Preparing for a Doctoral Program

Now that you have decided to get a Ph.D., applied, and been accepted to a school that "fits" you, how can you best prepare for the work ahead? This page gives suggestions on what you can do to prepare to hit the ground running on day one. The suggestions on this page apply to both students who are directly attempting to enter a Ph.D. program and to practitioners who are returning to school after spending time practicing accounting.

Preparing for Coursework

Accounting doctoral students, unlike undergraduates or masters students, spend very little time studying "accounting." That is, you are unlikely to take classes where you discuss debits/credits, how to perform particular accounting treatments, etc. Instead, you will spend a large portion of your time taking classes in other areas like economics and statistics. Your classmates in these courses are doctoral students in other business school disciplines, including majors in those areas. Thus, the class is geared toward a very high understanding and starts off very quickly. To the extent you can build your economics and statistics background before you start a doctoral program it will help you to not be so lost when you start your program. If you take an economics or statistics class, make sure it is a mathematically intense course as this is how your doctoral program classes will be. In addition, refreshing your calculus and linear algebra skills will be a great aid (and may even be more valuable than taking a statistics or economics course). What classes/learning would be most beneficial to you as a new Ph.D. student depends on your skills and interests. However, we rank order these competencies and skills for new Ph.D. students:

• Mathematical skills in calculus and linear algebra.
• Statistic skills, especially understanding regression methodologies.
• Understanding economic theory including microeconomics and econometrics.
• Understanding finance, psychology, or other specialty area theory.

In addition to preparing for your "tools" courses, you can start to prepare for your accounting seminars. Accounting seminars are courses in which you read and discuss accounting research papers. These courses are meant to teach you about research and how to conduct research. To prepare for these courses, it would be valuable to spend time reading accounting research. Your goal in reading research should not be to gain a broad or even deep understanding. Instead, reading papers is valuable to teach you how papers are structured, what they do and don't do, and the language used and not used. Gaining as much practice and experience reading and trying to understand accounting research will be highly beneficial. This paper by Jason Porter and Teresa Gordon can be helpful in teaching someone new to academics how to read and understand academic research. To find examples of "good" accounting research, see the What is accounting research? page.

Preparing to Conduct Research

The purpose of a Ph.D. is to teach students how to conduct research. Unlike most of your previous research experiences, academic research is conducted to produce new knowledge, not merely summarize, restate, or repackage existing knowledge. The process of creating new knowledge depends on generating interesting questions to answer, properly applying a research methodology (e.g., a statistical analysis, conducting an experiment, solving a mathematical model, etc.), and then correctly analyzing and interpreting the results. Coursework during your Ph.D. program focuses heavily on the second and third point, the first point--generating interesting questions--is something that is less formally taught. Learning what are interesting research questions is part innate ability and part learning from experience what is considered an interesting question. You can prepare to conduct research in your Ph.D. program by looking for interesting research questions. You can develop interesting questions by talking with practitioners, reading about areas of accounting you find interesting, posing questions to informed and intelligent individuals, and having a general inquisitive nature. At this point, keep a file of all your research ideas without filtering on potential merit. Later, once you gain a greater understanding of academic research, go back and analyze these different questions to see if they still have merit.

To prepare to conduct research, it will be valuable for you to follow the recommendations of preparing for coursework. In addition to those suggestions, you may consider the following:

• Try to attend a university workshop. Most research universities have visiting faculty or internal faculty present research on which they are working. Other academics ask questions and make suggestions at these workshops for improving the paper. Attending these workshops can provide valuable experience in what research is about (and allow for important networking opportunities). Contact your local university to ask about attending these workshops.
• Read a research paper and after you finish, write down questions that the paper brought to mind. You may also try and brainstorm a different way of answering the same question.
• Try writing a simple research paper, or pick an area of accounting that interests you and just write a short literature review of what research has been done in the area. Seeing what others have done may better enable you to see gaps in the research or other interesting questions to address that are related to prior work.

Preparing to Teach

While not imperative, it is useful to have classroom experience before you enter a Ph.D. program. The benefits are two fold, (1) you discover if this is something you want to do for the rest of your career, and (2) it helps prepare you to be a more effective teacher in your Ph.D. program and thereafter. If teaching your own course is not available, you may consider being a teaching assistant for a professor. If you chose this later route, make sure you let the professor know that you are interested in learning how to be a better teacher. The professor may let you lead a class discussion, an entire class period, develop some teaching materials, or have a positive learning experience in some other way if you express interest in helping.

An important note for non-native English speakers: Often times Ph.D. programs are hesitant to admit non-native English speakers over worries about their ability to communicate in the classroom and in their research. Gaining a strong foundation in writing, reading, and speaking English is imperative for your success. If your English skills need work, spend time improving your language skills as much as possible before you enter a Ph.D. program.

Preparing your Family

If you are married, entering a Ph.D. program can be a shock to your spouse and children. The shock can be caused by several different factors including: (1) new time demands, (2) different pressures, (3) a different standard of living, (4) relocating to a new place, and (5) future uncertainty about your career.

Special Suggestions for Practitioners

EVERYTHING BELOW HERE WAS COPIED AND PASTED HERE UNTIL IT CAN BE INTEGRATED AND REFINED. MATERIAL ABOVE HERE IS STILL IN OUTLINE FORM.

Should I work in industry before getting a Ph.D.?

If you do, make sure to consider important aspects of the accounting industry as it makes several important points about gathering contacts while working.

Pros

Working in industry prior to entering a Ph.D program, you will gain valuable experience that will lend to your credibility as a teacher. Working will give you a taste of what goes on in the "real" world. This can provide a valuable context for you as you think of research ideas and read research papers in a Ph.D. program. The people you work with will be valuable contacts. These contacts could provide access to subjects or data for research projects. Additionally, many students enjoy hearing "war stories."

Some schools prefer Ph.D. applicants with public accounting work experience. In 2007, the AAA surveyed the Accounting Ph.D. programs in the United States and found that 53% of programs either preferred or required some work experience. Some schools are less willing to hire new Ph.D.s in auditing and tax if you do not have "meaningful" professional experience.

By working, you could potentially take advantage of the Accounting Doctoral Scholars program. This program has been designed to help current practitioners transition from the professional to the academic world. The AICPA provides an annual stipend is provided to selected students who have worked in public accounting for at least three years. The Accounting Doctoral Scholars program has been designed to help at least 120 students entering Ph.D. programs in Tax and Audit by 2012. In addition to the ADS website, the AICPA also provides additional information on the Accounting Doctoral Scholars program.

Despite substantial tuition waivers and annual stipends for teaching and research, working may help you save money for living expenses during the doctoral program.

Working may help you decide if academia or industry is the best route for you. If you love working in industry there may be no reason to go back to school for 4 or 5 more years. Also, working first may give you options to fall back on in case you start a PhD program and find that you do not wish to continue.

Sometimes it can be easier to pass The CPA Exam and become a CPA. Some accounting firms provide a bonus for passing the CPA Exam during your first or second year of practice in addition to reimbursing the testing fees and paying for a review course. However, just because you may go straight into a Ph.D. program doesn't mean you can't get a CPA license. However, it is debatable whether having a CPA license is desirable and/or useful as an accounting professor (see pros and cons on The CPA Exam page).

Cons

By working in industry, your mind may become more results and application oriented. While these skills are valued in accounting practice, academic research requires a different skill set. The ability to have an open mind and thinking creatively can be more important than knowing how to get from step A to step B. In addition to building different skills in industry, you may lose your math, statistics, and SAS programming knowledge and skills.

Your experience may be outdated and irrelevant by the time you leave a doctoral program. Accounting and business practices change frequently. Standards and practices may change significantly over a period of 4-5 years. Especially for capital markets related research, it is not clear that a few years of public accounting experience will be helpful in generating research ideas. The skills you develop working in industry may not be very helpful in research.

You might never go back to get a Ph.D. Once you have begun to live off a normal salary, it makes it harder to take a pay cut upon entering a Ph.D. program. In other words, the longer you work, the greater the opportunity cost of returning to school. You are delaying earning a relatively high salary (hopefully) 4 to 5 years in the future for a relatively small salary now. This may not be a positive net present value decision.

CPA Exam

Introduction

The Certified Public Accountant Examination (CPA Exam) is administered to test one's knowledge of accounting and general business practices. Acceptable completion of the CPA Exam bestows the title of Certified Public Accountant (CPA) on the candidate, assuming all other state requirements have been met.

Reasons to get, and not to get, the CPA designation

On its website, the AICPA asserts that the "CPA credential is a symbol of trust and professionalism in the world of business. It's a highly challenging professional track, but the reward is that CPAs are considered the most trusted advisors in business." In the business world, the CPA designation adds potential for career growth and entitles the CPA to receiving extra trust in serving in advisory roles for clients. Usually, the easiest and most convenient time to take the CPA exam is right after finishing the accounting program at BYU and before entering a Ph.D. program or the workforce.

However, accounting academics will be able to receive different benefits from earning the CPA designation. The CPA designation may add credibility in the classroom (This is not proven, but is a great empirical question). Some schools want you to have professional certifications, in particular, schools that are more teaching oriented. Also, receiving the CPA desgination is probably more important for those with research and teaching interests in audit and/or tax.

Similar to working as a practitioner, the academic may be able to secure consulting opportunities in the profession because of the CPA credential. It also gives you credibility with practitioners. Additionally, if you ever decide to leave academia, this is a helpful certification for employment. The CPA designation is also useful for expert witnessing or serving on a corporate board.

For academics, there are also several reasons not to take the CPA exam. Early in one's career, time may be better spent on conducting research or improving teaching effectiveness. Keeping up on CPE credits may be a hassle. It will likely be quite expensive, especially if you consider the opportunity costs (e.g., time you could spend working or preparing for a PhD program). Also, some schools (most likely research intensive schools) may view it as a negative signal of where you are devoting your time; i.e., you are not a serious researcher.

What resources are available to help me review for the CPA exam?

• Becker CPA Review is generally considered to be the best CPA review course. Most students who use Becker choose the in-class instruction option, which provides course manuals, offers in-class instruction several nights each week, and assigns homework for each class. This method is purported to have a very high success rate; however, it is also very expensive.
• Wiley CPA Exam Review is not quite as structured as Becker, perhaps, but it is much cheaper and is sufficient. If you've done relatively well in your courses at BYU, this should be enough to help you pass the exam. Though, additional material is on the CPA exam that is not covered in BYU's accounting program. In particular, accounting for non-profits and governmental entities on the exam but is not taught at BYU.

Where can I find information about the CPA exam requirements for each state?

The Becker CPA Review website has a comprehensive listing of the CPA requirements for each state.

Additionally, you could try the National Association of State Boards of Accountancy (NASBA). While they possess all the information you would ever need, accessing the information is difficult. Each state has a NASBA representative assigned to it, and the helpfulness of the representatives varies wildly by state.

The AICPA has also created a document that lists all of the requirements for certification and a permit to practice in each state.

How can I be a CPA without any work experience?

There is a difference between passing the CPA exam, receiving certification, and meeting the necessary requirements for licensing and public practice. In most states, once you meet the minimum degree and course requirements, you can sit for the CPA exam. After this point, most states require those who pass the exam to meet certain work requirements before they can receive a certificate showing that they passed the exam. This requirement is met by crossing one of two thresholds, either (1) working a specified minimum number of hours or (2) working in professional practice for a certain number of years after finishing your degree. Each state sets its own requirements for certification.

Additionally, some states require that certified professionals receive more experience beyond the aforementioned requirements before they receive a license to practice.

Though, keep in mind that some states do not have experience requirements for certification or licensing to practice; e.g., Colorado, Florida, Maryland, and Puerto Rico. Others allow substitution of additional education for experience. The AICPA has created a document that compares the educational and experience requirements for each state. Note: The posting date for this comparison is not listed, so always be sure to check with each state's own board of accountancy for current requirements.

How can I study for the CPA without a firm to purchase study materials?

Without proper study materials, taking and passing the CPA exam may be difficult. In addition to buying the materials, there are many different ways to obtain study materials. Several options are available to the diligent seeker.

• Financialprep.com offers a free trial version of their practice test software, which contains 100 questions per section. 100 questions is sufficient to give one a general sense of how the questions on the test are.

• If you are currently a doctoral student, you may approach one of the companies that provides CPA study material. They sometimes give free copies to future professors. Contact the representative who services your school to discuss this possibility.

• Becker has several ways in which to get free or discounted materials. If you work as the one campus representative for BYU, then you can get a Becker course for free. Dr. Black has something to do with the selection process for campus representatives. Further, you can help set up the classroom for the classroom reviews Becker does, and they will give you a $500 discount.

• You can purchase hugely discounted Becker (as well as other brands) materials from Amazon.com or eBay.com. The ethicality of this is in question. While the 100 Hour Board at BYU claimed it was fine and legal, many (especially Becker and other test prep publishers with financial incentives to do so) would tell you it is not.

• Consider borrowing materials from someone who has already taken the test. However, the same ethical issue is involved as in purchasing it from Amazon or eBay.

• Some of the preparation courses are actually reasonably priced, between $300-400. Still a lot for a starving student, but this is a far cry from the $2700 Becker wants. One that has recently worked for a recent Ph.D. Prep student who passed all four sections the first time is the Wiley CPA software and books.

• The Accounting lab at Utah Valley University has a current, full set of the Gleim materials for use in the lab. You could go over there or somehow petition Gleim to outfit our lab as they have the UVU lab. The BYU library currently has limited materials in its collections.

• You might consider just taking a couple of the sections without studying, and see how it goes. BYU has a very good program and you might find that you pass without much, if any, preparation. Do this at your own risk, as it is somewhat expensive to retake exams. But you might save on prep materials and extra working hours. Though, keep in mind that not all topics on the CPA exam are taught in the courses at BYU.

How long will it take to get the CPA?

In the summer of 2008, there were several Ph.D. prep students who decided to sit for the CPA exam. The goal was to finish all portions of the exam before Ph.D. programs began. So far, the endeavor has been successful. Before you decide to take the exam consider two important questions: (1) how long will it take to study for the CPA and (2) is it worth it? The first question is considered on this page, the second question is considered in the above section on the benefits of receiving the CPA designation for academics.

The first question is quantitative in nature, but can vary greatly by candidate. One student who took the exam in the summer of 2008 kept track of all the studying he did for it, in order that other candidates might be able to see how long it takes. About this student: He had not taken advanced financial, audit, or managerial accounting, and is not naturally inclined to do well in accounting. Given this, much more study was required for him that would be required for an average Ph.D. prep track student doing the professional stem. Some of his cohorts in the prep track who took the test studied considerably less (50-80% less time), and did equally well.

Further, note that a 75 is required to pass the exam. Any score above a 75 can be viewed as over preparation for the exam (of course, assuming one is interested in the acquisition of accounting knowledge, scoring higher is a good thing). This student exceeded 75 on all the tests--and was thus over prepared for all four sections of the exam. Further, there were some logistical problems that created issues, requiring even more study time for this person.

Those three qualifiers being stated, here is a spreadsheet that contains the hours studied and the results of the CPA exams for this student. Hopefully they will help you have a better idea of how much time is required to pass the CPA exam.

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