For-Profit Higher Education and CPA Exam Success Rates: Comparing For-Profit Institutions with Public (State) Institutions and Private Not-For-Profit Institutions of Higher Education

Authors

  • John Morgan Winona State University
  • Frederic Ihrke Winona State University

Keywords:

CPA exam,

Abstract

Public perceptions about the quality of business education received at commercial (for-profit) universities, relative to the quality of business education received at publicly supported state universities and private not-for-profit universities are mixed and somewhat controversial (Verschoor, 2011). Relatively little information exists concerning the quality of education received with a bachelor’s degree from a commercial university (U. S. Government Accountability Office, 2011). This research compares average CPA exam pass rates of graduates from three types of higher education institutions: for-profit universities, state sponsored public universities, and private not-for profit universities. Comparing average CPA exam pass rates of graduates of each type of university is one means to assess the quality of accounting education provided by each type of university. Our findings indicate the average CPA exam pass rates of candidates completing their accounting educations at commercial for-profit universities are strikingly lower than those of candidates completing their accounting educations at either publicly supported state schools or at private not-for-profit universities. In addition we find that a much lower fraction of graduates from commercial universities sit for the CPA exam compared to publicly supported state universities and private not-for-profit universities. Together these empirical data suggest if passing the CPA exam is a goal, then the educational path of commercial for-profit accounting education may not be optimal.

Author Biographies

John Morgan, Winona State University

John Morgan is a professor in the department of accounting at Winona State University. He received his
Ph.D. in accountancy from the University of Nebraska-Lincoln. His current research interests include the
financial reporting issues related to intellectual capital, business school accreditation issues, CPA exam
success factors, and measuring teacher effectiveness. He has published in the Journal of 21st Century
Accounting, the Journal of Business and Leadership, the Clarion Business and Economic Review, and in
Learning and Teaching in Higher Education-Gulf Perspectives.

Frederic Ihrke, Winona State University

Frederic Ihrke is a professor and chair in the department of accounting at Winona State University. He received his MBT from the University of Minnesota and his J.D. from William and Mitchell College of Law. His current research interests include income tax policy, income tax law, and accounting for intangible assets. He has published in the Journal of Business and Leadership.

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Published

2013-12-05

Issue

Vol. 4 No. 1 (2013)

Section

ABR Journal Articles

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