Van Romburgh H

Accounting education: Investigating the
gap between school, university and

practice
H van Romburgh
20275617
Dissertation submitted in fulfillment of the requirements for the

degree Magister Commercii in Accounting at the Potchefstroom
Campus of the North-West University
Supervisor: Prof. N. van der Merwe
May 2014
Table of Contents
List of tables.............................................................................................................................. v
List of abbreviations and acronyms ...................................................................................... vi
Dissertation summary ............................................................................................................vii
Opsomming van verhandeling ............................................................................................ viii
Acknowledgements .................................................................................................................. x
Remarks ................................................................................................................................... xi
Chapter 1: Objectives, scope and course of the study .......................................................... 1
Objectives, scope and course of the study ................................................................................. 1
1. Introduction and background .......................................................................................... 2
2. Problem statement ........................................................................................................... 4
2.1 A possible gap between school and university ........................................................... 4
2.2 A possible gap between university and practice ......................................................... 5
2.3 Summary of the problem ............................................................................................. 6
3. Research objectives ......................................................................................................... 7
3.1 Determining the gap between school and university accounting education ............... 7
3.2 Determining the gap between university accounting education and the expectations
of practitioners..................................................................................................................... 7
4. Hypotheses.......................................................................................................................... 7
5. Research methodology ....................................................................................................... 8
5.1 Literature review ......................................................................................................... 8
5.2 Empirical research ....................................................................................................... 8
6. Chapter overview .......................................................................................................... 10
i
7. Bibliography ................................................................................................................. 12
Chapter 2 (Article 1): Narrowing the gap between school and university accounting
education in South Africa...................................................................................................... 15
Abstract .................................................................................................................................... 16
Keywords ................................................................................................................................. 16
1. Introduction ................................................................................................................... 17
2. Literature overview ....................................................................................................... 19
2.1 A call for change ....................................................................................................... 19
2.2 The state of school accounting education in South Africa ........................................ 20
2.3 A gap between school and university accounting education? ................................... 22
3. Methodology ................................................................................................................. 23
4. Results ........................................................................................................................... 25
4.1 Demographic profile of participants ......................................................................... 25
4.2 Perceptions of school accounting textbooks, curriculum and teachers ..................... 25
4.3 Topics in the school accounting curriculum ............................................................. 29
4.4 Data reduction ........................................................................................................... 34
4.5 Comparison of student groups with different demographical profiles ...................... 36
4.6 Qualitative comments obtained from students who did not have accounting in high
school ................................................................................................................................ 39
4.7 Qualitative comments obtained from lecturers ......................................................... 40
5. Conclusions and recommendations............................................................................... 41
6. Limitations of the study ................................................................................................ 43
7. Bibliography ................................................................................................................. 44
ii
Chapter 3 (Article 2): University versus practice: Identifying skills shortages that exist
in first-year trainee accountants in South Africa................................................................ 48
Abstract .................................................................................................................................... 49
Keywords ................................................................................................................................. 49
1. Introduction ................................................................................................................... 50
2. Literature overview ....................................................................................................... 52
2.1 Effects of the stagnating accounting curricula .......................................................... 52
2.2 Underdevelopment of soft skills in first-year CA trainees ........................................ 53
2.3 Skills requirements from the perspectives of different training providers ................ 55
3.3 Methodology ............................................................................................................. 56
4. Results ........................................................................................................................... 59
4.1 Demographic information ......................................................................................... 59
4.2 Descriptive statistics .................................................................................................. 60
4.3 Qualitative findings ................................................................................................... 61
4.4 Comparison of different demographic groups .......................................................... 63
5. Conclusions and recommendations............................................................................... 70
7. Bibliography ................................................................................................................. 75
Chapter 4: Summary, conclusions and recommendations................................................. 80
Summary, conclusions and recommendations ......................................................................... 80
1. Introduction ................................................................................................................... 81
2. Overview of research method ....................................................................................... 81
3. Summary of research results ......................................................................................... 81
3.1 Possible gap between school and university accounting ........................................... 81
3.2 Possible gap between university and practice ........................................................... 82
iii
4. Recommendations ......................................................................................................... 83
5. Concluding reflection.................................................................................................... 84
6. Research objectives addressed ...................................................................................... 85
7. Hypotheses addressed ................................................................................................... 86
9. Areas for future research ............................................................................................... 87
10. Bibliography .............................................................................................................. 89
Annexure A – Survey for chartered accountancy students at the North-West University .. 90
Annexure B - Survey for lecturers in the School/Department of Accounting (or equivalent)

at various universities ........................................................................................................... 99
Annexure C - Survey for various audit firms in Gauteng, South Africa, to identify skills
shortages in first-year Chartered Accountant trainees ........................................................ 106
Annexure D.1 – Submission confirmation: SAJAR .......................................................... 112
Annexure D.2 – Submission confirmation: Industry & Higher Education ....................... 113
Annexure E.1 – Author guidelines: SAJAR...................................................................... 114
Annexure E.2 – Author guidelines: Industry & Higher Education ................................... 116
iv
List of tables
Table 1: Descriptive statistics of some individual questions asked to students ...................... 26

Table 2: Coverage of topics included in the school accounting curriculum ........................... 29
Table 3: Importance of topics included in the school accounting curriculum ........................ 30
Table 4: Results of factor analysis .......................................................................................... 35
Table 5: Descriptive statistics of components identified in factor analysis ............................ 35
Table 6: Comparison of perceptions of black and white students .......................................... 37
Table 7: Comparison of students in terms of their first year accounting marks ..................... 38
Table 8: Descriptive statistics on the skills with which universities equip first-year trainees 60
Table 9: Summary of opinions of respondents relating to question 24 .................................. 62
Table 10: Comparison of perceptions between partners and clerks........................................ 64
Table 11: Comparison of clerks’ perceptions from small/medium firms and large firms ...... 66
Table 12: Comparison of first- and third-year or higher clerks .............................................. 68
v
List of abbreviations and acronyms
AECC Accounting Education Change Commission

CA Chartered Accountant
CAPS Curriculum and Assessment Policy Statement
CA(SA) Chartered Accountant (South Africa)
CTA Certificate in the Theory of Accounting
DBSA Development Bank of South Africa
DoBE Department of Basic Education
FIFO First-in-first-out
HEI Higher Education Institution
IFAC International Federation of Accountants
IFRS International Financial Reporting Standards
IRBA Independent Regulatory Board of Auditors
LIFO Last-in-first-out
NAPTOSA National Professional Teachers’ Organisation of South Africa
NCS National Curriculum Statement
NPC National Planning Commission
NWU North-West University
OBE Outcomes-Based Education
PAYE Pay As You Earn
SA South Africa
SADTU South African Democratic Teacher’s Union
SAICA South African Institute of Chartered Accountants
VAT Value Added Tax
vi
Dissertation summary
Title: Accounting education: Investigating the gap between school, university and practice
Key terms: Accounting education, curriculum, South Africa, first-year students, Department
of Basic Education, black economic empowerment, skills, trainee accountants, accounting
practice
Various studies have highlighted the problems faced in accounting education. Some of these
problems refer to the stagnating accounting curriculum, limited resources available to
students from designated black empowerment groups, and the underdevelopment of skills
required by practice. This study focuses specifically on the problems faced in secondary and
tertiary accounting education in South Africa (SA) and the effects of these problems on
practice.
The first article of this study emphasises the various causes for the declining pass rate in first-
year chartered accountancy (CA) students. For this purpose, the researcher gathered
information on the perceptions of first-year CA students and of lecturers involved in
departments of accounting at SA universities. One of the possible causes identified is the
apparent gap between school and university accounting education, especially in respect of
curriculum, teaching quality and textbooks. The study revealed that students from designated
black empowerment groups are facing the most problems in SA accounting education.
The second article addressed the skills shortages in first-year CA trainees that practitioners
have to deal with. According to the results, the majority of the participants felt that
universities do not sufficiently equip students with the skills necessary to be successful in
practice. The skills shortages identified included the inability of first-year trainees to
determine the extent of testing needed in audits and to think independently. It also seemed as
if first-year trainees lack professional communication skills and cannot sufficiently apply
vii
theory learnt at university in practice. These are only some skills with which universities are
expected to equip students in order to be successful in practice.
The researcher drew conclusions and made recommendations based on the information
obtained from the above-mentioned two studies.
Opsomming van verhandeling
Titel: Rekeningkunde-onderrig: ŉ Ondersoek na die gaping tussen skool, universiteit en

praktyk
Sleutelterme: Rekeningkunde-onderrig, kurrikulum, Suid-Afrika, eerstejaarstudente,

Departement van Basiese Onderwys, swart ekonomiese bemagtiging, vaardighede, leerling-
rekenmeesters, rekeningkunde-praktyk
Verskeie studies beklemtoon die probleme wat in rekeningkunde-onderrig ondervind word.

Sommige van hierdie probleme verwys na die stagnerende rekeningkunde-kurrikulum,
beperkte hulpbronne vir studente uit ŉ aangewese swart bemagtigingsgroep, en
onderontwikkeling in vaardighede wat deur die praktyk vereis word. Hierdie studie fokus
spesifiek op die probleme in sekondêre en tersiêre rekeningkunde-onderrig in Suid-Afrika
(SA) en die gevolge hiervan op die praktyk.
Die eerste artikel van die studie ondersoek die verskillende oorsake vir die verswakte
slaagsyfer in geoktrooieerde rekenmeesterskap- (GR) studente in hulle eerste jaar. Vir dié
doel is inligting oor die persepsies van eerstejaar-GR-studente versamel, asook van dosente in
rekeningkunde-departemente by SA universiteite. Een van die moontlike oorsake vir die
verswakte slaagsyfer is die skynbare gaping tussen rekeningkunde-onderrig in skool en
universiteit, veral ten opsigte van die kurrikulum, onderriggehalte en handboeke. Die studie
het getoon dat studente uit ŉ aangewese swart bemagtigingsgroep die meeste probleme in SA
rekeningkunde-onderrig ondervind.
Die tweede artikel lê hoofsaaklik klem op eerstejaar-GR-klerke se vaardigheidstekorte

waarmee praktisyns te kampe het.Volgens die studie voel die meerderheid van die
viii
deelnemers dat universiteite studente nie toerus met die nodige vaardighede om suksesvol in
die praktyk te wees nie. Die vaardigheidstekorte is onder meer eerstejaarsklerke se onvermoë
om die omvang van oudittoetse te bepaal en om onafhanklik te dink. Dit blyk ook dat
eerstejaarsklerke ŉ gebrek aan professionele kommunikasievaardighede het en dat hulle nie
die teorie wat hulle op universiteit geleer het, genoegsaam kan toepas nie. Hierdie is slegs ŉ
paar vaardighede waarmee universiteite studente moet toerus om sukses in die praktyk te
behaal.
Die navorser het gevolgtrekkings en aanbevelings gemaak gegrond op die inligting wat uit
die studies verkry is.
ix
Acknowledgements
Over the past few years, many people have supported and influenced me during the
completion of this dissertation. I want to express my sincere gratitude towards the following
people who made the completion of this study possible:
• First and foremost, I want to thank God for His wisdom, guidance and strength.
• To Professor Nico van der Merwe, who was there every step of the way with support
and encouragement, and all the hours spent to make this dissertation as good as it can
be.
• To my parents, for all their love and encouragement.
• Lastly to my husband, Daan, for all his patience, love and support. I couldn’t have
done it without you.
x
Remarks
The reader is reminded of the following:
This dissertation is presented in the article format in accordance with the policies of the
WorkWell Research Unit of the Faculty of Economic and Management Sciences at North-
West University and consists of two research articles (faculty rule E.8.3). In terms of these
policies, two unpublished manuscripts in article format may be presented for the purposes of
a dissertation that makes up more than 50% of the master’s degree.
Each of the individual articles complies with the writing style requirements (i.e. the abstract,
spelling, grammar and referencing requirements) of the journal to which the article was
submitted.
The author requirements and related documentation specific to each journal are included as
part of the annexure at the end of the dissertation.
xi
Chapter 1
Objectives, scope and course of the study
1
1. Introduction and background
Accounting firm recruiters and university professors are of the opinion that the quality of new
accountancy students is down and that accounting programmes, especially chartered accountancy
(CA) programmes, no longer catch the attention of the best and brightest of students (Nearon, 2002).
The high failure rate of first-year accounting students at higher education institutions (HEIs) has
become an issue of great concern worldwide, as well as in South Africa (SA) (Barnes et al., 2009). In
addition, the CA qualification is perhaps becoming increasingly difficult to obtain, because there is a
vast number of complex accounting standards, as well as auditing standards and tax legislation that are
continuously evolving and expanding, which have to be mastered (Temkin, 2005).
The general definition of an audit is an official examination of the financial records of a company,
organisation, or person to see that they are accurate. An auditor is a qualified accountant who does the
above (MED, 2002). To become a registered (external) auditor or CA in SA, students need to
complete a three-year BCom Accountancy degree at a university accredited with the South African
Institute of Chartered Accountants (SAICA) and a post-graduate qualification in Accountancy,
equivalent to a Certificate in the Theory of Accounting (CTA) (SAICA, 2010). After obtaining these
qualifications, a three-year training period has to be completed in order to obtain practical experience.
During the training period, all aspiring CAs have to write and pass both of SAICA’s qualifying
examinations (SAICA, 2010). SAICA requires accredited universities to have certain entrance
requirements for students who apply for the degree. Students should pass high school mathematics
(Grade 12) on at least a level 4 (50-59%) and must be in possession of a matriculation exemption
certificate (SAICA, 2010), but are these requirements strict enough?
Students seem to lack basic reading and writing skills and struggle to perform basic calculations and
think critically, which are essential skills to complete a degree in accounting (Hurt, 2007). Research
has shown that the way in which students are prepared in school contributes to their expectations of
higher education (Byrne & Flood, 2005; Clark & Ramsay, 1990). However, the teaching and
assessment practices that students experience at school may not be entirely appropriate for the more
independent forms of learning expected in higher education (Byrne & Flood, 2005; Cook & Leckey,
1999). Issues like these raise the question as to whether standards and/or practices in the SA
secondary (high school) education are optimal to equip students with the skills necessary to comply
with prerequisites set by universities and professional bodies such as SAICA.
2
The South African Department of Basic Education (DoBE) revised the National Curriculum for high
school Grades 10 to 12 during 2002. In the Curriculum and Assessment Policy Statement (CAPS),
Angie Motshekga, the Minister of Basic Education, states that, due to implementation challenges,
another review of the curriculum was required in 2009 (DoBE, 2011). The DoBE added the following
contents to the high school accounting curriculum:
• Concepts, calculations and principles of VAT;
• Managerial accounting;
• Concepts, principles and reports of costing;
• Code of ethics; and
• Control and audit procedures.
All these additions, if implemented and taught correctly, should provide SA universities with better
quality accounting students in future. However, adding a number of topics to the school curriculum
that are more in line with the requirements of the accounting profession would not necessarily, in
itself, address the problem. Some questions need to be raised as to why the quality of first-year
accounting students is decreasing.
A potentially inadequate school education system is not the only problem facing the accounting
profession, as a gap also exists between academic curricula and the requirements of accounting
practice. A renowned accounting educator, Stephen Zeff, argued that accounting education
programmes have not been designed to prepare students to meet the requirements of future accounting
practice (Nearon, 2002). Internationally, practitioners need people who can read, write and overcome
obstacles with innovative solutions. They need an individual who is not only able to locate,
understand and apply voluminous complex technical material, but also to communicate facts through
coherent writing – someone who is a ‘people person’ (Nearon, 2002). Students at universities are
often taught the ‘memorisation’ approach, with which they can pass professional body examinations,
rather than equipping them with the skills required in practice (Albrecht & Sack, 2000; Gabbin, 2002).
The above-mentioned dilemmas are more far-reaching than one might think. The inadequacy of
university curricula in accounting was even considered to be one of the causes of the 2001 and 2002
accounting scandals in the USA, as well as of many unexpected company collapses (Amernic &
Craig, 2004; Bush, 2002; Sikka & Wilmott, 2002). Therefore, these types of problems deserve more
attention in academic research.
3
2. Problem statement
2.1 A possible gap between school and university

Past research has indicated many problems in current accounting education, one of which lies in the
content and design of the curricula (Albrecht & Sack, 2000; Cheng, 2007). Rankin et al. (2003) are of
the opinion that high school accounting can be beneficial to the performance of students in first-year
university accounting only if there is a close association between the high school and university
curricula (Barnes et al., 2009).
Barbara Creecy, Gauteng Member of the Executive Council (MEC) for education, recently stated that,
despite massive achievements in education after apartheid, learner performance is not improving. She
ascribed the underperformance of schools to factors such as learner and educator discipline, school
safety, poor hygiene, a lack of infrastructure, poverty, social deprivation, curriculum management,
inadequate subject coverage, poor quality of teaching and assessment and ineffective school-based
systems for monitoring curriculum delivery (DoBE, 2010).
Another problem might be that school teachers do not have the necessary qualifications and
experience to teach learners the concepts they need to understand to succeed in further education,
especially in professional qualifications such as CA. According to the South African Democratic
Teachers’ Union (SADTU), there is a desperate need to improve the quality of teachers and teaching
(Packree, 2010). However, aspiring accounting teachers might not be trained appropriately for this
purpose at tertiary institutions and it is possible that teachers are ignoring the curriculum as set out by
the DoBE or that they are not sufficiently able to understand and clearly explain some of the concepts
to students (Packree, 2010).
Furthermore, textbooks used in schools may also be out of date and below standard when compared to
textbooks used at a tertiary level. Schools in rural areas may not have access to the textbooks, material
and equipment needed to provide quality education to students. Moreover, many school libraries have
few books, and laboratories have outdated or malfunctioning equipment and insufficient supplies
(DoBE, 2010; Samoff, 2001).
4
The number of learners in classrooms may also have an effect on the quality of the teaching they
receive (Chisholm, 2005). Educators in government schools may not have enough time to give each
learner the individual attention they may need to be successful in a subject area such as accountancy.
All the problems mentioned in this section point towards a gap between school and university
accounting education standards.
2.2 A possible gap between university and practice

The gap in accounting education standards discussed in the previous subsection seems to extend to
accounting practice. Even as far back as 1990, Patton and Williams suggested that the fundamental
flaw in accounting education is that it has remained stagnant while the profession has changed
(Ainsworth, 2001) – and at that stage, the profession was not changing nearly as fast as it is today.
There is a growing agreement among accounting professionals that recent accounting graduates do not
adequately meet the high standards set by potential employers (Clovey & Oladipo, 2008).
On the other hand, the requirements set out by SAICA for universities to allow students to study CA
might be too lenient. Students are not required to have accounting as a school subject; mathematics is
the only requirement (SAICA, 2010). School subjects that have been identified as having an influence
on the performance of students in first-year university accounting are Grade 12 mathematics and
Grade 12 accounting (Barnes et al., 2009).
SAICA has adopted a competency framework, which is a high-level description of competencies that
a Chartered Accountant (South Africa) [CA(SA)] should possess on entry into the profession. It
provides the base upon which programmes of education, training and assessment are developed.
SAICA’s objective is to retain and cement the pre-eminence of its qualification. In attending to this
objective, SAICA has identified ‘leadership’ as one of the fundamental attributes of a CA(SA).
SAICA believes that a CA(SA) should be capable of being a leader in any environment in which the
CA functions (SAICA, 2010). It is also recognised that growth and the acquisition of competencies
after entry into the profession are not limited to leadership ability, but are likely to occur in many
spheres of competence. In order for these competencies to be developed effectively and appropriately,
it is vital that the CA(SA) has the essential competencies to encourage life-long learning (SAICA,
2010).
5
Any accreditation process has inherent limitations and it is debatable whether all universities truly
comply with all elements of the competency framework (or similar professional body requirements) in
every respect, as accounting practitioners are not always satisfied with accounting graduates’ abilities
(Barac, 2009; Koornhof & Lubbe, 2002). Teaching methods at universities often lack creativity,
involve too much lecturing and dependence on textbooks, and do not develop the students’ capability
to learn skills. Educators are too bound by their class time and do not require enough student contact
with business. Furthermore, the curricula are too restricted, often outdated or irrelevant, and often
shaped by the interests of the faculty instead of the demands of the market (Albrecht & Sack, 2000;
Clovey & Oladipo, 2008).
Changes in the business environment are occurring fast. The real question is whether accounting
organisations, professionals and educators are recognising these changes and adapting quickly enough
to the new environment. Accounting professionals, who have adapted themselves, have said that the
changes in accounting education are neither fast nor substantive enough (Albrecht & Sack, 2000).
Accounting education is, however, subject to the hierarchy within universities; before curriculum
changes can be made, approval must be given by university curriculum committees and government
departments (Albrecht & Sack, 2000), which can be a cumbersome and lengthy process.
To overcome this apparent gap between academia and practice, educators will need to better align
accounting curricula with workplace realities and alter their teaching methods to promote critical
thinking (Myers, 2005). The right balance needs to be found between the theoretical and practical
components of teaching accounting (Amernic & Craig, 2004).
2.3 Summary of the problem

Based on the arguments in the preceding two subsections, the problem statements of the study are
summarised as follows:
• There is a decline in the quality of first-year accounting students.
• School and university accounting curricula and textbooks are not in complete alignment to
prepare students for the CA qualification.
• School teachers might not be adequately preparing learners for the demands of a CA qualification
at university level.
6
• University accounting curricula, as well as teaching and assessment methods, do not provide the
necessary skills development for students as required by accounting practitioners.
3. Research objectives
Based on the problem statement, the research objectives of this study are as follows:
3.1 Determining the gap between school and university accounting education
• To determine the adequacy of the content and delivery of the accounting curricula in secondary
(high school) education, and more specifically:
o To identify the important topics in a high school accountancy curriculum, as regarded by
lecturers in accounting programmes (who train future CAs at university level).
o To determine whether school accounting teachers are perceived to follow the whole
curriculum as set out by the DoBE.
• To determine whether school teachers are perceived to have the necessary qualifications and
experience to teach learners the concepts they need to understand to succeed in further education.
• To identify whether school textbooks are perceived to be out of date and/or below standard when
compared to textbooks used at the tertiary level.
• To recommend the necessary changes to accounting education at secondary school level that
should address the needs of all relevant stakeholders.
3.2 Determining the gap between university accounting education and the
expectations of practitioners
• To determine the skills shortages that exist in CA students entering practice in SA.
• To recommend ways to improve the skills development of CA students at university level.
4. Hypotheses
The broad hypotheses that will be tested in this study can be formulated as follows:
H01: School and university accounting curricula, teaching and assessment are not in complete
alignment to optimally prepare students for the CA qualification.
7
H02: University accounting curricula, teaching methods and assessment practices do not provide
adequate skills development for students as required by accounting practitioners.
5. Research methodology
The method used in this study is briefly set out below.
5.1 Literature review

All relevant and recent literature was consulted in order to establish a theoretical base for the
empirical studies that were conducted. The literature review covered the following, amongst other
things:
• The National Curriculum Statement and the CAPS for Accounting, which clearly set out the
topics learners should be taught in secondary school in the accounting subject area.
• The accounting education requirements of professional bodies such as SAICA.
• Reports in the media regarding problems and challenges faced by SA accounting education and
the education system in general.
• Previous research on the current problems facing accounting education in school and practice,
both locally and abroad.
5.2 Empirical research

The empirical research design is in the form of questionnaires, which is explained below.
5.2.1 Testing of hypothesis H01

The study population comprised all first-year CA students at the North-West University (NWU), SA.
This university offers a CA qualification that is completely separate from other accountancy
qualifications. The CA qualification is offered at all three campuses of the university, being
Potchefstroom, Vaal Triangle and Mafikeng.
A questionnaire was administered to first-year NWU CA students (across all campuses) in the middle
of their first-year studies. The questions had to be answered on a five-point Likert scale (1=strongly
disagree; 5=strongly agree). The research objectives with this questionnaire were the following:
experience to teach learners the concepts they need to understand to succeed in further education.
8
• To identify whether school textbooks are perceived to be out of date and/or below standard when
compared to textbooks used at the tertiary level.
• To determine whether school accounting teachers are perceived to follow the whole curriculum as
set out by the DoBE.
By analysing the above information, recommendations will be made regarding the necessary
improvements to high school accounting textbooks, as well as recommendations to the DoBE and
university lecturers in order to plan interventions to overcome the mentioned obstacles. The findings
could also help to explain some of the reasons for the decline in the quality of first-year accounting
students which, in turn, could lead to relevant recommendations in this regard.
Another questionnaire was sent to lecturers in accounting programmes at various SA universities (who
train future CAs at university level). This questionnaire listed various accounting topics and required
the participants to rate the importance of each topic using a seven-point scale. The research objective
with this questionnaire was:
• To identify important topics in a high school accountancy curriculum, as regarded by lecturers in
accounting programmes (who train future CAs at university level).
With this information, possible changes to the high school accounting curriculum will be
recommended.
5.2.2 Testing of hypothesis H02
A questionnaire was sent to all audit firms in the Gauteng Province, SA, registered with the
Independent Regulatory Board of Auditors (IRBA) with the aim to identify the skills shortages of
first-year CA trainees when entering practice. The research objective with this questionnaire was
therefore:
• To determine the skills shortages that exist in CA students when entering practice in SA.
Recommendations will be made on ways in which to improve skills training at university level.
The research method applied to test each hypothesis is explained in more detail in chapters two and
three. Each questionnaire also contained some open-ended questions; therefore, the research method
has elements of both quantitative and qualitative research, or so-called mixed methods research as
explained by Creswell (2011), Davies (2007:11), and Ihantola and Kihn (2011). The quantitative data
obtained from all the above-mentioned questionnaires (for H01 and H02) were processed by means of
9
the IBM SPSS (2011) statistical software package. Qualitative comments made by respondents were
also included in the analyses.
6. Chapter overview
Chapter 1: Objectives, scope and course of the study
• The objective of this chapter is to discuss problems facing accounting education, specifically
reasons for the decline in the quality of first-year CA students, and to provide reasons for
conducting the study.
• Problem statements are made from which research objectives are formulated.
• The hypotheses are formulated from the problem statements and objectives.
• The research method is explained, namely a literature review, empirical studies and methods that
were applied to gather and process data.
Chapter 2: Narrowing the gap between school and university accounting education in South
Africa
• In this chapter, relevant literature on the topic was used to substantiate the inclusion of specific
questions in the questionnaires used to identify problems relating to the declining quality of first-
year CA students.
• The method that was applied is therefore an empirical study, which will be explained and
motivated in this chapter.
• All results were analysed using inferential statistics, and qualitative comments by respondents
were also included.
• Conclusions will be drawn based on the results of the empirical study, and recommendations will
be made to address the problems identified.
Chapter 3: University versus practice: Identifying skills shortages that exist in first-year trainee
accountants in South Africa
• In this chapter, all relevant literature on the topic was used, first to substantiate the fact that skills
shortages exist in first-year CA trainees entering the profession and, secondly, to provide reasons
for the specific questions posed to various audit firms participating in the study.
• The method that was applied is an empirical study and the exact nature of this study is explained
and motivated in this chapter.
10
• The results obtained was statistically analysed and explained, and qualitative responses were also
included.
• Conclusions will be drawn based on the results of the empirical study and recommendations will
be made to address the issues identified.
Chapter 4: Summary, conclusions and recommendations
• In this chapter, the study is summarised by giving an overview of all the main results and the
conclusions from each chapter, as well as a discussion of recommendations.
• All the limitations of the study will be highlighted and recommendations will be made for
possible future research emerging from the current study.
11
7. Bibliography
Ainsworth, P. 2001. Changes in accounting curricula: discussion and design. Accounting Education,
10(3):279-297.
Albrecht, W.S. & Sack, R.J. 2000. Accounting education: charting the course through a perilous
future. Sarasota, FL: American Accounting Association.
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14
Chapter 2 (Article 1)
Narrowing the gap between school and university accounting

education in South Africa
Title: Narrowing the gap between school and university accounting education in South Africa
The reader is requested to take note of the following:
• This article has been submitted for publication to the following SA approved, peer-reviewed
and Department of Higher Education and Training accredited academic journal as follows:
Van Romburgh, H. & Van der Merwe, N. 2013. Narrowing the gap between
school and university accounting education in South Africa. SA Journal of
Accounting Research (SAJAR), unpublished. (ISSN 1029-1954).
• The article was researched and written by the first author as the candidate. The second author,
as the study leader, fulfilled a ‘reviewer’ function. Estimated weightings of contribution are as
follows:
* Van Romburgh, H. (90%)
* Van der Merwe, N. (10%)
• Confirmation of receipt of the article from SAJAR has been received and is presented as part
of Annexure D.1 on page 112. The article was written and formatted in line with the journal’s
submission guidelines, which are included as part of annexure E.1 on page 114 - 115.
15
Abstract
Tertiary education institutions are experiencing declining pass rates in first-year accounting courses
globally. Many studies have linked this phenomenon to deterioration in the quality of first-year
students due to problems experienced at secondary school level, indicating a gap between secondary
and tertiary accounting education. The aim of this study is to investigate some of the reasons for this
gap and to recommend ways to bridge this gap. Consequently, the perceptions of first-year accounting
students at a South African university as well as lecturers in accounting departments at various
universities across South Africa were gathered by means of questionnaires designed for this purpose.
The results provide support for most of the problems identified in the literature, especially among the
black students who took part in the study, which raises the question as to whether apartheid still has an
effect on the South African education system. Participating lecturers also identified an imbalance
between the current school accounting curriculum and topics which are considered important in
university accounting curricula. It is recommended that universities and the Department of Basic
Education collaborate to improve the quality of accountancy students in South Africa and narrow the
gap between school and university accounting education.
Keywords
Accounting education
Curriculum
South Africa
First-year students
Secondary education
High school
Department of Basic Education
Black economic empowerment
Tertiary education
University
16
1. Introduction
The high failure rate of first-year accounting students at higher education institutions (HEIs) is a
matter of concern internationally, as well as in South Africa (SA), with the majority of these students
being from designated black empowerment groups (Barnes, Dzansi, Wilkinson & Viljoen, 2009).
These designated groups are defined as ‘the previously disenfranchised population in South Africa’
(as a result of the apartheid regime), i.e. African, coloured and Indian people in SA (AND Concise
Dictionary, 2012). The declining pass rate in first-year accounting courses in tertiary education is an
important topic that has resulted in national and international research projects on the subject and
necessitates further investigation in this area in an attempt to overcome this problem in SA.
Various elements could be possible causes of the declining first-year accounting pass rate. The
literature seems to support a view that one of the main causes are problems experienced at secondary
(high school) level, resulting in students’ not being adequately prepared for a tertiary education. This,
in turn, creates a gap between secondary and tertiary accounting education which is widened by issues
not yet sufficiently researched in the context of accounting, including inadequate accounting curricula
in secondary education (Department of Basic Education [DoBE], 2010), underqualified accounting
teachers at secondary level (Kohler, 2012; Packree, 2010) and insufficient resources (including
textbooks) available to secondary school learners. Textbook shortages have been a controversial issue
in SA as textbooks for certain grades have not been delivered, or were delivered very late in the
Limpopo province for the 2012 school year (Louw-Carstens & van den Berg, 2012).
Teaching was identified by Kohler (2012) as an important variable in determining educational

outcomes. According to him, teachers in SA with appropriate qualifications increased from 64% in
1994, to 95% in 2010. It would seem, however, that this did not have a corresponding impact on the
results of school learners. The National Planning Commission (NPC) found the SA education system
to be below par, despite all efforts made by government to improve the system. Kohler (2012) also
revealed that SA learners fail to master literacy and numeracy skills in their respective age groups.
The various causes for the gap between school and university accounting education will be
investigated in this article using an SA university as a case study. This university was selected because
it attracts students from across the country (including a large percentage from rural and historically
black schools) and it is a South African Institute of Chartered Accountants (SAICA) accredited
university. Informed by the problems experienced in secondary schools, as identified in the above
17
literature, the aim of this study is to investigate some of the reasons for this gap between secondary
and tertiary accounting education and to recommend ways to overcome problems that are creating and
widening the gap. The specific research objectives are:
• To determine the adequacy of the content and delivery of the accounting curricula in
secondary education, and more specifically:
o To identify what lecturers in accounting programmes (who train future CAs at
university level) regard as important topics in a high school accountancy curriculum.
curriculum set out by the DoBE.
experience to teach learners the concepts they need to understand in order to succeed in tertiary
education.
• To identify whether school textbooks are perceived to be outdated and/or below par when
compared to textbooks used at tertiary level.
• To recommend the necessary changes to accounting education at secondary level that should
address all relevant stakeholders’ needs.
The above-mentioned objectives will be investigated through empirical research in the form of
questionnaires administered to first-year CA students at the selected university as well as to lecturers
in accounting departments at SAICA-accredited universities across SA. The results should contribute
to the identification of problem areas in high school accounting and should, therefore, be of interest to
accounting educators, the SA government and professional accountancy bodies.
The remainder of the article is structured as follows: relevant literature on the research topic will be
reviewed first. This will be followed by a description of the research method used in the study. Then
the findings from the questionnaires will be discussed and summarised and, finally, conclusions will
be drawn and direction for further research will be given after recognising the limitations of the study.
18
2. Literature overview
2.1 A call for change

The vast majority of changes in both international and local economic environments have led to the
realisation that accounting education and educators need to comprehensively and continuously rethink
their teaching and learning approaches in order to remain relevant. Louw and Verwey (1999) found
that HEIs, specifically universities, have proven to be of the most change-resistant organisations in the
past 500 years. Ainsworth (2000) concurs by stating that accounting educators experience discussions
regarding research with fellow educators easier than discussing curriculum changes.
Owing to the unchanging curricula and teaching methods used in accounting, Nearon (2002)
contended that accounting programmes at HEIs no longer attract and retain the academically strong
students from schools. Retaining students in public tertiary education is a controversial matter. In SA,
student failure may be ascribed to the alleged poor quality of matriculants (high school graduates)
over the past few years, a low number of prepared students entering university, and ‘dumbing down’
of potential students by outcomes-based education (OBE) in SA high schools (Du Plessis, Muller &
Prinsloo, 2005; Sadler & Erasmus, 2005). The issue of student retention has also sparked a debate
regarding the attempt to address this problem by lowering academic standards in HEIs (Du Plessis,
Muller & Prinsloo, 2007). Thus, while the number of students enrolled in accounting courses at
universities reached a record low in 2011, now is the time for accounting educators to make and
implement the changes required to lead the profession into the future (Buckhaults & Fisher, 2011).
Universities will, therefore, have to adapt, without lowering academic standards, to ensure they
transform the lower-quality students coming from school into skilled accountants.
If departments of accounting (or equivalents) in HEIs wish to remain up-to-date and competitive both
locally and globally, they will have to change their academic strategies and approaches within the
university (van der Schyf, 2008). Various studies have recognised that accounting education is
becoming increasingly irrelevant and that, if the needed changes are not made, employers will be
forced to make use of graduates from other disciplines. This is taking place already as many finance,
information systems and engineering students are hired to accomplish objectives that were once the
areas of expertise of accountants (Ainsworth, 2000; Patton & Williams, 1990).
19
The above discussion points clearly to the fact that the problems in accounting education are an
international concern for educational institutions. The state of education, specifically secondary
accounting education in SA, will be explored further in the following section.
2.2 The state of school accounting education in South Africa

In SA the remnants of apartheid are to blame for many of the current issues within the training and
education environment (Louw & Verwey, 1999). The Macmillan English Dictionary (2002) defines
apartheid as ‘the political system that existed in the past in South Africa, in which only white people
had political rights and power’ (including access to quality education). It is commonly viewed as a
racist regime that aimed to promote white domination and was abandoned in the early 1990s, shortly
before SA became a democracy. In 2001 the DoBE stated that education has to play a significant role
in overcoming the damaging effect of apartheid (De Wet & Wolhuter, 2009; DoBE, 2001). The post-
apartheid government endeavoured to overcome the effects of apartheid on education and they
achieved various successes, but failures occurred as well and there is still a very long road ahead (De
Wet & Wolhuter, 2009; Duvenhage, 2006). The NPC commented that education is perhaps ‘where the
apartheid legacy casts its longest shadow’ (Kohler, 2012).
One of the plans of government to overcome the repercussions of the apartheid legacy was the
implementation of OBE in SA schools from 1997. Here government focused on underqualified
teachers, the need for adequate resources and restructuring curricula, among other things, while basic
necessities such as water, electricity and a lack of computers in schools were not taken into account
(Warnich & Wolhuter, 2009). This contributed indirectly to the decreasing matriculation pass rate
since 2003 (South African Institute of Race Relations, 2008). Education experts and teachers alike
criticised OBE, saying it was destroying the education system and overworking teachers due to all the
additional administration work it entailed (Mahomedy, 2012). Government has since gradually moved
away from OBE; first, to the National Curriculum Statement (NCS) in 2002 and then, in 2012, the
Curriculum and Assessment Policy Statement (CAPS). According to Mrs Angie Motshekga, Minister
of Basic Education in SA, the on-going revision of the curriculum was due to implementation
challenges experienced by the DoBE (2011).
The aim of the NCS, and subsequent CAPS, is to produce learners who are able to think critically,
work effectively as team members, are able to analyse and organise information, and ‘think outside of
the box’ (DoBE, 2011). For accounting, in particular, the DoBE (2011) aims to develop skills relating
20
to financial accounting, managerial accounting and auditing. According to the NCS and CAPS,
schools have to meet certain requirements to offer accounting as a subject. Included in these
requirements is that each learner should have a textbook, accounting stationery or workbook and a
calculator (DoBE, 2011). Teachers should also have a variety of reference textbooks, a copy of the
King Code III on corporate governance and the Companies Act 71 of 2008, as well as access to
computers and the internet (DoBE, 2011). More research found that former ‘white’ schools from the
apartheid era, which currently accommodate only 10% of the country’s learners, are still considerably
better resourced than the historically ‘black’ rural and township schools and achieve better educational
outcomes for students of all races (Kohler, 2012).
Another challenge SA schools are faced with is the fact that schools exceed their capacity. The
average class size in public schools was found to be 36 learners in 2009. In 2011, there were 2 800
schools with more than 50 students in the average classroom (Kohler, 2012). With increased class
sizes, it will become increasingly difficult for teachers to give learners the individual attention they
may require in a subject like accounting.
Mr Trevor Manual, the NPC Minister, further identified the following challenges faced by the SA
education sector (Mahomedy, 2012): gaps in the teaching of mathematics and science; the fact that at
least 50% of teachers are not sufficiently competent and skilled; poor infrastructure in certain areas;
and a poor understanding of English by both teachers and learners. A lack of dedication and discipline
of SA teachers also appears to be a grave problem. A study conducted in 2011 revealed that teacher
absenteeism is as high as 20% from Mondays to Fridays, and increases to 33% at the end of the month
in township and similar schools (Kohler, 2012). Also, teacher strikes can waste as many as 10 days a
year of teaching time and, in township schools, it is common practice to hold union meetings during
school time (Kohler, 2012). What is more, a study by the National Professional Teachers Organisation
of South Africa [Naptosa] (2012) noted that the highest dropout rates of students in schools occur
between Grades 10 to 12; the main reasons being poor relationships between educators and learners,
the learners’ dissatisfaction with inexperienced educators as well as the lack of relevance of education
to life experience (Mahomedy, 2012).
Graeme Bloch, an education specialist at the Development Bank of South Africa (DBSA), asserted
that a mere 15% of students who write their final matric examinations obtain marks good enough to
21
gain entrance into tertiary institutions. Universities and companies alike complain that the skills and
knowledge levels of matriculants are not up to standard (Mahomedy, 2012).
It can therefore be concluded that the state of SA’s secondary education needs to be improved
significantly to ensure that the learners of today are prepared sufficiently for tomorrow. The next
section discusses the extent of the impact of these problems in secondary education on tertiary
education.
2.3 A gap between school and university accounting education?

Research by Barnes et al. (2009) uncovered that high school accounting had a positive relation to the
performance of students in first-year accounting at university. They also concluded that high school
accounting will have a positive impact on first-year accounting only if there is a close correlation
between the two curricula (Barnes et al., 2009).
The CAPS mentions some of the topics that should be included in the Grade 12 accounting curriculum
(DoBE, 2011):
• Understanding of the policies governing ethical behaviour in the financial environment, e.g.
the King Code III;
• Understanding of the legislation governing companies. This entails basic principles in the
Companies Act 71 of 2008;
• Integration of ethical considerations relating to companies;
• Application of internal control and internal audit processes in a business environment;
• Integration of internal audit and control processes relating to companies;
• Completion of the VAT control ledger account from given information; and
• Preparation, presentation, analysis, interpretation of and reporting on cost information for
manufacturing entities, including calculations of variable and fixed costs in production and the
break-even point, etc.
The CAPS also encourages educators to set examinations in such a way that at least 10% of the
examination addresses problem-solving skills that require critical and creative thinking (DoBE, 2011).
All of these requirements sound excellent on paper, but the reality may be quite different. If the
above-mentioned topics are, in fact, integrated into high school curricula and examinations are
compiled as required by the DoBE, the question arises as to why tertiary accounting educators
22
perceive a continuous deterioration in the quality of first-year accounting students as discussed earlier.
Furthermore, in light of all the changes occurring in education and the content of school curricula, the
question is raised as to whether educators are sufficiently trained and qualified to understand and
apply these changes in their classrooms, especially in a subject area as complex and fast-changing as
accounting. The remainder of the article will attempt to shed some light on whether this perceived gap
between school and university accounting education is justifiable or not.
3. Methodology
A literature review was conducted in order to establish a theoretical base for the empirical study that
followed. The method of empirical research was in the form of two questionnaires designed by the
researcher and based on the literature review.
The first questionnaire was distributed to all first-year chartered accountancy (CA) students at the
selected university. First-year students were selected specifically as they experience the effects of
school education at university shortly after matriculating. The questionnaire was distributed to the
students at the end of the first half of the academic year, after the students received their first-semester
accounting examination results. It consisted of five parts (12 demographic questions and 47 questions
mostly on a five-point Likert scale of 1 = strongly disagree; 5 = strongly agree), aimed at gathering the
perceptions of these students regarding various elements of Grade 12 accounting, as follows:
• Part A: Demographic information – this part of the questionnaire gathered information from
respondents relating to their gender, race, home language, province of matriculation and final
marks obtained for mathematics and accounting in Grade 12, among others things.
• Part B: Adequacy of school accounting textbooks and curriculum – this part of the
questionnaire consisted of various questions relating to students’ experiences of accounting
textbooks and the accounting curriculum in high schools.
• Part C: Competence of school accounting teachers – the questions in this part related to
students’ experiences of the qualifications and competence of their school accounting teachers.
• Part D: Topics in the school accounting curriculum – this part contained yes/no questions
relating to students’ experiences of the coverage of accounting topics that are set out in the
CAPS for Grades 10-12. Parts B to D were answered only by students who took accounting as
a subject in high school.
• Part E: Students who did not take accounting as a subject in high school – this part was
specifically for students who did not have accounting as a subject in school (school accounting
23
is not a requirement at this university to enrol for the CA degree) and their experiences of
accounting as a subject at university level. Students were also asked to give a description of
their experiences and the reason(s) as to why they chose to study CA.
The second questionnaire was distributed to lecturers in accountancy programmes of SAICA-

accredited universities in SA. These lecturers were selected as they experience the effects of school
education on their students and can, therefore, identify the shortages of their students. This
questionnaire listed various accounting topics and required participants to rate the importance of each
topic using a seven-point Likert scale (1 = extremely unimportant; 7 = extremely important). This
questionnaire contained 14 demographical questions, listed 43 topics included in the high school
accounting curriculum and concluded with a question asking for lecturers’ qualitative comments on
the current high school accounting curriculum.
Validity and completeness of the questionnaires were ensured through compiling questions based on
the factors identified in the literature review (which included the CAPS relating to the subject
accounting) and through scrutiny of the questionnaires by research experts in the field of accounting,
as well as a qualified statistician. Statistical reliability measures were also calculated and are reported
in section 4.
The student questionnaire was distributed to all students attending one of the accounting lectures. The
lecturers provided sufficient time during the lecture for students to complete the questionnaire.
The lecturer questionnaire was sent via email correspondence to persons who were identified from the
various universities’ websites as lecturers (including subject heads) involved in the subject financial
accounting at the various accounting departments. The cover letter explained clearly the exact purpose
and context of the study. As the school accounting curriculum does, however, include some topics and
concepts that relate to, but are not purely of a financial accounting nature, these persons were
requested to also forward the questionnaire to other staff in their departments who might have been
interested in participating (i.e. including lecturers from other subjects in the accountancy field who felt
they were in a position to comment on the school accounting curriculum in the context of how well it
prepares first-year students for university). By extending the invitation, the study population was not
defined rigidly in an attempt to acquire the views of as many lecturers as possible.
The lecturer responses were collected during the first half of the year. A total of 58 responses were
received after a regular follow-up with each university. As the total population was flexible, it is not
24
possible to calculate a precise response rate, although the authors regarded 58 respondents from 13
universities as a fair level of participation.
The responses to the quantitative questions in both questionnaires were summarised on a spreadsheet
and processed using the statistical software package IBM SPSS Statistics (2011). Furthermore, the
qualitative comments made by each respondent were summarised to identify the different themes that
emerged from them. These results are discussed in the next section.
4. Results
4.1 Demographic profile of participants

The sample of student participants was slightly dominated by female participants (55.3%), while the
majority of students were white (63.1%), and African (33.3%). Students from all provinces in SA
were represented at the university, although the sample was dominated by students from Gauteng with
43.0% of participants and the North-West province with 30.0% of participants. Only 8.3% of the
participants did not have accounting as a subject until Grade 12. Another interesting statistic is that
96.0% of the students obtained a mark above 50% for their first accounting examination at university
and 93.9% of the students passed the module on their first attempt. These statistics appear to correlate
with the generally good marks the respondents obtained in Grade 12, where 55.6% of respondents
achieved a mark of 70% or more in Grade 12 mathematics and 65.5% did so in Grade 12 accounting.
The lecturer respondents were predominantly from the Gauteng province (57.6%) and North-West
province (28.8%). Females made up 64.0% of the sample. The highest qualifications were dominated
by honours degrees (39.7%), master’s degrees (35.6%) and doctorate degrees (5.1%). Lecturing
experience varied considerably from novices to highly experienced lecturers. Participants appeared to
be academic achievers with 84.7% of them indicating that they achieved good or excellent marks in
accounting during their own studies at university. All subject areas were represented; of the 58
respondents, 56.9% represented lecturers who were involved mainly in financial accounting, whereas
the other 43.1% represented lecturers who were involved mainly in other subjects in the accountancy
field.
4.2 Perceptions of school accounting textbooks, curriculum and teachers

Table 1 below contains the results obtained from parts B and C of the student questionnaire.
25
Table 1: Descriptive statistics of some individual questions asked to students
N Mean Std
(max = 5) Deviation
Part B: Adequacy of school accounting textbooks and
curriculum
There were enough accounting textbooks for all Grade 12 376 4.42 1.070
accounting learners.
The accounting textbooks were generally in a good condition 378 4.32 .944
when I received them.
The accounting textbooks were available in my study 378 4.69 .926
language.
The textbooks provided sufficient guidance for me to be able 378 4.06 1.043
to complete homework assignments.
The accounting textbooks were sufficient to help me prepare 378 3.80 1.078
for tests and examinations.
No additional study material was provided by the teacher to 377 2.05 1.219
supplement the material in the textbooks, as the textbook
content was sufficient to meet all our learning needs.
The textbooks covered all the examinable topics in the school 377 4.21 .931
accounting curriculum.
The textbooks were based on the school accounting 378 4.27 .874
curriculum.
The textbooks were on standard when compared to my first- 377 3.63 1.091
year university accounting textbooks.
The textbooks were sufficient to prepare me for first-year 377 3.66 1.012
accounting at university.
The textbooks were easy to understand. 377 3.91 .951
The textbooks contained sufficient examples. 377 3.73 1.053
The textbooks were useful. 377 3.94 .937
The content of the accounting curriculum at school was 377 3.75 .957
sufficient to prepare me for university accounting.
The content of the accounting curriculum at school reflected 377 3.34 1.089
the latest developments in the subject area.
The content of the accounting curriculum at school must not 376 2.20 1.152
be improved.
The content of the accounting curriculum at school was free 375 2.76 1.114
of error.
The content of the accounting curriculum at school was 375 3.26 1.021
difficult enough.
Part C: Competence of school accounting teachers
My accounting teachers were always present in class. 377 4.28 1.067
26
N Mean Std
(max = 5) Deviation
My accounting teachers could maintain discipline in the 377 4.27 1.075
classroom.
My accounting teachers were well prepared for each lesson. 377 4.30 1.055
My accounting teachers could explain difficult concepts in an 377 4.09 1.077
understandable manner.
My accounting teachers could give me individual attention 377 4.27 .952
when I needed help with a difficult concept.
The lessons presented by my teachers were relevant and 377 4.19 .988
sufficient to prepare me for tests and examinations.
I did not need to attend extra accounting classes from a 377 3.51 1.539
different, unrelated person to supplement my studies.
I did not consult various other study aids to relearn concepts I 377 2.82 1.428
did not understand in class.
I am satisfied with the quality of teaching I received from my 376 4.09 1.109
accounting teachers.
I regard my accounting teachers as experts in the subject. 374 4.09 1.112
I feel that my accounting teachers were sufficiently qualified 376 4.23 1.061
to teach me the subject.
I feel that my accounting teachers sufficiently prepared me 375 3.93 1.052
for the subject accounting at university.
My accounting teachers were competent to teach the subject. 375 4.21 .985
My accounting teachers put in a lot of effort to help students. 375 4.18 1.036
In general, the teaching methods used by my accounting 375 4.05 1.043
teachers were effective.
My accounting teachers had sufficient knowledge of new 375 3.91 1.084
developments in the subject area.
My accounting teachers taught me the correct principles. 375 4.21 .873
My school accounting teachers would be able to lecture first- 374 3.56 1.354
year accounting at university.
The above statistics obtained from the student questionnaire are discussed under relevant headings
below. It should be noted that a mean of 3 represents the middle of the five-point scale that was used,
i.e. it lies in the middle of 2 (‘disagree’) and 4 (‘agree’).
4.2.1 Adequacy of school accounting textbooks and curriculum

As mentioned earlier, the majority of the student participants were white. It can therefore be assumed
that the majority of the students came from schools that are better resourced and are offering higher-
quality secondary education as mentioned in section 2.2. This may have an impact on the findings of
this research, which are summarised below.
27
With a mean of 4.42 the students largely agreed that all Grade 12 learners received accounting
textbooks. The students also seemed fairly satisfied that the accounting textbooks enabled them to
prepare for tests and examinations (m = 3.80) and that all the topics in the curriculum were covered in
the textbooks (m = 4.21). The students were, however, a bit more unsure as to whether their
accounting textbooks were good quality when compared to their university accounting textbooks (m =
3.63) and whether their textbooks sufficiently prepared them for university accounting (m = 3.66). The
students disagreed that the school accounting curriculum needs no improvement (m = 2.20) and that
the curriculum content was free of error (m = 2.76).
From the above-mentioned it can be concluded that, although school accounting textbooks were
viewed as needing improvement, students were generally satisfied with them. Therefore, it is
questionable whether inadequate textbooks are a major reason for the deterioration in the quality of
first-year accounting students, although the level of satisfaction was lower when students compared
their school textbooks to their university textbooks and when they had to evaluate the accuracy of the
school accounting curriculum content.
4.2.2 Competence of school accounting teachers

The students agreed in general that their teachers were present in class (m = 4.28), that they could
maintain discipline in the class (m = 4.27) and that they were prepared for every lesson (m = 4.30).
With a mean of 2.82, the students disagreed that they did not consult additional study aids, and a less
than expected number of students did not need to attend extra classes, although opinions varied greatly
in this regard (m = 3.51; sd = 1.539).
For the most part, students regarded their accounting teachers as appropriately qualified to have taught
them the subject (m = 4.23) and they were satisfied with the quality of teaching they received (m =
4.09). With a mean of 3.56, however, students were less sure whether their accounting teachers would
have been able to teach university accounting. The extent to which teachers prepared the students for
university accounting (m = 3.93) and their knowledge of new accounting developments (m = 3.91)
were also viewed in a slightly less positive light compared to the other factors.
Overall, the above results seem to indicate that, at least through the perceptions of the participating
students, it is unlikely that the quality of school accounting teachers is a significant cause for the
decrease in the quality of first-year CA students. In the next section the topics included in the school
accounting curriculum will be investigated.
28
4.3 Topics in the school accounting curriculum
Part D of the student questionnaire related to topics included in the school accounting curriculum.
This part of the questionnaire allowed three possible answers (yes, no or uncertain). The aim of this
part of the questionnaire was to determine, through the perceptions of participating students, whether
all the topics included in the CAPS were actually taught to students by teachers. The results are
summarised in table 2 below.
Table 2: Coverage of topics included in the school accounting curriculum
N % Yes % No %
Uncertain
Code of Ethics, for example the principles of ethical and 369 78.5 12.8 8.7
professional behaviour by accountants like independence
and confidentiality of information
Basic principles of the KING III code 369 48.0 26.6 25.4
General Accounting concepts for manufacturing 375 87.3 6.5 6.2
enterprises, for example determining the cost of a product
using variable and fixed costs
Basic VAT concepts, for example taking out VAT from a 375 88.4 6.7 4.9
VAT inclusive amount
Analysis and interpretation of financial statements, for 375 90.6 5.9 3.5
example the acid-test ratio and current ratio
The definition of Managerial Accounting 375 47.9 26.2 25.9
The difference between direct and indirect costs 375 88.7 7.2 4.1
Determining the break-even point 375 87.6 5.4 7.0
Identification of basic internal control processes 373 66.2 14.1 19.7
The difference between internal control and internal audit 372 67.3 14.1 18.6
Basic sampling techniques 371 36.2 34.9 28.9
Effective use of information technology in the recording 369 41.3 39.1 19.6
of transactions of the entity
According to table 2, the minority (less than 50%) of the students indicated that the following topics,
as prescribed in the CAPS, were taught to them in high school:
• Basic principles of the KING III code (on corporate governance);
29
• The definition of Managerial Accounting;
• Basic sampling techniques; and
• Effective use of information technology in the recording of transactions of the entity.
The question then arises as to why the majority of students indicated that these concepts were not
taught to them. The possibility exists that teachers did not regard these concepts as important, that
they were not included in textbooks, or they did not fully understand these topics themselves and,
therefore, did not teach them to their learners. Some students may also not have been able to identify
topics listed in the questionnaire as referring to the same content covered in high school (which may
also say something about the adequacy of coverage at school level if students are unable to make the
link). It is interesting to note that, from the questionnaire sent out to lecturers, it was established that
participating tertiary accounting educators regarded some of these topics less important than others in
preparing students for university accounting (refer to the results summarised in table 3).
Whereas the student questionnaire collected information on coverage of the CAPS topics in school,
the lecturer questionnaire gathered the responses of accounting educators on the importance of such
topics. As mentioned earlier, the majority of respondents represented lecturers who were mainly
involved in the subject financial accounting, whereas the rest represented lecturers who were mainly
involved in other subjects in the accountancy field, although it is the authors’ view that the boundaries
between subjects in the accountancy field are not always well defined. Table 3 below contains the
results obtained from this lecturer questionnaire.
Table 3: Importance of topics included in the school accounting curriculum
N Mean Std
(max = 7) Deviation
The historical background on the subject area of accounting. 58 3.17 1.172

The qualitative characteristics of financial statements. 58 4.95 1.115
The definitions of the elements of the financial statements 58 5.62 .952
(i.e. of assets, liabilities, equity, income and expenses).
The ability to differentiate between the elements of the 58 5.67 .925
financial statements.
The accounting equation (equity = assets less liabilities). 58 5.86 .544
Preparation of a trial balance. 58 5.48 .960
30
N Mean Std
(max = 7) Deviation

The ability to perform General journal entries. 58 5.76 .802
Measurement and disclosure of Inventories. 58 5.17 .841
Measurement and disclosure of Debtors, including bad debts 58 5.21 .853
and provision/allowance for bad debts.
Measurement and disclosure of Creditors. 58 5.10 .931
Calculation of depreciation on Property, Plant and 58 5.52 .863
Equipment.
The ability to post information from journals to the general 58 5.60 .877
ledger and to the financial statements.
The ability to process accounting adjustments. 58 5.59 .795
Perform bank reconciliations. 58 5.40 .972
Understand the difference between direct and indirect tax. 58 4.40 1.270
Understand the concept of VAT (Value-Added Tax). 58 4.83 1.244
Basic VAT concepts, for example being able to take out VAT 58 4.86 1.330
from a VAT inclusive amount.
Ability to account for VAT in the entity’s accounting records. 58 4.69 1.379
Distinguish between invoice and payment basis in respect of 58 4.21 1.399
VAT.
A basic understanding of companies’ tax. 58 4.60 1.199
Understand the basic principles of STC/dividend tax. 58 3.69 1.259
Understand the basic concepts of PAYE (Pay As You Earn). 58 3.98 1.291
Be aware of the concept of Provisional tax. 58 3.84 1.281
Understand the concept of a progressive tax scale. 58 3.81 1.231
Know the difference between the different types of entities, 58 5.10 .931
e.g. Partnerships, Companies, Sole Proprietors, etc.
31
N Mean Std
(max = 7) Deviation

Explain the difference between managerial and financial 58 4.47 1.203
accounting.
General accounting concepts for manufacturing enterprises, 58 4.43 1.171
for example determining the cost of a product using variable
and fixed costs.
Analyses and interpretation of financial statements, for 58 4.95 1.099
example calculating the acid-test ratio and current ratio.
Discuss the impact of the above-mentioned types of ratios on 58 4.79 1.210
financial decisions.
The definition of Managerial Accounting. 58 4.09 1.302
The difference between direct and indirect costs. 58 4.36 1.252
Determining the break-even point. 58 4.34 1.193
Calculate the value of inventory using the FIFO (first-in-first- 58 4.72 1.039
out), LIFO (last-in-last-out) and weighted average methods.
Prepare a budget. 58 4.52 1.203
Code of Ethics, for example the principles of ethical and 58 4.22 1.439
professional behaviour by accountants like independence and
confidentiality of information.
Ability to discuss disciplinary procedures when the Code of 58 3.71 1.364
Ethics is not abided to.
Be aware of the existence of the King Code. 58 3.86 1.515
Effective use of information technology in the recording of 58 4.16 1.387
transactions of the entity.
Identification of basic internal control processes. 58 4.00 1.364
The difference between internal control and internal audit. 58 3.72 1.399
Interpretation of internal audit reports. 58 3.46 1.452
32
N Mean Std
(max = 7) Deviation

Basic procedures of gathering audit evidence. 58 3.46 1.465
Basic sampling techniques. 58 3.29 1.499
The above statistics are discussed below. It should be noted that a mean of 4 represents the middle of
the seven-point scale that was used, i.e. it lies in the middle of 1 (‘extremely unimportant’) and 7
(‘extremely important’).
The table above indicates that the lecturers regarded the topic of the historical background on the
subject area of accounting as the least important of the topics listed in the questionnaire (m = 3.17).
Not far behind, all the topics relating to auditing, i.e. sampling techniques (m = 3.29), interpretation of
internal audit reports (m = 3.46), the basic procedures of gathering audit evidence (m = 3.46) and the
difference between internal control and internal audit (m = 3.72) were also not regarded as important
topics by lecturers to be taught to high school students. Tax concepts relating to STC/dividends tax (m
= 3.69), PAYE (m = 3.98), understanding the concept of a progressive tax scale (m = 3.81) and
awareness of provisional tax (m = 3.84) were also regarded as less important when compared with
other accounting topics listed in the questionnaire.
The topics relating to the discussion of disciplinary procedures when the Code of Ethics is not abided
to (m = 3.71) and learners being aware of the existence of the King Code (m = 3.86) were also not
regarded as important topics by the lecturers.
Lecturers regarded the basic concept of the accounting equation (equity = assets – liabilities) as the
most important topic that students should be taught at school (m = 5.86). The definitions of the
elements of financial statements (i.e. of assets, liabilities, equity, income and expenses) (m = 5.62) as
well as the ability to differentiate between the elements (m = 5.67) were also regarded as very
33
important by the respondents. These topics represent the most basic topics in the subject accounting.
The ability of students to perform general journal entries (m = 5.76), to post information from journals
to the general ledger and financial statements (m = 5.60) and to process accounting adjustments (m =
5.59) are also important topics that the lecturers felt students should learn while at school. In the
topics relating to VAT, managerial accounting and ethics, respondents had a more neutral response,
with means ranging between 4.21 and 4.47.
If the results of table 2 and 3 are considered together, it seems that some of the topics which students
indicated as not being taught to them at school (provided they understood what all the questions
referred to) were not regarded by lecturers as extremely important for the subject of accounting at
school. In addition, there were other topics that were indeed covered in schools which were not
regarded as particularly important by tertiary accounting educators. As can be seen from the
discussion above, the majority of these less important topics related to topics or concepts that are not
viewed as purely of a financial accounting nature. As mentioned earlier, the majority of respondents
were involved mainly in the subject financial accounting at their respective universities. To check for
possible bias in the responses as a result of this, a detailed analysis was performed using only the
responses from lecturers who were not mainly involved in this subject. This indicated that these
lecturers also did not regard these topics as important in the school accounting curriculum. Of the 20
topics that were ranked the lowest overall, only one topic fell outside the lowest 20 of the lecturers not
mainly involved in financial accounting (this topic was ranked the 21st lowest topic by this group of
participants). The other topics in the lowest 20 overall were also in the bottom 20 of the lecturers not
mainly involved in financial accounting.
4.4 Data reduction

To make the large number of variables more manageable, a confirmatory principal components factor
analysis was performed, using IBM SPSS (2011), on each group of questions on textbooks,
curriculum and teachers in the questionnaire given to students. According to Tabachnick and Fidell
(2007), a sample size of at least 150, but preferably 300, is required to perform a factor analysis. The
sample size of this study was 412 responding students. Nunnally’s (1978) suggested ratio of at least
10 cases per item has also been met. The Kaiser-Meyer-Olkin Measures of Sampling Adequacy
(MSA) exceeded the minimum recommended value of .6 (Kaiser, 1974; Tabachnick & Fidell, 2007;
Pallant, 2007), and Bartlett’s (1954) test of sphericity reached statistical significance for all groups of
questions, supporting the factorability of the data.
34
An inspection of communalities revealed that three questions did not fit in well with other questions;
this was confirmed by the authors’ through inspection of the wording of these questions. Thirty-three
of the 36 questions that were subject to factor analysis were, therefore, reduced into five components
as per table 4 below.
Table 4: Results of factor analysis
Component Variance MSA Cronbach

explained alpha
Usefulness of textbooks (7 items) .884
Physical/practical constraints of textbooks (availability, 59.5% .915 .811
condition and curriculum coverage) (5 items)
Adequacy of school accounting curriculum in preparation 55.8% .614 .602
for university ( 3 items) 1
Competence of school accounting teachers (16 items) .964
Necessity for additional study aids (3 items) 67.6% .965 .709
The means of all components were calculated as the average means of individual questions belonging
to each component. Descriptive statistics for each component of the questionnaire are presented in
table 5 below.
Table 5: Descriptive statistics of components identified in factor analysis
N Mean Std
Deviation
Usefulness of textbooks (7 items) 378 3.82 .787
Physical/practical constraints of textbooks (availability, condition 378 4.38 .717
and curriculum coverage) (5 items)
Adequacy of school accounting curriculum in preparation for 377 3.28 .788
university ( 3 items)
Competence of school accounting teachers (16 items) 377 4.12 .856
Necessity for additional study aids (3 items) 377 2.84 1.31
1 Cronbach alpha is not more than the suggested .7; however, Pallant (2007:95), Field (2005:668) and Cortina (1993) advise that smaller
values for Cronbach’s alpha coefficient can be expected with short scales (e.g. scales with fewer than ten items). In such a case, it may
be more appropriate to report the mean inter-item correlation for the items. Briggs and Cheek (1986) recommend an optimal range for
the inter-item correlation of .2 to .4. The mean inter-item correlation for the three questions in this factor was .336; this is a medium
effect and within the range suggested by Briggs and Cheek. Therefore, it is reliable to report these three questions as one factor.
35
From table 5 above, the following results were clear:
• In general, students found textbooks used at their respective schools sufficient and useful (m =
3.82);
• The availability, condition and curriculum coverage of textbooks were even less of a problem
when compared to the usefulness of textbooks (m = 4.38);
• However, a large percentage of students (36.8% of respondents), but not the majority, agreed
that the curriculum for accounting was not adequate to prepare them for university accounting
(m = 3.28);
• In general, students agreed that their accounting teachers were competent enough to teach the
subject (m = 4.12);
• It seems as if most students did not need additional study aids for accounting at high school
level to assist them in mastering the subject (m = 2.84), but there was a wide range of opinions
on this matter as can be seen from the fairly large standard deviation of 1.31.
4.5 Comparison of student groups with different demographical profiles

Vital information can also be obtained by comparing the means between different demographic
groups within the sample of this research study. Owing to the nature of the data, independent-samples
t-tests (sections 4.5.1 and 4.5.2) and cross tabulations (section 4.5.3) were performed to compare the
variables and statistical significance (Sig values/p values) are reported.
Effect sizes were also calculated in order to assess the practical importance of the findings and support
results obtained from measures of statistical significance. (The sample consisted of all attending
students, which may not represent a fully random sample, although class attendance at the university
for this subject is very high in general.) Steyn (2000) suggests that the effect size (denoted by d)
should be calculated as the difference between the means divided by the maximum standard deviation
of the two groups that are compared in the case of t-tests. In the case of cross-tabulations, the effect
size was measured with reference to the Phi coefficient.
Cohen (1988) and Pallant (2007) provide the following guidelines for the interpretation of these effect
sizes:
• Small effect = .2
• Medium effect = .5
• Large effect ≥ .8 (and also practically significant)
36
The comparison for the five variables identified through factor analysis, as well as for one other
important individual item, is reported in the remainder of this paper.
4.5.1 Comparison of African and white students

A comparison was done according to race, i.e. African and white students. This comparison was
drawn due to the significant differences between historically black schools and more privileged
schools, as identified in the literature review in section 2.2. The results are summarised in table 6
below.
Table 6: Comparison of perceptions of black and white students
Black students White students Sig. (2-tailed,

Effect
Component if a random
Mean Std. Std. size
N N Mean sample is
Deviation Deviation d
assumed)
Usefulness of textbooks 116 3.52 .754 248 3.98 .746 .000* .600
Physical/practical 116 4.13 .793 248 4.51 .624 .000* .485
constraints of textbooks
(availability, condition and
curriculum coverage)
Adequacy of school 116 3.14 .793 247 3.36 .785 .015* .274
accounting curriculum in
preparation for university
Competence of school 116 3.86 .844 247 4.26 .808 .000* .477
accounting teachers
Necessity for additional 116 3.22 1.21 247 2.65 1.294 .000* .443
study aids
Curriculum difficult enough 114 2.83 1.05 247 3.45 .961 .000* .592
* Significant at the p < .05 level, if a random sample is assumed.
The following differences in means revealed noticeable effect sizes:

• African students’ perceptions of the usefulness of textbooks were more negative (m = 3.52)
than those of the white students (m = 3.98). This can be regarded as a medium effect (d =
.600). It may signal that textbooks used in historically black schools are outdated, not on
standard and/or less useful to black students when compared to those at former “white”
schools.
37
• African students held more negative views about the practical/physical constraints of
textbooks (m = 4.13) than white students (m = 4.51). With d = .485, this is regarded a medium
effect.
• Regarding the difficulty of the accounting curriculum in high school, the majority of African
students felt that the curriculum was not difficult enough (m = 2.83), whereas more white
students held the opposite view (m = 3.45). This can be seen as a medium effect (d = 5.92).
4.5.2 Comparison in terms of students’ first year accounting marks at university

A comparison of means was drawn between students who obtained high marks for accounting at
university (regarded as 60% or more, based on the authors’ experience as accounting educators) and
students who did not obtain such high marks (59% and below).
Table 7: Comparison of students in terms of their first year accounting marks
60% or more 59% and below Sig. (2-tailed,

Effect
Component if a random
Std. Std. size
N Mean N Mean sample is
Deviation Deviation d
assumed)
Usefulness of textbooks 267 3.86 .816 110 3.72 .703 .133 .164
Physical/practical 267 4.42 .759 110 4.30 .599 .152 .153
constraints of textbooks
(availability, condition and
curriculum coverage)
Adequacy of school 266 3.31 .808 110 3.22 .737 .270 .122
accounting curriculum in
preparation for university
Competence of school 266 4.16 .899 110 4.01 .728 .113 .171
accounting teachers`
Necessity for additional 266 2.69 1.32 110 3.19 1.22 .001* .377
study aids
Curriculum difficult enough 265 3.30 1.02 109 3.17 1.03 .287 .121
* Significant at the p < .05 level, if a random sample is assumed.
Only one difference in means had a noticeable effect size. Students with lower first-year accounting
marks regarded the use of additional study aids as more of a necessity (m = 3.19) than students who
obtained higher marks (m = 2.69). The effect is, however, only small to medium (d = .377).
38
4.5.3 Comparison of students who had accounting as a subject in high school to those who had
not
The cross-tabulation between the students’ university accounting marks and whether they had
accounting in high school revealed that, of the students who had accounting as a subject at school,
only 2.9% of them failed accounting in their first semester at university. However, for the students
who did not have accounting as a subject at school, the failure rate was 21.9%.
It can be concluded that students who did not have accounting as a subject at school were statistically
prone to achieve lower university accounting marks compared to those who did have the subject (p <
.0001, if a random sample is assumed), even though the practical effect is quite small (Phi = 2.70).
4.6 Qualitative comments obtained from students who did not have accounting in
high school
The questionnaire given to students included two qualitative questions to students who did not have
accounting as a subject in high school. The questions were as follows:
1. Please give a short description of your experience of the first semester of accounting at the
university.
2. Please provide your reasons for choosing to study chartered accountancy.
A comparison was drawn between the different races of the students who did not have accounting as a
subject in school. From this, it was noted that 61.8% of the students who did not have accounting were
African, 35.3% were white and 2.9% were Indian.
For the first question, the majority of students indicated that they found the subject both challenging
and confusing at times. They commented that a great deal of hard work is needed to pass the subject.
Some of the students attended an accounting bridging course before attempting the subject. These
students felt that the pace at university is much quicker than the bridging course and that it was
difficult at times to keep up with the work.
Of the 34 students who did not have accounting as a subject in high school, 13% indicated that school
accounting should be made a compulsory admission requirement for students who wish to study CA.
They commented that the subject would have been easier if they had a solid accounting background.
39
One student even commented that university lecturers present the subject on the assumption that every
student has a basic understanding of the subject.
The main motivations students gave for studying CA (question 2), were because it is a career with
high earning potential and many job opportunities. Another equally prominent reason given by
students was the fact that they believed there is a shortage of black, qualified chartered accountants in
SA. Family influences were also cited as playing a role in the students’ choice of career.
4.7 Qualitative comments obtained from lecturers

Lecturers were asked in their questionnaires to provide additional comments or suggestions regarding
the subject accounting at high school level. The lecturers gave a very wide range of comments and
suggestions of which the most prominent are summarised below:
• The topic of VAT is included in school textbooks from Grade 8, but when students enter
university they seem to be unfamiliar with the topic. More lecturing time on the topic has to be
provided to ensure that the students understand it.
• Some lecturers felt that students are being coached at school to pass Grade 12 examinations,
instead of being taught to think critically and logically about concepts.
• School accounting should focus on basic concepts, for example, the accounting equation and
identifying differences between the elements of financial statements, and students should be
taught why they are processing a particular transaction.
• One lecturer commented that high school teachers do not keep up with changes in the subject
and that a great deal of lecturing time is spent on ‘un-teaching’ concepts taught to students at
school.
• Lecturers commented that students do not understand how journal entries affect financial
statements.
• Another lecturer commented that students should be made aware of the International Financial
Reporting Standards (IFRS) and the Companies Act on a basic level.
From the results obtained and documented above, conclusions on the study will be drawn and
recommendations made in the section that follows.
40
5. Conclusions and recommendations
Based on the literature review, various reasons were identified for the deterioration in the quality of
first-year accounting students in SA. One possible reason is the apparent gap between school and
university accounting education, especially in respect of curriculum, teaching quality and textbooks.
This study investigated this gap using questionnaires provided to first-year CA students as well as to
lecturers from accounting departments across the country, adding to the limited research on these
topics in an accounting context in SA. The study makes an original contribution to accounting
education literature as it is likely the first study in SA that scientifically investigates university
accounting students’ perceptions of the quality of high school accounting education, which is of
obvious practical value for accounting educators, government and professional bodies seeking to find
solutions to the declining university pass rates.
The results of the study suggest no single specific reason for the apparent deterioration in the quality
of first-year CA students. The study found that a fairly large percentage (36.8%) of students agreed
that the school accounting curriculum was not sufficient to prepare them for university accounting (the
majority of these students being African students). African students also held more negative
perceptions about the usefulness and physical constraints of textbooks, but the study did not find this
to be a limitation overall. Literature revealed that textbooks and other resources in rural schools are
mostly outdated, unavailable to learners, or in unusable conditions (Samoff, 2001). This supports the
study by Barnes et al. (2009) who indicate that the high failure rate of first-year accounting students
occur primarily in students from designated groups. This might be ascribed to the higher absenteeism
and occurrences of strikes by educators in township schools (Kohler, 2012). Another interesting result
was that 61.8% of the students who did not have accounting as a subject in high school were African.
More focus should, therefore, be placed on improving accounting education and encouraging students
to take accounting in historically black schools.
It was further observed that 21.9% of the students who did not have accounting as a subject in high
school did not pass the subject in their first semester at university, which was significantly higher than
their peers who did take accounting at school level. Thus, both SAICA and universities should
consider making school accounting a compulsory admission requirement for students who wish to
study CA at university or ensure that students who did not have the subject at school complete an
appropriate accounting bridging course at university. This is supported by a study by Rankin,
Silvester, Vallely and Wyatt (2003) who commented that high school accounting is beneficial to the
41
performance of students in first-year accounting if there is a close association between the two
curricula (Barnes et al., 2009).
Less than half of the participating students indicated that certain topics in the school curriculum were
taught to them at school, including the King III code on corporate governance, managerial accounting,
audit-sampling techniques and the use of information technology in the subject. These topics were
added to the school curriculum only recently. When compared to results obtained from the lecturers’
questionnaires, topics relating to auditing and the King Code were also not regarded as important
topics. From this it is recommended that the school accounting curriculum be adjusted to focus on the
basic concepts of the subject area and build a strong foundation for learners so that they are able to
successfully cope with university accounting curricula and assessment. More specialist topics relating
to auditing, ethics and advanced taxation can be the focus of universities where these subjects are
taught separately and the lecturers have the knowledge and experience to present these subjects
appropriately.
Therefore, it can be concluded that there is at least some merit in the literature condemning problems
in high school accounting education, especially among African students who participated in this study.
The study confirms that the impact of apartheid still lingers in the SA education system, in particular
regarding the quality of matriculants produced. The only way forward is for both universities and the
DoBE to work together to overcome the problems facing accounting education and to ensure that a
better quality student is produced to enter university.
The DoBE should be made aware of the requirements of universities regarding the content of specific
subjects, such as accounting, and how to effectively implement these requirements into the school
curriculum. It is suggested that universities and the DoBE schedule annual meetings for various
subject groups to ensure these needs are being met and for the universities to give feedback to the
DoBE on whether the changes implemented are making a difference to the quality of first-year
students who enter university. Implementing these suggestions might be a strenuous and expensive
procedure initially, but the benefits will be so much greater, as the country should then have better
qualified and equipped students entering university and then practice. This can, in turn, have a positive
effect on the country’s economy.
42
6. Limitations of the study
The study was limited by the fact that the minority of students were from designated groups where, it
seems, SA accounting education faces its biggest challenges. The reason for this is the fact that this
university predominantly still attracts Afrikaans-speaking students, whereas it seems most black
students would prefer to study in English. Moreover, the first-year students at the university had more
positive responses to the questionnaires than was expected, possibly due to the fact that they achieved
very high marks in their Grade 12 mathematics and first-semester accounting examination and,
therefore, perceived high school accounting as better preparation for university accounting than might
have been the case if they achieved lower marks. These high marks could also have affected the
overall responses given by the students.
Another factor to consider is that the 58 lecturer respondents did not represent a fully random sample
and hence their views cannot necessarily be generalised to the total population of all lecturers
involved in the accounting departments at the selected universities – as such, their views should be
interpreted in this context. Also, an equal representation of lecturers from all the subjects in the
broader accountancy field might have yielded different results. It is suggested that future research
addresses the limitations of this study. However, regardless of these limitations, the study sheds some
light on the state of school accounting and the areas that appear to be of a greater concern than others,
which present a useful base for further research and which should aid in continuing this very
important debate.
43
7. Bibliography
Ainsworth, P. (2000). Changes in accounting curricula; discussion and design, Accounting Education,
10(3):279-297.
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Date of access: 5 Nov. 2012.
Barnes, H., Dzansi, D., Wilkinson, A. and Viljoen, M. (2009). Researching the first year accounting
problem: factors influencing success or failure at a South African higher education institution, Journal
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47
Chapter 3 (Article 2)
University versus practice: Identifying skills shortages that exist in

first-year trainee accountants in South Africa
Title: University versus practice: Identifying skills shortages that exist in first-year trainee
accountants in South Africa
The reader is requested to take note of the following:
• This article has been submitted for publication to the following IBSS indexed, peer-reviewed
and Department of Higher Education and Training accredited academic journal as follows:
Van Romburgh, H. & Van der Merwe, N. 2013. University versus practice:
Identifying skills shortages that exist in first-year trainee accountants in
South Africa. Industry & Higher Education, unpublished. (ISSN 0950-4222).
• The article was researched and written by the first author as the candidate. The second author,
as the study leader, fulfilled a ‘reviewer’ function. Estimated weightings of contribution are as
follows:
* Van Romburgh, H. (90%)
* Van der Merwe, N. (10%)
• Confirmation of receipt of the article from Industry & Higher Education has been received and
is presented as part of Annexure D.2 on page 113. The article was written and formatted in
line with the journal’s submission guidelines, which are included as part of annexure E.2 on
page 116 - 117.
48
Abstract
This study aimed to determine the skills shortages in first-year trainee accountants entering practice in
South Africa and to recommend ways to improve such shortages. Questionnaires were administered to
registered audit firms in the Gauteng Province, South Africa in which the perceptions of trainees,
managers and partners on the skills shortages in first-year trainee accountants were gathered. The
overall feeling of respondents seemed to be that universities do not sufficiently equip first-year
trainees with the skills to be successful in practice, especially professional communication and a lack
of exposure regarding computer accounting software packages. Professional bodies and universities
should work together to overcome skills shortages.
Keywords
Skills
Accounting education
Audit firms
South Africa
Trainee accountants
Accounting practice
49
1. Introduction
Accounting education is faced with many challenges globally and accounting professionals seem to be
increasingly concerned that recent accounting graduates do not meet the high standards set by
potential employers (Clovey and Oladipo, 2008; Bui and Porter, 2007). This is a pertinent research
topic, especially as research conducted in South Africa (SA) on the skills required by trainee
accountants is limited (Barac, 2009). To date, only a single scientific, peer-reviewed study has been
performed to determine whether the education of SA trainee accountants meets the expectations set by
practitioners. This study by Koornhof and Lubbe (2002) concluded that, in general, the technical and
theoretical knowledge of first-year accounting trainees was sufficient, but that the trainees faced
problems in applying this knowledge in practice (Barac, 2009). Some participants voiced their
concern about the shortage of basic accounting knowledge among trainees – even at the level of the
Certificate in the Theory of Accounting (CTA) and honours degree (Barac, 2009; Koornhof and
Lubbe 2002).
The problem could be the tendency of SA universities to focus heavily on chartered accountancy (CA)
students’ technical ability while perhaps failing to provide students with the basic skills required by
practitioners. Wilson (2011) purported that universities on their own are unable to generate competent
practitioners, as certain competencies can be obtained only in the workplace. Gammie et al. (2002),
however, noted that universities can embed certain skills in accounting graduates during their studies.
Wilson et al. (2009) focused on the roles of universities, accounting bodies and practitioners in
developing accounting professionals. The Accounting Education Change Commission (AECC) sees
‘... the role of university as being to prepare students to become accountants, whereas the role of
professional training is to prepare trainees to be accountants’. Yet, there are still continued pleas for
improved soft skills development in accounting graduates (e.g. Du Preez and Fossey, 2012; Rhodes,
50
2012; Clovey and Oladipo, 2008; Duff and McKinstry, 2007). This article contributes to this need by
identifying the perceptions of SA practitioners in small, medium and large auditing firms regarding
the skills shortages in first-year trainee CAs and by offering recommendations on how these shortages
can, at least partly, be addressed at university level, which should be of interest to accounting
educators and professional bodies alike.
The objectives of this study are as follows:
• To determine which skills shortages exist in South African CA students entering practice.
• To recommend ways to improve the skills development of CA students at university level.
For purposes of this study, ‘entering practice’ means the start of the three-year training period required
by professional accountancy bodies after completing the academic (university) programme accredited
by the South African Institute of Chartered Accountants (SAICA). The objectives above were
investigated through empirical research in the form of questionnaires administered to several small,
medium and large registered audit firms in the Gauteng Province, SA. This province was selected
because it is home to the largest metropolitan areas and the main business centres of South Africa;
consequently, the largest population of audit firms are situated in this province (IRBA, 2012). The
questionnaires were completed by trainee accountants, managers and partners in the firms and, in this
way, the researcher gathered views from different perspectives.
The article is structured as follows: First, the relevant literature on the research topic will be reviewed,
followed by a description of the research method. The findings are discussed and summarised,
conclusions are drawn and direction for further research are suggested, while recognising the
limitations of the study.
51
2. Literature overview
During the past years, accounting education has been in the limelight for many reasons such as course
content and curricula; teaching approaches; staff’s knowledge and capability to offer significant
guidance; the employability and readiness of graduates; students’ exposure to information technology
and its application in practice; and, most importantly, the rigour and significance of curricula in
today’s intricate corporate environment (de Villiers, 2010; Rubin and Dierdorff, 2009; Birrell, 2008;
Navarro, 2008; Albrecht and Sack, 2000).
The following sections explore specific problems in accounting education at tertiary institutions in SA
and abroad, and discuss skills shortages in first-year trainee accountants that audit training firms are
dealing with.
2.1 Effects of the stagnating accounting curricula
Various articles have reported on the need for accounting education programmes to respond to the
rapid changes taking place in practice. Members of accounting faculties and administrators at
universities need to understand how the higher education environment is evolving so that adequate
responses to changes in practice can be developed. Fast changes in economic environments have
challenged the competencies (technical knowledge, skills and attitudes) of professional accountants
(Barac, 2009). Accounting curricula at Higher Education Institutions (HEIs) should ensure that
accounting graduates are skilled and equipped to become competent chartered accountants (Gonzalo
and Garvey, 2005). Ideally, accounting curricula should be revised regularly through an assessment of
business requirements, and applications of these revisions need to meet the new requirements (IFAC,
2003; Barac, 2009).
52
Studies (de Villiers, 2010; Barac, 2009; Rebele 2002; Albrecht and Sack, 2000; AECC 1990) have
reported on various ineffective attempts to change accounting education programmes. Too many
changes have been made for the sake of making them, without giving thought as to how effective such
changes will be for improving accounting education over the long haul (Barac, 2009; Gammie et al.,
2002; Rebele, 2002; Albrecht and Sack, 2000). Although change is a necessity, accounting educators
have not taken into account the need for an inclusive understanding of the environment of accounting
education. Furthermore, the assessment of the effectiveness of change processes and changes that are
made has been unsatisfactory (Barac, 2009; Rebele, 2002; Albrecht and Sack, 2000).
The primary cause of the problems in accounting education is that accounting students are taught the
newest corporate viewpoints and ‘best practices’, but these are not applied to the teaching
programmes (de Villiers, 2010; Wessels, 2004; Rebele, 2002). A dynamic curriculum that adapts to
the changing requirements of the profession is, therefore, critical as the curriculum has a direct impact
on the skills and competencies developed in accounting graduates, including the soft skills that are
essential to the profession (de Villiers, 2010; Clovey and Oladipo, 2008; Wessels, 2004).
2.2 Underdevelopment of soft skills in first-year CA trainees
De Villiers (2010) pointed to a gap between academic studies for accounting graduates and
professional accountancy practices. Specifically, the gap lies between the ‘soft’ or ‘transferable’ skills
required by firms, recruitment experts and accreditation bodies, which are not sufficiently taught to
accounting students at university. These skills not only differentiate outstanding leaders and
managers, but can also be positively correlated to strong performance at all other levels of
professionals.
53
Accounting educators internationally are being advised to revise curriculum in order to produce
accounting students with a broad set of skills and attributes (Kavanagh and Drennan, 2008). Research
conducted in SA evidenced that the current SA education system might not be supplying chartered
accountants who are able to apply their newly attained knowledge and skills to the work environment
(de Villiers, 2010; Coetzee and Oberholzer, 2009). This claim is substantiated by a study on
employers’ demands for ‘core competencies’ necessary for graduate employability, which included
‘hard’ business-related knowledge and skills; ‘soft’ business-related skills and competencies; and
prior ‘on the job’ experience (de Villiers, 2010; Andrews and Higson, 2008). The greatest gaps
between the expectation of prospective employers and that which is delivered by universities were
identified in accounting software skills, self-promotion/motivation, negotiation, leadership and
customer service (Kavanagh and Drennan, 2008).
Educators need to move from teaching rules and to teaching concepts of accounting and enhancing
practical skill, which should provide students with a basis from which to comprehend and remember
the rules better. In addition, this will facilitate other generally stated goals of accounting education,
such as developing thinking abilities, communication and problem-solving skills, and the capability
for life-long learning (Jennings, 1998), which is also supported by SAICA’s (2010) competency
framework. SAICA (2010) is a prominent professional accountancy body in SA and developed the
competency framework that outlines all competencies expected from a CA at point of entry to the
profession.
Green et al. (1999) argued that the true test of a good curriculum is whether it prepares students for a
career in business by developing soft skills such as communication skills, teamwork and interpersonal
skills, decision-making and problem-solving skills, technological skills, information development and
distribution skills, leadership skills, and professionalism.
54
Du Preez and Fossey (2012), Cheng (2007), and Zaid and Abraham (1994) confirmed that strong
communication skills are essential to the accounting profession, as well as the ability to communicate
and explain accounting concepts to non-accountants. They noted that university curricula enable
students to communicate effectively with fellow accountants, but that no skills are developed to
communicate with non-accountants (De Lange et al., 2006; Zaid and Abraham, 1994). Stone and
Shelley (1997) stated that university lectures should be changed to an ‘educating for expertise’
methodology emphasising the growth of intellectual skills and attitudes of accounting students (de
Wet and van Niekerk, 2001).
2.3 Skills requirements from the perspectives of different training providers
Training providers for CA graduates in public practice can be categorised into small, medium and
large firms. Trainees gain experience according to the size and client base of firms (Joubert et al.,
2009; SAICA, 2010). Small firms offer a variety of services, including tax planning, and trainees
working in these firms gain experience in a client’s entire business in general. Small firms are often
community based and entrepreneurs are their main clients, but they may have local retailers and
manufacturers, small- to medium-sized companies, close corporations and private individuals as
clients (Joubert et al., 2009; SAICA, 2010). Medium firms have a similar client profile, their clients
ranging from independent businesses to household-name companies covering a wide range of
products and service sectors (Joubert et al., 2009; SAICA, 2010). Large firms employ the most
graduate trainees each year, and training in these firms provides trainees with experience in and
knowledge of how businesses function. Trainees may be exposed to some of the world’s best-known
companies, across a range of industries. The working environment is team oriented and often
specialised, with greater exposure to complex transactions (Joubert et al., 2009; SAICA, 2010).
55
According to de Villiers (2010) and Poe and Bushong (1991), curricula changes focus mainly on the
requirements of large firms and not as much on small and medium firms.
In conclusion, different size training firms may require different skills from their trainees, although it
is argued that the basic skills set required should be the same or similar. These skills will be explained
further in this study.
3.3 Methodology
The research method consists of a literature review and an empirical study. Relevant and recent
literature has been consulted to establish a theoretical base for the empirical study, which took the
form of a questionnaire with quantitative and qualitative questions.
The researcher developed the questionnaire following the themes that emerged from the literature
review, including the required skills in SAICA’s (2010) competency framework. This framework has
determined levels of proficiency for each competency within all the competency areas. SAICA (2010)
defines the levels as follows:
• Level A: The student is expected to have an awareness of the key ideas and principles in the
specific area.
• Level I: The student is expected to demonstrate an understanding of the requirements of the
task.
• Level X: The student is expected to complete all elements of the task and have an advanced
understanding of the area.
56
The questionnaire consisted of nine demographic questions and eighteen questions aimed at gathering
the opinions from various levels of staff at audit firms on the skills shortages experienced by first-year
CA trainees when entering practice.
The nine demographic variables included the size of the firm, the respondent’s position in the firm, the
qualification of the respondent, and the number of years he/she has been employed by the firm.
Questions 10 to 23 focused on the participants’ experience of the level of skills with which
universities equip first-year trainees. These questions were measured using a five-point Likert scale
(1=strongly disagree; 5=strongly agree). The content of the questions was deemed valid, as the
statements related to specific documented skills with which the SAICA competency framework
requires universities to equip trainee accountants when entering practice at a proficiency level X, i.e.
the highest level. It afforded respondents the opportunity to gauge (based on their perceptions and
experience in practice) whether the skills development requirements at university level of the
competency framework have been met. These skills were selected based on the skills shortages
identified in section 2. The remainder of the questionnaire (questions 24 to 27) were open-ended and
required participants to give qualitative comments on the role of universities in preparing first-year
CA trainees for practice; the specific skills shortages in trainees at the point of entering practice; and
recommendations for improving these skills shortages. To further ensure its validity and reliability,
the questionnaire was scrutinised by subject specialists in the accounting education field, as well as by
a qualified statistician, before it was administered to the participants. Owing to the nature of the study,
results will be analysed on a question-by-question basis, i.e. they are not reduced into a smaller
number of dimensions.
The target population consisted of assurance staff (partners, managers and trainee accountants) in
small, medium and large firms registered with the Independent Regulatory Board of Auditors (IRBA)
in Gauteng. This province was selected because it is home to the largest metropolitan areas and the
57
main business centres of South Africa; consequently, the largest population of audit firms are situated
in this province (IRBA, 2012).
A list of the total population of audit firms in the province with their contact details was obtained from
the IRBA’s website. An email was sent to all firms in the province (a total of 290 IRBA-registered
firms) with an online link to the electronic questionnaire, and responses were collected during the first
half of the work year. A total of 104 respondents completed the questionnaire after regular follow-up
correspondence with all non-responding firms. These respondents represent 49 firms to whom the
questionnaires were sent. The respondents comprised 63.7% from small, 27.5% from medium and
8.8% from large audit firms. The answers to the quantitative questions were summarised on a
spreadsheet and processed using the statistical software package IBM SPSS Statistics (2011). The
qualitative comments from each respondent were summarised to identify the different themes that
emerged from them.
Even though the response rate appears low, as only 16.9% of firms responded to the questionnaire, it
is in line with other related studies. For example, a study by Barac (2009) to ‘determine training
officers’ perceptions of the knowledge and skills requirements of entry-level trainee accountants’ had
a rounded response rate of 16%. Similarly, a study by SAICA (2010) for a needs analysis report had a
response rate of a mere 14.5%. Also, Francis and Minchington’s (1999) study relating to an
expectation gap between the education and practice of accountants had a low (but acceptable)
response rate of 8.5%.
Severe time constraints experienced by staff at the firms may have been the cause for the less than
desirable response rate, which appears to be especially evident in the low participation by large firms.
It was, however, decided to include the responses from the large firms in the analysis of results due to
the fact that this increases the responses as a whole and that SAICA has the same skills requirements
for all clerks, irrespective of the size of the training office. To be prudent, the results below will not be
58
generalised to the total population of audit firms in Gauteng, but confined to the specific participants.
Although statistical significance (Sig values/p values) are reported for the sake of completeness,
results are interpreted based on practical significance (effect sizes) only as they apply to the
participants. Regardless of this limitation, the results still provide valuable insight into the views of
staff of audit firms regarding the skills gap in first-year CA trainees, especially from smaller firms, as
they constituted the bulk of the participants.
4. Results
4.1 Demographic information
The following demographic information was gathered by analysing the data from the questionnaire:
Forty-three of the participants were qualified CAs registered with SAICA, which represents 41.3% of
the participants. Most trainee accountants would not yet be qualified CAs. Two respondents neglected
to indicate their qualification.
Of the 104 respondents, 35 were partners at their current firms, 16 were managers and 51 were trainee
accountants. Two respondents were staff managers and were removed from the sample as the
questionnaire was not applicable to them, reducing the total respondents to 102. From the 51 trainee
accountants, nine were first-year trainees. The study population, therefore, mainly consisted of senior
staff members (including senior trainees) at the respective firms, signaling that respondents, in
general, had an appropriate level of experience to complete the questionnaire. The total number of
years that respondents have been working at their respective firms ranged between zero and 42 full
years, the average being seven years. However, even first-year clerks were in a position to gauge the
level of their own skills and readiness for practice at the time they entered the work environment,
which occurred earlier than when the questionnaire was distributed.
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4.2 Descriptive statistics
Table 8 presents descriptive statistics for questions 10 to 23 of the questionnaire which dealt with the
participants’ experience of the level of skills with which universities equip first-year trainees.
Table 8: Descriptive statistics on the skills with which universities equip first-year trainees
N∆ Mean Std
Deviation
First-year trainees are equipped by universities with the 95 2.57 1.053
necessary skills to function in practice
First-year trainees generally adapt well to the working 95 3.12 .914
environment
First-year trainees can communicate professionally 95 2.69 1.037
First-year trainees work well in a team 95 3.62 .816
First-year trainees can make ethical decisions in challenging 95 3.03 1.031
circumstances
First-year trainees demonstrate a high level of technical 95 2.62 1.156
expertise
First-year trainees are able to make sensible judgements 95 2.58 .910
First-year trainees can think for themselves 95 2.57 .968
First-year trainees place the interests of the client and their 95 2.98 1.047
employer before their own self-interest
First-year trainees perform work to a high standard of quality 95 2.66 .934
First-year trainees treat others respectfully, courteously and 95 3.61 .865
equitably
First-year trainees demonstrate intellectual ability and the 95 3.08 .924
ability to apply themselves
First-year trainees are equipped to be life-long learners to adapt 95 3.09 .958
to the fast pace of change
First-year trainees are able to determine the extent of testing 95 2.23 .859
needed in audits
∆
Seven respondents did not fully complete the questionnaire and have been excluded from the
analyses.
60
It should be noted that a mean of 3 represents the middle of the five-point scale that was used, i.e. it is
in the middle of 2 (disagree) and 4 (agree).
The skills stated above form part of SAICA’s competency framework and represent only some of the
skills SAICA expects universities to equip their students with. Table 8 reveals the main problem
identified by the respondents as that first-year trainees are unable to determine the extent of testing
needed in audits (m = 2.23). With a mean of 2.57, the respondents felt that universities do not equip
first-year trainees with the skills to be successful in practice. They also expressed the overall feeling
that first-year trainees ‘cannot think for themselves’ (also m = 2.57).
In general, the respondents felt that first-year trainees are unable to make sensible judgements when
faced with problems in practice (m = 2.58). After completing their studies, one would expect first-year
trainees to be at the peak of their technical knowledge, but most respondents disagreed (m = 2.62).
With a mean of 2.66, it was found that first-year trainees did not perform work to a high standard
based on the view of respondents. With a mean of 2.69, most respondents also had a negative
perception of the trainees’ ability to communicate professionally. The participants, however, felt that
trainees, in general, work well in a team (m = 3.62), which is a critical skill in an audit environment.
From table 8 it is clear that, in general, respondents did not experience first-year trainees as being
appropriately equipped by universities with the skills required in practice.
4.3 Qualitative findings
The following qualitative questions were asked to the respondents (numbered according to the
question numbers per the questionnaire):
24. In your opinion, do you feel universities prepare first-year CA trainees adequately for practice?
Please motivate thoroughly.
61
25. Please identify all skills shortages in first-year CA trainees at the point of entering practice (i.e.
at the beginning of first year of articles).
26. Please make any recommendations you feel will help improve the skills shortages in first-year
CA trainees when entering practice. These may include interventions at university level.
The above questions were answered by 82 respondents, of which 79.27% felt that universities do not
prepare first-year CA trainees adequately for practice (question 24). Table 9 includes a summary of
the motivations given by respondents for their opinions relating to this question.
Table 9: Summary of opinions of respondents relating to question 24
Opinion N % of
participants
that agreed
with the
opinion
Theoretical knowledge cannot be applied in practice 82 44.44
First-year trainees require more practical experience before entering 82 25.00
practice
A lack of soft skills, e.g. communication, interviewing, problem- 82 19.44
solving skills, dealing with difficult clients, and critical thinking
ability
A lack of basic accounting knowledge, e.g. debits and credits 82 13.89
Inadequate experience in using information technology, e.g. 82 9.72
Microsoft Excel, Pastel and Caseware
Limited knowledge of completing income tax and VAT returns and 82 4.17
South African Revenue Services’ compliance
Information taught at university level is not applicable in practice 82 1.39
The respondents’ main opinion was that first-year trainee accountants cannot apply theory learnt at
university in practice. The literature review also substantiates the opinions of 19.44% of the
respondents that first-year trainees do not possess the ‘soft’ skills they need in practice.
62
In question 25 the respondents identified the skills shortages they experience with the first-year trainee
accountants:
• Communication skills;
• Writing skills;
• Computer literacy skills, e.g. Microsoft Office, Pastel and Caseware;
• Problem-solving skills;
• Basic accounting principles;
• Professional skills;
• Critical thinking ability; and
• Time management skills.
These skills shortages agree with those identified in the literature review in section 1. Another skills
shortage identified (by the smaller audit firms, in general) was the inability of first-year trainees to
complete PAYE, VAT and Income Tax returns.
4.4 Comparison of different demographic groups
Valuable information can be obtained by comparing the means between different demographic groups
within the sample of this study. Effect sizes were calculated to assess the practical importance of the
differences between groups. Steyn (2000) suggests that the effect size (d) should be calculated as the
difference between the means, divided by the maximum standard deviation of the two groups that are
compared.
Cohen (1988) and Pallant (2007) provide these guidelines for interpreting effect sizes:
• Small effect = .2
• Medium effect = .5
63
• Large effect ≥ .8 (and practically significant)
4.4.1 Comparison of partners with clerks
Respondents were divided into different groups, i.e. partners and clerks. The results of this
comparison are summarised in table 10.
Table 10: Comparison of perceptions between partners and clerks
Partners Clerks Sig.

(2-tailed, Effect
Std. Std. if a random size
Question N Mean N Mean
Deviation Deviation sample was d
assumed)
First-year trainees are equipped by 33 2.15 1.034 48 2.83 .996 .004* .659
universities with the necessary skills to
function in practice
First-year trainees generally adapt well to 33 3.09 1.042 48 3.15 .875 .798 .053
the working environment
First-year trainees can communicate 33 2.15 .972 48 3.08 .919 .000* .959
professionally
First-year trainees work well in a team 33 3.39 .864 48 3.77 .831 .052 .436
First-year trainees can make ethical 33 2.73 1.126 48 3.23 1.126 .040* .446
decisions in challenging circumstances
First-year trainees demonstrate a high level 33 2.27 1.069 48 2.88 1.160 .020* .519
of technical expertise
First-year trainees are able to make sensible 33 2.24 .936 48 2.85 .899 .004* .653
judgements
First-year trainees can think for themselves 33 2.21 .857 48 2.83 1.018 .005* .610
First-year trainees place the interest of the 33 2.45 .833 48 3.35 1.041 .000* .864
client and their employer before their own
self-interest
First-year trainees perform work to a high 33 2.48 1.064 48 2.77 .881 .191 .269
standard of quality
First-year trainees treat others respectfully, 33 3.48 .870 48 3.85 .899 .069 .411
courteously and equitably
First-year trainees demonstrate intellectual 33 2.82 1.014 48 3.35 .838 .011* .529
ability and the ability to apply themselves
First-year trainees are equipped to be life- 33 2.61 .998 48 3.48 .799 .000* .875
long learners and adapt to the fast pace of
change
64
Question Partners Clerks Sig.
(2-tailed, Effect
Std. Std. if a random size
N Mean N Mean
Deviation Deviation sample was d
assumed)
First-year trainees are able to determine the 33 2.00 .829 48 2.31 .926 .124 .337
extent of testing in audits
* Significant at the p <.05 level, if a random sample was assumed.
Table 10 indicates that the participating clerks’ evaluation of all their skills is higher than the
evaluation of the same skills by the partners. The following differences in means revealed noticeable
effect sizes:
The partners’ perception on whether universities equip first-year trainees with the skills to function in
practice was much more negative (m = 2.15) than that of the clerks (m = 2.83). This can be regarded
as a medium effect (d = .659) and may indicate that the partners did not experience the clerks they
worked with as having gained the necessary skills at university level. Participating partners also had a
negative perception regarding first-year trainees’ ability to communicate professionally (m = 2.15),
whereas clerks had a significantly more positive perception in this regard (m = 3.08). With d = 9.59,
this is a large effect and practically significant, especially since the literature review in section 1
revealed that communication skills are lacking in first-year trainee accountants.
Clerks had a more positive perception (m = 2.88) than partners (m = 2.27) as to whether first-year
trainees demonstrate a high level of technical expertise, though both parties gave a low rating to this
specific competency, in general. This difference represents a medium effect (d = .519). Partners also
seemed to feel that first-year trainees lack the ability to make sensible judgements (m = 2.24), while
clerks had a more positive reaction (m = 2.85). With d = .653, this represents a medium effect. With
m = 3.35, clerks also felt that first-year trainees can demonstrate technical ability and the ability to
apply themselves, while partners did not agree (m = 2.82). The difference represents a medium effect
65
(d = .529). This effect, as well as the effects above, evidences that clerks perceived themselves to have
better capabilities than partners think they do.
Clerks felt strongly that first-year trainees are more than capable of placing the interest of the client
and their employer before their own self-interest (m = 3.35). Partners, on the other hand, disagreed (m
= 2.45). The effect size, d = 8.64, represents a large effect.
The majority of responding partners felt that first-year trainee accountants are not capable of thinking
for themselves (m = 2.21), while the clerks held a more positive view on this matter (m = 2.83). This
difference constitutes a medium effect (d = .610) and is noteworthy in light of SAICA’s (2010) aim to
foster life-long learning and enable students to think for themselves. There was also a large effect
(d = .875) relating to differences in opinions between partners (m = 2.61) and clerks (m = 3.48)
regarding the ability of first-year trainee accountants to be life-long learners.
4.4.2 Comparison between small/medium firms and large firms: clerks’ perceptions
A comparison was drawn between the perceptions of clerks from small/medium firms and large firms.
This type of grouping is valid since small and medium firms share a similar client profile (Joubert et
al., 2009). Only the perceptions of clerks were used in this comparison because, first, only one partner
from a large firm participated in the study and, secondly, to expose possible bias in the overall sample
due to the dominant representation of respondents from smaller firms.
Table 11: Comparison of clerks’ perceptions from small/medium firms and large firms
Small and medium Large Sig. (2-tailed,

Effect
Std. Std. if a random
Question N Mean N Mean size
Deviation Deviation sample was
d
assumed)
First-year trainees are equipped by 40 2.80 .992 8 3.00 1.069 .610 .187
First-year trainees generally adapt well to 40 3.18 .874 8 3.00 .926 .611 .189
66
Small and medium Large Sig. (2-tailed,
Effect
d
assumed)
First-year trainees can communicate 40 3.08 .917 8 3.13 .991 .890 .050
professionally
First-year trainees work well in a team 40 3.70 .883 8 4.13 .354 .031* .481
First-year trainees can make ethical 40 3.10 .982 8 3.88 .991 .048* .782
First-year trainees demonstrate a high level 40 2.70 1.114 8 3.75 1.035 .018* .943
First-year trainees are able to make 40 2.75 .840 8 3.38 1.061 .072 .589
sensible judgements
First-year trainees can think for themselves 40 2.93 1.047 8 2.38 .744 .165 .525
First-year trainees place the interest of the 40 3.40 1.081 8 3.13 .835 .501 .254
self-interest
First-year trainees perform work to a high 40 2.78 .891 8 2.75 .886 .943 .028
standard of quality
First-year trainees treat others respectfully, 40 3.78 .947 8 4.25 .463 .175 .052
First-year trainees demonstrate intellectual 40 3.30 .853 8 3.63 .744 .322 .381
First-year trainees are equipped to be life- 40 3.35 .802 8 4.13 .354 .000* .966
change
First-year trainees are able to determine 40 2.38 .9790 8 2.00 .535 .142 .383
the extent of testing in audits
The above results point to the fact that participating clerks from large firms held more positive views
than small and medium firms in respect of most of the questions, especially regarding the ability of
first-year trainees to work well in a group, the ability to make ethical decisions in challenging
circumstances, technical competence, and judgement ability. The clerks from large firms also had a
very positive reaction to the ability of first-year trainees to become life-long learners (m = 4.13) in
comparison to the small and medium firms (m = 3.35). With d = .966, this represents the largest effect
size in the comparison.
67
Although only a small number of participants were from large firms, these results may signal that a
greater perceived gap in skills exists in smaller firms, either because the larger firms attract the
brighter students, due to the fact that they offer higher salaries and bursaries to trainees, or the smaller
firms have greater expectations due to the specific skills required in a smaller firm. It may be
worthwhile to shed more light on the expectation gap at smaller firms through future research.
4.4.3 Comparison of perceptions of first-year clerks and third-year or higher clerks
A comparison was drawn between the perceptions of first-year clerks and third-year or higher clerks
at the various auditing firms.
Table 12: Comparison of first- and third-year or higher clerks
First-year clerks Third-year or higher Sig. (2-tailed,

Effect
d
assumed)
First-year trainees are equipped by 9 3.22 .833 27 2.81 1.111 .321 .367
First-year trainees generally adapt well to 9 3.22 .667 27 3.04 1.018 .615 .182
First-year trainees can communicate 9 3.44 .882 27 2.85 .989 .120 .599
professionally
First-year trainees work well in a team 9 4.22 .441 27 3.59 .888 .050 .709
First-year trainees can make ethical 9 3.56 1.236 27 2.93 .917 .111 .509
First-year trainees demonstrate a high level 9 3.11 1.453 27 2.59 1.010 .241 .357
First-year trainees are able to make 9 2.89 1.167 27 2.63 .792 .548 .222
sensible judgements
First-year trainees can think for themselves 9 2.67 1.118 27 2.67 1.074 1.000 .000
First-year trainees place the interest of the 9 3.78 .833 27 3.19 1.111 .153 .534
self-interest
First-year trainees perform work to a high 9 2.78 .667 27 2.67 1.000 .759 .111
standard of quality
68
First-year clerks Third-year or higher Sig. (2-tailed,
Effect
d
assumed)
First-year trainees treat others respectfully, 9 4.44 .527 27 3.63 .527 .027* .810
First-year trainees demonstrate intellectual 9 3.33 .707 27 3.19 .962 .675 .154
First-year trainees are equipped to be life- 9 3.78 .833 27 3.30 .775 .122 .578
change
First-year trainees are able to determine 9 2.22 .833 27 2.15 .907 .830 .082
the extent of testing in audits
Table 12 indicates that first-year clerks, in general, were more positive about the skills they possess
compared to third-year or higher clerks. First-year clerks perceived themselves as having good
communication skills (m = 3.44), while third-year or higher clerks did not agree (m = 2.85). This
constitutes a medium effect with d = .599. As seen from prior results and the literature review, firms
would like clerks to possess communication skills when entering practice.
First-year clerks also indicated that they work well in a team (m = 4.22), whereas more experienced
clerks did not agree to the same extent (m = 3.59). With d = .709, this represents a medium to large
size effect. Most third-year or higher clerks did not feel that first-year trainees had the ability to make
ethical decisions in challenging circumstances (m = 2.93), whereas most first-year clerks felt they did
have this ability (m = 3.56). The difference has a medium effect size (d = .509).
With d = .810, a large and practically significant effect is evident when comparing the two groups’
perceptions relating to the ability of first-year trainees to treat others respectfully, courteously and
equitably. First-year clerks believed that they did have this skill (m = 4.44), while third-year or higher
clerks, in general, were not in complete agreement (m = 3.63). Lastly, first-year trainees had a more
positive feeling relating to their ability to be life-long learners and adapting to the fast pace of change
69
in the work environment (m = 3.78). With a mean of 3.30, third-year or higher clerks did not fully
share this feeling. This is a medium effect size (d = .578). From the results obtained and documented
above, conclusions on the study will be drawn and recommendations made below.
5. Conclusions and recommendations
The literature review showed various studies that suggested a gap between what the employer expects
and what the universities deliver. The main purpose of this study was to determine which skills
shortages exist in CA students entering practice in SA and to recommend ways to improve the skills
development of CA students at university level.
According to the study, the majority of the participants (79.27%) felt that universities do not
sufficiently equip students with the skills to be successful in practice. The skills shortages experienced
by the participating audit firms included the inability of first-year trainees to determine the extent of
testing needed in audits and to think independently. Most respondents felt that first-year trainees
lacked professional communication skills. A respondent also commented that students from a specific
university cannot speak or write adequately in English. One skill that most respondents, however,
agreed that first-year trainees do have, is the ability to work well in a team. This might be attributed to
the current schooling system where teamwork is encouraged.
Interesting results arose from the qualitative questions in the questionnaire. Respondents commented
that, overall, first-year trainees cannot apply the theoretical knowledge acquired at university in
practice. Twenty-five per cent of the respondents felt that students require practical experience before
entering practice. SAICA and universities should therefore consider compulsory vacation work in an
audit or other professional environment for students during their studies to enable them to gain some
of the required skills. One respondent suggested that the partner for whom the vacation work is done
should sign off on a list of skills the student acquired during his/her time at the firm.
70
Other skills shortages identified by respondents included computer literacy skills, problem-solving
skills, knowledge of basic accounting principles, and time management skills. Some of the
respondents, particularly from small firms, commented that first-year trainees are unable to work with
computer programmes such as Excel, Pastel and Caseware. One of the respondents recommended that
training on these software packages be incorporated into the university curriculum. Another
respondent commented that, if first-year trainees could enter practice with the required computer
literacy skills, it will take a great deal of pressure off budgets of smaller audit firms. Small audit firms
have more budget constraints than large firms; therefore, they do not always have the capacity to teach
trainees all computer programmes.
Some respondents from small and medium firms commented that first-year trainees have limited
knowledge in the completion of income tax and VAT returns. One respondent recommended that
universities include the completion of these tax returns in the curriculum and allow students to gain
this practical skill. Another concern that some respondents raised was the fact that first-year trainees
cannot apply theoretical audit knowledge in practice. They do not have the ability to perform audit
testing on their own or to set up audit working papers without a great deal of guidance from senior
team members. One respondent commented that first-year trainees simply copy working papers from
prior years without giving thought to the test or considering a more effective, alternative test.
Therefore, skills shortages do exist in first-year trainee accountants in South Africa when entering
practice. The fact that the majority of respondents came from small firms provides for valuable
understanding of the skills shortages experienced by these firms (which seems to be greater than in
large firms when considering the analysis in table 11). This study can be used by SAICA (and other
professional bodies) and universities to ensure that relevant action plans are put into place to
overcome the skills shortages identified by practitioners, especially in meeting the needs of smaller
71
firms with lesser resources but which, nevertheless, play a significant role in the economy of the
country.
It is recommended that SAICA and universities work together to incorporate compulsory training
hours for students during their three years of undergraduate studies. Students should complete these
training hours at a registered training office of their choice during these three years before being
allowed to proceed with their CTA/honours degree, or SAICA can consider incorporating such a
requirement in the accreditation of a CTA. The training offices should then ensure that an action plan
is in place to allow students to gain certain skills and practical experience during their vacation work.
Partners should also sign off on the skills acquired by the student during such time.
Another recommendation is that all SAICA-accredited universities include subjects in their
programmes to enhance the computer literacy of the students. For CA programmes specifically, the
most popular accounting programmes such as Pastel and Caseware should be incorporated in the
curriculum and students should have basic knowledge on how these programmes work when entering
practice, especially since most other accountancy and auditing software function in a similar manner.
Initially, this might be an expensive investment for universities to make due to the cost of the software
packages, but they should reap the rewards of their investment if they deliver a better quality first-year
trainee.
Universities should further consider implementing scenarios where students can perform audit
simulations to enable them to understand how all the theory is applied practically. The completion of
all types of tax returns using practical examples will also allow students to apply all the knowledge
acquired on the various tax acts. Students learn the tax principles in detail and might just as well
answer assignment questions on an actual tax return.
72
SAICA and other professional bodies may also need to consider a re-evaluation of its qualifying
examinations to enable both students and universities to master the important basic concepts of
accounting instead of the extremely complex transactions that are mostly applicable to large
companies. If students are sufficiently equipped with the basic professional skills, they should be able
to deal with unusual and complex transactions or arrangements when they encounter them in practice.
Currently, universities might be spending too much time on teaching complex transactions to students
which, inadvertently, leaves less time for focusing on basic accountancy skills.
With these small changes, SA will be equipped with more competent trainee accountants. In the
current economic situation, audit firms will be able to spend their time more effectively on getting the
job done and providing quick and efficient service to clients, instead of wasting time on teaching first-
year trainees all the basic skills they should have already. In an accounting and auditing environment,
time is money. The more effective accountants are, the better the economy will perform.
This study has contributed to the literature on skills shortages of trainee accountants, which is scarce
in the SA context. Moreover, the recommendations should be of practical value to accounting
educators and professional bodies, both at a local and international level.
The study was limited by the fairly low participation rate of audit firms in Gauteng, which amounted
to only 16.9%. Large audit firms, in particular, did not participate in the study to the extent that the
researcher expected. The low participation rate may be attributed to the fact that staff at audit firms
experience severe time constraints due to strict deadlines during audits. Owing to the low participation
rate, especially of the larger firms, results were not generalised to the total population, but confined to
the specific participants. It is suggested that these limitations be addressed by future research.
73
Regardless of the limitations of the study, it still provides valuable insight into the views of staff of
audit firms on the skills gap in first-year CA trainees.
74
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Chapter 4
Summary, conclusions and recommendations
80
1. Introduction
Past research has indicated a clear gap in accounting education globally between school, university
and practice. Various reasons for this gap have been identified, the most important seeming to be the
fact that accounting education is stagnating while the current economic environment is continuously
evolving and changing.
The purpose of this study was to investigate the gap in accounting education between school,
university and practice in SA. The study was divided into two articles in which two separate
hypotheses were tested. Questionnaires were completed by both students from the North-West
University (NWU) and lecturers from various SAICA-accredited universities across SA to test the
hypothesis that school and university accounting curricula, teaching and assessment are not in
complete alignment to prepare students for the CA qualification. A third questionnaire was completed
by registered audit firms in the Gauteng Province, SA, to test the hypothesis that university accounting
curricula, teaching methods and assessment practices do not provide adequate skills development for
students as required by accounting practitioners.
2. Overview of research method
A literature review was conducted as basis for the empirical studies performed for both articles. The
literature review highlighted the problems faced by accounting education locally and globally.
The empirical research for both articles was conducted by using questionnaires consisting of various
parts. The questionnaires were designed based on the information gathered in the literature review.
The quantitative data from the completed questionnaires were analysed using the IBM SPSS statistical
software package (IBM SPSS, 2011) and a summary of all qualitative comments was made.
3. Summary of research results
3.1 Possible gap between school and university accounting
The literature review in chapter 2 revealed that prior researchers found first-year accounting students
to be underprepared for the subject at university (Barnes et al.,2009). Various researchers emphasised
81
that the quality of first-year accounting students is deteriorating and will continue to do so until the
necessary changes are made (Kohler, 2012; Barnes et al., 2009; du Plessis et al., 2005).
The results of the current study did not identify one main reason for the deteriorating quality of first-
year CA students in SA. Various possibilities were investigated as reasons for the decline, of which
some were the quality and availability of textbooks and the qualifications and abilities of teachers.
However, it was evident from the study that apartheid still has an effect on the education of students
today. Black students seemed to struggle more with accounting at university than students from
historically white schools and they provided more negative responses to the questionnaires than their
white counterparts. A fairly large percentage (36.8%) of students, the majority being black, also
agreed that the school accounting curriculum was not sufficient to prepare them for university
accounting.
It was further observed that 21.9% of students who did not have accounting as a subject in high school
did not pass the subject in their first semester at university, which was significantly higher than their
peers who did take accounting at school level. This is supported by Rankin et al. (2003) who
commented that high school accounting is beneficial to the performance of students in first-year
university accounting (Barnes et al., 2009).
The results of the study also revealed that certain topics such as the King Code on corporate
governance, which is included in the NCS and the subsequent CAPS, are in many cases not being
taught to students at school. From the questionnaires given to university lecturers it was, however,
evident that some of these topics might be omitted by teachers because they are deemed as not crucial
for school accounting. The lecturers felt that high school accounting should focus primarily on
building a strong accounting foundation by emphasising the basic principles, rather than teach
complicated concepts not directly related to financial accounting.
3.2 Possible gap between university and practice
Past research has highlighted the fact that first-year trainee accountants do not meet the expectations
of practitioners when entering practice (Wilson, 2011; Barac, 2009; Clovey and Oladipo, 2008;
Koornhof and Lubbe, 2002). This is due to the fact that accounting programmes at universities are
often not updated to keep abreast of the rapid changes occurring in the current economic environment.
82
Practitioners require first-year trainees to have certain skills when entering practice. Among these are
communication skills, teamwork and interpersonal skills, problem-solving skills, technological skills
and leadership skills (Du Preez and Fossey, 2012; Cheng, 2007; Green et al., 1999). Past research,
supported by the current study, points to the fact that universities seem to be unsuccessful in
sufficiently equipping first-year trainees with these skills.
According to the results of this study, the majority of the participants felt that SA universities do not
sufficiently equip students with the skills necessary to be successful in practice. According to
respondents, the skills shortages they experienced include the inability of first-year trainees to
determine the extent of audit testing needed, their inability to ‘think for themselves’, and a lack of
communication skills.
The majority of the respondents were represented by small audit firms. These respondents specifically
felt that first-year trainees are unable to work with computer programmes such as Excel, Pastel and
Caseware. They also believed that first-year trainees have limited knowledge in the completion of
income tax and VAT returns.
The study, therefore, confirms that skills shortages exist in first-year trainee accountants when
entering practice in SA.
4. Recommendations
Based on the findings in chapter 2, it is recommended that universities and the DoBE work together to
overcome the problems facing accounting education and to produce a better quality student to enter
university.
The DoBE should be made aware of the needs of universities relating to the content of specific
subjects, such as accounting, and implement these needs into the school curriculum. In this regard, it
is suggested that school accounting should focus on basic accounting principles and the more complex
ones should be left to university lecturers with the relevant experience in the topics. It is suggested
that universities and the DoBE schedule meetings at least once a year in respect of various subject
groups to ensure these needs are being met and for the universities to give feedback to the DoBE on
whether the changes implemented are making a difference to the quality of first-year students who
enter university.
83
In light of the results in chapter 3, it is recommended that SAICA and universities work together to
incorporate compulsory training hours for students during their three years of undergraduate studies.
During these training hours students should be taught skills at the audit firm, and the partner in charge
of the audit should sign off on the skills obtained by the student. It is also recommended that SAICA
consider re-evaluating its qualifying examinations to enable both students and universities to master
the important basic concepts of accounting instead of complex transactions that are mostly applicable
to large audit firms. It is further recommended that universities pay close attention to teaching the
skills required in the workplace.
5. Concluding reflection
The current study clearly indicates a gap between school, university and practice in accounting
education. The gap between school and university accounting education was smaller than the
researcher anticipated as student perceptions, in general, were more positive than negative. These
perceptions should, however, be considered in light of the high marks the students achieved in the
university accounting module at the time. This might reflect lower standard tests and examinations in
the particular year the study was performed, as the marks did not fully compare to previous years. It
might be interesting to see what the results would be should the study be repeated with students
receiving poor accounting marks. Nevertheless, the study did highlight areas which are of greater
concern than others and there is definitely room for improvement, confirming that a gap does indeed
exist, although smaller than expected.
From the research, it was also clear that black students hold more negative perceptions relating to
school accounting. A significant finding was that students who want to study chartered accountancy
should have accounting as a subject at school or complete a bridging course to enable them to be more
successful in the subject at university.
The gap between university and practice was more clearly proven than the gap between school and
university accounting. The results of the study showed that skills shortages exist in first-year CA
trainees in practice. Both SAICA and universities need to work together to find an agreeable approach
to ensure that students entering practice have the skills to be successful and valuable to the audit firm
which they join.
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6. Research objectives addressed
This section reflects on whether the objectives stated in chapter 1 have been fully addressed. The
research objectives of the study were addressed as follows:
Objective: To determine the adequacy of the content and delivery of the accounting curricula in
secondary (high school) education, and more specifically:
o To identify important topics in a high school accountancy curriculum, as regarded by

lecturers in accounting programmes (who train future CAs at university level).
curriculum as set out by the DoBE.
Addressed: Various questions relating to the adequacy of the content of high school accounting
curricula were included in the questionnaires to both the students and lecturers. It was found that
certain topics included in the curriculum were not necessarily taught to students and that some of these
and a few other topics were not regarded as that important to lecturers.
Further questions were included in the questionnaire to the students to determine whether teachers
followed the curriculum as set out by the DoBE. Certain topics not directly related to accounting were
found to not necessarily be taught by teachers, for example, the King Code on corporate governance.
A list of topics was included in the questionnaire given to lecturers, asking them to rate the topics
using a Likert scale, on how important the lecturers regarded these topics. It was found that non-
accounting topics on the Companies Act, King Code, managerial accounting and taxation were not
regarded as such important topics compared to more basic financial accounting topics. Lecturers felt
that school accounting should focus on building a strong foundation on the basics of the subject.
These findings can be seen in Tables 1 – 3.
Objective: To determine whether school teachers are perceived to have the necessary qualifications
and experience to teach learners the concepts they need to understand to succeed in further education.
Addressed: The questionnaire given to students included questions on their perceptions of the
qualifications and experience of their accounting teachers. It was found that students, in general, were
satisfied with their teachers’ qualifications and experience in the subject accounting, as found in
section 4.2.2.
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Objective: To identify whether school textbooks are perceived to be out of date and/or below
standard when compared to textbooks used at tertiary level.
Addressed: Students were asked questions on their perceptions of school accounting textbooks. The
students, in general, did not seem to have a big problem with the standard of their textbooks when
compared to those used on tertiary level as summarised in section 4.2.1.
Objective: To recommend the necessary changes to accounting education at secondary school level
that should address the need of all relevant stakeholders.
Addressed: Based on the findings of the study, recommendations were made for relevant changes in
accounting education.
Objective: To determine which skills shortages exist in South African CA students entering practice.
Addressed: These shortages were determined through both qualitative and quantitative questions
included in the questionnaire given to audit firms. Skills shortages identified include a lack of
communication skills, the inability to determine the extent of audit testing, the inability to think for
oneself, and inadequate training in using accounting software packages. These findings can be found
in Tables 8 and 9.
Objective: To recommend ways to improve the skills development of CA students at university level.
Addressed: Based on the results of the study, recommendations were made to improve skills
development of CA students entering practice.
7. Hypotheses addressed
In this section it will also be reflected on whether the hypotheses stated in chapter 1 have been fully
addressed. The hypotheses of the study were addressed as follows:
H01: School and university accounting curricula, teaching and assessment are not in complete
alignment to optimally prepare students for the CA qualification.
Addressed: Although no specific reason was identified for the apparent decline in the quality of first-
year CA students, the study revealed problems in secondary accounting education, more specifically,
among students from historically black schools. The study also revealed possible problems in
accounting curricula, teaching and assessment practices on secondary level.
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H02: University accounting curricula, teaching methods and assessment practices do not provide
adequate skills development for students as required by accounting practitioners.
Addressed: The study revealed that practitioners definitely experience skills shortages in first-year
CA trainees entering practice – skills that are not being sufficiently provided to students at university.
Limitations relating to chapter 2 include the statement that the minority of students were black, where
accounting education in SA seems to face its biggest challenges. The reason for this is that the NWU
still attracts predominantly Afrikaans-speaking students, whereas most black students would prefer to
study in English. Moreover, the first-year students at the NWU had more positive responses to the
questionnaires than were expected, possibly due to the fact that they achieved very high marks in their
first semester accounting examination and, therefore, perceived high school accounting as better
preparation for university accounting as might have been the case were they to achieve poor marks.
Another factor to consider is that the 58 lecturer respondents represented a non-random sample and
their views cannot necessarily be generalised to the total population of all lecturers involved in
accounting departments at the selected universities. As such, their views should be interpreted in this
context. Also, an equal representation of lecturers from all the subjects in the broader accountancy
field may have yielded different results. It is suggested that future research address these limitations.
Limitations relating to chapter 3 include the low participation rate of audit firms in Gauteng, which
was only 16.9%. Large audit firms specifically did not participate as expected in the study (only one
partner from a large firm participated) which placed further limitation on the study. The low
participation rate may be attributable to the assumption that staff at audit firms experience severe time
constraints due to strict deadlines during audits. Owing to the low participation rate, results were not
generalised to the total population, but confined to the specific participants.
9. Areas for future research
Possible areas for future research for the first article (chapter 2) include repeating the study at a
university where the majority of students are black and where university accounting marks are in line
with longer-term norms. The study can also be performed with an equal representation of lecturers
from all the subjects in the broader accountancy field. This study investigated only some elements that
87
cause the gap between school and university accounting education, and future studies may fruitfully
endeavour to uncover more problems.
Future research on the second article (chapter 3) might include more large firms to participate in the
study by performing interviews instead of sending questionnaires to the audit firms. It is also
suggested that future research investigate all the root causes for the skills shortages as it is unlikely
that universities are the only party to blame.
88
10. Bibliography
Barac, K. 2009. South African training officers’ perceptions of the knowledge and skills
requirements of entry-level trainee accountants. Meditari Accountancy Research, 17(2):19-46.
Barnes, H., Dzansi, D., Wilkinson, A. & Viljoen, M. 2009. Researching the first year accounting
problem: factors influencing success or failure at a South African higher education institution.
Journal for New Generation Sciences, 7(2):36-58.
Cheng, K. 2007. The curriculum design in universities from the perspective of providers in
accounting education. Education, 127(4):581-590.
Clovey, R. & Oladipo, O. 2008. The VITA program: A catalyst for improving accounting education.
CPA Journal, 78(12):60-65.
Du Plessis, A., Muller, H. & Prinsloo, P. 2005. Determining the profile of the successful first-year
accounting student. South African Journal of Higher Education, 19(4):684-698.
Du Preez, I. & Fossey, A. 2012. Developing academic writing skills as part of graduate attributes in
undergraduate curricula. South African Journal of Higher Education, 26(2):346-357.
Green, B.P., Calderon, T.G., Gabbin, A.L. & Habegger, J.W. 1999. Perspectives on implementing a
framework for evaluating effective teaching. Journal of Accounting Education, 17:71-98.
IBM SPSS Statistics, Rel. 20.0.0. 2011. IBM Corporation.
Kohler, S. 2012. SA Basic Education Brief, Creamer Media’s Mining Weekly: 1-4, Feb.
Koornhof, C. & Lubbe, D. 2002. The expectations and experiences of trainees, training officers and
the secretariat of SAICA with regard to the training of accountants in South Africa. Johannesburg:
SAICA.
Wilson, R.M.S. 2011. Alignment in accounting education and training. Accounting Education,
20(1):3-16.
89
Annexure A – Survey for chartered accountancy students at the North-
West University
PART A: DEMOGRAPHICAL INFORMATION ABOUT MYSELF / DEEL A:

DEMOGRAFIESE INLIGTING OOR MYSELF
Answer the following questions (for statistical purposes only) on the multiple choice cards provided /
Beantwoord die volgende vrae (vir statistiese doeleindes alleenlik) op die multikeusekaarte wat
verskaf is:
3. My gender is / My geslag is:
1. Female / Vroulik
2. Male / Manlik
4. My race/ethnicity is / My ras/etnisiteit is:
1. African/black / Afrikaan/swart
2. Coloured/brown / Kleurling/bruin
3. Indian/Asian / Indiër/Asiaat
4. White / Blank
5. Other / Ander
5. I am studying on the following campus of the North-West University (NWU) / Ek studeer op die
volgende kampus van die Noordwes-Universiteit (NWU):
1. Mafikeng
2. Potchefstroom
3. Vaal
6. My home language is / My huistaal is:
1. Afrikaans
2. English
3. Sesotho
4. Setswana
5. IsiXhosa or IsiZulu
6. IsiNdebele, Sepedi, SiSwati, Tshivenda or Xitsonga
7. Other (no need to specify) / Ander (nie nodig om te spesifiseer nie)
7. M0y study language is / My studietaal is:
1. Afrikaans
2. English
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8. The province where I matriculated is / Die provinsie waar ek matrikuleer het is:
1. Gauteng
2. North West / Noord-wes
3. Limpopo
4. Mpumalanga
5. Free State / Vrystaat
6. Kwazulu-Natal
7. Northern Cape, Western Cape or Eastern Cape / Noord-Kaap, Wes-Kaap of Oos-Kaap
9. The final mark I obtained for Mathematics in Grade 12 was / Die finale punt wat ek vir
Wiskunde in Graad 12 gekry het was:
1. Level 4 / Vlak 4 (50-59%)
2. Level 5 / Vlak 5 (60-69%)
3. Level 6 / Vlak 6 (70-79%)
4. Level 7 / Vlak 7 (80-100%)
10. I had Accounting as a subject at school until I matriculated / Ek het Rekeningkunde as ŉ vak op
skool gehad totdat ek matrikuleer het:
1. Yes / Ja
2. No / Nee
11. The final mark I obtained for Accounting in Grade 12 was / Die finale punt wat ek vir
Rekeningkunde in Graad 12 gekry het was:
1. Level 4 / Vlak 4 (50-59%)
2. Level 5 / Vlak 5 (60-69%)
3. Level 6 / Vlak 6 (70-79%)
4. Level 7 / Vlak 7 (80-100%)
5. Not applicable / Nie van toepassing
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12. The number of learners in my Grade 12 Accounting class was / Die aantal leerders in my
Graad 12 Rekeningkunde klas was:
1. Less than 15 / Minder as 15
2. 15 – 19
3. 20 – 29
4. 30 – 39
5. 40 – 49
6. 50 or more / 50 of meer
13. This is the ___ year I have attempted to pass ACCC111 / Hierdie is die ___ jaar wat ek gepoog
het om ACCC111 te slaag:
1. 1st / 1ste
2. 2nd / 2de
3. 3rd / 3de
4. More than 3 years / Meer as 3 jaar
14. The final mark I obtained for ACCC111 (2011 first semester) was / Die finale punt wat ek vir
ACCC111 (2011 eerste semester) behaal het was:
1. No exam admission or did not write the exam / Geen eksamentoelating of het nie die
eksamen geskryf nie
2. Below 30% / Onder 30%
3. 30 – 39%
4. 40 – 49%
5. 50 – 59%
6. 60 – 74%
7. 75 – 100%
Instructions for the rest of the survey / Instruksies vir die res van die vraelys:
• If you had Accounting in Grade 12, please complete sections B, C and D. / Indien jy
Rekeningkunde in Graad 12 gehad het, voltooi asb. afdelings B, C en D.
• If you did not have Accounting in Grade 12, please complete section E. / Indien jy nie
Rekeningkunde in Graad 12 gehad het nie, voltooi asb. afdeling E.
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PART B: ADEQUACY OF SCHOOL ACCOUNTING TEXTBOOKS AND CURRICULUM /
DEEL B: GESKIKTHEID VAN SKOOL REKENINGKUNDE HANDBOEKE EN KURRIKULUM
Answer the following questions about your experiences of the Accounting textbooks and
curriculum at school. Leave out Part B if you did not have Accounting at school. Answer on the
multiple choice cards provided by using the following scale / Beantwoord die volgende vrae
aangaande u ervarings van die Rekeningkunde handboeke en kurrikulum op skool. Los Deel B uit
as jy nie Rekeningkunde op skool gehad het nie. Antwoord op die multikeusekaarte wat verskaf is,
deur die volgende skaal te gebruik:
1. You strongly disagree / U stem glad nie saam nie
2. You disagree / U stem nie saam nie
3. You are neutral / U is neutraal
4. You agree / U stem saam
5. You strongly agree / U stem volkome saam
15. There were enough Accounting textbooks for all Grade 12 Accounting learners / Daar was
genoeg Rekeningkunde handboeke vir al die Graad 12 Rekeningkunde leerders.
16. The Accounting textbooks were generally in a good condition when I received them / Die
Rekeningkunde handboeke was oor die algemeen in ŉ goeie toestand toe ek dit ontvang het.
17. The Accounting textbooks were available in my study language. / Die Rekeningkunde handboeke
was beskikbaar in my studietaal.
18. The textbooks provided sufficient guidance for me to be able to complete homework assignments
/ Die handboeke het voldoende leiding aan my verskaf om huiswerkopdragte te kan voltooi.
19. The Accounting textbooks were sufficient to help me prepare for tests and examinations. / Die
Rekeningkunde handboeke was voldoende om my te help met voorbereiding vir toetse en
eksamens.
20. Additional study material was provided by the teacher to supplement the material in the
textbooks, as the textbook content was insufficient to meet all our learning needs / Addisionele
studiemateriaal is deur die onderwyser voorsien om die handboeke aan te vul, aangesien die
handboek inhoud onvoldoende was om in al ons leerbehoeftes te voorsien.
21. The textbooks covered all the examinable topics in the school Accounting curriculum / Die
handboeke het al die eksamineerbare onderwerpe in die skool Rekeningkunde kurrikulum gedek.
22. The textbooks were based on the school Accounting curriculum / Die handboeke was gebaseer op
die skool Rekeningkunde kurrikulum.
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23. The textbooks were on standard when compared to my first-year university Accounting textbooks
/ Die handboeke was op standaard as dit met my eerstejaar Rekeningkunde handboeke op
universiteit vergelyk word.
24. The textbooks were sufficient to prepare me for first-year Accounting at university / Die
handboeke was voldoende om my vir eerstejaar Rekeningkunde op universiteit voor te berei.
25. The textbooks were easy to understand / Die handboeke was maklik om te verstaan.
26. The textbooks contained sufficient examples / Die handboeke het voldoende voorbeelde bevat.
27. The textbooks were useful / Die handboeke was nuttig.
28. The content of the Accounting curriculum at school was sufficient to prepare me for university
Accounting. / Die inhoud van die Rekeningkunde kurrikulum op skool was genoegsaam om my
vir Rekeningkunde op universiteit voor te berei.
29. The content of the Accounting curriculum at school reflected the latest developments in the
subject area. / Die inhoud van die Rekeningkunde kurrikulum op skool het die nuutste
verwikkelinge in die vakgebied weerspieël.
30. The content of the Accounting curriculum at school must be improved. / Die inhoud van die
Rekeningkunde kurrikulum op skool moet verbeter word.
31. The content of the Accounting curriculum at school was free of error. / Die inhoud van die
Rekeningkunde kurrikulum op skool was foutloos.
32. The content of the Accounting curriculum at school was difficult enough. / Die inhoud van die
Rekeningkunde kurrikulum op skool was moeilik genoeg.
PART C: COMPETENCE OF SCHOOL ACCOUNTING TEACHERS /

DEEL C: BEVOEGDHEID VAN SKOOL REKENINGKUNDE ONDERWYSERS
Answer the following questions about your experiences of the qualifications and competence of
your Accounting teachers at school. Leave out Part C if you did not have Accounting at school.
Answer on the multiple choice cards provided by using the following scale / Beantwoord die volgende
vrae aangaande u ervarings van die kwalifikasies en bevoegdheid van u Rekeningkunde
onderwysers op skool. Los Deel C uit as jy nie Rekeningkunde op skool gehad het nie. Antwoord op
die multikeusekaarte wat verskaf is, deur die volgende skaal te gebruik:
94
33. My Accounting teachers were always present in class. / My Rekeningkunde onderwysers was
altyd teenwoordig in die klas.
34. My Accounting teachers could maintain discipline in the classroom / My Rekeningkunde
onderwysers kon dissipline in die klaskamer handhaaf.
35. My Accounting teachers were well prepared for each lesson / My Rekeningkunde onderwysers
was goed voorberei vir elke les.
36. My Accounting teachers could explain difficult concepts in an understandable manner / My
Rekeningkunde onderwysers kon moeilike konsepte verstaanbaar verduidelik.
37. My Accounting teachers could give me individual attention when I needed help with a difficult
concept / My rekeningkunde onderwysers kon individuele aandag aan my gee as ek hulp nodig
gehad het met ŉ moeilike konsep.
38. The lessons presented by my teachers were relevant and sufficient to prepare me for tests and
examinations / Die lesse wat deur my onderwysers aangebied is, was relevant en genoegsaam
om my voor te berei vir toetse en eksamens.
39. I needed to attend extra Accounting classes from a different, unrelated person to supplement
my studies / Ek het nodig gehad om ekstra Rekeningkunde klasse by te woon by ŉ ander,
onverwante persoon om my studies aan te vul.
40. I consulted various other study aids to relearn concepts I did not understand in class / Ek het
verskeie ander studie-hulpmiddels geraadpleeg om konsepte wat ek nie in die klas verstaan het
nie, weer oor te leer.
41. I am satisfied with the quality of teaching I received from my Accounting teachers / Ek is
tevrede met die kwaliteit van onderrig wat ek van my Rekeningkunde onderwysers ontvang het.
42. I regard my Accounting teachers as experts in the subject / Ek beskou my Rekeningkunde
onderwysers as kenners op die vakgebied.
43. I feel that my Accounting teachers were sufficiently qualified to teach me the subject / Ek voel
dat my Rekeningkunde onderwysers voldoende gekwalifiseer was om die vak vir my te leer.
44. I feel that my Accounting teachers sufficiently prepared me for the subject Accounting at
university / Ek voel dat my Rekeningkunde onderwysers my voldoende voorberei het vir die vak
Rekeningkunde op universiteit.
45. My Accounting teachers were competent to teach the subject / My Rekeningkunde onderwysers
was bevoeg om die vak te onderrig.
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46. My Accounting teachers put in a lot of effort to help students / My Rekeningkunde onderwysers
het baie moeite gedoen om studente te help.
47. In general, the teaching methods used by my Accounting teachers were effective / Oor die
algemeen was die onderrigmetodes wat deur my Rekeningkunde onderwysers gebruik was
doeltreffend.
48. My Accounting teachers had sufficient knowledge of new developments in the subject area /
My Rekeningkunde onderwysers het genoeg kennis gehad van nuwe verwikkelinge in die
vakgebied.
49. My Accounting teachers taught me the correct principles / My Rekeningkunde onderwysers het
die korrekte beginsels vir my geleer.
50. My school Accounting teachers would be able to lecture first-year Accounting at university /
My skool Rekeningkunde onderwysers sou in staat wees om eerste-jaar Rekeningkunde op
universiteit te doseer.
PART D: TOPICS IN THE SCHOOL ACCOUNTING CURRICULUM /

DEEL D: ONDERWERPE IN DIE SKOOL REKENINGKUNDE KURRIKULUM
Answer the following questions about your experiences regarding Accounting topics set out in the
school National Curriculum Statement for Grades 10 - 12. Leave out Part D if you did not have
Accounting at school. Answer on the multiple choice cards provided by using the following scale /
Beantwoord die volgende vrae aangaande u ervarings aangaande Rekeningkunde onderwerpe soos
vervat in die skole se Nasionale Kurrikulum Verklaring vir Grade 10 - 12. Los Deel D uit as jy nie
Rekeningkunde op skool gehad het nie. Antwoord op die multikeusekaarte wat verskaf is, deur die
volgende skaal te gebruik:
1. Yes / Ja.
2. I am unsure / Ek is onseker.
3. No / Nee.
The following topics were taught to me at school in the subject Accounting / Die volgende
onderwerpe is in die vak Rekeningkunde met my op skool behandel:
51. Code of Ethics, for example the principles of ethical and professional behaviour by accountants
like independence and confidentiality of information / Professionele gedragskode, byvoorbeeld
die beginsels van etiese- en professionele gedrag deur rekenmeesters soos onafhanklikheid en
vertroulikheid van inligting.
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52. Basic principles of the KING III code / Basiese beginsels van die KING III kode.
53. General Accounting concepts for manufacturing enterprises, for example determining the cost
of a product using variable and fixed costs / Algemene Rekeningkunde beginsels vir
vervaardigingsondernemings, byvoorbeeld die vasstelling van die koste van ŉ produk deur die
gebruik van vaste- en veranderlike koste.
54. Basic VAT concepts, for example taking out VAT from a VAT inclusive amount / Basiese
BTW beginsels, byvoorbeeld om BTW uit te haal by ŉ BTW-ingeslote bedrag.
55. Analysis and interpretation of financial statements, for example the acid-test ratio and current
ratio / Ontleding en vertolking van finansiële state, byvoorbeeld die vuurproefverhouding en
bedryfskapitaalverhouding.
56. The definition of Managerial Accounting / Die definisie van Bestuursrekeningkunde.
57. The difference between direct and indirect costs / Die verskil tussen direkte- en indirekte koste.
58. Determining the break-even point / Vasstelling van die gelykbreekpunt.
59. Identification of basic internal control processes / Identifisering van basiese interne
beheerprosesse.
60. The difference between internal control and internal audit / Die verskil tussen interne beheer en
interne oudit.
61. Basic sampling techniques / Basiese steekproefnemingstegnieke.
62. Effective use of information technology in the recording of transactions of the entity /
Inligtingstegnologie effektief te kan gebruik in die teboekstelling van transaksies in die rekords
van ŉ entiteit.
PART E: STUDENTS WHO DID NOT HAVE ACCOUNTING AS SUBJECT AT SCHOOL /

DEEL E: STUDENTE WAT NIE REKENINGKUNDE AS VAK OP SKOOL GEHAD HET NIE
Answer the following questions about your experiences in the subject Accounting at university.
Leave out Part E if you had Accounting at school. Answer on the multiple choice cards provided
by using the following scale / Beantwoord die volgende vrae aangaande u ervarings in die vak
Rekeningkunde op universiteit. Los Deel E uit as jy wel Rekeningkunde op skool gehad het.
Antwoord op die multikeusekaarte wat verskaf is, deur die volgende skaal te gebruik:
1. Yes / Ja.
2. I am unsure / Ek is onseker.
3. No / Nee.
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Please use the correct question numbers on the multiple choice card / Gebruik asb. die korrekte
vraagnommers op die multikeusekaart.
63. I completed an Accounting bridging course before enrolling for the subject ACCC111 / Ek het
ŉ oorbruggingskursus in Rekeningkunde voltooi voordat ek vir die vak ACCC111 ingeskryf het.
64. I passed ACCC111 the first time I took the subject / Ek het ACCC111 geslaag die eerste keer
wat ek die vak geneem het.
65. After completing ACCC111, I think the subject would have been easier if I had Accounting as
a subject at school / Na afhandeling van ACCC111, dink ek die vak sou makliker gewees het as
ek Rekeningkunde as vak op skool gehad het.
66. Please give a short description of your experience of the subject ACCC111. Answer the
question on the back of the multiple choice card / Gee asb. ŉ kort beskrywing van u
ondervinding van die vak ACCC111. Beantwoord die vraag op die agterkant van die
multikeusekaart.
67. Please provide your reasons for choosing to study chartered accountancy. Answer the question
on the back of the multiple choice card / Gee asb. u redes oor hoekom u besluit het om
geoktrooieerde rekenmeesterskap te studeer. Beantwoord die vraag op die agterkant van die
multikeusekaart.
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Annexure B - Survey for lecturers in the School/Department of
Accounting (or equivalent) at various universities
PART A: DEMOGRAPHICAL INFORMATION ABOUT MYSELF / DEEL A:

DEMOGRAFIESE INLIGTING OOR MYSELF
Answer the following questions (for statistical purposes only) on the multiple choice cards provided /
Beantwoord die volgende vrae (vir statistiese doeleindes alleenlik) op die multikeusekaarte wat
verskaf is:
1. My gender is / My geslag is:
1. Female / Vroulik
2. Male / Manlik
2. My race/ethnicity is / My ras/etnisiteit is:
1. African/black / Afrikaan/swart
2. Coloured/brown / Kleurling/bruin
3. Indian/Asian / Indiër/Asiaat
4. White / Blank
5. Other / Ander
3. I am a lecturer at: / Ek is ‘n dosent by:
1. A university / ‘n Universiteit
2. A university of technology / ‘n Universiteit van tegnologie
4. I am a lecturer in the following province: / Ek is ‘n dosent in die volgende provinsie:
1. Gauteng
2. North West / Noord-wes
3. Limpopo
4. Mpumalanga
5. Free State / Vrystaat
6. Kwazulu-Natal
7. Northern Cape, Western Cape or Eastern Cape / Noord-Kaap, Wes-Kaap of Oos- Kaap
5. I mainly lecture the following subject: / Ek gee hoofsaaklik klas in die volgende vak:
1. Financial Accounting or similar / Finansiële Rekeningkunde of soortgelyk
99
2. Managerial Accounting/Financial Management or similar / Bestuursrekeningkunde/
Finansiële Bestuur of soortgelyk
3. Auditing / Ouditkunde
4. Taxation / Belasting
5. Other subject relating to accountancy (no need to specify) / Ander vak wat met
rekenmeesterskap verband hou (nie nodig om te spesifiseer nie)
6. Other subject not relating to any of the above / Ander vak wat nie met enige van die
bogenoemde verband hou nie
6. I lecture the subject chosen in question 6 for the following year group (please choose only the
most relevant one group): / Ek gee klas in die vak wat in vraag 6 gekies is vir die volgende
jaargroep (kies asb. slegs die mees relevante een groep):
1. First-years / Eerstejaars
2. Second-years / Tweedejaars
3. Third-years / Derdejaars
4. Post-graduate / Nagraads
7. I mainly lecture the following students: / Ek gee hoofsaaklik klas vir die volgende studente:
1. Chartered Accountancy (CA) students / Geoktrooieerde Rekenmeesterskap (GR)
studente
2. Financial Accountancy (SAIPA) students / Finansiële Rekeningkunde (SAIPA)
studente
8. My home language is / My huistaal is:
1. Afrikaans
2. English
3. Sesotho
4. Setswana
5. IsiXhosa or IsiZulu
6. IsiNdebele, Sepedi, SiSwati, Tshivenda or Xitsonga
9. My language of instruction is / My onderrigtaal is:
1. English
2. Afrikaans
3. Setswana
100
4. Other / Ander
10. My highest qualification is / My hoogste kwalifikasie is:
1. Diploma
2. B.Com degree (or equivalent) / B.Com graad (of ekwivalent)
3. Honours degree / Honneursgraad
4. Masters degree / Meestersgraad
5. Doctorate degree / Doktorsgraad
11. I have been a lecturer for / Ek is al ŉ dosent vir:
5. 0 – 2 years / jare
6. >2 – 5 years / jare
7. >5 – 10 years / jare
8. >10 years / jare
12. I had Accounting as a subject at school until I matriculated / Ek het Rekeningkunde as ŉ vak op
skool gehad totdat ek matrikuleer het:
3. Yes / Ja
4. No / Nee
13. The mark I obtained for Accounting in Grade 12 (matric) was / Die punt wat ek vir
Rekeningkunde in Graad 12 (matriek) gekry het was:
6. Level 4 / Vlak 4 (50-59%)
7. Level 5 / Vlak 5 (60-69%)
8. Level 6 / Vlak 6 (70-79%)
9. Level 7 / Vlak 7 (80-100%)
14. At university my marks for Accounting was generally / Op universiteit was my punte vir
Rekeningkunde oor die algemeen:
1. Poor / Swak (<50%)
2. Average / Gemiddeld (50-60%)
3. Good / Goed (60-75%)
4. Excellent / Uitstekend (>75%)
5. I did not have Accounting at university / Ek het nie Rekeningkunde op universiteit
gehad nie
101
PART B: RATING OF IMPORTANCE OF DIFFERENT TOPICS IN ACCOUNTING
CURRICULUM / DEEL B: METING VAN BELANGRIKHEID VAN VERSKILLENDE
ONDERWERPE IN DIE REKENINGKUNDE KURRIKULUM
Answer the following questions on what you generally regard as important topics in the grade 12
Accountancy curriculum in your opinion as lecturer. Answer on the multiple choice cards provided
by using the following scale: / Beantwoord die volgende vrae aangaande watter onderwerpe in die
graad 12 Rekenmeesterskap kurrikulum u oor die algemeen as belangrik beskou in u opinie as
dosent. Antwoord op die multikeusekaarte wat verskaf is, deur die volgende skaal te gebruik:
1. Extremely unimportant / Uiters onbelangrik
2. Very unimportant / Baie onbelangrik
3. Fairly unimportant / Redelik onbelangrik
4. Fairly important / Redelik belangrik
5. Very important / Baie belangrik
6. Extremely important / Uiters belangrik
7. I don’t know what the question means or I am not familiar with the topic / Ek weet nie wat
die vraag beteken nie, of ek is onbekend met die onderwerp
15. The historical background on the subject area of accounting. / Die geskiedkundige agtergrond van
die rekeningkundige vakgebied.
16. The qualitative characteristics of financial statements. / Die kwalitatiewe eienskappe van
finansiële state.
17. The definitions of the elements of the financial statements (i.e. of assets, liabilities, equity,
income and expenses). / Die definisies van die elemente van die finansiële state (m.a.w. van bates,
laste, ekwiteit, inkomste en uitgawes).
18. The ability to differentiate between the elements of the financial statements. / Die vermoë om te
kan onderskei tussen die verskillende elemente van die finansiële state.
19. The accounting equation (equity = assets less liabilities). / Die rekeningkundige vergelyking
(ekwiteit = bates minus laste).
20. Preparation of a trial balance / Opstel van ŉ proefbalans.
21. The ability to perform General journal entries / Die vermoë om Algemene joernaalinskrywings uit
te voer.
102
22. Measurement and disclosure of Inventories. / Meting en openbaarmaking van Voorraad.
23. Measurement and disclosure of Debtors, including bad debts and provision/allowance for bad
debts. / Meting en openbaarmaking van Debiteure, insluitend slegte skulde en voorsiening/toelaag
vir slegte skulde.
24. Measurement and disclosure of Creditors. / Meting en openbaarmaking van Krediteure.
25. Calculation of depreciation on Property, Plant and Equipment. / Berekening van
waardevermindering/depresiasie op Eiendom, Aanleg en Toerusting.
26. The ability to post information from journals to the general ledger and to the financial statements. /
Die vermoë om inligting oor te boek vanaf joernale na die grootboek en na finansiële state.
27. The ability to process accounting adjustments. / Die vermoë om rekeningkundige aansuiwerings te
verwerk.
28. Perform bank reconciliations / Uitvoer van ŉ bankrekonsiliasie.
29. Understand the difference between direct and indirect tax. / Verstaan die verskil tussen direkte en
indirekte belasting.
30. Understand the concept of VAT (Value-Added Tax) / Verstaan die konsep van BTW (Belasting op
Toegevoegde Waarde).
31. Basic VAT concepts, for example being able to take out VAT from a VAT inclusive amount /
Basiese BTW beginsels, byvoorbeeld om BTW te kan uithaal by ŉ BTW-ingeslote bedrag.
32. Ability to account for VAT in the entity’s accounting records / Die vermoë om BTW te
verantwoord in die entiteit se rekeningkundige rekords.
33. Distinguish between invoice and payment basis in respect of VAT / Onderskei tussen faktuur- en
betalingsbasis met betrekking tot BTW.
34. A basic understanding of companies’ tax. / ‘n Basiese begrip van maatskappy belasting.
35. Understand the basic principles of STC/dividend tax. / Verstaan die basiese beginsels van
SBM/dividend belasting.
36. Understand the basic concepts of PAYE (Pay As You Earn). / Verstaan die basiese beginsels van
LBS (Lopende betaalstelsel).
37. Be aware of the concept of Provisional tax. / Wees bewus van die beginsel van Voorlopige
belasting.
38. Understand the concept of a progressive tax scale. / Verstaan die beginsel van ŉ progressiewe
belastingskaal.
103
39. Know the difference between the different types of entities, e.g. Partnerships, Companies, Sole
Proprietors, etc. / Die verskille te ken tussen die verskillende besigheidsvorme, bv.
Vennootskappe, Maatskappye, Eenmansake, ens.
40. Explain the difference between managerial and financial accounting / Verduidelik die verskil
tussen bestuurs- en finansiële rekeningkunde.
41. General Accounting concepts for manufacturing enterprises, for example determining the cost of a
product using variable and fixed costs / Algemene Rekeningkunde beginsels vir
vervaardigingsondernemings, byvoorbeeld vasstelling van die koste van ŉ produk deur die
gebruik van vaste- en veranderlike koste.
42. Analyses and interpretation of financial statements, for example calculating the acid-test ratio and
current ratio / Ontleding en vertolking van finansiële state, byvoorbeeld die berekening van die
vuurproefverhouding en bedryfskapitaalverhouding.
43. Discuss the impact of the above-mentioned types of ratios (see question 44) on financial decisions
/ Bespreek die impak van die bogenoemde tipes verhoudings (sien vraag 44) op finansiële besluite.
44. The definition of Managerial Accounting / Die definisie van Bestuursrekeningkunde.
45. The difference between direct and indirect costs / Die verskil tussen direkte- en indirekte koste.
46. Determining the break-even point / Vasstelling van die gelykbreekpunt.
47. Calculate the value of inventory using the FIFO (first-in-first-out), LIFO (last-in-last-out) and
weighted average methods / Bereken die waarde van voorraad deur die EIEU (eerste-in-eerste-
uit), LIEU (laaste-in-eerste-uit) en geweegde gemiddelde metodes te gebruik.
48. Prepare a budget / Opstel van ŉ begroting.
49. Code of Ethics, for example the principles of ethical and professional behaviour by accountants
like independence and confidentiality of information / Professionele gedragskode, byvoorbeeld
die beginsels van etiese- en professionele gedrag deur rekenmeesters soos onafhanklikheid en
vertroulikheid van inligting.
50. Ability to discuss disciplinary procedures when the Code of Ethics is not abided to / Vermoë om
dissiplinêre prosedures te bespreek as daar nie aan die Professionele gedragskode voldoen word
nie.
51. Be aware of the existence of the King Code / Bewus wees van die bestaan van die King Kode.
52. Effective use of information technology in the recording of transactions of the entity /
Inligtingstegnologie effektief te kan gebruik in die teboekstelling van transaksies in die rekords
van ŉ entiteit.
104
53. Identification of basic internal control processes / Identifisering van basiese interne
beheerprosesse.
54. The difference between internal control and internal audit / Die verskil tussen interne beheer en
interne oudit.
55. Interpretation of internal audit reports / Interpretasie van interne ouditverslae.
56. Basic procedures of gathering audit evidence / Basiese prosedures om ouditbewyse te versamel.
57. Basic sampling techniques / Basiese steekproefnemingstegnieke.
If you have any other comments or suggestions of other important topics, please type them on the
multiple choice card provided / Indien u enige verdere kommentaar of voorstelle vir ander belangrike
onderwerpe het, tik dit asb. Op die multikeusekaart verskaf neer.
105
Annexure C - Survey for various audit firms in Gauteng, South Africa,
to identify skills shortages in first-year Chartered Accountant trainees
PART A: DEMOGRAPHICAL INFORMATION ABOUT YOURSELF / DEEL A:

DEMOGRAFIESE INLIGTING OOR USELF
Answer the following questions (for statistical purposes only) / Beantwoord die volgende vrae (vir
statistiese doeleindes alleenlik):
1. I am currently employed by: / Ek is tans ŉ werknemer by:
(firm name) / (naam van firma)
2. The firm is classified as (choose one): / Die firma is geklassifiseer as (kies een):
Small / Klein
Medium
Large / Groot
3. My current position in the firm is (choose one): / My huidige posisie in die firma is (kies een):
First-year clerk / Eerstejaar klerk

Second-year clerk / Tweedejaar klerk
Third-year clerk / Derdejaar klerk
Manager / Bestuurder
Partner / Vennoot
Other: please specify / Ander: spesifiseer asb. (specify if applicable / spesifiseer indien
van toepassing)
4. At which university and in which year did you obtain your 3-year (pre-graduate) accountancy
or similar degree? / By watter universiteit en in watter jaar het u u 3-jaar (voorgraadse)
rekenmeesterskap of soortgelyke graad verwerf?
106
University name: / Naam van
universiteit:
Year obtained: / Jaar verwerf:
5. If applicable, at which university and in which year did you obtain the Certificate in the
Theory of Accountancy (CTA; post-graduate)? / Indien van toepassing, by watter universiteit
en in watter jaar het u die Sertifikaat in die Teorie van Rekenmeesterskap (STR; nagraads)
verwerf?
University name: / Naam van

universiteit:
Year obtained: / Jaar verwerf:
6. If you are still studying part-time: / Indien u steeds deeltyds studeer:
Name of degree/qualification you are currently enrolled

for: / Naam van graad/kwalifikasie waarvoor u tans
ingeskryf is:
University name: / Naam van universiteit:
7. My professional membership is as follows / my professionele lidmaatskap is soos volg:
Name of professional body / Naam van (for example SAICA, SAIPA, etc.) /
professionele liggaam (byvoorbeeld SAICA, SAIPA, ens.)
(note: most trainees would not yet be a member of a professional body / let wel: meeste klerke
sal nog nie ‘n lid van ‘n professionele liggaam wees nie)
8. If applicable, in which year did you obtain your professional membership (refer question 7)? /
Indien van toepassing, in watter jaar het u u professionele lidmaatskap verwerf (verwys vraag
7)?
(year) / (jaar)
107
9. How long have you been employed by the firm you are currently working at / Hoe lank is u al
in diens by die firma waar u tans werksaam is?
(number of completed years) / (aantal voltooide jare)
PART B: YOUR EXPERIENCE OF THE SKILLS THAT UNIVERSITIES EQUIP FIRST-

YEAR TRAINEES WITH / DEEL B: U ERVARING VAN DIE VAARDIGHEDE WAARMEE
UNIVERSITEITE EERSTEJAAR KLERKE TOERUS:
Answer the following questions about your experience of skills that universities equip first-year
trainees with, by using the following scale / Beantwoord die volgende vrae aangaande u ervaring van
vaardighede waarmee eerstejaar klerke deur universiteite toegerus word, deur die volgende skaal te
gebruik:
Question Answer
1-5
10. First-year trainees are equipped by universities with the necessary skills to function in
practice / Eerste jaar klerke word deur universiteite met die nodige vaardighede
toegerus om in praktyk te kan funksioneer.
11. First-year trainees generally adapt well to the working environment / Eerstejaar klerke
pas oor die algemeen goed aan by die werksomgewing.
12. First-year trainees can communicate professionally / Eerstejaar klerke kan
professioneel kommunikeer.
13. First-year trainees work well in a team / Eerstejaar klerke werk goed saam in ŉ span.
108
14. First-year trainees can make ethical decisions in challenging circumstances / Eerstejaar
klerke kan etiese besluite neem in uitdagende omstandighede.
15. First-year trainees demonstrate a high level of technical expertise / Eerstejaar klerke
toon ŉ hoë vlak van tegniese kundigheid.
16. First-year trainees are able to make sensible judgements / Eerstejaar klerke is in staat
om sinvolle beoordelings te maak.
17. First-year trainees can think for themselves / Eerstejaar klerke kan vir hulself dink.
18. First-year trainees place the interests of the client and their employer before their own
self-interest / Eerstejaar klerke stel die belange van die kliënt en hul werkgewer voor
hul eie selfbelang.
19. First-year trainees perform work to a high standard of quality / Eerstejaar klerke voer
werk uit teen ŉ hoë standaard van kwaliteit.
20. First-year trainees treat others respectfully, courteously and equitably / Eerstejaar
klerke behandel ander met respek, hoflikheid en billikheid.
21. First-year trainees demonstrate intellectual ability and the ability to apply themselves /
Eerstejaar klerke toon intellektuele vermoëns en die vermoë om hulself te kan toepas.
22. First-year trainees are equipped to be life-long learners to adapt to the fast pace of
change / Eerstejaar klerke is toegerus om lewenslange leerders te wees om by die snelle
pas van verandering te kan aanpas.
23. First-year trainees are able to determine the extent of testing needed in audits /
Eerstejaar klerke is in staat om die omvang te bepaal van die toetsing wat benodig
word in oudits.
PART C: IDENTIFICATION OF SKILLS SHORTAGES / DEEL B: IDENTIFISERING VAN

VAARDIG-HEIDSTEKORTE
24. In your opinion, do you feel universities prepare first-year CA trainees adequately for
practice? Please motivate thoroughly: / In u opinie, dink u universiteite berei eerste-jaar GR
klerke voldoende voor vir die praktyk? Motiveer asb. volledig:
Type in the box / Tik in die blokkie
109
25. Please identify all skills shortages in first-year CA trainees at the point of entering practice
(i.e. at the beginning of first year of articles): / Identifiseer asseblief alle vaardighede wat
eerste-jaar GR klerke kortkom by die punt waar hulle die praktyk betree (m.a.w. aan die
begin van hul eerste jaar van klerkskap):
26. Please make any recommendations you feel will help improve the skills shortages in first-year
CA trainees when entering practice. These may include interventions at university level: /
Maak asseblief voorstelle wat u dink sal help om die tekort aan vaardighede by eerste-jaar GR
klerke te verbeter. Hierdie voorstelle mag intervensies op universiteitsvlak insluit:
110
27. Please feel free to type any other remarks in the space below: / Voel gerus vry om enige verdere
opmerkings in die spasie hieronder in te tik:
111
Annexure D.1 – Submission confirmation: SAJAR
From: Maureen Lawrence [mailto:[email protected]]

Sent: 12 November 2013 12:25
To: Van Romburgh, Henriëtte
Subject: Manuscript submitted to SAJAR - Ref 13/23
Dear Henriette
I apologise for the delay in acknowledging with thanks receipt of your paper submitted to SAJAR. I
will contact you in due course regarding the progress of your submission.
Regards
Maureen
Maureen Lawrence
Assistant to Prof Enrico Uliana – Editor, SA Journal of Accounting Research
Finance Department, University of Cape Town
Tel: +27 21 650 2217
Tel: +27 21 6502217
Fax: +27 21 6505124
[email protected]
112
Annexure D.2 – Submission confirmation: Industry & Higher
Education
From: John Edmondson [mailto:[email protected]]

Sent: 07 November 2013 17:02
To: Van Romburgh, Henriëtte
Subject: RE: Manuscript submission
Dear Henriette
Re: University versus practice...
This is to acknowledge with thanks safe receipt today of your submission to Industry and Higher
Education. I shall send the paper out for review within the next few days - this process normally takes
around 6 to 8 weeks. I shall be back in touch with you as soon as possible, but in the meantime please
don't hesitate to contact me at any time if you would like an update on the status of your paper.
With best regards,
John Edmondson
IP Publishing Ltd
258 Belsize Road
London
NW6 4BT
UK
Tel: +44 20 7316 1870
Fax: +44 20 7624 9994
E-mail: [email protected]
Website: www.ippublishing.com
113
Annexure E.1 – Author guidelines: SAJAR
Manuscript submissions
Authors should submit their manuscripts by e-mail to [email protected]

Alternatively they may submit 3 hard copies to Prof Enrico Uliana, Editor SAJAR, Department of
Finance, Bremner Building, University of Cape Town, Private Bag Rondebosch 7701, South
Africa. Manuscripts must include an abstract and up to ten keywords. Manuscripts must be free of
any identification of the author(s), affiliations, and acknowledgements. A separate sheet should
include the title, affiliation, contact address, phone number, fax and email address and any appropriate
acknowledgements. The letter to the editor should contain a statement that the manuscript or a similar
one has not been published and is not, nor will be, under consideration for publication elsewhere
while being reviewed by SAJAR.
The above instructions must be adhered to for resubmission.
Manuscript preparation and style
Manuscripts should be prepared for A4 paper and be 1.5 or double-spaced. Authors are requested to
use a 12 point easily legible font, and margins should be at least one inch to facilitate editing.
References in the text. Cited information must be identified accurately. The surname(s) or the
author(s), year of publication and page number(s) appear in parentheses after the quotation, for
example (Coetzee, 2003:2-5), (Brown & Jones, 2003:2-5). Omit the page number(s) if the entire
publication is referred to, for example (Berger, 2001). In works by three or more authors the
surnames of all the authors should be given in the first reference to such a work, for example ‘A recent
study (Jones, Smith, Boren & White, 2002) shows … .' In later references to this work only the first
author's name is given, and the abbreviation et al., a comma and the year of publication. For example:
(Jones et al., 2002).
References at the end of the manuscript. More details about sources referred to in the text must
appear at the end of the manuscript under the caption ‘References'. All sources must be arranged
alphabetically according to the surnames of the first author. If more than one publication by the same
author(s) appear in one year they must be distinguished by a, b, etc., for example 2003a, 2003b.
114
References from books. After the year of publication, follows the title. The Edition, Place of
publication: publisher, total number of pages:
Steers, R.M. and Porter, L.W. (1991). Motivation and work behaviour. 5th Edition. Singapore:
McGraw-Hill.
References from journals. After the year of publication, follows the title of the article, title of the
journal, volume, number, page(s).
Doyle, R.J. (1983). Gainsharing – A total productivity approach, Journal of Contemporary Business,
11(2):57-70.
115
Annexure E.2 – Author guidelines: Industry & Higher Education
Submissions - Notes for authors
Please send submissions, either by e-mail or post, to John Edmondson, Industry and Higher
Education, IP Publishing Ltd, 258 Belsize Road, London NW6 4BT, UK.
jedmondson(at)ippublishing.com
Type and length of contributions
The major part of the journal is taken up by papers between 4,000 and 8,000 words long. These should
be analytical and evaluative in approach and not simply descriptive. Other contributions include
opinion or 'viewpoint' pieces (1,500-3,000 words); case studies of specific ventures or programmes
(1,500-3,000 words); brief factual summaries of reports, agency programmes, educational institutions,
etc (1,000-2,000 words); and letters to the editors.
Presentation
Submissions should be double-spaced. They can be sent either by e-mail to the editor or by post (in
which case one hard copy and a disk or CD should be enclosed). Papers should preferably be sent in
Word (please note that PDF versions are not acceptable for review purposes). The title page should
contain full names of the authors, their professional status or affiliation and the address to which they
wish correspondence to be sent. There should be an abstract of about 100 words at the beginning of
the paper. The text should be organized under appropriate cross-headings and where possible these
should not be more than 800 words apart.
Between 3 and 6 keywords should appear below the abstract, highlighting the main topics of the
paper.
References should follow the Harvard system. That is, they should be shown within the text as the
author's surname (or authors' surnames) followed by a comma and the year of publication, all in round
brackets: for example, (Smith, 1998). For textual citations, where there are two authors please use the
word 'and', not the ampersand (thus: '(Smith and Jones, 2012)'. Where there are more than two
authors, please use the first-named author only, followed by 'et al' in italics (thus: Smith et al, 2012).
At the end of the article a bibliographical list should be supplied, organized alphabetically by author
116
(surnames followed by initials - all authors should be named). Bibliographic information should be
given in the order indicated by the following examples:
Articles: Woollard, D. (2010), ‘Towards a theory of university entrepreneurship’, Industry and Higher
Books: Viale, R., and Etzkowitz, H., eds (2010), The Capitalization of Knowledge, Edward Elgar,
Cheltenham.
Notes should be numbered consecutively in the text and typed in plain text at the end of the paper (not
as footnotes on text pages).
Figures and tables should be presented separately on separate sheets at the end of the text. Each figure
or table must be referred to in the text - the first reference will be used to locate the figure or table in
the final printed version.
117

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Accounting education: Investigating the

gap between school, university and

Dissertation submitted in fulfillment of the requirements for the

Supervisor: Prof. N. van der Merwe

List of abbreviations and acronyms ...................................................................................... vi

Dissertation summary ............................................................................................................vii

Opsomming van verhandeling ............................................................................................ viii

Chapter 1: Objectives, scope and course of the study .......................................................... 1

Objectives, scope and course of the study ................................................................................. 1

1. Introduction and background .......................................................................................... 2

2. Problem statement ........................................................................................................... 4

2.1 A possible gap between school and university ........................................................... 4

2.2 A possible gap between university and practice ......................................................... 5

2.3 Summary of the problem ............................................................................................. 6

3. Research objectives ......................................................................................................... 7

5. Research methodology ....................................................................................................... 8

5.1 Literature review ......................................................................................................... 8

5.2 Empirical research ....................................................................................................... 8

6. Chapter overview .......................................................................................................... 10

2. Literature overview ....................................................................................................... 19

2.1 A call for change ....................................................................................................... 19

2.2 The state of school accounting education in South Africa ........................................ 20

2.3 A gap between school and university accounting education? ................................... 22

4.1 Demographic profile of participants ......................................................................... 25

4.2 Perceptions of school accounting textbooks, curriculum and teachers ..................... 25

4.3 Topics in the school accounting curriculum ............................................................. 29

4.4 Data reduction ........................................................................................................... 34

4.5 Comparison of student groups with different demographical profiles ...................... 36

4.7 Qualitative comments obtained from lecturers ......................................................... 40

5. Conclusions and recommendations............................................................................... 41

6. Limitations of the study ................................................................................................ 43

2. Literature overview ....................................................................................................... 52

2.1 Effects of the stagnating accounting curricula .......................................................... 52

2.2 Underdevelopment of soft skills in first-year CA trainees ........................................ 53

3.3 Methodology ............................................................................................................. 56

4.1 Demographic information ......................................................................................... 59

4.2 Descriptive statistics .................................................................................................. 60

4.3 Qualitative findings ................................................................................................... 61

4.4 Comparison of different demographic groups .......................................................... 63

5. Conclusions and recommendations............................................................................... 70

6. Limitations of the study ................................................................................................ 73

Chapter 4: Summary, conclusions and recommendations................................................. 80

Summary, conclusions and recommendations ......................................................................... 80

2. Overview of research method ....................................................................................... 81

3. Summary of research results ......................................................................................... 81

3.1 Possible gap between school and university accounting ........................................... 81

3.2 Possible gap between university and practice ........................................................... 82

6. Research objectives addressed ...................................................................................... 85

7. Hypotheses addressed ................................................................................................... 86

8. Limitations of the study ................................................................................................ 87

9. Areas for future research ............................................................................................... 87

10. Bibliography .............................................................................................................. 89

Annexure A – Survey for chartered accountancy students at the North-West University .. 90

Annexure B - Survey for lecturers in the School/Department of Accounting (or equivalent)

Annexure D.1 – Submission confirmation: SAJAR .......................................................... 112

Annexure E.1 – Author guidelines: SAJAR...................................................................... 114

Table 1: Descriptive statistics of some individual questions asked to students ...................... 26

AECC Accounting Education Change Commission