Accounting Curriculum and Information Technology ...

32 downloads 182466 Views 412KB Size Report
have been discussed information technology in globally & locally in accounting curriculums. Hong Kong has identified twenty four issues in information systems.
Accounting Curriculum and Information Technology Content: A Case Study of Selected Accounting Study Programmes in Sri Lankan Universities R.M.S. Bandara & P.M.C. Thilekarathne Department of Accountancy Faculty of Commerce & Management Studies University of Kelaniya Sri Lanka.

Abstract The purpose of this research is to review the comparative weightage given to the information technology (IT) component (measured by credit values of each subject) included in the curriculum of undergraduate accountancy courses in Sri Lankan Universities. Riccio and Sakata (2002) found that IT knowledge block represents 3% to 5% of all knowledge blocks included in an accounting curriculum in Portugal and Brazilian universities. In the last few decades, IT has become a significant catalyst in the role of professional accountants. Therefore accounting professionals must address the rapidly changing accounting environment by gathering the required IT competence through educational programmes. Accountants or any managerial body that are the outcome of the accountancy course should be enriched with the IT knowledge, which is an integral part of the accounting profession in the 21st century. To achieve such an outcome from accountancy degree programmes, the accountancy professionals themselves have the duty to ensure, maintain & improve the quality as well as demonstrate competence and credibility of their services. Therefore accounting courses which are conducted by Sri Lankan universities need to play an important role to generate the quality outcome for the accounting profession. Consequently this research seeks to address the adequacy of the IT component to meet the professional requirements by the Accounting Curriculum in Sri Lankan universities. In the modern world, the Internet provides extensive support for such research. For the present research study, data was gathered through the web and the student hand books relating to the Accounting Curriculum in a few of the main Accountancy Degree Programmes in Sri Lankan Universities & Professional institutions. It is worth noting that the IT knowledge component represents nearly 10% out of all knowledge components included in the Accounting Curriculum. However, the accounting educators should underscore the importance of IT in accounting curriculum and to enrich the professionals with IT before coming 1

to its practice. Future research is necessary to develop the local accounting curriculum to identify the needs of the global accounting profession as well. For this purpose it is important to compare the practicing outcome of such undergraduate accounting courses globally. This research does not envisage providing a detailed review of the subjects due to lack of available data, thus leading to some classification errors. It is obviously imposing the limitation of reviewing the IT competence injected to the undergraduates through the elective or optional courses conducted by the universities. Key wards:

01.

Accounting Curriculum, Information Technology, knowledge, Competency Comparative weightage,

INTRODUCTION The Information Technology (IT) worked as supporting tool in early 21st

century, but today it woks as a strategic weapon in education. It is changing the way people run their existing or new businesses & accountants must prepare to adding values to this new transformations. IT plays a vital role in the Accounting curriculum; “It change everything” (Bob Elliot) indeed it does. IT changes have created many opportunities for the accounting & other professions such as information development, information system design & evaluation of information system management & control etc. (Sikidmore, 2002).Information technology requirements in accounting profession are more & more intense. Therefore it has created a number of important challenges that accounting profession must address. To address such challenges accounting curriculum must support to the accounting profession. In Sri Lanka, Universities are considered as one of major input provider for all the professions. Quality input to the industry is delivering the quality service. Therefore professionals and also academics should draw their attention not only accounting theories but also extensively used tools in modern world such as IT. Therefore, impact of IT in Accounting Curriculums in Sri Lankan University Undergraduate Accountancy Degree Programmes is necessary to measure & evaluate with the purpose of whether the undergraduates are having enough skills in IT. This study is attempting to measure the concentration given to

2

the IT in Accounting Curriculums in Sri Lankan Universities Undergraduate Programmes using the credit values offered for each subject. This study is organized as follows; the literature review helps to have an overview of existing accounting education by comparing internationally. Secondly provides the research method & sample. The last section presents the research out come, conclusion & recommendations to the improvement of Accounting Curriculum in Sri Lankan Universities.

02.

LITERATURE REVIEW

The term Information Technology is used in the guidelines to encompass: hardware & soft ware products, information system management processes, human recourses & skills required to apply those products or process to the task of information production & information system development, management & control. This section provides an underscore for the literature references that have been discussed information technology in globally & locally in accounting curriculums. Hong Kong has identified twenty four issues in information systems management. The first one is “usage information systems for comparative advantage” (Lovis, 2004). There is significant shortage of trained academics with both accounting & IT interest skills (Bartitz 1999). In 21 st century, attention given to the IT in accounting curriculum has been tremendously increasing. (Ricco & Sakata 2002, Benhunan – Fich 2001, Boritz 1999, Jackson 1998-2002, Fox 1998, Fusess 2001, Lovis 2000, Skidmore 2002). But no research has been conducted so far in the area of the content of Information Technology in Accounting Curriculum in Sri Lankan Universities. Considering the IT skills are important for the accountant, Brigham Young University in United Kingdom has developed a comprehensive programme to provide a strong education system & IT for their accountants through the accounting degree programmes (Jackson 1998). Similarly, University of Hong Kong has developed special programme for their accountancy students. (Lovis, 2000). Some Japanese universities have been implementing their internationalize curricula for accounting & to make undergraduate studies more cross-disciplinary. Multi year

3

continuing educational programme plans are proposed for the accounting curriculum. (Fuess, 2001) Accounting

professionals

should

be

the

information

oriented

professional bodies. It is confirmed that “professional service firms derived 60% of their revenue from IT consultancy” (Boritz, 1999), “all system audits are accounting bachelors in Portugal” (Ricco & Sakata, 2000). Therefore Accounting Education system also must change rapidly towards the IT innovations. It is helped by the various institutions such as International Standards of Accounting and Reporting (ISAR), International Federation of Accountants (IFAC), Association of Chartered Certified Accountants (ACCA) etc.. Most of International Accounting Curriculums are followed by the guidelines given by the IFAC’s education committee under International Education Guidelines 11 (IEG 11), & Curriculum Model (CM) suggested by ISAR. One model had been developed in 1999 (revised in 2003) by ISAR for accounting curriculums. It has suggested four blocks of knowledge as important areas for the curriculum in accountancy undergraduates.

1. Organizational & Business Knowledge. 2. Information Technology (IT). 3. Core (basic) Accounting Finance & related knowledge. 4. Elective (advanced) Accounting Finance & related knowledge.

According to ISAR model, it had identified that the Information Technology (in above number 2) block included in accounting curriculum should includes the following major areas. 1. Information Technology (IT) concepts for business systems. 2. Internal control in computer based business systems. 3. Development standards & practice for business systems. 4. The management of IT adoption, Implementation & use. 5. Managing the security of information. 6. Artificial intelligence, expert system, fuzzy logic etc. 7. Electronic commerce.

4

Some IT skills such as ability to use an electronic spread sheet are new indispensable & professional accounting bodies must ensure that candidate possesses core IT skills before qualifying as members of the accounting body. In addition, since an increasing number of accountants are engaged in providing ITrelated advising & evaluative service, it is important that professional accounting bodies are maintaining the quality & credibility of their service through pre & post qualification of education requirements (Skidmore, 2002). Accounting students or the undergraduates are helped by the universities to have pre qualification level IT requirements. According to IEG 11, it proposed pre qualifications level IT requirements for the Accounting professional as follows;

1. Information Technology (IT) concepts for business systems. 2. Internal control in computer based business systems. 3. Management of IT adoption, implementation & use. 4. Development standards & practice for business systems. 5. Evaluation of computer- based business systems.

Prior to qualify as accountants all professionals must have at least general level of knowledge of each of the content areas above. (Ricco & Sakata, 2002). ISAR state that Curriculum Model (CM) developed by them is for the formal education of professional accountants at the highest level in every country of the world – not just for the developing countries. For the purpose of this study, considering the models suggested by ISAR, IEG II guidelines & Sri Lankan universities accounting undergraduates course contents, the following six knowledge blocks have been adopted to analyze the accounting curriculum in Sri Lankan University Accounting Undergraduate Programmes. 1. Accounting & Finance 2. Management 3. Information Technology (IT) 4. Quantitative Techniques 5. Economics 6. Others

5

03.

RESEARCH METHOD & SAMPLE

The global reach of the internet makes it possible to develop & share courses on a global basis to response the global trends. Thus, internet is an important accounting learning & research tool (Borthick, 2000). This study is mainly based on the use of Internet & student manuals/handbooks issued by the various universities & the professional institutions in accountancy field. Data were gathered from five Sri Lanka universities which are conducting the accountancy related degree programmes such as University of Kelaniya, University of Colombo, University of Sri Jayawardanapura, University of Ruhuna, University of Wayaba & two major professional institutions as Association of Chartered certified accountants (ACCA) & Institute of Chartered Accountants of Sri Lanka (ICASL). Study sample were selected randomly. The contents of accounting degree programs & the IT Knowledge block included in the above programes were analyzed. For the purpose of analyzing the Accounting Curriculum, ISAR & IFAC Guidelines were considered & developed a new framework for categorization with six knowledge blocks as follows.

1. Accounting & Finance 2. Management 3. Information Technology (IT) 4. Quantitative Techniques (QT) 5. Economics 6. Others As the one of main purpose of measuring the weightage given to the each knowledge blocks, the credit values (foot note 1) offered by each university for each subject were considered. In the case of professional institutions, they are not operating a credit value system. Therefore the number of IT related subjects were considered & percentages were calculated as the IT related subjects out of all subjects that candidates have to be followed. In this study, to analyze the IT knowledge block included in the curriculums mentioned above, the model proposed by the IEG II (1995 revised 1998) has been used. Accordingly, IT knowledge block should be included the following five areas of knowledge. Foot note 1: One credit value is equal to the fifteen contact hours.

6

1. Information Technology (IT) concepts for business systems. 2. Internal control in computer based business systems. 3. Management of IT adoption, Implementation & use. 4. Development standards & practice for business systems. 5. Evaluation of Computer- based business systems.

In Sri Lanka, most of Universities in their accountancy degree programmes are carrying a common program for first two year or three year with the mandatory disciplines & can be specialized in next two or one year in Accounting or any other area. Therefore, for the study purpose, data were categorized using the credit values (including the elective subjects) offered in first few year common programme & specialize in accounting area in next years.

04.

RESULTS

This study revels that, the IT discipline is given 6%-14% weightage in the Accounting curriculum in Sri Lankan Accountancy undergraduate degree programs.

University of Kelaniya (Annexure 1) In University of Kelaniya Accounting & Finance related knowledge represent 49% is the major focus for the course, followed by 10% to the management, 7% to the QT, 5% to the Economics & 20% to the other areas (Law, Auditing, Tax etc.) IT disciplines are

given nearly 9% weightage in their curriculum

out of all knowledge blocks. Weightage of each Knowledge block as a percentage of total subjects offered

Accountancy & Finance 20%

Management

5%

49%

Information Technology Quantitative Techniques

7% 9%

10%

Economics Other

7

Universiry of Wayaba (Annexure 2) Accounting curriculum In University of Wayaba revels that 33% represent the Accounting & Finance, 17% management, 10% QT, 9%

Economics

& 21% other related areas. Nearly 10% weightage is given to the IT knowledge block. Weightage of each Knowledge block as a percentage of total subjects offered Accountancy & Finance Management

21%

33%

Information Technology Quantitative Techniques

9% 10% 10%

17%

Economics Other

University of Ruhuna (Annexure 3) University of Ruhuna is given 35% weightage to Accounting

&

Finance, 16% to Management, 10% QT, 4% Economics, and 28% to other related knowledge blocks. IT discipline is given 6% of weightage. Weightage of each Knowledge block as a percentage of total subjects offered Accountancy & Finance Management 28%

4% 10%

36%

Information Technology Quantitative Techniques

6%

16%

Economics Other

University of Jayawardanapra (Annexure 4) University of Sri Jayawardanapura has given 38% for the Accounting & Finance, 10% Management, 10% QT, 4% Economics, 28% to other discipline in their Accounting curriculum & 14% weightage is given to the IT related area.

8

Weightage of each Knowledge block as a percentage of total subjects offered

Accountancy & Finance

23% 38%

Management

Information Technology Weightage of each Knowledge block as a percentage of totals Quantitative Techniques 5% subjects offered 10% Economics 10% 14% Other

University of Colombo (Annexure 5) University of Colombo, in its accounting curriculum has given 30% to Accounting & Finance, 16% Management, 17% QT, 8% Economics, & 20% weightage to other areas. IT related knowledge block represents nearly 9% from the all credits offered by the University.

Weightage of each Knowledge block as a percentage of total subjects offered

Accountancy & Finance Management

20%

30%

8%

17%

Information Technology Quantitative Techniques

9%

16%

Economics Other

When all the Universities taken as a whole nearly 6%-14% weightage has been given for the IT related subjects in their Accounting Curriculums. Further it revels that highest IT consideration of 14% is given by the University of Jayawardanapura & 6% of lowest weighting is given by the University of Ruhuna. In the Accounting & Finance knowledge block, highest weightage is the 49% provided by the University of Kelaniya & the lowest is 30% given by University of Colombo.

9

Overall weightage given by the universities for each of the Knowledge blocks

Blocks Universities

Accounti

Mgt.

IT

QT

ng &

Econo

Other

mics

Finance University of Kelaniya

49

10

9

7

5

20

University of Wayaba

33

17

10

10

9

21

University of Ruhuna

35

16

6

10

4

28

University of Jayawardanapura

37

10

14

10

5

23

University of Colombo

30

16

9

17

8

20

6%

22%

Average for All Universities

37%

14% 10% 11%

When the figures are taken as a whole the Sri Lankan universities accountancy courses are included 37% Accounting related subject, 14% for Management related subjects, 10% from Information Technology, 11% from Quantitative Techniques, 6% Economics & 22% represents other blocks of knowledge. In the case of professional institutions curricula, the ACCA has introduced two IT related subject out of nearly fifteen total subjects include in their curriculum. It is nearly 13%. The ICASL also has introduced two IT related subjects out of nearly seventeen subjects included in their curriculum. It is nearly 12%. But their students required following additional IT courses conducted by such institutions to obtain the membership. IT related knowledge blocks in Professional institutions as a whole include the concepts for Information systems & Techniques for identifying, implementing & managing Information systems. When it compares with the universities, it is worth noting both are having the same level of weigthtage for the IT related subjects in their curriculums.

10

Analysis of IT Knowledge Block in Accounting Curricula

Analysis of IT Knowledge Block

(IT) concepts for business systems.

University of Kelaniya

50%

Internal control in comput er based system s. 0%

SL

50%

0%

50%

0%

0%

University of Ruhuna

67%

0%

33%

0%

0%

University of J'pura

68%

0%

32%

0%

0%

University of Colombo

56%

0%

42%

0%

0%

Average

58%

0%

39%

0%

3%

Manageme nt of IT adoption, Implementa tion & use.

Development standards & practice for business system

Evaluati on of Compute r- based business systems.

38%

0%

17%

Wayaba University of

Analysis of IT knowledge Block

0%

(IT) concepts for business systems. Internal control in computer based systems.

3%

Mgt. of IT adoption, Implementation & use.

39% 58% 0%

Development standards & practice for business :system: Evaluation of Computerbased business systems.

The IT related knowledge blocks offered by Sri Lankan universities undergraduate accounting curriculums are represent 58 % of IT concepts & business systems & accounting software, Management of IT adoption implementation use category is nearly 39% & 3% of blocks represent the evaluation of computer based business systems. No courses are offered in the field of Internal control in computer based systems or development standards & practice for business systems, Artificial Intelligence etc.

11

The figures indicated that the most of IT disciplines are concentrating the basic or conceptual level computing knowledge such as Information systems, text processors, worksheets & Accounting packages etc.

05.

CONCLUSION

The accounting graduates who are the out come of the accountancy degree programs must have good understanding that IT is always enhancing personal productivity of the accounting profession. The dynamic business environment will continue to offer excellent opportunity to the accountants who can creatively combine the power & synergy of technology innovations in Accounting & business transformations. (Ricco & Sakata, 2002) found that IT knowledge block represent 3% to 5% all knowledge block include in an accounting curriculum in Portugal & Brazilian Universities, In Sri Lanka IT represents nearly on an average 10% from all knowledge blocks offered by the Sri Lankan Accounting Undergraduate Programs. When it compares with the Brazil & Portugal it is farley satisfactory. The analysis of IT knowledge blocks revels that all accounting curriculums in Sri Lanka are included the subjects relating to the IT Concepts for, business systems & Accounting software. It is nearly 58%. According to the study, accountancy undergraduates who are the out put of the accountancy degree programs or their curriculums are still not acquiring entire IT skills required for the accounting profession. However the lack of IT skills can be off set by other post graduate courses, the compulsory training programmes or IT related courses followed by the students after graduation or during period of study. IT courses or postgraduate programs/courses are now highly demanded. The values of such courses for the professionals are tremendously increasing. Reason for this demand is lack of required knowledge gathered by following the undergraduate programs to meet the requirements of the professionals. It indicates that the undergraduates also not having the enough IT skills expected by the accounting profession.

12

06.

LIMITATIONS & FUTURE RESEARCH Few limitations of this study are unavailability of the detail course

contents. Therefore the name of the course unit was considered. Some time it may lead to a classification error. But it is not effect to the classification of IT disciplines. Because, IT related subject can be separately identified by its name without much difficulty. But the absence of detail contents of the IT disciplines, the classification of IT disciplines among the few areas such as IT concept for business systems, Internal control in computer based systems etc. may not be 100% accurate. Even though IT competency has been measured by using the credit values offered by Sri Lankan universities, it has not been considered the IT skills obtained by the undergraduates through their practical training programmes which are included in some universities accounting curriculum as individual course unit. Future researches are needed to compare the local IT disciplines with global accounting curriculum and would bring important information as to the level of technology in accounting curriculum. It is worth to measure the strength of the Sri Lankan accounting graduates’ capability of meeting the global IT requirements.

07.

RECOMMENDATIONS The accounting curriculum must reserve a higher weightage to the

scope of IT which is an integral part of the today’s business world to suite the global accounting profession. Curriculum should focus for the new trends in IT relating to the accounting field such as AIS, MIS, Data Management, ERM, ARP, Developing & Managing EDI, Electronic Commerce, Knowledge Management etc. The academics must draw their attention to the real need of the accounting market. Therefore curriculum of the undergraduate programmes must be developed with the hands of the accounting practitioners. As an example, University of Kelaniya has created an Industrial Advisory Committee (IAC) to obtain the ideas to make the revisions of the accounting curriculum. For the important in the IT content of accounting curriculum “double majors” undergraduate programes can be implementing to the Sri Lankan Universities. i.e. Accounting & IT. It provides the students a broad based knowledge in the integrated discipline of accounting of & IT both. As an example city university of Hong Kong has introduction a B.B.A. (Accounting & MIS) degree. The challenging of such a program is to find a qualified academic staff. As a remedy for that barrier,

13

university can use the experts in other department such as IT. However the study of IT should be integrated as far as possible in the study of subjects in other modules. University which has been expertise in IT can implement internet based IT courses to assist the accounting specialized degree programme. Accounting undergraduate can be focus to such courses to avoid the lack of skills in IT to win the accounting profession. However to suite the requirements in the profession, it is needed to make higher investment. Therefore all programmes should be included with long term plans to adjust the graduate to the global world. The departmental partnership programmes will further facilitate it.

08.

REFERENCES Benbunan-Fich, R., Lozada, H.R., Pirog, S., Priluck, R., Wisenblit, J., (2001) Integrating information technology into the marketing curriculum: A pragmatic paradigm Journal of Marketing Education; Boulder. Boritz, J. E. The Accounting Curriculum and IT, (1999); Internet document. http://www.ifac.org Borthick. A. and Jones D. (2000) The motivation for collaborative discovery learning online and its application in an Information Systems assurance course Issues in Accounting Education. Fox, T. at al (1998) A framework for an Accounting Information Systems Curriculum. http://www.aisnet.org Guideline on National Requirements for the Qualification of Professional Accountants, UNCTAD/ITE/EDS/9, 1999, Revised in 2003. International Education Guideline 11 (IEG) by IFAC’s Education Committee, 1995 (revised in 1998). Jackson, R. (1998) Teaching Advanced Information Technology Skills to Masters of Accountancy Students