Assessing Relevance and Ranking of the AICPA Core Competencies In a Federal Audit Agency Region

Opinions of federal auditors have been inadequately solicited regarding competencies required for success after graduation with an accounting degree. This study assessed the relative importance of the AICPA Core Competency Framework for Entry into the Accounting Profession to the federal auditor of government contractors. A survey was administered to approximately 650 auditors of a federal audit agency region requesting opinions of the importance of AICPA-defined competencies. Approximately 40% responded by indicating that the majority of the AICPA core competencies are relevant in auditing government contractors. Federal auditors indicated competency in risk analysis to be important and deemed the AICPA categories of Functional and Personal competencies to be more important than the Broad Business Perspective competencies. Of concern, federal auditors did not indicate the Broad Business Perspective competency of strategic critical thinking to be significantly important to their job. Given employer preference for skill in this area, additional research opportunities exist to determine reasons and remedies for this gap in perception regarding development of strategic critical thinking abilities. The study also indicated that senior federal auditors did not find the Broad Business Perspective competencies more important than less experienced auditors did. Finally, contrary to prevailing literature, auditors of federal contractors identified significant need for better training in conventional accounting technical content such as general ledger accounting and, especially, cost accounting. Therefore, a competency model for federal auditors needs to make continued room for knowledge requirements along with the broader skill set advocated by the AICPA. The implications of this finding are significant with regard to what an already overburdened undergraduate accounting curriculum can be expected to deliver.