Abstract The article focuses on the question related to evaluation of undergraduate education in accounting, in part, based on graduates' performance on CPA examination. Students who pass all taken parts of the CPA exam have sufficient value-added accounting knowledge, whereas, students who fail all taken parts of the CPA exam have insufficient value-added accounting knowledge. Since the value-added accounting knowledge is gained primarily from accounting course work, it seems reasonable to a person to assume from the pass rates that the value added by the accounting department in School A is substantially greater than that added by the accounting departments in Schools B and C. The success of accounting departments in satisfying their customers' wants, as indicated by first time candidates' performance on CPA exams, should be information that is widely disseminated and easily obtainable. Accounting departments, such as the one at School A, are providing a superior service to students who desire to be CPAs than the accounting departments at schools, such as School B and School C. This apparent difference in the quality of service offered should be recognized.
Allen G. Schick (Fri,) studied this question.