| An essential requirement for acceptance into the public accounting profession is passage of the CPA examination. The purpose of this study was to investigate the usefulness of the examination as a screening device.;A questionnaire was used to collect data necessary to profile the two groups. The instrument was mailed to 625 candidates for the November 1985 CPA examination, 276 useable questionnaires were returned.;The characteristics of the two groups were determined by producing a discriminant function for each group from a list of fifteen hypothesized independent variables. A stepwise discriminant analysis technique was used to develop these models. The models were successfully tested for the significance of their predictive ability and any violations of the statistical assumption.;The model for the CPA examination supported the hypothesis that success was positively correlated (in order of discriminating power) with the following: (1) mathematical aptitude, (2) possession of a graduate degree, (3) preparation study time, (4) overall undergraduate grade point average, and (5) being male.;The investigation involved a contrasting of the examination procedures with the hiring processes employed by Big Eight Public Accounting firms when selecting new staff accountants. The comparison was made on the basis of the characteristics of successful CPA candidates relative to the characteristics of new staff accountants.;The model for new Big Eight staff accountants supported the hypothesis that gaining employment as a staff accountant was positively correlated (in order of discriminating power) with: (1) overall undergraduate grade-point average, (2) an occupational prestige measure of the parent, (3) being male, and (4) Barron's rating of the institution attended. Employment was negatively correlated with: (1) age, (2) CPA examination preparation study time, and (3) liberal arts credit hours.;The findings indicate that although the models have several common characteristics, between the two processes, the profession is screening on desirable technical and non-technical characteristics. |
