May 24, 2023
Accounting students present research
Before the conclusion of the Spring ’23 semester, four accounting students attended the annual Society of Business, Industry and Economics conference in Destin, Florida.
SOBIE’s mission, according to its website, is to “encourage business faculty members to respond to current economic and market issues, and find practical solutions to the many problems business people and public policymakers confront.”
Madison Cullipher, Mason Hudnall, Jordan Anderson and Noah Fox represented the COB’s Department of Accounting and presented their theses (see below) to attendees. Fox won $100 for the best student paper.
Accounting’s Dr. John Reisch served as Cullipher and Hudnall’s project advisor, and accounting’s Dr. Linda Quick served as Anderson and Fox’s project advisor.
Theses
Perceptions of Stress in Accounting Professionals and Accounting Students
Noah Fox, accounting undergraduate student, East Carolina University
Abstract: The accounting industry has always been perceived as stressful with studies dating back to the 1950s describing occupational stress in the field (Smith, 1990). This can still be seen when looking at the high employee turnover rates in public accounting. Inside Public Accounting surveyed 574 public firms in 2022 and found that 29% of the firms experience employee turnover higher than 20% (IPA, 2022). Using the Perceived Stress Scale (Cohen et. al., 1994), this study investigates accounting professionals’ perceptions of stress and relates it to accounting students’ perceptions of stress in public accounting. This study finds differences in stress levels in the busy season and compared it to the non-busy season. Additionally, this study investigates extracurricular activities that professionals participate in that reduce stress. The aim of this study is to help students gain a better understanding of stress in public accounting and ways to maintain a work-life balance.
Investors’ Perceptions regarding Fraudulent Environment, Social, and Governance (ESG) Disclosures
Madison Cullipher, accounting undergraduate student, East Carolina University
Abstract: Investors’ Perceptions regarding Fraudulent Environment, Social, and Governance (ESG) Disclosures digs heavily into how important the validity of ESG disclosures are to potential and current investors of a well preforming company. The utilization of per- and polyfluoroalkyl substances (PFAS) is growing, without any regard to the dangerous side effects that these substances have to the environment and humans. A survey was conducted to ask students their likelihood of investing in a fictious company, who according to Morningstar has a rosy outlook, given their history of fraudulent ESG disclosures and current use of PFAS. To test this, there are two manipulations: the location of the illegal dumping of PFAS; in-state or out of the country, and the credibility of the whistleblower; internal or external. Each student was randomly given one of four versions of the survey that altered the manipulations, then answered manipulation check questions to ensure they thoroughly read the information. It was hypothesized that investors would be least likely to invest when the illegal dumping occurred in-state and the whistleblower was an internal source and most likely to invest when the illegal dumping occurred out of the country and the whistleblower was an external source. Data collection has been conducted and data analysis is currently underway. Once the data is analyzed, it will be determined which manipulation, location of the illegal dumping or credibility of the whistleblower, is the dominant factor over the other.
Investigating Fraud and Strategies to Decrease Fraud within Youth Sports Organizations
Mason Hudnall, accounting undergraduate student, East Carolina University
Abstract: Occupation fraud is one of the most common financial crimes. Occupational fraud is defined as fraud committed by individuals against the organization that employs them. Most people that commit occupational fraud have access to the organization’s accounts. There are 3 common forms of occupational fraud but the most common is asset misappropriation. According to the Report to the Nations, in 2020 86% of all occupational fraud cases were asset misappropriation. Asset misappropriation involves the theft of assets, fraudulent disbursement of funds, and misuse of assets. Youth sports organizations are a big part of every community. These youth sports organizations are normally non-profit organizations that rely heavily on parents and other volunteers to help. This study investigates occupational fraud within youth sports organizations. Using the Fraud Triangle Theory which shows the leading indicators for fraud. The main indicators for fraud are motivation (i.e. financial struggles), opportunity (i.e. accessibility to financial accounts), and rationalization (i.e. self-justification). The findings indicate that age, position within an organization, and time period of fraud play a large role in determining who is most likely to commit occupational fraud within youth sports organizations. This study also goes into various fraud prevention methods and training that should be in place for youth sports organizations.
Student and Professional Perceptions of CPA Evolution
Jordan Anderson, accounting undergraduate student, East Carolina University
Abstract: The Uniform Certified Public Accountant (CPA) Examination is the professional exam administered to individuals who wish to become a licensed CPA. The CPA Exam is comprised of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). However, rapidly changing skills and competencies required in the modern practice of accounting have led the National Association of State Boards of Accountancy (NASBA) Board of Directors and the American Institute of Certified Public Accountants (AICPA) Governing Council to adopt the CPA Evolution initiative. Through this initiative, NASBA and AICPA will develop a new core + discipline licensure model and implement a new CPA Exam in January 2024. The CPA core + discipline licensure model will be comprised of three of the former sections, AUD, FAR, and REG, as well as the option to choose one of the following disciplines: Tax Compliance and Planning, Business Analysis and Reporting, or Information Systems and Controls. The purpose of our study is to better understand student and professional perceptions of the CPA Evolution initiative. We aim to understand which disciplines are a better fit for specific career paths including audit, tax, and consulting and whether a certain discipline will make the CPA more marketable to firms and corporations in various industries. Additionally, we will investigate the advantages of technology integration into the CPA Evolution core + discipline model including what CPAs should know about accounting technologies and what portion of this knowledge should be taught in undergraduate and graduate accounting programs versus in the field. Our study also examines whether the changes made to the CPA Exam will change perceptions of the difficulty of the exam and thus change individuals’ willingness or desire to take the CPA Exam. We also aim to understand student and professional perceptions of significant accounting changes facing the accounting industry and technical and soft skills desired by employers who aim to hire CPAs.
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- Accounting