Difference between revisions of "Preparing for a Doctoral Program"

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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. 
  
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==Preparation for Coursework==
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==Preparing for Coursework==
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[[Image:Studentstudying.jpg|right|300 px]]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:
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* Mathematical skills in calculus and linear algebra.
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* Statistic skills, especially understanding regression methodologies.
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* Understanding economic theory including microeconomics and econometrics.
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* Understanding finance, psychology, or other specialty area theory.
  
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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 [http://gpae.bryant.edu/~gpae/Vol6/Reading_and_Understanding_Academic_Research.pdf paper] by [[Porter, Jason|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.
  
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==Preparing to Conduct Research==
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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. 
  
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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:
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* 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.
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* 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. 
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* 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.
  
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=Should I work in industry before getting a Ph.D.?=
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==Preparing to Teach==
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If you do, make sure to consider important [[Understanding the Accounting Industry|aspects of the accounting industry]] as it makes several important points about gathering contacts while working.
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[[Image:Teachingprofessor.JPG|left|300 px]]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.
  
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==Pros==
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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.
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==Preparing your Family==
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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 amounts of pressure, (3) a different standard of living, (4) relocating to a new place, and (5) future uncertainty about your career.  Recognize that being a doctoral student carries significant pressure for most individuals as they try to learn a tremendous amount of material in a short period of time.  Having a supportive spouse and/or family can help alleviate a lot of this stress.  Before entering the program, make sure you have discussed what the program will entail in terms of time commitment and work so that you and your spouse are both in agreement to achieving success, however the two of you define success.  It's also helpful to understand the benefits of time schedules in a Ph.D. program.  During semesters of coursework, a Ph.D. student will be quite busy during the semester but then relatively less busy during breaks.  These breaks offer great opportunities for family vacations and other recreational opportunities.
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==Special Suggestions for Candidates without Prior Work Experience==
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===Should I work in industry before getting a Ph.D.?===
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===Should I try and earn the CPA Certification?===
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Here is a list of some questions that you might want to think about when applying to programs:
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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.  For academics, there are different benefits for having the CPA designation.  One benefit of earning your CPA is enhanced credibility in the classroom.  If you do not attain much professional experience, students may doubt your credentials for teaching a course.  Having earned the CPA can help you earn credibility.  In addition to credibility, some schools want you to have professional certifications, in particular, schools that are more teaching oriented.  Also, receiving the CPA designation is probably more important for those with research and teaching interests in audit and/or tax. An additional benefit is that academics with the CPA certification may be able to better secure consulting opportunities in the profession than academics without the certification.  Having a CPA will also give you credibility with practitioners.  Additionally, if you ever decide to leave academia, this is a helpful certification for employment. 
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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 can be a hassle.  It will likely be quite expensive, in terms of opportunity costs (e.g., time you could spend working on other tasks).  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.
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====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."
 
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."
  
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Some schools prefer Ph.D. applicants with public accounting work experience.  In 2007, the [http://aaahq.org/temp/phd/StudyMaterials/QuestionnaireSummary.pdf 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.
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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.
  
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By working, you could potentially take advantage of the [http://www.adsphd.org/ 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 [http://www.aicpa.org/Magazines+and+Newsletters/Newsletters/The+CPA+Letter/September+2008/Accounting++Doctoral+Scholars+Program+Announced+to+Boost+Ph.D.+Faculty.htm AICPA] also provides additional information on the Accounting Doctoral Scholars program.
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By working, you could potentially take advantage of the [http://www.adsphd.org/ 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.
 
Despite substantial tuition waivers and annual stipends for teaching and research, working may help you save money for living expenses during the doctoral program.
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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).
 
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).
  
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==Cons==
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====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.
 
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.
  
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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.
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The technical skills and institutional knowledge you acquire may be dated 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.
 
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.
  
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<!-- ==Special Suggestions for Practitioners== -->
  
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=Teaching Before going in=
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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.  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.
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! style="background:#fafaFe; color:black; height: 20px" | <small>[[Main Page]] ► [[Preparing for a Doctoral Program]]</small>
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=CPA Exam=
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==Introduction==
 
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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.
 
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==Reasons to get, and not to get, the CPA designation==
 
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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.
 
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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 [[Research Ideas|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.
 
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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.
 
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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.  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.
 
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==Exam Content==
 
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Because of planned changes to IFRS for SEC filings, current exam content as of Spring 2009 includes the following sections:
 
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===Auditing and Attestation (AUD)===
 
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The Auditing and Attestation portion lasts 4.5 hours.  The following six topics are part of this section:
 
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# Auditing and Attestation: Engagement Acceptance and Understanding the Assignment (12-16%)
 
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# Auditing and Attestation: Understanding the Entity and Its Environment (including Internal Control) (16-20%)
 
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# Auditing and Attestation: Performing Audit Procedures and Evaluating Evidence (16-20%)
 
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# Auditing and Attestation: Evaluating Audit Findings, Communications and Reporting (16-20%)
 
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# Accounting and Review Service Engagements (12-16%)
 
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# Professional Responsibilities (including Ethics and Independence) (16-20%)
 
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===Business Environment and Concepts (BEC)===
 
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The Business Environment and Concepts portion lasts 2.5 hours.  The following six topics are part of this section:
 
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# Corporate Governance (16-20%)
 
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# Economic Concepts and Analysis (16-20%)
 
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# Financial Management (19-23%)
 
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# Information Systems and Communication (15-19%)
 
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# Strategic Planning (10-14%)
 
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# Operations Management (12-16%)
 
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===Financial Accounting and Reporting (FAR)===
 
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The Financial Accounting and Reporting portion lasts 4.0 hours.  The following five topics are part of this section:
 
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# Conceptual Framework, Standards, Standard Setting and Presentation of Financial Statements (17-23%)
 
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# Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures (27-33%)
 
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# Specific Transactions, Events and Disclosures (27-33%)
 
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# Governmental Accounting and Reporting (8-12%)
 
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# Not-for-Profit (Nongovernmental) Accounting and Reporting (8-12%)
 
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===Regulation (REG)===
 
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The Regulation portion lasts 3.0 hours.  The following six topics are part of this section:
 
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# Ethics, Professional and Legal Responsibilities (15-19%)
 
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# Business Law (17-21%)
 
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# Federal Tax Process, Procedures, Accounting and Planning (11-15%)
 
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# Federal Taxation of Property Transactions (12-16%)
 
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# Federal Taxation of Individuals (13-19%)
 
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# Federal Taxation of Entities (18-24%)
 
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==FAQ==
 
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In addition to the following questions, which are geared towards future academics, the AICPA also answers some [http://www.aicpa.org/Becoming+a+CPA/CPA+Candidates+and+Students/Becoming+A+CPA.htm Frequently Asked Questions] regarding the CPA exam and the CPA credential.  The official web page for the Uniform CPA Exam also answers many [http://www.cpa-exam.org/cpa/computer_faqs.html Frequently Asked Questions] about the exam itself.
 
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===What resources are available to help me review for the CPA exam?===
 
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* [http://www.beckercpa.com/ 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.
 
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* [http://www.wiley.com/cpa 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.
 
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===Where can I find information about the CPA exam requirements for each state?===
 
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The [http://www.beckercpa.com/state/index.cfm Becker CPA Review] website has a comprehensive listing of the CPA requirements for each state.
 
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Additionally, you could try the National Association of State Boards of Accountancy [http://nasba.org/nasbaweb/NASBAWeb.nsf/WPHP?OpenForm (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.
 
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The AICPA has also created a [http://www.aicpa.org/download/states/require_pract.pdf document] that lists all of the requirements for certification and a permit to practice in each state.
 
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===How can I be a CPA without any work experience?===
 
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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.
 
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Additionally, some states require that certified professionals receive more experience beyond the aforementioned requirements before they receive a license to practice.
 
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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 [http://www.aicpa.org/download/states/require_pract.pdf 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.
 
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===How can I study for the CPA without a firm to purchase study materials?===
 
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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.
 
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* [http://www.financialprep.com/ 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.
 
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* 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.
 
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* 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.
 
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* 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 [http://theboard.byu.edu/index.php?area=viewall&id=45241 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.
 
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* 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.
 
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* 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 [http://www.wiley.com/cpa.html Wiley CPA] software and books.
 
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* 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 [http://www.gleim.com/accounting/cpa/ Gleim] to outfit our lab as they have the UVU lab.  The BYU library currently has limited materials in its collections.
 
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* 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.
 
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===How long will it take to get the CPA?===
 
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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.
 
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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.
 
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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.
 
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Those three qualifiers being stated, [http://phdprep.byu.edu/index.php?title=Image:CPA_study.xls 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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==External Links==
 
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For additional information, take a look at the following websites:
 
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* [http://www.cpa-exam.org/ The Uniform CPA Exam] - This is the official site for the CPA exam.  It has a lot of information about the CPA exam itself.  Also, interestingly enough, it contains press bulletins listing passing rates for each of the four portions for the past several quarters (currently about 50%).
 
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* [http://en.wikipedia.org/wiki/Uniform_Certified_Public_Accountant_Examination Wikipedia: The CPA Exam] - This is a great resource that describes the actual examination process.
 
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* [http://en.wikipedia.org/wiki/Certified_Public_Accountant Wikipedia: Certified Public Accountant] - This resource explains a little bit about what CPA's do.  Additionally, it contains links to many international professional accounting organizations.
 
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* [http://en.wikipedia.org/wiki/American_Institute_of_Certified_Public_Accountants Wikipedia: AICPA] - This site explains some of the basics about the American Institute of Certified Public Accountants (AICPA), which is the professional organization for CPA's in the United States.
 
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* [http://en.wikipedia.org/wiki/National_Association_of_State_Boards_of_Accountancy Wikipedia: NASBA] - This site explains some of the basics about the National Association of State Boards of Accountancy (NASBA), which is the umbrella group of state boards of accountancy.
 
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* [http://www.nasba.org/ NASBA] - The official website for NASBA.
 
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* [http://www.aicpa.org/ AICPA] - The official website for the AICPA.
 
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=Gmat Stuff==
 
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==Introduction==
 
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The GMAT, or Graduate Management Admission Test, is a standardized test designed to measure a candidate's aptitude for graduate management studies.
 
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==Strategy==
 
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Here are a couple of suggestions on basic GMAT-taking strategies:
 
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# '''Study, Study, Study''' - The GMAT claims it cannot be studied for because it simply measures your intelligence.  This is not completely true.  One helpful suggestion is to study for 20-25 hours a week for 7 or 8 weeks; this will make a difference.
 
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# '''Familiarize Yourself With the Test''' - Become familiar with the test.  You could start by taking a practice test on MBA.com so that you have a starting point from which to benchmark performance.  Also, most GMAT preparation books, Kaplan for example, include examples of each section with practice problems.  This will help you to understand the kinds of questions that are asked and the correct answers to those questions.
 
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# '''Learn Test-Taking Strategies''' - After familiarizing yourself with the exam, focus on test-taking strategies.  The Princeton Review book is a good resource for learning what kinds of strategies are useful.  This will help you know how to attack the test and understand some of the tricks the test writers use.  One of the best strategies is to focus a little more on the verbal section.  It is very difficult to set yourself apart in the math section (most likely due to the quantitative skills that GMAT takers may have).  However, a higher score in the verbal section will really skyrocket your overall score.  With a little bit of extra time here, you can really learn how to attack the verbal questions.
 
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# '''Take Practice Tests''' - This is where you should devote a significant portion of your time.  One source suggests taking between 8 to 10 practice tests.  MBA.com has realistic tests that you can take multiple times without seeing too many repeat questions.  One great place to find practice tests is 800score.com, which is an affordable, helpful resource.  It costs around $40.  800score.com contains some typos and errors, but it contains a lot of information and some very difficult practice tests.  One person who used this website admitted that scores from practice tests were generally much lower than on MBA.com and actual tests.  One of the most valuable things to learn from 800score.com's tests is time management.  The math sections for these practice tests are more challenging, and hence you may not finish in the time limit.  Time management is critical for performing well on the GMAT.  Additionally, doing lots of practice problems really help.
 
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# '''Sit for the Test''' - One former test taker commented, "When I was taking the test, I chose an answer and then realized I had forgotten to take the square root to calculate the final answer.  I spent the entire test trying to win a mental battle with myself.  When I took a break between the math and verbal sections, I told myself to let it go and focus on making up for any deficiencies on the back-end.  Before deciding to report my scores, I was tempted not to because I knew I had missed an easy question.  I'm glad I decided to report my score, because I did well.  "  One thing to keep in mind is that not all questions are counted (about 1/3 aren't counted in your final score).  That means, if you miss a question, don't worry about it.  Just focus on doing well on the remainder of the test.  You can definitely make up for one missed question.  If you're lucky, that question won't even be counted!
 
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# '''Report Your Scores''' - After the test is over, make sure to report your scores.  Even if you are worried about one question that you missed, report your scores because it is hard to gauge personal performance on the actual test.
 
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==GMAT Facts==
 
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* You can register to take the GMAT at www.mba.com.
 
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* The closest testing center to Provo is in Draper, Utah.
 
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* The cost to take the GMAT is $250 globally.
 
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* Your GMAT score is good for five years.
 
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==Study Resources==
 
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* The internet has several resources for preparing for the GMAT.
 
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** MBA.com
 
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** 800score.com
 
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** kaplan.com
 
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** veritasprep.com
 
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* The BYU library had study material available to use on their computers (on first floor in the business section).  I believe they had the entire Kaplan course that you could study in the library.
 
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* Many second-hand stores such as Deseret Industries have GMAT prep books.  However, be careful to note the year the book was published.  The GMAT evolves over time.  Therefore, saving $40 and studying from a book that was published in the 90's might not be ideal.
 
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* BYU also has a GMAT prep course that is held on campus.
 
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==Suggestions from Past Test Takers==
 
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Several Prep Track students have taken the GMAT and offer their advice to future test takers.  The following are suggestions from these past test takers:
 
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* [[How I increased my GMAT score 180 points in 8 days]].
 
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* [[If I had to take the GMAT again]]
 
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==External Links==
 
−
For additional information, take a look at the following websites:
 
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* [http://www.mba.com MBA.com] - The Official GMAT Web Site, which includes registration and other information about the exam.
 
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* [http://en.wikipedia.org/wiki/Graduate_Management_Admission_Test Wikipedia: GMAT] - This site explains the individual sections of the test.
 
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* [http://800score.com/ 800score.com] - This site offers an affordable set of test preparation materials and resources.
 
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* [http://www.gmac.com/gmac Graduate Management Admission Council] - The Graduate Management Admission Council manages the exam.
 
−
* [http://ce.byu.edu/cw/testprep/gmat.cfm BYU GMAT Prep] - This is the link to the BYU GMAT prep course.
 

Revision as of 10:44, 26 August 2015

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

Studentstudying.jpg

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

Teachingprofessor.JPG

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 amounts of pressure, (3) a different standard of living, (4) relocating to a new place, and (5) future uncertainty about your career. Recognize that being a doctoral student carries significant pressure for most individuals as they try to learn a tremendous amount of material in a short period of time. Having a supportive spouse and/or family can help alleviate a lot of this stress. Before entering the program, make sure you have discussed what the program will entail in terms of time commitment and work so that you and your spouse are both in agreement to achieving success, however the two of you define success. It's also helpful to understand the benefits of time schedules in a Ph.D. program. During semesters of coursework, a Ph.D. student will be quite busy during the semester but then relatively less busy during breaks. These breaks offer great opportunities for family vacations and other recreational opportunities.


Special Suggestions for Candidates without Prior Work Experience

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

Should I try and earn the CPA Certification?

Here is a list of some questions that you might want to think about when applying to programs: 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. For academics, there are different benefits for having the CPA designation. One benefit of earning your CPA is enhanced credibility in the classroom. If you do not attain much professional experience, students may doubt your credentials for teaching a course. Having earned the CPA can help you earn credibility. In addition to credibility, some schools want you to have professional certifications, in particular, schools that are more teaching oriented. Also, receiving the CPA designation is probably more important for those with research and teaching interests in audit and/or tax. An additional benefit is that academics with the CPA certification may be able to better secure consulting opportunities in the profession than academics without the certification. Having a CPA will also give you credibility with practitioners. Additionally, if you ever decide to leave academia, this is a helpful certification for employment.

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 can be a hassle. It will likely be quite expensive, in terms of opportunity costs (e.g., time you could spend working on other tasks). 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.

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.

The technical skills and institutional knowledge you acquire may be dated 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.


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