Competency Integration in Accounting Education IMA-AAA Task Force (Raef A. Lawson, Edward J. Blocher, Peter C. Brewer, Jan Taylor Morris, Kevin D. Stocks, James E. Sorensen, David E. Stout, and Marc J. F. Wouters)

Panel Session Participants Moderator: Gary L Sundem, University of Washington Panelists: Raef A Lawson, IMA James Sorensen, University of Denver Susan Wolcott, WolcottLynch and CPA Canada

Task Force Deliverables Manuscript containing a recommended Framework for all accounting majors published: “Focusing Accounting Curricula on Students’ Long-Run Careers: Recommendations for an Integrated Competency-Based Framework for Accounting Education”, Issues in Accounting Education (May 2014). Manuscript in process: “Thoughts on Competency Integration in Accounting Education”. (Update: this paper appears in Vol. 30, No. 3 (August 2015) of Issues in Accounting Education.

Competency Integration: A General Framework for Accounting Education

IMA-AAA Task Force Recommendations Accounting education should be focused on long- term career requirements; The breadth of accounting education should be expanded to include a wide array of organizational settings; Accounting’s value proposition should be broadened conceptually to include strategy formulation and analysis, planning, and execution; Accounting competencies should be taught using an integrated educational pedagogy.

Curricular Integration

Levels of Competency Must Be Achieved Sequentially KnowingIdentifyingAnalyzingPrioritizingAnticipating Demonstrate knowledge in unambiguous situations Identify ambiguous problems and relevant information Analyze relevant information, viewpoints, and alternatives Establish and apply priorities for reaching conclusions Anticipate and adapt to changing conditions Achieve First Achieve Second Achieve Third Achieve Last 7  Deeper Knowledge and More Contextual Complexity

Levels of Competency Integration Accounting Competencies Foundational Competencies Broad Management Competencies Accounting Competency 3 Topic ETopic F Accounting Competency 2 Accounting Competency 1 Topic CTopic D Topic ATopic B

Accounting Competencies Foundational Competencies Broad Management Competencies Communication Quantitative Methods Analytical Thinking & Problem Solving Interpersonal Technology Leadership Governance, Risk & Compliance Additional Core Management Competencies Ethics & Social Responsibility External Reporting & Analysis Financial statement preparation and analysis Taxation: Compliance and Planning Tax implications Assurance & Internal Control Internal and external audit implications Planning, Analysis & Control Screening and preference decisions Behavioral issues Organizational change management Corporate social responsibilities Risk assessment Cost of capital, Capital structure, Real-options analysis Capital Investment Decision-Analysis Example

Implementation Scope and the Levers of Complexity Number of Courses Number of Competencies Number of Professors Number of Learning Objectives Within and Across Competen- cies Areas of Expertise Existing and New Account- ing and Broad Manage- ment

Panel Questions - Integration Opportunities 11 To what extent is the curriculum integrated at your school? What topics could be addressed in an integrated manner? How can one start curricular integration at one’s school?

Panel Questions - Integration Challenges 12  What challenges are there in developing the content needed for more integrated accounting education?  What organizational challenges are there for implementing more integrated accounting education in schools and colleges?

Q&A 13  What are YOUR experiences/ challenges/ successes with curricular integration?