation is also essential, being mindful of time management for compliancedeadlines,including‘communicatingwherethereisashiftwithregardstodeadlinesorwithregardstotime,budgets,etc’(P5):

Communicationisareallyimportantthinginourgamebecauseultimatelyweareinthepeoplegame,mostpeoplecandothestuffwedo,mostfirmscandothingsandobviouslyatdifferentstandards,butthegreatskilliscommunicatingwhatyouaredoingtothepopulationbecausetheyhavezeroideaandunlessyoudothat,youcan’tgoveryfar(P7).


171

(b) InterpersonalskillsInterpersonal skills can includeeffective listening,knowledge transfer,understandinggroupdynamicsandcollaboratingwithcolleagues.69Muchofthediscussionsurroundinginterpersonalskillsprovidesoverlapwiththecommunicationfindings,howeveritwasconsideredseparatelytohighlightthesignificanceofcommunicatingwithcolleaguesintheworkplace:

Theyneedtobeabletocommunicatewithotherpeopleandaskquestions(P12).

The administration staff, you need to know how to get along with them very wellbecausetheyarecriticaltowhatyoudo(P7).

Interpersonal skillswere consideredcritical in relation toa specialist SMA insolvencypractice,‘becauseofthevolatilityofthistypeofwork,reallyhighcommunicationskillsincluding empathy and the ability to listen’ (P3). Another participant highlighted thepersonalnatureof long-standingclientrelationshipswithinasmaller firm, identifyingthe desire to uphold their customer interaction ideals, ‘we need someone that haspatience and respect and passion, because accountancy is something that is verypersonal’(P9).

(c) TeamworkTeamworkhasbeendescribedascontributingexpertisetoateamofcolleaguessothatasolutionmaybecollectivelyascertainedforacommonproblemwithinatypicalcontext.70Communication with colleagues was previously discussed within the realm ofinterpersonal skills, yet contributes to the generic skill of teamwork as it involves‘workinginateamandhavingtherightattitudetogetalongwitheveryoneelse’(P12).Itisarguedthat‘ifyou’vegotcommunicationskills,you’vegenerallyalsogottheabilitytodevelopteamworkskillsbecauseyoucancommunicate’(P8).Nineparticipants(75percent)acknowledgedteamworkasadesirableskill.Themajorthemearisingregardingteamworkisworkingasateamtoachieveclientgoals,aswellasthegoalsoftheSMAfirm.Aspartofateam,agraduatemay‘havetoanswerthephone,orfillthephotocopypaper…therewillbemundane,routine,boringtasksthattheywillhavetodoaspartoflearningtheropes’(P2),buteverybodyneedstoworktogether.Inachievingthebestpossibleoutcome,itwasnoted‘we’vegotthirtypeopleherewiththirtydifferentperspectivesandknowledgelevels’(P7)toassistwithefficiency.Similarly:

Intermsofbeingefficient,intermsofsharingknowledge,intermsoffindingbetterwaystodothings,itisimportantthatpeoplearewillingtobeopenandsharewherethey’vehadtroublesorbeabletosharewherethey’vehadwinssothateveryonecanlearnorwinfromit(P5).

Teamworkisextremelyimportant,wedon’thavepeoplewhoareallaboutthemselves,wejusthaveteamworkandeveryoneworkstogether…ourlittlefirmislikeafamily,

69Daff,DeLangeandJackling,aboven50.70BayerleinandTimpson,aboven1.


172

we’renot familybutwework together… commongoal todowell for the client andeverybodycontributes(P9).

(d) AttitudeandwillingnesstolearnA good attitude, a willingness to learn, and career enthusiasm andmotivation wereconsideredtogether for thisstudy.Adesire forgraduatestoexhibit therightattitude,motivationorenthusiasmtowardtheircareer,orwillingnesstolearnwasdiscussedbysevenparticipants.Commentsincludedadesireforrespectfulandprofessionalgraduatesintheearlystageoftheircareer,by‘havingthatattitudeandkeepinginperspectiveastowheretheysitasfarastheircareergoesandtheirdevelopment’(P2);‘theyneedtoberespectfulofothers,andrealise that theyneedto learnandneedtobepatientbeforemovingforward’(P12).Inconjunction,thewillingnesstolearncanberevealedwiththecorrectattitude:

Youneedsomeonethatiswillingtodotheworkandstartatalowerlevelandnothaveattitudeaboutit.Theyareonthelowerincomeandtheyaregoingtodothelowertypeofwork,andtheyneedtosuckitup(P12).

Itisimportantthatgraduatesrespecttheirposition,butthisdoesnotmeantheyshouldbestagnantinprogressing.Amotivatedgraduatewhoisenthusiasticaboutdevelopingtheircareerisalsodesirable,‘ifyou’vegottheself-drivetolearninashortperiodoftimethenyou’llgoplaces’(P7).Oneparticipantexplains, ‘welookforsomeonethathastheabilityandenthusiasmtobringtheircareerforward’(P8)sothatthegraduatemaybedevelopedintoafuturesenioremployee.Additionally,isitrecognisedthat‘aptitude,likeinitiative,ingeneralishugeandasanemployeryouappreciateitwhentheyhaveit’(P1).

(e) EmotionalintelligenceEmotional intelligence (EI)wasdiscussedasbeingdesirable foraSMA firmgraduate,withoneparticipantstating,‘emotionalintelligenceisjustascriticalifnotslightlymoreimportant than technical ability’ (P2). Itwas claimed that ‘it is very difficult to teachemotionalintelligence’(P8),arguablybecauseitissobroadlydefined.Daffetal,describesEI as comprising four broad competencies: self-awareness, self-management, socialawareness, and relationship management, each of which consists of further skillsincluding(butnotlimitedto)self-confidence,adaptability,initiative,empathy,leadershipand teamwork.71 However, only two interview participants (n=2) recognised EI asdesirable,acomparativelylowresponsegiventheprominenceofEIintheliterature.72ThelowdiscussionrateofEIbyparticipantsduringinterviewsmaybeattributedtoitsbroaddefinition,whichencompassesotherskillsthathavealreadyreceivedattention.Self-management,teamworkandadaptabilityhavebeendiscussedinprevioussections,along with interpersonal skills, which are recognised as another broad skill withoverlapping features.73 Despite limited discussions under these broad headings, thisdemonstratessupportforgraduatestodisplayEIas:

71Daff,DeLangeandJackling,aboven50,632,Figure2.72 Ibid;DeVilliers, aboven 46; Samantha Sin, AnnaReid andAlan Jones, ‘AnExploration of Students’ConceptionsofAccountingWork’(2012)21(4)AccountingEducation323.73SinandMcGuigan,aboven12.


173

They tendtodevelopmorequicklybecause theyareabletogetdeeperrelationshipswith theirworkmatesand their clients earlier, and that thenallows them to exploreopportunitiesanddevelopandmoveupthecareerchain(P8).

(f) LeadershipLeadershipwasalsoidentified;however,itwasdiscussedintermsofnotbeingrequiredearlywithinagraduate’scareer:

Leadershipissomethingthatisdevelopedthroughwatchingotherpeopleandthroughanunderstandingofwhereyouwanttogoinyourcareer,whichgenerallyis justtooearlyforgraduatestohaveagoodunderstandingof(P8).

2 Survey:GenericskillsPart3ofthesurveyexplained‘genericattributes’asthosethatcanapplyacrossabroadrange of contexts andmay be obtained by completing any degree. ParticipantswereaskedtoselecttheextenttowhichtheyagreeordisagreethateachskillisneededbyagraduatecommencingwithintheirSMAfirm.TheresultsaresetoutinTable5–thefinalcolumnincludesaWAscore,calculatedasaboveandusingasingleresponsefromall12participants.Table5:Survey:Genericskills

Generic skill Very

Strongly Disagree

Strongly Disagree Disagree Neutral Agree Strongly

Agree

Very Strongly

Agree

WA score (1–7)

Oral and written communication 0 0 0 0 3 4 5 6.17

Teamwork 0 0 0 0 3 5 4 6.08

Ethics and professionalism 0 0 0 0 3 6 3 6.00

Self-management 0 0 0 0 4 5 3 5.92

Interpersonal skills 0 0 0 1 2 7 2 5.83

Information technology 0 0 0 0 5 6 1 5.67

Motivation and enthusiasm 0 0 0 1 4 5 2 5.67

Flexibility and adaptability 0 0 0 1 5 4 2 5.58

Creative problem-solving 0 0 0 2 3 6 1 5.50

Leadership 0 1 2 5 4 0 0 4.00

Weighted average all responses 5.64

The analysis indicates thatmost participants agreed the listed generic attributes arerequiredforagraduate,withleadershipskills(4.0)scoringthelowestWAscore.Oralandwrittencommunication(6.17),teamwork(6.08),andethicsandprofessionalism(6.00)receivedthehighestgroupofWAscores.Thesecondgroupincludedself-management


174

(5.92), interpersonal skills (5.83), information technology and motivation andenthusiasm(5.67),flexibilityandadaptability(5.58)andcreativeproblem-solving(5.50).Survey data demonstrates support for oral and written communication as a desiredgenericattribute,withthehighestWAscoreof6.17fromapossible7.00.Thediscussionsdemonstratethatcommunicationremainsimportantformanyaspectsofthegraduate’srole, however, oral communication is not restricted to just clients,with the skill alsoimportantfor‘communicatingwithotherstaff’(P1),whichmaybebetterdescribedasaninterpersonalskill.

The survey data supports the notion that ‘teamwork is important’ (P10), with allresponsesinagreement,leadingtoaveryhighWAscoreof6.08.Thisshowsthatalthough75percentofinterviewparticipantsidentifiedteamworkasadesirablegenericattribute,100 per cent of survey responses support it as a requisite quality in a work-readygraduate.

Interpersonal skills also received a high level of support, scoring aWA of 5.83. ThisprovidessupportforconcludingthatinterpersonalskillsarealsoconsideredoneofthemostdesirablegenericattributesforgraduateswithinaSMAfirm.Self-management,ethicsandprofessionalism,motivationandenthusiasm,andflexibilityandadaptability,werelistedseparatelywithinthesurveytoenableparticipantstogiveindividual responses foreach.EthicsandprofessionalismreceivedaWAscoreof6.0,followedcloselybyself-managementwith5.92.Motivationandenthusiasmalsoreceivedareasonablyhighscorewith5.67,whilstflexibilityandadaptabilityhadaWAof5.58.Theweightedaveragescoresrangingfrom5.58to6.0indicatethatthesearegenerallyperceivedasskillsrequiredbyawork-readygraduateinaSMAfirm.LeadershipreceivedthelowestWAscoreacrossall20technicalandgenericskillslistedin the survey with 4.0. This corresponds with the statement noting that ‘leadershipdoesn’tmatterbecausethatcanbedevelopedalongtheway’(P6),whereitisrecognisedasagoodskilltohavebutitisnotrequiredintheearlycareerstages.

C Technicalorgeneric:WhichismoreimportanttoSMAfirms?

1 Interview:ComparisonUponrecognisingthedesirable technicalandgenericskills foragraduatewithintheirSMAfirm,participantswereaskedtocomparethetwosetsofskillstoidentifyifoneisgenerallyconsideredmoreimportant.Two-thirds(66.6percent)identifiedbothgroupsofskillsasessential,notingequalimportance:

Theyarebothasimportantaseachother,Ithinkyouneedthewholecombinationofhavingthetechnicalskillsbutalsobeingabletocommunicateandgetalongwithotherpeopleisasimportant(P12).

They are equally important, you can be the most lovely, hard-working, goodcommunicatorbutifyoudon’tknowaccountingandtaxthenyouarenotusefultous(P7).

Itwasarguedthatwhilstbothareimportant,emphasisingonegroupovertheotherwilldependupontheemploymentrole:‘itisreally50-50,Imeanthebestresultisabroadrange of skills across both of those areas but it depends on the role’ (P5). A lack of


175

graduateemploymentopportunitiesmayalsohighlightthesymbioticnatureofthetwotypesofskillsandwhyitcanbeartificialtodiscernbetweenthem:

Ithinkitisveryimportantforagraduatetodemonstrateboth,genericskillsaremoreimportantforagraduatebutthetechnicalskillswillgivethemanadvantageingettingemployed(P6).

Ifsomebodyhascompletedadegree,Iwouldexpectthattheyhavecompleteditverywell…Ican’tteachtraitsbutIcanteachknowledge,soformethepersonalattributesaremuchmoreimportantthantheacademicones(P9).

Yapetalidentifiedashiftingfocusongenericskillsduetoapresumptionthattechnicalskillswillalreadybeadequate.74Whilstbotharenecessary,participantsidentifiedthatgenericskillswouldtakepriorityifskillswerelackingduetothedifficultyofteachinggenericskillscomparedtoteachingtechnicalskills:

IfIhadtochooseoneitwouldbetheinterpersonalskillsbecauseIcanalwaysteachthemhowtoreadabalancesheet(P3).

IcanteachthemsoftwarebutIcannotteachthemhowtoworkinateamandhowtocommunicate(P10).

ThisraisesaninterestingquestionofhowgenericskillscanbedevelopedifitisperceivedbysomeSMAfirmsthatitiseasiertoteachtechnicalskillscomparedtogenericskills.Thiscouldrepresentaskillorconfidence(ortime)constraintwiththeSMAparticipantsthemselves.Thiscouldsupportthenotionthat,forSMAfirms(comparedtolargerfirms),generic skills may be more important than technical skills, due to the capacity andresourceconstraintsonbeingabletodevelopgenericskills.

2 Survey:ComparisonThesurveydatapresentedinTable6providesanoverallcomparisonbetweengenericskills and technical skills required by SMA firms. Themedian values of theweightedaveragesarecalculatedforeachattributeacrossall12surveyresponses,resultinginatechnical median WA score of 5.13, and a generic median WA score of 5.75. Thisobservationmaybeusedtodemonstrateahigherlevelofagreementacrosstheentireclassofgenericskillswhencomparedtotheclassoftechnicalskills.Table6:Comparisonoftechnicalvsgenericskills

Technical skills WA Generic skills WA

Financial statement preparation 6.08 Oral and written communication 6.17

Spreadsheets/book-keeping 6.08 Teamwork 6.08

Taxation 6.00 Ethics and professionalism 6.00

Accounting industry software 5.92 Self-management 5.92

74Yap,RyanandYong,aboven44.


176

Accounting internship/work experience 5.25 Interpersonal skills 5.83

Median WA technical skills 5.13 Median WA generic skills 5.75

Business law 5.00 Information technology 5.67

Accounting research 4.92 Motivation and enthusiasm 5.67

Taxation planning 4.75 Flexibility and adaptability 5.58

Accounting standards and IFRS 4.58 Creative problem-solving 5.50

Audit 4.50 Leadership 4.00

Mean of individual weighted averages 5.31 Mean of individual weighted averages 5.64

The mean WA for technical skills was calculated as 5.31, which demonstrates areasonable levelofagreementwhenconsideredagainst thescoringrangeof1.0(verystronglydisagree)upto7.0(verystronglyagree).Incomparison,themeanWAscoreofthegenericskillswashigherat5.64,whichmay indicatethat there isahigheroveralllevelofagreementforSMAfirmsfortheneedforgenericskills.However,itisarguedthatemployersmayalreadyassumethepresenceoftechnicalskillsasaresultofcompletingthe accounting undergraduate degree, and subsequently placemore emphasis on thegenericskills,whichmaybereflectedhereandcouldbethedifferenceinthegraduatesucceedingintheworkplace.

D Technicalorgeneric:Doesfirmsizereallymatter?Afterdiscussingwhethertechnicalorgenericskillsaremoreimportantforagraduatecommencing within a SMA firm, an additional question was posed to establish thesignificanceoftheworkingenvironmentcontext.ParticipantswereaskediftheybelievealargefirmwouldprovideadifferentpreferencefordesirableskillscomparedtotheirSMAfirm.Responsesvaried;however,commonthemesdevelopedwithsomearguingadifferentoutcomewouldarisewhilstotherssuggestednodifference.

1 GeneralistorspecialistemploymentroleSeveralparticipantsdistinguishedthetechnicalskillrequirementsforSMAfirms,notingthebroaderrangeofknowledgeandtechnicalskillsthatareneededforabroaderrangeof work typically conducted by the SMA firm. Alternatively, it was stated by theparticipantsthatalargerfirmmayinvolveanarrowerrangeoftechnicalskillsbutamorein-depthknowledgemayberequired:‘thebiggerthefirm,themoreemphasisisputontheir academic record, and technical skills and technical expertise’ (P1); such that ahigherleveloftechnicalskillsandknowledgemaybepreferredwhencomparedtotheSMAfirmconductingawidearrayofnon-specialistservices:

Afirmoursizeweareexposedtoalotbroaderrangeofworkandit’simportantthatweareabletowearabunchofdifferenthats...Wearefillingmoregeneralpositionssowewouldneedmoregenerallyskilledcandidates(P5).


177

Itwasalsorecognisedthatcertaintechnicalattributeswillnotberequiredfornon-SMAfirmgraduates,highlighting thedifferentopportunitiespresentedby largeaccountingfirmsthatwill‘looktofillspecifictechnicalroles’(P5):

If you go and work at KPMG then you will probably need to know the accountingstandards…you’lldoalotofstudyaroundconsolidationsandtaxeffectaccounting(P7).

Largefirmsarelookingforsomeonetoworkinaspecificareaandtheywouldbemoreinterestedinthetechnicalskills(P11).

Whenyouarebiggeryoucanputsomeoneinaspecialistareaandtheycandealwithrepetitivetasks,butwhenyou’resmaller,youneedmoreofageneralistthat’sgoodateverything(P3).

Overall, this would tend to suggest that graduates of a SMA firm need a broaderknowledgebasecomparedtothosewhocommencewithalargerfirm.

2 OfficeenvironmentIt is suggested that a large firmwill not require graduates to interact as closelywithcolleagues, whereas in the office environment of a ‘smaller firm you’ve got a hugeemphasisontheculturalaspect.Willtheyfitin?Aretheytherightpersonforthejob?’(P1). Further concernsmay develop where a SMA firm provides graduates with theopportunityforinteractionwithclientssoonerthaninalargefirmthatincludesmoreseniorstaff.Thequery,‘amIgoingtobeabletoletthemtalktopeople?’(P1)willarisewhere the smaller number of staff requires the graduate to commence seeing clientsearlier,recognising:

Amajorthingispeopleskillssotheyjustkindoffit…withthesmallerfirm,theyneedtobeabitmoreinteractivewithclients(P10).

Whenyouareinalargerfirmyouarelesslikelytospeaktotheclientbasewithinthefirstthreeyears,whereaswithus,weneedyoutobespeakingtopeople.Webasicallygiveyoualistofclientstolookafterandexpectyoutodoeverythingforthoseclientssoyoureallyneedtocommunicatefromdayone(P7).

GiventhatclientinteractioncouldoccuratanearlierdateforagraduateataSMAfirmthiswouldtendtosupportthenotionthatcommunicationskillscouldbemorecritical(oratleastthecontextdifferent)forthemcomparedtoagraduatecommencingwithalargerfirm.

3 NodistinctionSeveralparticipantsstatedthataconsistentdesireforinterpersonalskillsisexpected,‘inalargefirmyoustillhavesmallgroupsofpeopleinteams,buttherearejustmoreteams’(P12).Itwasalsosuggestedthatthegraduaterequirementswillbecomparable,as‘theyareprettymuchgoingtowanta50-50combinationoftechnicalandgenericskillsandforthembeingjob-readywouldbethesameasthesmallerfirms’(P2).Inrelationtogenericskillrequirements,itwassuggestedthereisnodifferenceforthese:

Idon’tbelievesizewillreallyaffecttheexpectation…maybelargefirmswillrequirehigherperformanceormoreworkexperienceontheirresumebuttheywillstillcomebacktothebasicsandbeexpectingthosegenericskills(P6).


178

Overall it does appear there is some difference in the skills required by graduates ifcommencingwithaSMAfirmcomparedtoalargeone.Thisparticularlyappearswiththenotionsofneedingabroaderknowledgebase(includingagreaterneedtounderstandtaxandtobeabletousetaxsoftware),withlessimportanceonaccountingstandards.Also,agraduateataSMAfirmismorelikelytoneedtobeabletoeffectivelycommunicateatanearlierstagewithclientsratherthanjustcolleagues.Additionally,SMAfirmsmaygiveagreaterpreferencetogenericskillscomparedtotechnicalskills,iffornootherreasonthan having less capacity and confidence in being able to improve graduates’ genericskills.Ofcourse,giventhesamplesize,theseinitialobservationscouldbethebasisofalargersurvey.

E Shouldgraduatesbework-ready?Inaddressingthepossibleinsufficiencyofskillsingraduates,interviewparticipantswereasked whether graduates should be work-ready or whether on-the-job training issufficient.Whilstmostparticipantsrecognisedthatthereisanecessaryelementofon-the-jobtraining,theyagreedthatitusuallypertainstothesystemsandprocessesofthefirm.Three-quarters(75percent)ofparticipantsnotedtheuniversityasresponsibleforpreparingagraduateaswork-ready,althoughtheemployerandthegraduatearealsoconsideredresponsibletoavaryingextent.Thetrainingprovidedtograduatesuponcommencementwasalsoinvestigated,withallparticipantsnotingtheimmediateprovisionofataxationtrainingprogramme(internalorexternal)withtheexceptionofoneparticipantwhosespecialistinsolvencyfirmdoesnotprovidetaxationservices.ParticipantfirmswithoutaninternaltrainingprogrammetypicallyuseservicesprovidedbytheNationalTaxationandAccountantsAssociation,theTaxInstitute,oranewemployeeprogrammerunbytheCAANZorCPAAustraliatogivetheirgraduatesthetaxationskillsnecessarytoperformintheirroles.Thistrainingcostisincurredbytheemployer,anddemonstratesarequirementformoresuitabletaxationskills forgraduates seekingemploymentwithinSMA firms.Thispracticeofprovidingadditional ‘tax’ training to SMA graduates as they commence would provide furthersupportofhowimportanttechnicaltaxknowledgeisforgraduatescommencingwithaSMA firm. Additionally, it raises concerns about the current adequacy of the tertiaryeducationaccountinggraduatesarereceivingintheirundergraduateaccountingdegrees.Given the findingsand the current challenges facing theaccounting industry (suchasoutsourcingandtechnology),recommendationsareprovidedinthenextsection.

V RECOMMENDATIONS

AsobservedbyJuchauandNeale:

Designers,mindfuloftheeconomicsignificanceoftaxandthegrowthofworkfortaxpractitioners, have incentives to keep their accounting degrees relevant to a majordomainofaccountingworkandthereforeattractivetocareer-orientedunder-graduates.


179

This, in part, givesdesigners an economic and competitive justification for ensuringtaxationisavailableintheirdegreecourses.75

Weargue thatuniversitiesshouldbeparticularlyproactive if they consider that theiraccountinggraduatesaremorelikelytogainemploymentwithSMAfirms.AsPanandPereraargueaccountingdegreescan’tjustsimplyalignwithaccreditationguidelines,76universities must be proactive to ensure the appropriate skill and knowledgedevelopmentofgraduatesgiventheirlikelyemploymentoutcomes.Withthisinmindanumberofrecommendationsareformulatedgiventheresults.Participantsidentifiedalackoftechnicalskillsincurrentgraduates,whichareusuallyimplementedafteremploymentiscommenced,consumingtheresourcesoftheSMAfirmemployer. Inorder to address this, theuniversity curricula could be investigated andadaptedtoprovidegraduateswiththeopportunity todeveloptheseskillswheretheyseek to pursue employment with a SMA firm. Particularly, accounting software andtaxation software skills are recognised as desirable yet lacking from graduates, eventhough they are identified as necessary for the typical introductory graduate workperformed.Itisarguedthatthedesirabilityforsoftwareknowledgeisimpliedaspartoftaxation skills due to the prominence of electronic preparation and lodgements foraccountingfirms,SMEorothertaxpayers.Interviewparticipantsnotedthatimmediatetaxationtrainingwastypicallynecessaryforgraduates,withsomequestioningwhythiscouldn’t be implemented at the undergraduate stage. With the high proportion ofdomesticundergraduatesbeingemployedbySMAfirms,considerationshouldbegiventoofferingnon-compulsorycoursesthataddresstheinadequacyoftaxationskillsintheSMAfirmcontext.ThismayultimatelyincreaseemployabilityanddecreasetheincentiveforSMAfirmstofindalternativeandmorecost-effectivesolutions,suchasoutsourcing.

Accountingaccreditationmayneedtobealteredtoencourageuniversitiestochangethecourseofferingsfortaxation,asaccreditationisalargedriverforcurriculumchange.77CAANZ currently requires the completion of a compulsory taxation course foraccreditation.Untilrecently,CPAAustraliaonlyrequiredthatataxationcourseismadeavailabletostudents,butfrommid-2018CPAAustralianowrequiresataxcoursetobecompletedaspartofanundergraduateaccountingdegree.Itcanbearguedthattwotaxcoursesshouldberequired,mirroringanaccreditationrequirementfromsome30yearsago.78Alternatively,itissuggestedthatcontentwithinthetaxationcoursebeadjustedtoreflecttheinclusionofcurrenttaxationsoftwareandthepossibleintroductionofcasestudyassessmentrequirementsinvolvingauthenticassessment.79Communicationandinterpersonalskillswerealsoidentifiedasrequired,yetthelevelsofthese skills are typically identified as not sufficient. It appears that the practicalapplication has not been entrenched, with graduates lacking the ability to draft

75JuchauandNeale,aboven32,33.76PanandPerera,aboven30.77BrettFreudenbergandDaleBoccabella,‘ChangingUseofBusinessStructures:HaveUniversityBusinessLawTeachersFailedtoReflectThisinTheirTeaching?’(2014)9(1)JournaloftheAustralasianTaxTeachersAssociation80.78Freudenberg,aboven37.79LizvanAckerandJanisBailey,‘EmbeddingGraduateSkillsinCapstoneCourses’(2011)7(4)AsianSocialScience69.


180

appropriately written client communications, or effectively engage with clients andcolleagues.Inaddition,thegenericskillsofteamwork,goodattitude,andwillingnesstolearnwereacknowledgedasnecessaryforawork-readygraduate.Whilstthesegenericskills may be within the university curricula, it is recommended that their currentpresenceisinvestigatedtodetermineamoreeffectivemeansofenhancingtheseskills.Itis acknowledged thatWork Integrated Learning (WIL) can improvewritten and oralcommunication skills, interpersonal skills, and teamwork80 and any proposedrecommendationcouldincorporateaformofWIL,whichcanassistinimprovingtheseskills.It is suggested that there should be greater awareness of the importance of allcommunication skills to both academics and students in the accounting industry.Academicsshouldbeencouragedtoprovidemoreopportunitiesforstudentstodeveloptheirwrittenandverbalcommunicationskills,withampleopportunitytoenhancetheseskillsthroughouttheirdegree.Theadoptionofauthenticassessmentpiecessuchasclientinterviews, business letters of advice and presentations could provide manyopportunities on campus during the undergraduate degree to enhance these criticalskills.Byremainingawareofthecentralrolethatcommunicationplays,studentsmaybeencouragedtotakegreateropportunitytodeveloptheseskills.

Suggestionsbyparticipantsincludedtheimplementationofmorepracticalcourseworkwithinthecurricula,oraWILprogramme,referringtoon-campusorworkplacelearningexperiencesthatcombinetheorywithpractice,andrequirecollaborationbetweentheaccounting firm participants and educational institutions.81 However, typical WILprogrammes can prove very resource intensive for the employer,82 and are oftenundertakenbyonlyaminorityofstudents.Duetothehighresourcestypicallyincurredby participants, it is suggested that a viable WIL alternative should be offered tograduatesduringthe finalstagesof theundergraduateprogrammesuchthat itcanbeundertakenbystudentstendingtowardSMAfirmemployment.InconsultationwithSMAfirmemployers,itissuggestedthatanon-campusworkplacesimulationmaybedevelopedthatteachesandenhancesthetechnicalskillsforbusinesssoftware, taxation and taxation software, whilst also providing the opportunity todevelopthegenericskillsofcommunication, teamworkand interpersonalskills.83TheintroductionofasimulatedWILprogrammecouldreducetheoverallSMAfirmresourcesexpended,whichinturnmayseegraduateemploymentratesmaintained.Itcouldinvolveauthenticassessmentusingconstructedclientcasestudies,whichisshowntofacilitatehigher order thinking, improve communication and critical thinking, and promote

80 Brett Freudenberg, Mark Brimble and Craig Cameron, ‘WIL and Generic Skill Development: TheDevelopmentofBusinessStudents’GenericSkillsthroughWork-IntegratedLearning’(2011)12(2)Asia-PacificJournalofCooperativeEducation79.81Denise Jackson, ‘TheContributionofWork-IntegratedLearning toUndergraduateEmployabilitySkillOutcomes’(2013)14(2)Asia-PacificJournalofCooperativeEducation99.82 RiccardoNatoli, Beverley Jackling,FriederikaKaider andColin Clark, ‘MappingWILActivities in theCurriculumtoDevelopGraduateCapabilities:ACaseStudyinAccounting’(2013)14(2)Asia-PacificJournalofCooperativeEducation75.83 Nava Subramaniam and Brett Freudenberg, ‘Preparing Accounting Students for Success in theProfessional Environment: Enhancing Self-efficacy through a Work Integrated Learning Programme’(2007)8(1)Asia-PacificJournalofCooperativeEducation77.


181

knowledgetransfertotheworkplacesetting.84Theworkplacesimulationcouldbeaddedasanelectivecoursetowardtheendofanundergraduateaccountingdegree,orofferedasafull-feefour-weekintensivecourseaftercompletionofthefinaluniversitysemesterand prior to commencing graduate employment. It is argued that this may alleviateemployerconcernsbyprovidingimprovedwork-readygraduatestoSMAfirms.

VI LIMITATIONSOFRESEARCHANDFUTURERESEARCH

ThescopeofthisstudyislimitedtoSMAfirmemployerswithnocomparativeresearchbeingundertakenconcerninglargerorgovernmentaccountingemploymentcontexts.Arestricted geographical scope exists due to the preference of face-to-face interviewstrategies, involving willing participants operating within the Gold Coast–Brisbaneregion(Queensland).Additionally,itwasnotpossibletotestforanon-responsebias.Regardmustalsobehadtothepotentialbiasesoftheresearcher,inensuringthatthedesign protocol does not allow any bias to influence the face-to-face interview dataobtained.Thiswasaddressedbyensuringtheresearcherwasconsciousofmaintainingan open mind and remaining receptive to all information presented,85 along withcompilingverbatimtranscriptionsuponcompletionofeachinterview.The research indicates that SMA firm employers are notwilling to employ graduateswithoutsomelevelofthedesiredgenericskillssuchascommunication,teamwork,andinterpersonal skills. Furtherresearch couldbeused to investigatehowwell theseareembeddedduringtheaccountingundergraduatedegree,andtoprovidealternativewaysto enhance these skills through practical application to a SMA firm environment.Additionally, future research could consider effective ways of integrating softwareknowledgeandskillsintotheaccountingcurriculum.

VII CONCLUSION

The required skill for a graduate to obtain employment is a vexed question. In theaccountingcontextanumberofpriorstudieshaveanalysedwhataccountinggraduatesneed.However,manyofthesepriorstudiesdidnotfocusontheseattributesfromtheperspective of SMA firms, even though they can account for 40 per cent of graduateemployment. Itwasargued that theSMA firmperspective couldbedifferent toothersectors.First,thisarticleoutlinedtheliteratureintermsoftechnicalandgenericskills,what this means and their desirability for graduates. Then the research design andmethodwasprovided,whichincludedinterviewsandashortsurveyofSMAfirms.Theresults indicated that the desired technical skills of accounting software, taxationknowledge and taxation software, and double-entry book-keeping are lacking orinsufficientingraduates.Indeed,itseemedthattaxknowledgewasanimportantpartofthetechnicalskillsrequiredbygraduatesofSMAfirms.Inaddition,thegenericskillsof

84 SusanKossman, ‘AuthenticAssessmentforRNStudents:WritingCaseStudiesandTeachingProjects’(2005)44(2)JournalofNursingEducation96.85AnthonyJBerryandDavidTOtley,‘Case-BasedResearchinAccounting’inCHumphreyandBLee(eds),TheRealLifeGuidetoAccountingResearch:ABehind-the-ScenesViewofUsingQualitativeResearchMethods(ElsevierScience,2004)231–55.


182

communication,teamwork,goodattitudeandinterpersonalskillsarealsorecognisedasassistingtomakethegraduatework-readyintheSMAfirmenvironment.Inacompetitivetertiary sectoranumberof suggestionswereproposed todevelop these skills,whichincluded the introduction of a simulated WIL programme for graduates seekingemploymentwithinaSMAfirm,orfurtherdevelopmentofcurrentuniversitycurricula.

GiventheimportanceofSMAfirmswithgraduaterecruitmentitiscriticalthatregardisgiventotherequirementsofemployersiftheissueofemployabilityistobeaddressed.Theincreasingincidenceofoutsourcingtypicalgraduatework,togetherwiththedeclineinsufficientlyskilledgraduates,isaseriousissuethatmustbeaddressedbychange.Withabetterunderstandingwecanbetterequipaccountinggraduates,whichcanassistthesectortoaddressthechallengesthatitfaces,andmakethemostoftheopportunitiesitpresents.

REFERENCES

A Articles/Books/ReportsAhadiat, Nas and Rose M Martin, ‘Attributes, Preparations and Skills Accounting

ProfessionalsSeekinCollegeGraduatesforEntry-LevelPositionsvs.Promotion’(2015)8(1)JournalofBusinessandAccounting179

Albrecht,WSteveandRobertSack,AccountingEducation:ChartingtheCoursethroughaPerilousFuture(AAA,2000)

Barrie, Simon, ‘A Conceptual Framework for the Teaching and Learning of GenericGraduateAttributes’(2006)32(4)StudiesinHigherEducation439

Bayerlein, Leopold and Mel Timpson, ‘Do Accredited Undergraduate AccountingProgrammes inAustraliaMeet theNeeds andExpectations of theAccountingProfession?’(2017)59(3)Education+Training305

Berry,AnthonyJandDavidTOtley,‘Case-BasedResearchinAccounting’inCHumphreyandBLee(eds),TheRealLifeGuidetoAccountingResearch:ABehind-the-ScenesViewofUsingQualitativeResearchMethods(ElsevierScience,2004)231–55

Birkett,WilliamP,‘TheDemandfor,andSupplyofTaxationEducation:ADelphiStudy’(TaskForceforAccountingEducationinAustralia,sponsoredbytheAustralianSocietyofAccountants,theInstituteofCharteredAccountantsinAustraliawiththeAccountingAssociationofAustraliaandNewZealand,Melbourne,1989)

Bishop, Daniel, ‘Context, Agency and Professional Workplace Learning: TraineeAccountantsinLargeandSmallPractices’(2017)59(5)Education+Training516

Bowden,John,GailHart,BruceKing,KeithTrigwellandOwenWatts,‘GenericCapabilitiesofATNUniversityGraduates’(DepartmentofEducation,AustralianGovernment,TrainingandYouthAffairs,2000)

Bui, Binh and Brenda Porter, ‘The Expectation-Performance Gap in AccountingEducation: An Exploratory Study’ (2010) 19(1–2) Accounting Education: AnInternationalJournal23

Bunney, Diane, Elaine Sharplin and Christine Howitt, ‘Generic Skills for GraduateAccountants:TheBiggerPicture,ASocialandEconomicImperativeintheNew


183

KnowledgeEconomy’ (2015)34(2)HigherEducationResearch&Development256

Chaplin,Sally,‘AccountingEducationandthePrerequisiteSkillsofAccountingGraduates:Are Accounting Firms Moving the Boundaries?’ (2017) 27(1) AustralianAccountingReview61

CPA Australia,Changes to Advanced Taxation <https://www.cpaaustralia.com.au/cpa-program/cpa-program-candidates/your-enrolment/advanced-taxation/changes-to-advanced-taxation>

CPA Australia and Institute of Chartered Accountants in Australia, ‘ProfessionalAccreditation Guidelines for Australian Accounting Degrees’ (2012)<http://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/international-accreditation-guidelines.pdf>

Daff, Lyn, Paul de Lange and Beverley Jackling, ‘A Comparison of Generic Skills andEmotional Intelligence in Accounting Education’ (2012) 27(3) AmericanAccountingAssociation627

Dale, Jason, ‘Preparing Business Leaders and Accountants for Future FinancialLeadership’ in Elaine Evans, Roger Burritt and James Guthrie (eds), FutureProofingtheProfession:PreparingBusinessLeadersandFinanceProfessionalsfor2025(RMITandCharteredAccountantsANZ,2015)88

De la Harpe, Barbara and Christina David, ‘Major Influences on the Teaching andAssessmentofGraduateAttributes’(2012)31(4)HigherEducationResearch&Development493

De Villiers, R, ‘The Incorporation of Soft Skills into Accounting Curricula: PreparingAccountingGraduates forTheirUnpredictableFutures’ (2010)18(2)MeditariAccountancyResearch1

Department of Employment, Australian Government, Labour Market Research –AccountantsAustraliaJuneQuarter2017(LabourMarketResearchandAnalysisBranch, 2017)<https://docs.employment.gov.au/system/files/doc/other/ausaccountants_1.pdf>

Devonport,F,‘ThePlaceofTaxationinaCommerceDegree’(ProceedingsoftheAAUTAConvention,UniversityofNewcastle,August1968)

Edwards, Rosalind and Janet Holland,What Is Qualitative Interviewing? (A&C Black,2013)

Ember, Melvin and Carol R Ember, ‘Testing Theory andWhy the “Units of Analysis”ProblemIsNotaProblem’(2000)39(4)Ethnology349

Freeman,MarkandPaulWells, ‘Reducing theExpectationGap:UsingSuccessfulEarlyCareerGraduatestoIdentifytheCapabilitiesthatCount’inElaineEvans,RogerBurritt and James Guthrie (eds), Future Proofing the Profession: PreparingBusiness Leaders and Finance Professionals for 2025 (RMIT and CharteredAccountantsANZ,2015)67–78.

Freudenberg, Brett, ‘Conference Dinner Address’ (Presented at the Annual ATTAConference, ATTA Newsletter, February 2018)


184

<https://www.business.unsw.edu.au/About-Site/Schools-Site/Taxation-Business-Law-Site/AttaNews/ATTA-News-Feb-2018.pdf>

Freudenberg, Brett and Dale Boccabella, ‘Changing Use of Business Structures: HaveUniversity Business Law Teachers Failed to Reflect This in Their Teaching?’(2014)9(1)JournaloftheAustralasianTaxTeachersAssociation80

Freudenberg, Brett, Mark Brimble and Craig Cameron, ‘WIL and Generic SkillDevelopment: The Development of Business Students' Generic Skills throughWork-Integrated Learning’ (2011) 12(2) Asia-Pacific Journal of CooperativeEducation79

GraduateCareersAustralia,‘GraduateOutlook2015’inTheReportofthe2015GraduateOutlook Survey: Perspectives on Graduate Recruitment (2014) <www.graduatecareers.com.au>

Hancock,Phil,BryanHowieson,MarieKavanagh,JennyKent,IreneTemponeandNaomiSegal,‘AccountingfortheFuture:MoreThanNumbers’(FinalReport,AustralianLearningandTeachingCouncil,2009)vol1

Howieson,Bryan,PhilHancock,NaomiSegal,MarieKavanagh,IreneTemponeandJennyKent, ‘Who Should Teach What? Australian Perceptions of the Roles ofUniversitiesandPracticeintheEducationofProfessionalAccountants’(2014)32JournalofAccountingEducation259–75

Jackling, Beverley and Paul De Lange, ‘Do Accounting Graduates’ Skills Meet theExpectations of Employers? A Matter of Convergence or Divergence’ (2009)18(4–5)AccountingEducation369

Jackling,BeverleyandKimWatty,‘GenericSkills’(2010)19(1–2)AccountingEducation1

Jackson, Denise, ‘The Contribution of Work-Integrated Learning to UndergraduateEmployabilitySkillOutcomes’(2013)14(2)Asia-Pacific JournalofCooperativeEducation99

Jackson, Denise and Elaine Chapman, ‘Non-Technical Competencies in UndergraduateBusiness Degree Programs: Australian and UK Perspectives’ (2012) 37(5)StudiesinHigherEducation541

Jackson, Denise, Ruth Sibson and Linda Riebe, ‘Delivering Work-Ready BusinessGraduates–KeepingOurPromisesandEvaluatingOurPerformance’(2013)4(1)JournalofTeachingandLearningforGraduateEmployability2

Juchau,RogerandRayNeale,‘TaxationinAustralianUndergraduateAccountingCourses:AReviewandCaseNote’(2001)10(1)AccountingEducation27

Kavanagh,MarieandLyndalDrennan, ‘WhatSkillsandAttributesDoesanAccountingGraduateNeed?’(2008)48AccountingandFinance279

Kossman, Susan, ‘Authentic Assessment for RN Students: Writing Case Studies andTeachingProjects’(2005)44(2)JournalofNursingEducation96

Low, Mary, Vida Botes, David De La Rue and Jackie Allen, ‘Accounting Employers’Expectations – The Ideal Accounting Graduates’ (2016) 10(1) e-Journal ofBusinessEducation&ScholarshipofTeaching36


185

McKerchar, Margaret, Design and Conduct of Research in Tax, Law and Accounting(ThomasReuters,2010)

Martin, Fiona, ‘A History of the Australasian Tax Teachers Association’ (2013) 8(1)JournaloftheAustralasianTaxTeachersAssociation31

Natoli, Riccardo, Beverley Jackling, Friederika Kaider and Colin Clark, ‘Mapping WILActivities in theCurriculumtoDevelopGraduateCapabilities:ACaseStudy inAccounting’(2013)14(2)Asia-PacificJournalofCooperativeEducation75

Osmani,Mohamad,VishanthWeerakkody,NithamHindi,RajabAl-Esmail,TillaEldabi,KawaljeetKapoorandZahirIrani,‘IdentifyingtheTrendsandImpactofGraduateAttributes on Employability: A Literature Review’ (2015) 21(4) TertiaryEducationandManagement367

Pan,Peipei andHectorPerera, ‘MarketRelevanceofUniversityAccountingPrograms:EvidencefromAustralia’(2012)36AccountingForum91

Pan,ShanLandBarneyTan, ‘DemystifyingCaseResearch:AStructured–Pragmatic–Situational(SPS)ApproachtoConductingCaseStudies’(2011)21InformationandOrganisation161

Rebele,JamesandEKentStPierre,‘StagnationinAccountingEducationResearch’(2015)33(2)JournalofAccountingEducation128

Ried, L Douglas, ‘Using Likert-type and Ipsative/Forced Choice Items in Sequence toGenerateaPreference’(2014)10ResearchinSocialandAdministrativePharmacy598

Saunders,MarkNK,PhilipLewisandAdrianThornhill,ResearchMethods forBusinessStudents(Pearson,7thed,2015)

Sin,SamanthaandNicholasMcGuigan,‘FitforPurpose:AFrameworkforDevelopingandAssessing Complex Graduate Attributes in a Changing Higher EducationEnvironment’(2013)22(6)AccountingEducation522

Sin, Samantha,AnnaReidandAlan Jones, ‘AnExplorationofStudents’ConceptionsofAccountingWork’(2012)21(4)AccountingEducation323

Sithole,SeedwellTM, ‘Quality inAccountingGraduates:EmployerExpectationsof theGraduateSkillsintheBachelorofAccountingDegree’(2015)11(22)EuropeanScientificJournal165

Smith, Calvin, Sonia Ferns and Leoni S Russell, ‘Conceptualising and Measuring“Employability” – Lessons from a National OLT Project’ (ACEN NationalConference, Australian Collaborative Education Network Limited, Gold Coast,2014)1

Subramaniam,NavaandBrettFreudenberg,‘PreparingAccountingStudentsforSuccessin the Professional Environment: Enhancing Self-efficacy through a WorkIntegratedLearningProgramme’(2007)8(1)Asia-PacificJournalofCooperativeEducation77

TaxPractitionersBoard,AustralianGovernment,QualificationsandExperience forTaxAgents (5 March 2018) <https://www.tpb.gov.au/qualifications-and-experience-tax-agents>


186

Tempone,Irene,MarieKavanagh,NaomiSegal,PhilHancock,BryanHowiesonandJennyKent, ‘DesirableGenericAttributes forAccountingGraduates intotheTwenty-First Century: The Views of Employers’ (2012) 25(1) Accounting ResearchJournal41

Towers-Clarke,Jane,‘UndergraduateAccountingStudents:PreparedfortheWorkplace?’(2015)8(1)JournalofInternationalEducationinBusiness37

vanAcker,LizandJanisBailey,‘EmbeddingGraduateSkillsinCapstoneCourses’(2011)7(4)AsianSocialScience69

Yaftian, Ali, Sohelia Mirshekary and Dessalegn Mihret, ‘Learning CommercialComputerised Accounting Programmes: Perceptions and Motivations’ (2017)30(3)AccountingResearchJournal312

Yap,Christine,SuzanneRyanandJackieYong,‘ChallengesFacingProfessionalAccountingEducation in a Commercialised Education Sector’ (2014) 23 AccountingEducation562

ROLE OF TAX KNOWLEDGE AND SKILLS WHAT ARE THE …...commercially oriented accounting services is...

Documents

Transcript of ROLE OF TAX KNOWLEDGE AND SKILLS WHAT ARE THE …...commercially oriented accounting services is...