The 150‐hour rule: does it improve CPA exam performance?

The 150‐hour rule: does it improve CPA exam performance? The American Institute of Certified Public Accountants (AICPA) has established 150 semester hours as the minimum education requirement to qualify to take the CPA examination. This educational requirement is generally believed to impose additional potential costs on students, academic accounting departments, public accounting firms, and audit clients. Since a goal of the 150‐hour rule is to improve the overall quality of work performed by CPAs, it is worthwhile to examine whether an association exists between the number of semester hours of education and performance on the CPA exam. After controlling for SAT scores (verbal and quantitative), accounting credit hours, and enrollment in CPA coaching courses, this study found that first‐time candidates, on a national basis, having a minimum of 150‐semester hours of education performed better on the CPA exam. We interpret these results as indicating that there are benefits to students, CPA firms, and their audit clients from the higher education standard. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

The 150‐hour rule: does it improve CPA exam performance?

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Publisher
Emerald Publishing
Copyright
Copyright © 2003 MCB UP Ltd. All rights reserved.
ISSN
0268-6902
DOI
10.1108/02686900310454174
Publisher site
See Article on Publisher Site

Abstract

The American Institute of Certified Public Accountants (AICPA) has established 150 semester hours as the minimum education requirement to qualify to take the CPA examination. This educational requirement is generally believed to impose additional potential costs on students, academic accounting departments, public accounting firms, and audit clients. Since a goal of the 150‐hour rule is to improve the overall quality of work performed by CPAs, it is worthwhile to examine whether an association exists between the number of semester hours of education and performance on the CPA exam. After controlling for SAT scores (verbal and quantitative), accounting credit hours, and enrollment in CPA coaching courses, this study found that first‐time candidates, on a national basis, having a minimum of 150‐semester hours of education performed better on the CPA exam. We interpret these results as indicating that there are benefits to students, CPA firms, and their audit clients from the higher education standard.

Journal

Managerial Auditing JournalEmerald Publishing

Published: Feb 1, 2003

Keywords: Accounting training; Accounting education; Certification; Multivariate analysis; Licensing; USA

References

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