Competencies developed by the accounting education vis--vis

Competencies required by the accounting industries: A gap analysis

A Research Paper

Presented to
The Faculty of the College of Accountancy and Management
MANILA TYTANA COLLEGES
Pasay City

In Partial Fulfillment
Of the Requirements for the Degree
BACHELOR OF SCIENCE IN ACCOUNTANCY

Natasha Kim V. Conlu

Settie Jamairah B. Derogongan
Joshua B. Enolva
Angela Venizze Pablo
Jenis Villanueva
Angelika Ruth Tamar B. Zafra

CHAPTER 1
THE PROBLEM AND ITS BACKGROUND

Introduction
Accounting opens doors in every kind of business coast to coast. It can give you the
foundation you need to go on and become a CPA. It can prepare you to become a partner in an
accounting firm, to pursue a career in finance or corporate management, to work in government,
or even to become an entrepreneur. In fact, no matter what you decide to do, having an
accounting background can open doors wide. Accounting profession is rapidly increasing in the
Philippines. There are a lot of board passers who are seeking different field of professions.
Auditing firms is there, public accountant, government sector of accounting and some are in
academe. Accountancy is not an easy profession as it is said. This is not an easy job that a person
can get in easy go lucky manner. In short, accountancy profession is hard as it is.
Accounting education is so important that its economic effects are indescribable and the
result of which is like a path that leads to the advancement of the management of the society
and economic development. The gradual perfection of accounting in education and as a
career started decades ago. Over time many changes in social-economic factors and in
technology has put the teachers and those working in the field under pressure to overcome the
new needs.
Due to the rapid increase of the industrial companies in the Philippines, many companies
needed a better financial management to their company to best maintain their status. Due to this,
many accountant are needed in the field of economic factors. Many accountant student are
needed to be well known about the different knowledge of accounting. Whether the it is in the

field of private or public accounting, or government or academe sector. Each graduate student
must have a solid foundation about their profession. While they are still in the study mode, they
must have a great foundation and eagerness to learn the different principles of accounting.
Through this research, the researcher wants to find answers to this problems. The first
stated problem of the research is whether there is a perceive gap between accounting education
and accountant needed by the private sector, public sector, and government sector and academe
sector. This problems are the variables that push through the research to find more answers about
the accounting education versus the accounting profession.
The research will use the quantitative and descriptive method of research with the use of
surveys and questionnaire. And the research will be using the purposive sampling technique and
will select individually according to the criteria cited. Thus the researcher which are third year
student will conduct the said study.

Background of the Study

Yucel et al. point out that accounting is one of the most important sciences in today's
business market. Thus, global financial markets pinpoint the need for clear reliable accounting
information, which depends, in the first instance, on the output of accounting education process
in universities (as cited in Sawalqa & Obaidat, 2014).
According to the Section 4 of CHED Memorandum Order No. 3 Series 2007,
accounting education program needs to go beyond the traditional approach. This approach
emphasized transfer of knowledge, with learning defined and measured strictly in terms of
knowledge of principles, standards, concepts, facts and procedures at a given point in time.
Increased emphasis needs to be placed on a set of professional knowledge, professional skills,

and professional values, ethics and attitudes broad enough to enable adaptation to constant
change. Individuals who become professional accountants should have a constant desire to learn
and apply what is new. Hence, there is a need to ensure that professional accountants achieve an
agreed level of competence. The Commission, therefore, needs to set high standards in terms of
competencies developed by the accounting education.
In the Article of Michael Cohn (2013) entitled Accounting Education Needs to Bridge RealWorld Skills Gap, he stated that the Institute of Management Accountants (IMA) and the
American Accounting Associations Management Accounting Section (MAS) Curriculum Task
Force worked to develop the curriculum to bridge what they perceive as a widening gap between
the skills currently provided in accounting education to students and those required in practice on
the job. The task force came up with three recommendations, namely, (1) accounting education
should be reoriented to include a greater focus on providing long-term career skills, (2) the
knowledge, skills and abilities of an accounting education should be taught so they emerge as
competencies integrated within and between each other, and (3) the accounting curricula should
focus on how accountants add organizational value in a variety of organizational settings. The
task force essentially suggested that the goal of accounting education should focus on adding
value to an organization.

One of the reasons why the researchers are interested in this study

is that the accounting standards and principles are changing everyday. It is simply impossible to
follow them because of these changes. Conversely, educational standards do not respond to
professional standards very often. Another reason is that as future accountants, the researchers
wants to know if the skills and knowledge that they will acquire in their undergraduate program
will be useful for them to be competent in the future.

One of the reasons why the researchers are interested in this study is that the accounting
standards and principles are changing everyday making it impossible to be followed without the
necessary training and seminars. As a result, competencies developed by the accounting
education might not respond to the competencies required by the accounting industry. Hence, the
study aims to know
Moreover, as future accountants, the researchers want to know if the competencies they will
developed during their undergraduate program will be the same competencies once they start
working in different accounting sectors.
The prospective respondents are the accounting practitioners from the different
accounting areas, namely, public, private, government, and academe.

Conceptual Framework

Theory of Performance
The Theory of Performance (ToP) develops and relates six foundational concepts to form a
framework that can be used to explain performance as well as performance improvements. To
perform is to produce valued results. A performer can be an individual or a group of people
engaging in a collaborative effort. Developing performance is a journey, and level of
performance describes location in the journey. Current level of performance depends holistically
on 6 components: context, level of knowledge, levels of skills, level of identity, personal factors,
and fixed factors. Three axioms are proposed for effective performance improvements. These
involve a performers mind set, immersion in an enriching environment, and engagement in
reflective practice ( Elger, 2002).

Social Efficiency Ideology

Schiro emphasizes that the Social Efficiency Ideology (SE) believes that the initial purpose of
schooling is to meet the needs of society. Curriculum developers and educators who adopted the
Social Efficiency Ideology view the curriculum as an instrument that prepares students to be
contributing members of society and support the view that schools are places where students are
prepared for a meaningful adult life. The central concern of the Social Efficiency Ideology is
scientific instrumentalism. This concern asserts that curriculum should be developed in a
scientific manner and that curriculum development should be an instrument for fulfilling the
wishes of a client. The curriculum developers first job is to determine the needs of society his
client. The things that will fulfill these needs are called the terminal objectives of the curriculum.
The developer must then find the most efficient way of producing a product, the educated man,
who meets the terminal objectives of the curriculum and thus fulfils the needs of society (As
stated by Marulcu & Akbiyik 2014).
Scholar Academic Ideology
Schiro emphasizes that curriculum developers working within the SA Ideology view curriculum
creation from the perspective of the academic disciplines. They assume a loose equivalence
between the academic disciplines, the world of the intellect, and the world of knowledge. The
central task of education is taken to be the extension of the components of this equivalence. They
are to be extended both on cultural level, as reflected in the discovery of new truth, and on the
individual level, as reflected in the enculturation of individuals into civilizations accumulated
knowledge and ways of knowing (As stated by Marulcu & Akbiyik 2014).
Social Reconstruction Ideology

Schiro emphasizes that Social Reconstruction position (SR), represents a social perspective. It
assumes that society is fragile and therefore should be reconstructed. In this reconstruction
process educators and schools are seen as active agents of this transformation. Social
Reconstruction developers assume that education of the masses is the social process through
which the society is to be reconstructed. These developers have supreme faith in the ability of
education, through the medium of curriculum, to educate students to understand the nature of
their society in such a way that they will develop a vision of a better society, and then act so as to
bring that vision into existence (as stated by Marulcu & Akbiyik 2014).

Conceptual Framework

The study is to examine perceived gap between accounting education and accounting
practice. The researchers will adapt the framework by Bui and Porter (2010) to investigate the
phenomenon of expectation-performance gap in terms of evaluating three contributing factors
specifically i.e. expectation gap, performance gap and constraints gap. Bui and Porter
(2010) validated the hypothesized structure of the framework in an exploratory case study
conducted in a New Zealand University.

Figure 1. Research Paradigm

The framework shows different competencies as perceived, expected and desired by

different persons specifically by the educators and employers. The gap is possible between
accounting education and accounting practice because of the differences in the expectations of
accounting academics and employers; students perception of accounting programmes and the
profession, and their ability and aptitude; institutional constraints and; the ineffectiveness of
pedagogical activities (Bui and Porter, 2010).
Performance gap, constraints gap and expectation gap comprise the expectationperformance gap. The independent variables would be the actual competencies as perceived by
employers, competencies reasonably expected by educators, competencies desired by educators
and competencies desired by employers because these variables will be manipulated in order to
observe the effect on educators performance, students aptitude and attitude and institutional
constraints. These variables are set to determine the gaps.

To elaborate further, expectation gap lets the one understand which skills should be
developed in accounting students from the employers perspective and regarding which skills
accounting academics hold a dissimilar attitude to employers expectation in terms of
development in students. Constraints gap reveals the constraints that are limiting the ability of
the academic community to perform effectively while developing skills in students. Performance
gap represents the differences in the level of skills competence that educators can reasonably
expect accounting graduates to acquire by the time they graduate and those employers perceive
the accounting graduates should possess when they enter the profession (Bui and Porter, 2010).
The conceptual framework and its variables would be needed to know the perceived gap between
accounting education and accounting practice in the Philippines.

Statement of the Problem

The study aims to determine the perceived gap between accounting education and
accounting practice in Metro Manila.

Specifically, it attempts to answer the following queries:

1. What are the perceived gap between accounting education and accounting practice
needed by the private sector?
2. What are the perceived gap between accounting education and accounting practice
needed by the public sector?
3. What are the perceived gap between accounting education and accounting practice
needed by the government sector?

4. What are the perceived gap between accounting education and accounting practice
needed by the academe?
Hypothesis
Based on the problem of the study, the research hypothesis will be formulated and tested
at the level of significance of 0.05:
There is no perceived gap between accounting education and accounting practice in
Metro Manila

Significance of the Study

This study will intend to know the gap between the competencies developed by the
accounting education and the competencies required by the accounting industries in Metro
Manila, Philippines. It is necessary to search for a plan in order to fill the gap in the
competencies developed by the accounting education and the competencies required by the
accounting industries to prepare the students in facing the challenges in the new state of the
global business (Mashayekhi & Mohammadi, 2014), the study will be of great benefit to various
stakeholders:

To the educators, to obtain guidance on what gap they need to fill between education and
practice in accounting. This study will enable them to change or retain their teaching
methods and to practice their students on skills the businesses need. This will serve as a
basis on what competencies should be enhanced that will make employment possible for

students. The educators would be informed on the differences on what accounting

education develops and what accounting profession requires. Through this, they will be
able to help the students acquire the competencies depending on the market needs.

To the students, to be informed about the changes they need to adapt to accommodate
requirements and opportunities their profession needs. They will be able to develop
appropriate and relevant competencies needed in the profession not yielded in accounting
education. They will be aware as early as now on what competencies they need to
develop in order for their employment to be possible.

To Manila Tytana Colleges, to provide deep insight with evidence to interest the
accounting educationist and to make policy reforms to enhance students chance of
employability. This would contribute to the importance of accounting research in
developing new thoughts, but also to prepare their students in the practice.
To the future researchers, to perceived a good thesis topic to study and develop. This can
serve as a reference to future studies related to accounting education, accounting
practices, accounting industry, competencies and gap.

Scope and Delimitation

The study will be limited on the perceived gap between accounting education and
accounting practice in Metro Manila
The researcher will going to conduct a survey to know the gap between academics and
the different sectors ( government, public, private and academe ) for the university and colleges

to know what are the needs of the industry for an accountancy graduate.
Definition of Terms
The following terms were conceptually and operationally defined for better understanding of
the readers.
1. Accounting Sectors - This includes public , private , government and academe for the
practice of accounting profession
2. Constraints gap: exists as an exacerbating agent to performance gap, representing the
factors that are assuming to limit the ability of accounting educators (pedagogical
practices) in the development of generic skills to students i.e. students perception of
accounting programmers and the profession, and their ability and aptitude; and
Institutional constraints.
3. Expectation gap: reflecting the perceptual differences in the expectations of accounting
academics and employers i.e. the differences in the expectations of educators and
employers regarding the skills that should be acquired by students for accounting career
development.
4. Performance gap: reflecting ineffectiveness of teaching practices i.e. perceptual
differences in the level of skills that educators, given the constraints, can reasonably
expect accounting students to acquire by the time they graduate and those skills which
employers perceive the accounting graduates should possesses when they enter the
profession.

CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the foreign and local literature as well as studies gathered and
synthesized from various libraries and websites. This also includes ideas, conclusions, and results
that will help to provide the researchers a better understanding of the study.
Local Literature
Republic Act No. 9298 states that, the practice of accountancy shall include, but not
limited to, the following: (1) Practice of Public Accountancy, (2) Practice in Commerce and
Industry, (3) Practice in Education/Academe, and (4) Practice in the Government. As a matter of
fact, single practitioners and partnerships for the practice of public accountancy shall be
registered certified public accountants in the Philippines. Public accountants usually offer three
kinds of services, namely auditing, taxation and management advisory services. However, in
private accounting, the major objective of private accountant is to assist management in planning
and controlling the entitys operations. It also includes maintaining the records, producing the
financial reports, preparing the budgets and controlling and allocating the resources of the entity.
An accountant is not simply expected to keep records and produce financial reports. Likewise in
government accounting, it encompasses the process of analyzing, classifying, summarizing and
communicating all transactions involving the receipt and disposition of government funds and
property and interpreting the results thereof (Valix, et al, 2015).
An accountant is relevant for decision-making. The accountant makes decisions as
business planner, economic forecaster and financial analyst as part of the management team
involved in strategic planning, budgeting and control. Tipgos (2014) added some
recommendations for the accounting profession in the Philippines, namely, (1) professionalize
the teaching profession in accounting and business, (2) academic accounting needs full-time
professional accounting and business educators, and (3) encourage/support full-timers less part-

timers. The accountants wear many business hats. It is important that accountant requires more
knowledge and skills by retooling, attending conferences, seminar-workshops, and training
programs (Manuel, 2014). Hence, the accounting profession in the Philippines needs to support
both practice and academic accounting for its own sake.
The primary goal of accounting education is to produce competent professional
accountants capable of making a positive contribution over their lifetimes to the profession and
society in which they work. In the face of increasing changes that they will meet later as
professional accountants, it is essential that students develop and maintain an attitude of learning
to learn, to maintain their competence later as professional accountants (Section 12 of CHED
Memorandum Order No. 3 Series 2007). In addition, professional accountants must identify the
core competencies considered necessary to perform effectively in todays rapidly changing
environment.

Foreign Literature
Accounting education is so important that its economic effects are indescribable and the
result of which is like a path that leads to the advancement of the management of the society and
economic development (Mashayekhi & Mohammadi, 2014). It equips the recipients with
saleable skills that prepare them for dual jobs. Graduates of the program can either teach
accounting subjects or serve as accounting officers in various public and private firms. In higher
education, professors can influence students by promoting the skills businesses are seeking in

future employees and helping students achieve these skills through course activities. Professors
can also influence the choices students make through advising relationships.
Accounting academics are not working in isolation. They too are bound by the contextual
limitations, which affect their ability to improve skills development in their students (Parvaiz,
2012). They have a responsibility to help prepare students to make the transition from unfocused
high school seniors to contributing members of a professional service team. It is necessary upon
accounting educators to prepare students to be competitive in the unfolding economic future.
Azih (2013) added that the technological change in the storage and retrieval of accounting
information in organizations has affected the demands from accounting education graduates,
which involves adequate knowledge of the skills in storage and provision of information to the
interested users in a paperless office. Therefore, technical skills are necessary but not sufficient
for a successful accounting career that includes an individuals selection, retention and
advancement (Kermis & Kermis, 2011).
According to the Partnership for 21st Century Skills (2008) and American Management
Associations (AMA) 2010 survey, many employers believe that higher education is failing in its
role to adequately develop needed skills in students.
Target Jobs in UK (2015) reported that sectors are seeking for accountants that can
demonstrate:

understanding,

innovation,

communication,

commercial

awareness,

and

enthusiasm. The other skills recruiters are looking for unique requirements, some of which
accountants might not have considered. For example, colorful personalities (BDO), achievement
of goals (Deloitte), credibility (Grant Thornton), commitment to hard work and intensive study
(Dixon Wilson) ability to be a catalyst, someone who inspires and motivates others (EY),
Integrity (PwC), and resilience (KPMG).

Skills are capabilities, which include knowledge, professional values, ethics and attitudes
to perform accounting and other tasks required from accountants. These skills are acquired from
the total effect of the accounting program, specific courses, practical experience and continuing
professional education. As cited by Chaker and Abdullah (2011), International Accounting
Education Standards Board (IAESB) (2010) listed the skills required by professional accountants
under five groupings, namely, (1) intellectual skills, (2) technical and functional skills, (3)
personal skills, (4) interpersonal and communication skills, and (5) organizational and business
management skills. Accountants need intellectual skills to make decisions, exercise good
judgments and solve problems. Technical and functional skills are skills specific to accountancy
as well as general skills. Personal skills are skills relate to ability, attitude, capability that an
individual accountant has. Interpersonal skills are skills that enable an accountant to work with
others for the benefit of the organization. With these skills, an accountant can influence,
motivate, resolve conflict and delegate tasks to his/her team members to achieve the goals of the
organization. In order to achieve that, the accountant must have good communication skills.
Communication skills are skills that enable an accountant to convey, discuss, listen and defend
his/her view, orally and in writing and in either formal or informal settings. Organizational and
business management skills are important in managing a business organization in which an
accountant is a key member of the management team. It is important for the accountant to
understand all aspects of organization including its behavior.
To keep up with the challenges, the CPA Vision Project (2011) of the American Institute
of CPAs (AICPA) addresses the issue facing the gap of the profession. They identified five core
values as well as core services. The five core values are: (1) continuing education and life-long
learning, (2) competence, (3) integrity, (4) attuned to broad business issues, and (5) objectivity.

The core services are: (1) assurance and information integrity, (2) technology services, (3)
management consulting and performance management, (4) financial planning, and (5)
international services. Because of this, these several comments were gathered for this vision
from the different accounting sectors. From education, the vision gives educators a guide to
the marketplace. In the same sense, from the government By realizing this Vision, CPAs could
become more integral to the policy making process. CPAs could be more involved in activities
related to reinventing government and making government serve its constituents in a more
effective and efficient manner. From the public practice, Many successful firms have always
done thisother firms that have been successful in the past and lastly from business and
industry, I see CPAs in industry becoming integral members of the leadership business team,
which identifies business opportunities and participates in the decision-making process, as
opposed to performing supporting staff roles by limiting the CPAs function to analyzing
alternatives.
According to the CPA Vision Project (2011), core competencies are ways to sustain a
competitive and differential advantage in the marketplace. It includes the following: (1)
Communications and Leadership Skills -able to give and exchange information within
meaningful context and with appropriate delivery and interpersonal skills. (2) Strategic and
Critical Thinking Skills -able to link data, knowledge, and insight together to provide quality
advice for strategic decision-making. (3) Focus on the Customer, Client and Market -able to
anticipate and meet the changing needs of clients, employers, customers, and markets better than
competitors. (4) Interpretation of Converging Information -able to interpret and provide a
broader context using financial and non-financial information. (5) Technologically adept -able to
utilize and leverage technology in ways that add value to clients, customers and employers.

Local Studies
Accounting is the language of business and in meeting the demands of the accounting
profession, it is important for students to have a strong foundation of the necessary knowledge
and skills, which are acquired through education. A number of researchers tackle employability
skills on the premise that having high levels of these skills translate to effectiveness in the
workplace (Leonardo, et al, 2012). With the increasing demand for accounting professionals,
firms are counting on universities to provide graduates equipped with technical know-how and
critical English skills. This explains heightened employer concern over the business English
skills of new hires, prompting questions on adequacy and relevance of English taught in
universities. Hence, the study of Tenedero and Vizconde (2015) explores into English skills
necessary for new accountants in audit firms. Human resource directors of top audit firms in the
Philippines describe the relevant skills in the workplace tasks of entry-level employees. Findings
present a model of key English skills that provide leverage to accounting graduates in the
Philippines.
In the study conducted by Katigbak et al. (2014) results of the study showed that there are
no significant differences between academicians and practitioners regarding the relevance of
skills and importance of courses and off-school learning activities acquired through education
with the development of an accounting professional. Overall, results indicated that a gap does not
exist between accounting education and accounting practice in Metro Manila.
A study was conducted to determine if the students ethics differ in the academic and
business setting. The results of the study conducted by Cheng (2012) showed that students
enrolled in the top five performing school are ethical in both the academic and business setting.

Furthermore, there is no significant difference with the ethical behavior in the academic setting
of respondents from different schools. It also showed that there is a significant difference with
regards to the ethical behavior of the respondents in the business setting.

Foreign Studies
Educational institutions prepare their students for real life by equipping them with up-todate information and necessary skills. Several studies were conducted to test the skills of
accounting students in preparation for the business world. One of which is the study conducted
by Uyar and Gungormus (2011), wherein it has two dimensions: skills dimension and
professional knowledge dimension. The results showed that all skills except knowledge of
accounting software are perceived as important or very important for the auditing profession.
Among the most important items are ethics, teamwork, and honesty. Other important attributes
mentioned with these vital attributes of an auditing professional are the following: continuous
learning, communication skills, analytical and critical thinking, stress and time management,
self-motivation, and flexibility.
Another study conducted by (Zureigat, 2015) indicated that the skills can be arranged
based on their importance beginning with the most important skills are as follows: (1) critical
reasoning and thinking, (2) problem and decision analysis, (3) oral presentation and
communication, (4) team working skills, (5) business ethics, (6) time management, (7)
negotiation skills, (8) written communication, (9) computer skills, (10) planning skills, (11)
leadership, and finally (12) internet research skills. Furthermore, analysis showed that employers
do not consider different skills at the same level of importance, it has been evidenced that the

needed skills for accounting graduates differs based on the nature of the job that they want to
engage with either accounting or auditing.
According to Shamsuddin et al. (2015), the unemployment issues are closely related to
lack of relevant capabilities, skills, abilities, and personal qualities. Generally, the current
educational system and practices are more exposed to theory concept rather than practical
learning. As a result, graduates lack creative thinking skills, lacking in analyzing data, weak
written and oral English proficiency and lacking in interaction with society. Usually, job
opportunities will be waiting for those who are competent. This means, relevant capabilities,
skills, abilities, and personal qualities are taken into serious consideration to enable those
graduates to be accepted to work.
In addition, the analysis of (Hodge & Lear, 2011) also showed significant differences
between faculty members and U.S. students in the areas of management, time management,
personal management, critical thinking, problem solving, writing, speaking, and leadership and
between faculty members and international students in the areas of time management, personal
management, critical thinking, writing, speaking, listening, ethics, and the value of a secondnd
language.
Majzoub & Aga (2015) findings show that while, theoretically, the accounting curriculum
incorporates the competencies stipulated by the IAES, in practice, there is a large gap in how the
various stakeholders assess the proficiencies of fresh accounting graduates in these
competencies. Alarmingly, employers believe that accounting graduates lack the required
technical competencies for the job market, while professors, department heads, and students
believe that fresh graduates have acquired the required competencies by the time of graduation.

Mashayekhi and Mohammadi (2014) tried to identify the challenges that accounting
education brings in educating students with regard to possessing knowledge and skill at a
competitive level in response to the markets needs. These challenges justify why the competitive
skills of the accountants must improve. Accounting education in its current situation and the skill
level of the graduates of the field is not parallel to what is needed in the dynamic atmosphere of
the worlds trade. That is why it is necessary to search for a plan in order to fill the gap between
adoptive knowledge and skills and the expected knowledge and skills so that it prepares the
students facing the challenges in the new state of the global business. These accounting
education challenges are scientifically investigated and a strategic plan is proposed in order to
overcome them. The issue is addressed first by considering the curriculum of prominent
universities around the world. Questionnaires were used to evaluate the current Iranian
curriculum for the accounting major at the master level. Accounting graduates are expected to
have basic skills of the educational institutes and the professional societies. Therefore,
addressing these issues in order to prepare graduates for entering the profession is a priority.
Other studies like Ngoo et al (2015) aims to bridge the gap of soft skills and technical
skills between employers and accounting graduates in Malaysia. The method used in analyzing
the relative importance of each attributes is constant sum allocation method. The study showed
that employers demand a more independent and leadership type graduate instead of a follower.
The findings provide better information in bridging the skills gap between employers and
graduates. Additionally, graduates are urge to adjust themselves in meeting the market needs of
the increasing important for better job opportunities. The competitive labor market required the
collaboration and understanding between firms and universities. In response, universities could

develop curriculum in nurturing leadership prone graduates under the deliverance of wellinformed academics on the current market needs.
According to Sawalqa and Obaidat (2014) in Jordanian universities results showed that
accounting students are satisfied with the current accounting education model, but this
satisfaction is not as required. Therefore, to bridge the gap between the current status of
accounting education programs and the students expectations, accounting departments in
different universities should add all the necessary courses to their plans. In addition, many
generic skills should be rooted in accounting education curricula such as computer skills,
decision-making skills, time management skills, problem solving skills, information collection
skills and analytical skills. They added that accounting education curricula seem to lack the
necessary fieldwork and training programs. Consequently, accounting departments must give
more emphasis to the fieldwork and training programs. Accounting departments must also offer
all the relevant accounting software programs along with scientific research methods in
accounting to their students. In addition, using the current technological tools (e.g. web-based
learning) will increase the efficiency of accounting students.
Yucel et al. (2012) determined the expectations of the accountant candidates from the
accounting education and to see to what extent higher education institutions have already met
these expectations. The results showed that accounting education at the higher education
institutions was found out to be inefficient due to responses received from the students. They
obtained valuable opinions and suggestions in terms of what should be altered within the
accounting education system in order to increase accounting education quality. They also added
that high capacities in accounting courses and lack of sufficient education equipments limit the
practices towards to profession in accounting education. The other important problem has been

found in this research is the lack of introduction of professions to the students. Lack of necessary
information about the requirements and the scope of the accounting profession, students have
difficulties to make their career plans.

Relevance to the Present Study

The primary goal of accounting education is to produce competent professional

accountants capable of making a positive contribution over their lifetimes to the profession and
society in which they work. In the face of increasing changes that they will meet later as
professional accountants, it is essential that students develop and maintain an attitude of learning
to learn, to maintain their competence later as professional accountants (Section 12 of CHED
Memorandum Order No. 3 Series 2007). In addition, professional accountants must identify the
core competencies considered necessary to perform effectively in todays rapidly changing
environment.
Accounting education is so important that its economic effects are indescribable and the result of
which is like a path that leads to the advancement of the management of the society and
economic development (Mashayekhi & Mohammadi, 2014). It equips the recipients with
saleable skills that prepare them for dual jobs. Graduates of the program can either teach
accounting subjects or serve as accounting officers in various public and private firms.
The foreign and local literatures and studies cited are of great help to the researchers. It
presents facts and other literatures as well as results of the related studies conducted. It They
includes the competencies developed by the accounting educationsignificantly affect the research

for it gives the researchers the idea that about the gap in accounting education from the different
perception from the reviewed studies and literatures both local and foreign setting.
Several studies showed an existing gap in the accounting education from the results of
their studies (e.g. Yucel et al., 2012; Ngoo et al., 2015; Majzoub & Aga, 2015; Shamsuddin et al.,
2015). Yucel et al. (2012) stated that accounting education at the higher education institutions
was found out to be inefficient due to responses received from the students. Also, Ngoo et al
(2015) mentioned that employers demand a more independent and leadership type graduate
instead of a follower. Moreover, Majzoub & Aga (2015) study showed that there is a large gap in
how the various stakeholders assess the proficiencies of fresh accounting graduates in these
competencies. Employers believe that accounting graduates lack the required technical
competencies for the job market, while professors, department heads, and students believe that
fresh graduates have acquired the required competencies by the time of graduation. In addition,
according to Shamsuddin et al. (2015), the current educational system and practices are more
exposed to theory concept rather than practical learning. As a result, graduates lack creative
thinking skills, lacking in analyzing data, weak written and oral English proficiency and lacking
in interaction with society.
A number of researchers tackle employability skills on the premise that having high
levels of these skills translate to effectiveness in the workplace (Leonardo, et al, 2012). This
explains heightened employer concern over the business English skills of new hires, prompting
questions on adequacy and relevance of English taught in universities. Hence, the study of
Tenedero and Vizconde (2015) probed into English skills necessary for new accountants in audit
firms. In addition, Sawalqa and Obaidat (2014) stated that many generic skills should be rooted

in accounting education curricula such as computer skills, decision-making skills, time

management skills, problem solving skills, information collection skills and analytical skills.
On the other hand, some researchers reported that a gap does not exist (e.g. Katigbak et
al., 2014; Cheng, 2012). Katigbak et al. (2014) indicated that a gap does not exist between
accounting education and accounting practice in Metro Manila. Also, there are no significant
differences between the perceptions of academicians and practitioners regarding the relevance of
skills and importance of courses and off-school learning activities acquired through education
with the development of an accounting professional. Moreover, Cheng (2012) there is no
significant difference with the ethical behavior in the academic setting of respondents from
different schools.
As a conclusion, the studies and literatures are worthy of being part of the study for they
give rise on the objectives of the researchers which is to determine the perceived gap of the
different accounting sectors about the accounting education in Metro Manila.

CHAPTER III
METHODS AND PROCEDURE

This chapter outlines the methodology that will be used in conducting the study, the
research design, the research instrument and techniques that will be used to gather data and
information that will be needed for the study. The procedures to gather are also mentioned in this
chapter and the statistical treatment that will be used. This chapter explains how the researchers
will come up with the research proper and how researchers will be able to detail the issues of the
study.

Research Design

This study will utilize the quantitative and descriptive method of research. As widely
accepted, the descriptive method of research is a fact-finding study that involves an adequate

collection, organization, and presentation of data and an accurate interpretation of findings

(Altares, et. al, 2012). Survey and questionnaire will be used to determine the perceptions of
academics and practitioners about accounting education. Through the survey method, the
researchers will be able to know the importance academics and practitioners place on a selection
of management accounting techniques, skills and characteristics based on their perception for the
aim of aligning skill development of graduates to the challenges of the global work environment.
The questionnaires also collected background information about respondents, including gender,
details of employment, etc.
The quantitative research approach will also be utilized on the research study since
numerical and secondary data will be used by the researchers. According to Dr. Ulrike Hohmann
(2005), the ingredients of quantitative research are compose of certain characteristics (variables)
and endeavouring to show something interesting about how they are distributed within a certain
population. The nature of research will determine the variables in which the researchers are
interested. A variable needs to be measured for the purpose of quantitative analysis. Quantitative
data in the study include the ratings based on the perceptions of the respondents on the data
provided in the questionnaire.

Sample and Sampling Technique

This study will make use of purposive sampling technique. It is a form of non-probability
sampling in which decisions concerning the individuals to be included in the sample are taken by
the researcher, based upon a variety of criteria which may include specialist knowledge of the
research issue, or capacity and willingness to participate in the research (Oliver, 2006).The

samples of the study will be academics and practitioners in the accounting industry. When taking
the sample from the population, the researchers will set at least 3 criteria that will be used in the
study. Fifteen (15) Academic respondents will be chosen based on the following criteria: they
should have completed at least three (2) years of teaching accounting subject, they should be
passers of the Certified Public Accountants board examination and they are currently teaching
accounting in their respective colleges and universities. Fifteen (15) Practitioner respondents will
be chosen based on the following criteria: they should have completed at least three (3) years
working either in the public, private or the government industries, they should be passers of the
Certified Public Accountants board examination and they are currently working in their
respective industries.

Research Instrument and Technique

As a source and as a primary reference for data, the researchers will use a designed
Questionnaire for gathering the data that will be needed in the research. The questionnaire that
will be used on the research is an adopted questionnaire which was derived from the study of
L.C. Hawkes, M. Fowler and L.M. Tan in the year 2003 entitled Management Accounting
Education: Is There a Gap between Academia and Practitioner Perceptions? The questionnaire
will be used to gather perceptions between academics and practitioners about the accounting
education in the Philippines. The questionnaire is composed of 3 sections. The first section will
ask about the demographic profile of the respondents. The second section is related on how the
practitioners and academics rate the 21 listed management accounting techniques based on the

importance and the third section is composed of how the practitioners and academics rate the
skills and characteristics of graduates based on importance.
Within the questionnaire, the researchers will use a scale from 1 to 4 to measure the
extent from least important to extremely important based on the perception of academics and
practitioners on the importance of management accounting techniques, skills and characteristics
that a graduate of accounting course should obtain. This will serve as the researchers Scoring
Key; thus will help in the researchers in differentiation and evaluation from the questions
presented in the questionnaire. The scoring key will help the researchers analyze and maximize
the resources they have will gather throughout the study. The instrument will be answered by the
respondents by ticking the box that corresponds to their choices.

Validation of the Instrument

The questionnaire will be validated by the panel of 3 persons where the researchers will
consider the evaluators experience and expertise.

Test for Reliability of the Instrument

The questionnaire will be subjected to content validation and will be subjected to a
certain reliability coefficient using Cron bach Alpha.

Data Gathering Procedure

At the course of the research, the respondents will be selected individually through
purposive sampling technique under non-probability sampling method where the researchers will
make contact with the respondents. After the completion of the research instrument and after

validation, the pilot study will immediately be done to Academics and Practitioners. Then, the
research group will consult a certified statistician to test the reliability of the research instrument
that will be used. Alpha Cronbach will be used by the Statistician to test the reliability and
confirm that the research instrument is reliable for collecting data for the researchers study.

Statistical Treatment of Data

To determine the baseline profile of the respondents in terms of gender, age, company
affiliated, current job title, and number of years employed; Percentage Frequency Distribution
will be used by the researchers. A percentage frequency distribution is a display of data that
specifies the percentage of observations that exist for each data point or grouping of data points.
It is a particularly useful method of expressing the relative frequency of survey responses and
other data. Many times, percentage frequency distributions are displayed as tables or as bar
graphs or pie charts. The process of creating a percentage frequency distribution involves first
identifying the total number of observations to be represented; then counting the total number of
observations within each data point or grouping of data (Altares, et al, 2012).

T-test of Independent Samples will also be used in this study. A t-test asks whether a
difference between two groups averages is unlikely to have occurred because of random chance
in sample selection. A difference is more likely to be meaningful and real if (1) the difference

between the averages is large, (2) the sample size is large, and (3) responses are consistently
close to the average values and not widely spread out (the standard deviation is low). The t-tests
statistical significance and the t-tests effect size are the two primary outputs of the t-test.
Statistical significance indicates whether the difference between sample averages is likely to
represent an actual difference between populations and the effect size indicates whether that
difference is large enough to be practically meaningful.

Standard Deviation. It is used when the mean is the preferred measure of central
tendency. In other words, it is based on the deviation of each score from the mean (Altares et al.,
2012). In the study, standard deviation will be one of the statistical techniques that will be used
to evaluate the ratings provided by the respondents. The formula for the sample mean is:
s=

( Xx )2
n1
Where:
s = standard deviation of a sample
X = sample values
x = sample mean
n = total number of values in the sample

Mean. It is one of the measures of central tendency which attempts to describe a set of
data by identifying the central position within that set of data. It can be used with both discrete
and continuous data, although its use is most often with continuous data. The mean is equal to
the sum of all the values in the data set divided by the number of values in the data set (Altares,

P., Copo, A., Gabuyo, Y., Laddaran, A., Media, L., Policarpio, I., Tizon, H., & Yao, A., 2012).
Mean will be used in the study to get the centrality of the ratings provided by the respondents.
The formula for the sample mean is:
x =

x
n
Where:
x

= sample mean

x = value of each item

n = number of items in the sample

the sum of

A rubric will also be used to determine the level of importance academics and
practitioners place on a selection of management accounting techniques, skills and characteristics
of accounting graduates. A 5-point Scale will be used in the survey. It is a psychometric scale
which will be commonly used through the questionnaire. The choices represent the degree of
agreement each respondent has on the given question. The scale below will be used to interpret
the total responses of all the respondents for every survey question by computing the weighted
mean:
Scale
4
3
2
1

Decision Criteria:

Range
3.51-4.50

Verbal
Extremely

Interpretation
Extremely Useful

2.51-3.50
1.51-2.50
1.00-1.50

Important
Highly Important
Important
Not Important

Highly Useful
Useful
Not Useful

The Statistical Package for Social Science 20.0 (SPSS) will be used to analyze and
interpret the data quantitatively.
The null hypothesis are set to be accepted if the significant value is greater than or equal
to the level of significance of 0.05, otherwise they are rejected.

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