The 150-hour rule as a barrier to entering public accountancy |
| |
Authors: | Charles G Carpenter E Frank Stephenson |
| |
Institution: | (1) Francis Marion University, 29501 Florence, SC;(2) Berry College, 30149 Mount Berry, GA |
| |
Abstract: | In many states, CPA licensure now requires 150 credit hours of college coursework thereby adding an extra semester or year
of schooling beyond typical undergraduate degree requirements. Thus, the “150-hour rule” should increase the cost of becoming
a CPA and, consequently, reduce the supply of new CPAs. We test this hypothesis using panel data on the number of first-time
candidates for the CPA exam in each state over the years 1985 to 2002. We find that the imposition of the 150-hour education
requirement reduces the number of candidates sitting for the CPA exam by 60 percent and that the “grandfathering” provisions
of the 150-hour rule produce a substantial transitory increase in the number of candidates sitting for the exam in the year
prior to the rule’s effective date. Examination of candidates’ pass rates on the exam also finds behavior consistent with
the hypothesis that the 150-hour rule is a barrier to entry.
We thank Wilson Mixon and particular the 2002 Western Economics Association and 2002 Southern Economisc Association meetings
for helpful comments. We also thank Ian Elkin, Steven Simms, and especially, Keri Anderson for extraordinarily diligent ressearch
assistance. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|