CaliCpa wrote:
Fair point, however that doesnt refute the fact that public accountants learn the application of certain accounting principles, as do PHD's. It may be true that they aren't "inquisitive" or have a "research/academic-mind set," but the fact still remains that accounting is still accounting, regardless of whether you are researching cause and effect, or just applying its principles. Come on, you can't tell me that all new PHD candidates have all the FASB statements/codes memorized and all they do is cause and effect research on those statements...In your response, you just discredited what Cabro57 posted in his post.
Either way, I dont think we know what kind of job the OP was interested in anyway and probably cant fairly answer the question until knowing that.
I don't think he did.
Here's what I meant, as a former public accountant who went back to school and has now almost completed a PhD in accounting. Good public accountants need to know
many accounting standards and know a lot about the audit process and audit procedures, which is basically what they'll learn in a MACC program (or pretty much what they'd learn as accounting undergrads). On the other hand, good researchers need to be able to formulate
specific research questions, and then either (i) design their research so that their tests provide evidence toward answering that question (empirical or experimental research), or (ii) build a model that answers the question and provides insight as to what is driving their results (analytical/theoretical research). So what's tough for research is (1) to find an interesting subject, and (2) to apply procedures that are rigorous enough to tease out plausible alternatives. Most (about 75% in my case) of the official training people get in a PhD program is geared toward 2. The remaining time is spent reading/discussing accounting research papers, which helps to figure out what's been done before and may help a bit if you want to know what's still worth researching.
So you don't need to know a lot about accounting standards to be a good researcher. You need to have a good subject in mind (say, pension plans -- you don't need an accounting course to know those plans exist), and you need to have the skills that will help you define a good research question and design appropriate tests to answer it. Those skills are the focus of the PhD program. You may need to know a
specific standard thoroughly to have a well-defined research question -- that's when you'll actually read the standard, go through the mechanics, perhaps read
one chapter out of an accounting textbook, interview industry people, and so on.. but you are NOT going to learn much about that standard in a PhD course, as opposed to what you'd do in the MACC program. Besides, most accounting research has very little to do directly with specific standards (e.g. do earnings predict future stock returns, does the balance sheet help identify financially distressed firms, is income smoothing good or bad...).
CaliCpa wrote:
Well then, what do you learn about accounting? What do you think those PHDs do at the investment bank?
To answer this more specifically -- you don't learn that much about accounting but you do learn a lot about accounting
research. And those PhDs at investment banks -- they're trying to figure out whether accounting numbers can help predict future stock returns so that their employer can make more money. I'm not disputing that knowledge of actual standards can help that, but this is nowhere near as important as the (technical and analytical) ability to produce good research, and if they know anything about actual standards it's likely not something they learned in their PhD program.