Utilising continued professional development of
ethics amongst prospective chartered accountants
by
DR GIDEON ELS
THESIS
submitted in fulfilment of the requirements for the degree
DOCTOR COMMERCII
in
AUDITING
in the
FACULTY OF ECONOMIC AND FINANCIAL SCIENCES
at the
UNIVERSITY OF JOHANNESBURG
Supervisor: Professor Thea L Voogt Co-supervisor: Professor Ben Marx
June 2007
i
PREFACE
Soli Deo Gloria
Completing a doctoral thesis may be seen as a ‘group’ effort. Allow me to thank the
following people and institutions for their enormous contribution:
my loving family for their inspiration and support;
my head of department, colleague and friend, Professor Henco van Schalkwyk,
for allowing me the time and opportunity to complete this study;
my supervisors, Professors Thea Voogt and Ben Marx, for their insight and
leadership;
my colleague, Professor Craig MacKenzie, for applying his professional editing
skills to this manuscript;
my friend, Carin Roux, and colleague, Professor Liz Greyling, for assisting with
language issues;
the helpful staff of the Statistical Consultation Service (STATKON) at the
University of Johannesburg but specially Dr Riëtte Eiselen, Nelis Potgieter and
Adam Martin;
the various research assistants who helped me over the years but especially
Henk Wassermann and Ryno Booyens;
Mandi Olivier from the South African Institute of Chartered Accountants (SAICA);
and
Bernard Agulhas from the Independent Regulatory Board for Auditors (IRBA).
The successful completion of this study was only possible with the help of our Lord
God.
“Research is creating new knowledge.”
Neil Armstrong Johannesburg
June 2007
PREFACE ii
To Petro and Carol
PREFACE iii
PLEASE TAKE NOTE …
Although the name of the Rand Afrikaans University changed to
that of the University of Johannesburg in 2005 after a merger
with the Technikon Witwatersrand, mention will only be made
to Rand Afrikaans University or RAU throughout this study.
With the signing of the new Auditing Profession Act, the
Independent Regulatory Board for Auditors became the
successor body to the Public Accountants’ and Auditors’ Board
as of 1 April 2006. As the scope of this study only extends to
31 March 2006, mention throughout this study will be made to
the Public Accountants’ and Auditors’ Board or PAAB.
iv
ABSTRACT
It is widely accepted that accounting education aims to produce competent professional
accountants, who are capable of making a positive contribution to the profession and
the society in which they work. The provision of a basis of ethical values should
therefore be viewed as an important aspect of professional accountants’ education and
training.
In the face of increasing changes encountered by accountants, it becomes essential
that they develop and maintain an attitude of learning to learn (i.e. Continuous
Professional Development or CPD).
In current times, an education programme for Chartered Accountants (CAs) needs to
transcend the traditional approach that emphasised ‘transfer of knowledge’, with
learning defined and measured strictly in terms of knowledge of principles, standards,
concepts, facts and procedures at a particular time.
This study aims to investigate the utilisation of the CPD of ethics among prospective
CAs by analysing and statistically interpreting the perceptions and attitudes of a group
of undergraduate students at a South African higher education institution, by means of
an empirical survey.
The objectives of this study are to:
(i) demarcate the CA and his/her profession by studying undergraduate students’
perceptions;
(ii) determine undergraduate students’ perceptions of CPD, life-long learning (LLL)
and ethics, within the framework of a CA and his/her undergraduate education;
(iii) investigate the perceived core values within the CA profession; and
(iv) analyse specific aspects of the education and training of prospective CAs at the
University of Johannesburg (UJ).
ABSTRACT v
Keywords:
Chartered accountants; continuous professional development; life-long learning; ethics;
ethics education.
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vi
OPSOMMING
TITEL : Die aanwending van die voortgesette professionele
ontwikkeling van etiek onder voornemende geoktrooieerde
rekenmeesters.
OUTEUR : Dr Gideon Els
PROMOTOR : Prof Thea L Voogt
MEDE-PROMOTOR : Prof Ben Marx
GRAAD : Doctor Commercii
STUDIEVELD: : Ouditkunde
DEPARTEMENT : Rekeningkunde
FAKULTEIT : Ekonomiese en Finansiële Wetenskappe
UNIVERSITEIT : Universiteit van Johannesburg
TAAL : Engels
Rekeningkundedosente verbonde aan hoëronderwysinstellings word van verwag om op
verskeie veranderings wat wêreldwyd deur die rekeningkundige professie in die gesig
gestaar word, te reageer. Hul onderrig behoort dus by leerders ’n verskeidenheid
strategieë wat leer sal bevorder, te ontwikkel.
Gedurende die onderrig van voornemende Geoktrooieerde Rekenmeesters (GRe) (dus
op voorgraadse vlak), behoort onderrigmetodes nie slegs daarop te fokus om leerders
met ’n noodsaaklike basiese grondslag van kennis, vaardighede, professionele waardes
en etiek vir professionele bekwaamheid toe te rus nie. Onderrigmetodes behoort ook
die nodige leerinstrumente en professionele ontwikkeling ná kwalifisering in te sluit.
’n Onderbou in Lewenslange Leer (LL) behoort dus gelê te word, ten einde leerders in
staat te stel om:
’n begeerte en vermoë te verwerf om lewenslank te leer;
by ’n veranderende omgewing aan te pas;
nuwe kennis en vaardighede te verwerf; en
OPSOMMING vii
verantwoordelikheid vir persoonlike prestasie te neem.
Voortgesette Professionele Ontwikkeling (VPO) en Lewenslange Leer (LL) word
normaalweg as ’n aspek ná kwalifisering beskou. Die aanvanklike voortgesette
professionele ontwikkeling en lewenslange leer van etiek behoort egter bevorder te
word, indien GRe alreeds tydens hul voorgraadse hoëronderrig in hierdie proses geskool
word.
Hierdie studie het die bestudering van die persepsies en houdings van ’n groep
voorgraadse rekeningkundestudente aan ’n Suid-Afrikaanse hoëronderwysinstelling,
rakende die voortgesette professionele ontwikkeling van etiek ten doel. As deel van die
empiriese studie word van ’n vraelys wat statisties ontleed en vertolk word, gebruik
gemaak.
Die doelwitte van die studie is:
(i) die posisionering van die GR en sy/haar professie met behulp van voorgraadse
studente se persepsies;
(ii) die bepaling van voorgraadse studente se persepsies van voortgesette
professionele ontwikkeling, lewenslange leer en etiek binne die raamwerk van ’n
GR en sy/haar voorgraadse onderrig;
(iii) ’n ondersoek na bepaalde kernwaardes binne die GR-professie; en
(iv) die analisering van spesifieke aspekte rakende die onderrig en opleiding van
voornemende GRe aan die Universiteit van Johannesburg (UJ).
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viii
TABLE OF CONTENTS
PREFACE...................................................................................... i
ABSTRACT ................................................................................. iv
OPSOMMING............................................................................. vi
LIST OF FIGURES .................................................................. xxvi
LIST OF TABLES .................................................................... xxix
LIST OF ABBREVIATIONS AND ACRONYMS......................... xxxv
CHAPTER 1: INTRODUCTION ....................................................1
1.1 INTRODUCTION ................................................................................1
1.2 MOTIVATION FOR THE STUDY ..........................................................3
1.3 IDENTIFICATION OF THE PROBLEM .................................................4
1.4 AIM OF THIS STUDY..........................................................................6
1.5 OBJECTIVES ......................................................................................7
1.5.1 Issues addressed in the study .................................................................. 7
1.5.2 Specific objectives of the study ................................................................ 7
1.5.3 Demarcation of study .............................................................................. 8
1.6 RESEARCH METHODOLOGY...............................................................8
TABLE OF CONTENTS ix
1.7 SCOPE OF THE STUDY .......................................................................9
1.7.1 Rand Afrikaans University ........................................................................ 9
1.7.2 Learners and students ............................................................................. 9
1.7.3 Undergraduate students .........................................................................10
1.7.4 Educator and teacher .............................................................................10
1.7.5 Continuous professional development ......................................................10
1.7.6 Education and training............................................................................11
1.7.7 Professional accountants ........................................................................11
1.7.8 Public Accountants’ and Auditors’ Board...................................................11
1.8 CONTENTS OF THE STUDY...............................................................11
1.9 PLANNED CONTRIBUTION TO RESEARCH.......................................12
CHAPTER 2: DEMARCATING AN EDUCATIONAL FRAMEWORK FOR
THE TRAINING OF CHARTERED ACCOUNTANTS
NATIONALLY AND INTERNATIONALLY .......................14
2.1 INTRODUCTION ..............................................................................14
2.2 AN OVERVIEW OF THE EDUCATIONAL LANDSCAPE IN SOUTH AFRICA............................................................................................15
2.2.1 Introduction ..........................................................................................16
2.2.2 Primary and Secondary Education and Training ........................................16
2.2.2.1 White Paper 1............................................................................................. 16
2.2.2.2 White Paper 2............................................................................................. 17
2.2.3 Higher Education and Training ................................................................17
2.2.3.1 White Paper 3............................................................................................. 18
2.2.3.2 Higher Education Act................................................................................... 18
2.2.3.3 National Plan for Higher Education ............................................................... 19
2.2.3.4 Higher Education Qualifications Framework .................................................. 20
TABLE OF CONTENTS x
2.2.4 National Qualifications Framework...........................................................20
2.2.4.1 Introduction................................................................................................ 20
2.2.4.2 The NQF Structure ...................................................................................... 21
2.2.4.3 The training of chartered accountants and the NQF structure......................... 21
2.3 AN OVERVIEW OF THE CHARTERED ACCOUNTING PROFESSION IN SOUTH AFRICA...........................................................................23
2.3.1 A historical overview ..............................................................................23
2.3.2 A current overview.................................................................................28
2.3.2.1 Background on transformation ..................................................................... 28
2.3.2.2 Some statistical evidence............................................................................. 29
2.3.3 Roles and responsibilities of SAICA and PAAB...........................................33
2.3.4 The restructuring of the accounting profession .........................................35
2.3.4.1 Accounting Profession Bill ............................................................................ 35
2.3.4.2 Audit Profession Act .................................................................................... 35
2.4 THE CHANGING FACE OF ACCOUNTING EDUCATION......................37
2.4.1 Introduction ..........................................................................................37
2.4.2 The dynamic nature of the accounting environment..................................37
2.4.3 Accounting education at higher education institutions ...............................38
2.5 INTERNATIONAL ACCOUNTING EDUCATION STANDARDS .............40
2.5.1 Introduction ..........................................................................................40
2.5.2 Definition of terminology ........................................................................41
2.5.3 International Education Standards...........................................................41
2.5.3.1 Education and practical experience needs..................................................... 43
2.5.3.2 Dynamic profession..................................................................................... 44
2.5.3.3 Lifelong learning ......................................................................................... 44
2.5.3.4 Continuous professional development........................................................... 44
2.5.3.5 Competence assessment ............................................................................. 44
2.6 PRESCRIBED CONTENT OF CHARTERED ACCOUNTANT EDUCATION PROGRAMMES – AN INTERNATIONAL PERSPECTIVE ..................................................................................45
2.6.1 Introduction ..........................................................................................45
TABLE OF CONTENTS xi
2.6.2 Education and training components.........................................................46
2.6.2.1 Professional knowledge component.............................................................. 46 a) Introduction .................................................................................................................... 46 b) Content ........................................................................................................................... 48
(i) Accounting, finance and related knowledge ........................................................ 48 (ii) Organisational and business knowledge.............................................................. 49 (iii) Information technology ........................................................................................ 50
2.6.2.2 Non-professional knowledge (skills) component ............................................ 52 a) Introduction .................................................................................................................... 52 b) Content ........................................................................................................................... 53
(i) Intellectual skills .................................................................................................. 53 (ii) Technical and functional skills............................................................................. 54 (iii) Personal skills ...................................................................................................... 55 (iv) Interpersonal and communication skills .............................................................. 55 (v) Organisational and business management skills ................................................. 56
2.6.2.3 General education component...................................................................... 56 a) Introduction .................................................................................................................... 56 b) Content ........................................................................................................................... 57
2.6.3 Professional values, ethics and attitudes ..................................................58
2.6.3.1 Introduction................................................................................................ 58
2.6.3.2 Content ...................................................................................................... 58
2.6.3.3 Teaching professional values, ethics and attitudes......................................... 60
2.6.3.4 Workplace learning and professional values, ethics and attitudes ................... 61
2.6.4 Continuous professional development ......................................................62
2.6.4.1 Introduction................................................................................................ 62
2.6.4.2 Purpose and scope...................................................................................... 62
2.6.5 Promotion of lifelong learning .................................................................65
2.7 PRESCRIBED CONTENT OF CHARTERED ACCOUNTANT EDUCATION PROGRAMMES – A SOUTH AFRICAN PERSPECTIVE....65
2.7.1 Introduction ..........................................................................................65
2.7.2 Training as a chartered accountant..........................................................67
2.7.3 The training environment .......................................................................68
2.7.4 The goal of training................................................................................69
2.7.4.1 Knowledge fundamental to training .............................................................. 70 a) Auditing.......................................................................................................................... 70 b) Accounting, financial management and secretarial services .......................................... 71 c) Information technology .................................................................................................. 71 d) Taxation and estates ....................................................................................................... 71
TABLE OF CONTENTS xii
2.7.4.2 Skills fundamental to training and development ............................................ 71 a) Intellectual skills............................................................................................................. 72 b) Interpersonal skills ......................................................................................................... 72 c) Communication skills..................................................................................................... 72
2.7.4.3 Professional values...................................................................................... 72
2.8 A SUMMARISED INTERNATIONAL AND NATIONAL COMPARISON OF THE TRAINING OF A CHARTERED ACCOUNTANT..................................................................................74
2.9 SUMMARY .......................................................................................77
CHAPTER 3: CONTINUOUS PROFESSIONAL DEVELOPMENT
THROUGH SELF-DIRECTED LEARNING.......................81
3.1 INTRODUCTION ..............................................................................81
3.2 CONTINUOUS PROFESSIONAL DEVELOPMENT ...............................83
3.2.1 Introduction ..........................................................................................83
3.2.2 Definitions and descriptions ....................................................................85
3.2.2.1 Continuous professional development........................................................... 85
3.2.2.2 Competence and continuous professional development ................................. 87
3.2.2.3 Lifelong learning and continuous professional development ........................... 87
3.2.2.4 Self-directed learning and continuous professional development .................... 88
3.2.3 The need for continuous professional development of chartered accountants...........................................................................................89
3.3 SELF-DIRECTED LEARNING.............................................................90
3.3.1 Introduction ..........................................................................................90
3.3.2 Current theories of learning ....................................................................91
3.3.2.1 Learning is a process of knowledge construction ........................................... 91
3.3.2.2 Learning is knowledge-dependent ................................................................ 91
3.3.2.3 Learning is situation-bound.......................................................................... 91
3.3.2.4 Learning needs to account for distributed cognition....................................... 92
3.3.2.5 Learning is affected by motivational issues ................................................... 92
3.3.3 Historical perspective on self-directed learning .........................................93
TABLE OF CONTENTS xiii
3.3.4 Defining self-directed learning.................................................................95
3.3.5 Characteristics or dimensions of a self-directed learner .............................99
3.3.5.1 Personal autonomy ................................................................................... 101
3.3.5.2 Self-management (self-regulation) ............................................................. 101
3.3.5.3 Independent pursuit of learning ................................................................. 102
3.3.5.4 Learner control ......................................................................................... 102
3.3.6 Skills needed for self-directed learning...................................................103
3.3.7 Learner-centred approaches in self-directed learning ..............................104
3.3.7.1 Introduction.............................................................................................. 104
3.3.7.2 Teacher-centred learning versus self-directed learning ................................ 104
3.3.7.3 The lack of learner-centred approaches in the education of chartered accountants .............................................................................................. 107
a) Student readiness.......................................................................................................... 107 b) Teacher support mechanisms ....................................................................................... 108 c) Non-reflective teaching approaches ............................................................................. 108
3.3.8 Myths, realities and challenges of self-directed learning ..........................108
3.3.8.1 Introduction.............................................................................................. 108
3.3.8.2 Myths of self-directed learning ................................................................... 109 a) Autonomy..................................................................................................................... 109 b) Emancipation................................................................................................................ 110 c) Socio-cultural perspective ............................................................................................ 111
3.3.8.3 Realities of self-directed learning................................................................ 112 a) Empowerment to self-direction .................................................................................... 112 b) Communal learning ...................................................................................................... 112 c) Assessment ................................................................................................................... 113
3.3.8.4 Challenges of self-directed learning ............................................................ 113 a) Self-directed learning must be ‘taught’ ........................................................................ 113 b) Self-directed learning and cross-cultural perspectives ................................................. 114 c) Collaborative aspects of self-directed learning ............................................................ 114 d) Use of technology......................................................................................................... 114 e) Self-directed learning - a future learning methodology?.............................................. 115 f) Assessment ................................................................................................................... 116
3.3.9 Facilitation of self-direction in learning...................................................116
3.3.9.1 Roles of educators .................................................................................... 116
3.3.9.2 Roles of educational institutions ................................................................. 118
3.4 PROBLEM-BASED LEARNING ........................................................118
3.4.1 Introduction ........................................................................................118
3.4.2 Defining problem-based learning...........................................................119
TABLE OF CONTENTS xiv
3.4.3 Problem-based learning environments ...................................................120
3.4.4 Principles of problem-based learning methodology..................................121
3.5 LIFELONG LEARNING IN PRACTICE USING A SELF-DIRECTED LEARNING APPROACH ..................................................................122
3.5.1 Introduction ........................................................................................122
3.5.2 Understanding lifelong learning .............................................................123
3.5.3 Self-directed learning as a vehicle for lifelong learning and continuous professional development .....................................................................124
3.5.4 Implications of self-directed learning in continuous professional development .......................................................................................124
3.6 A SOUTH AFRICAN PERSPECTIVE .................................................125
3.7 SUMMARY .....................................................................................126
CHAPTER 4: A HOLISTIC CRITIQUE OF ETHICS ..........................131
4.1 INTRODUCTION ............................................................................131
4.2 THE THEORY OF ETHICS ...............................................................132
4.2.1 Introduction ........................................................................................132
4.2.2 Definitions...........................................................................................132
4.2.3 Theories of ethics ................................................................................133
4.2.3.1 Descriptive ethics ...................................................................................... 134 a) Piaget ............................................................................................................................ 134 b) Kohlberg....................................................................................................................... 135 c) Foucault ........................................................................................................................ 137
4.2.3.2 Prescriptive ethics ..................................................................................... 137 a) Virtue Theory ............................................................................................................... 137 b) Deontological Theory................................................................................................... 138 c) Utilitarian Theory ......................................................................................................... 139
4.2.3.3 Meta-ethics............................................................................................... 139
TABLE OF CONTENTS xv
4.3 THE MORALS, ETHICS AND VALUES DEBATE: A BROAD-BASED DISCUSSION .................................................................................139
4.3.1 Introduction ........................................................................................139
4.3.2 Morals and ethics .................................................................................140
4.3.2.1 Ethical problem......................................................................................... 142
4.3.2.2 Ethical behaviour ...................................................................................... 142
4.3.2.3 Unethical behaviour .................................................................................. 143 a) The person's ethical standards differ from general society........................................... 143 b) The person chooses to act selfishly .............................................................................. 144
4.3.3 Morals and values ................................................................................144
4.3.3.1 Globalisation............................................................................................. 145
4.3.3.2 Democracy ............................................................................................... 145
4.3.3.3 Cultural diversity ....................................................................................... 146
4.3.4 Ethics and values .................................................................................148
4.3.4.1 Strategic values ........................................................................................ 149
4.3.4.2 Work values.............................................................................................. 149
4.3.4.3 Ethical values............................................................................................ 149
4.4 GENERAL VERSUS PROFESSIONAL ETHICS ..................................150
4.4.1 Introduction ........................................................................................150
4.4.2 General ethics......................................................................................150
4.4.2.1 Absolutists................................................................................................ 151
4.4.2.2 Relativists................................................................................................. 152
4.4.2.3 Individualists ............................................................................................ 152
4.4.2.4 Idealists ................................................................................................... 152
4.4.3 Professional ethics ...............................................................................152
4.4.3.1 What is a profession? ................................................................................ 153
4.4.3.2 The virtues of a professional accountant..................................................... 154
4.4.3.3 Thoughts on professional ethics ................................................................. 157
4.5 BUSINESS ETHICS.........................................................................158
4.5.1 Introduction ........................................................................................158
4.5.2 Defining/describing business ethics .......................................................159
4.5.3 The ‘morals’ of business ethics ..............................................................160
4.5.4 Business ethics and the stakeholders’ theory ..........................................161
TABLE OF CONTENTS xvi
4.6 MORALS, VALUES AND ETHICS IN PRACTICE ...............................163
4.6.1 Introduction ........................................................................................163
4.6.2 A ‘pocket guide’ to being ethical ............................................................163
4.6.2.1 The first “R” – Respect .............................................................................. 163
4.6.2.2 The second “R” – Responsibility ................................................................. 165
4.6.2.3 The third “R” – Results .............................................................................. 166
4.7 CODES OF PROFESSIONAL ETHICS ...............................................167
4.7.1 Introduction ........................................................................................167
4.7.2 Codes of ethics for chartered accountants..............................................168
4.7.3 SAICA Code of professional conduct ......................................................171
4.8 SUMMARY .....................................................................................172
CHAPTER 5: ETHICS EDUCATION ...........................................175
5.1 INTRODUCTION ............................................................................175
5.2 TEACHING OF BUSINESS ETHICS: AN OVERVIEW ........................176
5.2.1 Introduction ........................................................................................176
5.2.2 Can ethics be taught?...........................................................................178
5.2.3 Can ethics be taught to undergraduate accounting students? ..................181
5.2.4 Is ethics teaching also indoctrination?....................................................182
5.2.5 Aims of teaching business ethics ...........................................................185
5.2.6 An integrated approach?.......................................................................186
5.3 PERSPECTIVES ON THE TEACHING OF BUSINESS ETHICS ...........188
5.3.1 International perspective ......................................................................189
5.3.2 South African perspective .....................................................................191
5.4 VARIOUS APPROACHES TO THE TEACHING AND LEARNING OF BUSINESS ETHICS.........................................................................194
5.4.1 Introduction ........................................................................................194
TABLE OF CONTENTS xvii
5.4.1.1 Defining teaching...................................................................................... 194
5.4.1.2 Defining learning....................................................................................... 194
5.4.1.3 Linking teaching and learning .................................................................... 194
5.4.2 The conventional or institutional approach .............................................195
5.4.3 Community learning approach...............................................................196
5.4.4 The conversational approach ................................................................197
5.4.5 The games approach............................................................................199
5.4.6 The computer learning approach...........................................................200
5.4.6.1 E-learning: closed approach....................................................................... 202
5.4.6.2 E-learning: open approach......................................................................... 202
5.4.7 The experiential learning approach........................................................203
5.4.7.1 Simulation approach.................................................................................. 205
5.4.7.2 Case studies ............................................................................................. 205
5.4.7.3 Journals ................................................................................................... 206
5.4.7.4 Debriefing – a crucial aspect in experiential learning activities...................... 207
5.5 SOME CRITICISM FROM A SOUTH AFRICAN PERSPECTIVE..........208
5.5.1 Introduction ........................................................................................208
5.5.2 Amount of technical detail ....................................................................210
5.5.3 Effectiveness of coverage .....................................................................210
5.5.4 Theory versus application .....................................................................211
5.5.5 Use of computer technology .................................................................212
5.5.6 Classroom realities ...............................................................................212
5.5.7 Other ..................................................................................................213
5.6 SUMMARY .....................................................................................213
CHAPTER 6: RESEARCH METHODOLOGY ..................................217
6.1 INTRODUCTION ............................................................................217
6.2 RESEARCH DESIGN .......................................................................218
6.2.1 Qualitative research .............................................................................218
TABLE OF CONTENTS xviii
6.2.2 Quantitative research ...........................................................................218
6.2.2.1 Nominal scale ........................................................................................... 219
6.2.2.2 Ordinal scale............................................................................................. 219
6.2.2.3 Interval scale ............................................................................................ 220
6.2.2.4 Ratio scale................................................................................................ 220
6.2.3 Quality of measurement .......................................................................220
6.2.3.1 Reliability.................................................................................................. 220
6.2.3.2 Validity ..................................................................................................... 221 a) Internal validity ............................................................................................................ 221 b) External validity ........................................................................................................... 222
6.3 QUESTIONNAIRE DESIGN.............................................................222
6.3.1 Introduction ........................................................................................222
6.3.2 General guidelines in constructing questionnaires ...................................223
6.3.3 Types of questions ...............................................................................224
6.3.3.1 Open-ended questions............................................................................... 224
6.3.3.2 Closed questions ....................................................................................... 224
6.3.3.3 Likert scales.............................................................................................. 224 a) Advantages of using Likert scales................................................................................ 225 b) Disadvantages of using Likert scales ........................................................................... 225 c) Criticism of the use of the Likert scale......................................................................... 225 d) Likert scale employed in this study .............................................................................. 226
6.3.3.4 Ambiguity and bias.................................................................................... 226
6.4 THE SURVEY INSTRUMENT ...........................................................227
6.4.1 Introduction ........................................................................................227
6.4.2 Questionnaire layout ............................................................................227
6.4.3 Testing of the instrument .....................................................................229
6.4.4 Sampling approach ..............................................................................230
6.4.5 Administration .....................................................................................230
6.4.6 Data analysis .......................................................................................231
6.5 ETHICAL CONSIDERATIONS .........................................................231
6.5.1 Permission to collect data .....................................................................231
6.5.2 Informed consent ................................................................................231
TABLE OF CONTENTS xix
6.5.3 Confidentiality and anonymity ...............................................................231
6.6 ANALYSIS OF DATA.......................................................................232
6.6.1 Descriptive analysis of data...................................................................232
6.6.1.1 Standard deviation .................................................................................... 232
6.6.1.2 Skewness ................................................................................................. 233
6.6.1.3 Kurtosis.................................................................................................... 233
6.6.2 Factor analysis.....................................................................................234
6.6.2.1 Introduction.............................................................................................. 234
6.6.2.2 Aim of factor analysis ................................................................................ 234
6.6.2.3 Practical considerations when using exploratory factor analysis .................... 235 a) Sample size................................................................................................................... 235 b) Factor extraction method.............................................................................................. 235 c) Method of rotation........................................................................................................ 235 d) Reliability of factor analysis......................................................................................... 236
(i) Kaiser-Meyer-Olkin Measure of Sampling Adequacy........................................ 236 (ii) Bartlett’s Test of Sphericity................................................................................ 236 (iii) Initial Eigenvalues ............................................................................................. 236
6.6.3 Item analysis .......................................................................................237
6.6.4 Factor scores .......................................................................................237
6.6.5 Development of hypotheses..................................................................237
6.6.6 Testing of hypotheses ..........................................................................237
6.6.6.1 Introduction.............................................................................................. 237
6.6.6.2 t-tests for independent samples ................................................................. 238
6.6.6.3 Mann-Whitney U test................................................................................. 238
6.6.6.4 Pearson Chi-square test............................................................................... 23
6.7 SUMMARY .....................................................................................238
CHAPTER 7: EMPIRICAL ANALYSIS.........................................239
7.1 INTRODUCTION ............................................................................239
7.2 STUDENTS’ PROFILE .....................................................................241
7.2.1 Gender................................................................................................241
7.2.2 Year matriculated.................................................................................241
TABLE OF CONTENTS xx
7.2.3 Highest educational qualification ...........................................................242
7.3 THE CHARTERED ACCOUNTANT AND HIS/HER PROFESSION.......243
7.3.1 Descriptive analysis ..............................................................................243
7.3.2 Some important aspects of the data found in the descriptive analysis.......246
7.3.2.1 A professional CA: an ethical CA? ............................................................... 246
7.3.2.2 Basic theoretical knowledge versus additional knowledge ............................ 249
7.3.3 Factor analysis of the items measuring the chartered accountant and his/her profession ................................................................................252
7.3.3.1 Factor analysis 1 ....................................................................................... 252
7.3.3.2 Factor analysis 2 ....................................................................................... 254
7.3.4 Item analysis .......................................................................................258
7.3.4.1 Factor 1: CmpSkll.................................................................................... 258
7.3.4.2 Factor 2: Ethcs ........................................................................................ 260
7.3.4.3 Factor 3: EdcTrn ...................................................................................... 262
7.3.4.4 Factor 4: CmpPrf ..................................................................................... 264
7.3.5 Factor scores .......................................................................................265
7.3.5.1 Calculation................................................................................................ 265
7.3.5.2 Interpreting factor scores .......................................................................... 266 a) Factor 1: CmpSkll ........................................................................................................ 266 b) Factor 2: Ethcs ............................................................................................................. 268 c) Factor 3: EdcTrn .......................................................................................................... 269
7.3.6 Hypothesis testing................................................................................270
7.3.6.1 Factor 1: CmpSkll.................................................................................... 271
7.3.6.2 Factor 2: Ethcs ........................................................................................ 272
7.3.6.3 Factor 3: EdcTrn ...................................................................................... 272
7.4 CONTINUOUS PROFESSIONAL DEVELOPMENT OF CHARTERED ACCOUNTANTS..............................................................................273
7.4.1 Descriptive analysis ..............................................................................273
7.4.2 Some important aspects of the data found in the descriptive analysis.......275
7.4.2.1 Ethics and corporate collapses ................................................................... 275
7.4.2.2 Continuous professional development requirement for CAs .......................... 276
7.4.2.3 Teaching the skills of CPD.......................................................................... 277
7.4.3 Factor analysis of the items measuring the need for continuous professional development of chartered accountants ................................278
TABLE OF CONTENTS xxi
7.4.4 Item analysis .......................................................................................280
7.4.4.1 Factor 1: LrnCPD ..................................................................................... 280
7.4.4.2 Factor 2: CrtCPD ..................................................................................... 282
7.4.4.3 Factor 3: ValCPD ..................................................................................... 284
7.4.5 Factor scores .......................................................................................284
7.4.5.1 Calculation................................................................................................ 284
7.4.5.2 Interpreting factor scores .......................................................................... 284 a) Factor 1: LrnCPD ........................................................................................................ 285 b) Factor 2: CrtCPD ......................................................................................................... 286
7.4.6 Hypothesis testing................................................................................287
7.4.6.1 Factor 1: LrnCPD ..................................................................................... 289
7.4.6.2 Factor 2: CrtCPD ..................................................................................... 289
7.5 LIFELONG LEARNING OF CHARTERED ACCOUNTANTS .................289
7.5.1 Descriptive analysis ..............................................................................289
7.5.2 Factor analysis of the items measuring the need for lifelong learning of chartered accountants ..........................................................................293
7.5.3 Hypothesis testing................................................................................293
7.6 ASPECTS OF ETHICS EDUCATION RELATED TO CHARTERED ACCOUNTANTS..............................................................................295
7.6.1 Descriptive analysis ..............................................................................295
7.6.2 Some important aspects of the data found in the descriptive analysis.......297
7.6.2.1 Ethics is a gut feel..................................................................................... 297
7.6.2.2 Ethics education........................................................................................ 297
7.6.2.3 Ethics education: a moral conversion process ............................................. 298
7.6.2.4 Ethics education at higher education institutions ......................................... 299
7.6.2.5 Professional ethics: a contradiction? ........................................................... 300
7.6.3 Factor analysis of the items measuring aspects of ethics related to chartered accountants ..........................................................................301
7.6.4 Item analysis .......................................................................................303
7.6.4.1 Factor 1: EthcEduc .................................................................................. 303
7.6.5 Factor scores .......................................................................................305
7.6.5.1 Calculation................................................................................................ 305
7.6.5.2 Interpreting factor scores .......................................................................... 305
TABLE OF CONTENTS xxii
7.6.6 Hypothesis testing................................................................................307
7.7 PERCEIVED CORE VALUES WITHIN THE CHARTERED ACCOUNTANCY PROFESSION........................................................309
7.7.1 Descriptive analysis ..............................................................................309
7.7.2 Factor analysis of the items measuring the perceived core values within the chartered accountancy profession....................................................314
7.7.3 Hypothesis testing................................................................................315
7.8 ASPECTS OF THE EDUCATION AND TRAINING OF CHARTERED ACCOUNTANTS AT RAU .................................................................316
7.8.1 Descriptive analysis ..............................................................................316
7.8.2 Some important aspects of the data found in the descriptive analysis.......320
7.8.2.1 Skilled educators....................................................................................... 320
7.8.2.2 A focus on computer skills ......................................................................... 321
7.8.2.3 A focus on professional ethics .................................................................... 322
7.8.3 Factor analysis of the items measuring aspects of the education and training of chartered accountants at RAU ...............................................325
7.8.4 Hypothesis testing................................................................................326
7.9 SUMMARY .....................................................................................327
CHAPTER 8: ATTITUDES OF UNDERGRADUATE STUDENTS TO
CONTINUOUS PROFESSIONAL DEVELOPMENT OF
ETHICS: AN ANALYSIS.........................................332
8.1 INTRODUCTION ............................................................................333
8.2 ATTITUDES OF UNDERGRADUATE STUDENTS TOWARD CONTINUOUS PROFESSIONAL DEVELOPMENT OF ETHICS ...........336
8.3 DEMARCATE THE CA AND THE PROFESSION BY WAY OF UNDERGRADUATE STUDENTS’ PERCEPTIONS ..............................336
8.3.1 The chartered accountant and his/her profession....................................336
8.3.1.1 Introduction.............................................................................................. 336
TABLE OF CONTENTS xxiii
8.3.1.2 General competency and skills ................................................................... 336
8.3.1.3 Values, ethics and attitudes ....................................................................... 336
8.3.1.4 Training, education and lifelong learning .................................................... 339
8.3.1.5 Some summarising remarks....................................................................... 339
8.4 DETERMINE UNDERGRADUATE STUDENTS’ PERCEPTIONS OF CPD, LLL AND ETHICS WITHIN THE FRAMEWORK OF A CA AND HIS/HER UNDERGRADUATE EDUCATION .....................................340
8.4.1 The continuous professional development of chartered accountants.........340
8.4.1.1 Introduction.............................................................................................. 340
8.4.1.2 Education and pursuance of CPD................................................................ 340
8.4.1.3 Importance of continuous professional development ................................... 343
8.4.1.4 Some summarising remarks....................................................................... 343
8.4.2 Lifelong learning of chartered accountants .............................................344
8.4.2.1 Introduction.............................................................................................. 344
8.4.2.2 Perceived core aspects of lifelong learning.................................................. 344
8.4.2.3 Some summarising remarks....................................................................... 346
8.4.3 Aspects of ethics education related to chartered accountants ..................346
8.4.3.1 Introduction.............................................................................................. 346
8.4.3.2 Aspects of ethics education........................................................................ 346
8.4.3.3 Some summarising remarks....................................................................... 348
8.5 INVESTIGATE THE PERCEIVED CORE VALUES WITHIN THE CA PROFESSION .................................................................................348
8.5.1 Perceived core values within the chartered accountancy profession..........348
8.5.1.1 Introduction.............................................................................................. 348
8.5.1.2 Some summarising remarks....................................................................... 350
8.6 ANALYSE CERTAIN ASPECTS OF THE EDUCATION AND TRAINING OF CAs AT RAU ............................................................350
8.6.1 Aspects of the education and training of chartered accountants at RAU....350
8.6.1.1 Introduction.............................................................................................. 350
8.6.1.2 Aspects of education of chartered accountants at RAU ................................ 353
8.6.1.3 Some summarising remarks....................................................................... 353
8.7 SUMMARY .....................................................................................354
TABLE OF CONTENTS xxiv
CHAPTER 9: SUMMARY, CONCLUSION AND RECOMMENDATIONS ...355
9.1 INTRODUCTION ............................................................................356
9.2 SUMMARY OF THE THESIS ............................................................356
9.2.1 Chapter 1 – Objectives of this study ......................................................356
9.2.2 Chapter 2 – Demarcating an educational framework for the training of chartered accountants nationally and internationally ...............................356
9.2.3 Chapter 3 – Continuous professional development through self-directed learning...............................................................................................357
9.2.4 Chapter 4 – A holistic critique of ethics ..................................................358
9.2.5 Chapter 5 – Ethics education.................................................................359
9.2.6 Chapter 6 – Research methodology .......................................................359
9.2.7 Chapter 7 – Empirical analysis...............................................................360
9.2.8 Chapter 8 – Attitudes of undergraduate students toward continuous professional development of ethics........................................................360
9.3 FINDINGS OF THE STUDY .............................................................360
9.3.1 Demarcate the CA and the profession by way of undergraduate students’ perceptions ...........................................................................360
9.3.2 Determine undergraduate students’ perceptions of CPD, LLL and ethics within the framework of a CA and his/her undergraduate education.........361
9.3.3 Investigate the perceived core values within the CA profession................362
9.3.4 Analyse certain aspects of the education and training of CAs at RAU........362
9.4 CONCLUSIONS ..............................................................................363
9.5 RECOMMENDATIONS ....................................................................364
9.6 SCOPE FOR FURTHER RESEARCH..................................................366
BIBLIOGRAPHY......................................................................368
TABLE OF CONTENTS xxv
APPENDICES ..........................................................................413
Appendix A ...................................................................................................413
Appendix B....................................................................................................419
Appendix C ...................................................................................................430
Appendix D ...................................................................................................433
Appendix E....................................................................................................442
Appendix F....................................................................................................448
Appendix G ...................................................................................................452
Appendix H ...................................................................................................458
Appendix I ....................................................................................................462
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xxvi
LIST OF FIGURES
FIGURE 2.1: The historical development of the Accounting Profession in
South Africa .........................................................................24
FIGURE 2.2: Total number of registered CAs per race, 2001 – 2006 ............30
FIGURE 2.3: Number of registered CAs per race and gender, 2002 –
2006....................................................................................31
FIGURE 2.4: Number of registered black CAs and growth amongst black
and white CAs, 2002 – 2006..................................................32
FIGURE 2.5: International Education Standards .........................................42
FIGURE 2.6: Education environment of a chartered accountant ...................46
FIGURE 2.7: Qualifying as a chartered accountant .....................................66
FIGURE 3.1: Learning matrix ....................................................................98
FIGURE 4.1: An outline of Kohlberg’s Stages of Moral Development...........136
FIGURE 4.2: Combining morals, values and ethics....................................140
FIGURE 6.1: Independent variables focussed on in the study ....................228
FIGURE 7.1: Gender profile of respondents (n = 491)...............................241
FIGURE 7.2: Year of matriculation by respondents (n = 489) ....................242
FIGURE 7.3: Highest educational qualification (n = 491)...........................243
FIGURE 7.4: Mean and median distribution for the chartered
accountant and his/her profession (n = 491) .................246
FIGURE 7.5: Histogram and distribution of Factor 1 (CmpSkll) ................267
LIST OF FIGURES xxvii
FIGURE 7.6: Histogram and distribution of Factor 2 (Ethcs).....................268
FIGURE 7.7: Histogram and distribution of Factor 3 (EdcTrn) ..................269
FIGURE 7.8: Mean and median distribution for the continuous
professional development of chartered accountants
(n = 491)...........................................................................274
FIGURE 7.9: Histogram and distribution of Factor 1 (LrnCPD) .................286
FIGURE 7.10: Histogram and distribution of Factor 2 (CrtCPD)..................287
FIGURE 7.11: Mean and median distribution for the lifelong learning of
chartered accountants (n = 491).....................................291
FIGURE 7.12a: Gender split of frequencies for the lifelong learning of
chartered accountants (n = 491; x < 1.60).....................292
FIGURE 7.12b: Gender split of frequencies for the lifelong learning of
chartered accountants (n = 491; x > 1.60).....................292
FIGURE 7.13: Mean and median distribution for aspects of ethics
related to the chartered accountant (n = 491) ...............296
FIGURE 7.14: Histogram and distribution of Factor 1 (EthcEduc) ..............307
FIGURE 7.15: Mean and median distribution for the perceived core
values within the chartered accountant profession
(n = 491) ...........................................................................311
FIGURE 7.16a: Gender split of frequencies for the perceived core values
within the chartered accountant profession (n = 491;
x < 1.40)..........................................................................312
FIGURE 7.16b: Gender split of frequencies for the perceived core values
within the chartered accountant profession (n = 491;
x > 1.40)..........................................................................313
FIGURE 7.17: Mean and median distribution for the aspects of the
education and training of prospective chartered
accountants at the RAU (n = 491) ...................................318
LIST OF FIGURES xxviii
FIGURE 7.18a: Gender split of frequencies for the aspects of the
education and training of prospective chartered
accountants at the RAU (n = 491; x < 1.85) ...................319
FIGURE 7.18b: Gender split of frequencies for the aspects of the
education and training of prospective chartered
accountants at the RAU (n = 491; x > 1.85) ...................320
FIGURE 7.19: CPD of ethics amongst prospective CAs ................................328
FIGURE 8.1: Utilising CPD of ethics amongst prospective CAs....................335
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xxix
LIST OF TABLES
TABLE 2.1: National Qualifications Framework Structure ...........................22
TABLE 2.2: The roles of SAICA and PAAB ................................................33
TABLE 2.3: A training comparison of chartered accountants ......................74
TABLE 3.1: Differences between TDL and SDL environments...................104
TABLE 3.2: Comparison of the Mocker & Spear and Hersey & Blanchard
Models of SDL ....................................................................106
TABLE 7.1: The chartered accountant and his/her profession ..................244
TABLE 7.2: Descriptive analysis: Item U11 (Section B1)..........................245
TABLE 7.2a: Descriptive analysis: Item U8 (Section B1)............................245
TABLE 7.2b: Descriptive analysis: Item U18 (Section B1)..........................245
TABLE 7.2c: Descriptive analysis: Item U13 (Section B1)..........................246
TABLE 7.2d: Descriptive analysis: Item U4 (Section B1)............................246
TABLE 7.2e: Descriptive analysis: Item U9 (Section B1)............................249
TABLE 7.2f: Descriptive analysis: Item U7 (Section B1)............................249
TABLE 7.3: Descriptive analysis: Item U14 (Section B1)..........................249
TABLE 7.3a: Descriptive analysis: Item U16 (Section B1)..........................250
TABLE 7.3b: Descriptive analysis: Item U21 (Section B1)..........................250
TABLE 7.3c: Descriptive analysis: Item U23 (Section B1)..........................251
TABLE 7.3d: Descriptive analysis: Item U6 (Section B1)............................251
TABLE 7.4: KMO and Bartlett's Test (First factor analysis: Section B1)......252
LIST OF TABLES xxx
TABLE 7.5: Anti-Image Matrices (Anti-Image Correlation – Factor
Analysis 1) .........................................................................253
TABLE 7.6: KMO and Bartlett's Test (Second factor analysis: Section
B1)....................................................................................254
TABLE 7.7: Total Variance Explained (Section B1) ..................................255
TABLE 7.8: Rotated Factor Matrix(a) (Section B1)....................................256
TABLE 7.9: Item statistics – Factor 1 (CmpSkll)....................................259
TABLE 7.10: Item-total statistics – Factor 1 (CmpSkll) ............................259
TABLE 7.11: Item statistics – Factor 2 (Ethcs) ........................................260
TABLE 7.12: Item-total statistics – Factor 2 (Ethcs).................................261
TABLE 7.13: Item statistics – Factor 3 (EdcTrn) ......................................262
TABLE 7.14: Item-total statistics – Factor 3 (EdcTrn) ..............................263
TABLE 7.15: Item-total statistics – Factor 4 (CmpPrf) .............................264
TABLE 7.16: Descriptive statistics summary (Factor scores: Section B1).....266
TABLE 7.17: Independent Samples t-Test (Factors: Section B1) ................271
TABLE 7.18: Group statistics (Factors: Section B1) ...................................272
TABLE 7.19 Continuous professional development of chartered
accountants .......................................................................273
TABLE 7.20a: Descriptive analysis: Item V2 (Section B2)............................275
TABLE 7.20b: Descriptive analysis: Item V4 (Section B2)............................276
TABLE 7.21a: Descriptive analysis: Item V7 (Section B2)............................276
TABLE 7.21b: Descriptive analysis: Item V8 (Section B2)............................277
TABLE 7.22a: Descriptive analysis: Item V13 (Section B2) ..........................277
TABLE 7.22b: Descriptive analysis: Item V14 (Section B2) ..........................278
TABLE 7.23: KMO and Bartlett's Test (Section B2)....................................278
TABLE 7.24: Rotated Factor Matrix(a) (Section B2)....................................279
LIST OF TABLES xxxi
TABLE 7.25: Item statistics – Factor 1 (LrnCPD) .....................................281
TABLE 7.26: Item-total statistics – Factor 1 (LrnCPD) .............................281
TABLE 7.27: Item statistics – Factor 2 (CrtCPD) .....................................283
TABLE 7.28: Item-total statistics – Factor 2 (CrtCPD)..............................283
TABLE 7.29: Descriptive statistics summary (Factor scores: Section B2).....285
TABLE 7.30: Independent Samples t-Test (Factors: Section B2) ................288
TABLE 7.31: Group statistics (Factors: Section B2) ...................................288
TABLE 7.32: Lifelong learning of chartered accountants............................290
TABLE 7.33: KMO and Bartlett's Test (Section B3)....................................293
TABLE 7.34: Non-parametric test (Section B3) .........................................294
TABLE 7.35: Aspects of ethics related to chartered accountants ................295
TABLE 7.36: Descriptive analysis: Item X2 (Section B4) ............................297
TABLE 7.37: Descriptive analysis: Item X6 (Section B4) ............................298
TABLE 7.38: Descriptive analysis: Item X7 (Section B4) ............................299
TABLE 7.39a: Descriptive analysis: Item X9 (Section B4) ............................299
TABLE 7.39b: Descriptive analysis: Item X11 (Section B4) ..........................300
TABLE 7.40: Descriptive analysis: Item X10 (Section B4) ..........................300
TABLE 7.41: KMO and Bartlett's Test (First factor analysis: Section B4)......301
TABLE 7.42: KMO and Bartlett's Test (Second factor analysis: Section
B4)....................................................................................302
TABLE 7.43: Rotated Factor Matrix(a) (Section B4)....................................302
TABLE 7.44: Item statistics – Factor 1 (EthcEduc) ..................................304
TABLE 7.45: Item-total statistics – Factor 1 (EthcEduc) ..........................304
TABLE 7.46: Descriptive Statistics (Factor scores: Section B4)...................305
TABLE 7.47: Independent Samples t-Test (Factors: Section B4) ................308
LIST OF TABLES xxxii
TABLE 7.48: Group statistics (Factors: Section B4) ...................................308
TABLE 7.49: Perceived core values within the chartered accountant
profession..........................................................................310
TABLE 7.50: Pearson Chi-square test (Section B5) ...................................314
TABLE 7.51: KMO and Bartlett's Test (Section B5)....................................315
TABLE 7.52: Non-parametric test (Section B5) .........................................316
TABLE 7.53: Aspects of the education and training of prospective
chartered accountants at the RAU........................................317
TABLE 7.54a: Descriptive analysis: Item Z8 (Section B6) ............................321
TABLE 7.54b: Descriptive analysis: Item Z10 (Section B6) ..........................321
TABLE 7.54c: Descriptive analysis: Item Z6 (Section B6) ............................322
TABLE 7.54d: Descriptive analysis: Item Z9 (Section B6) ............................322
TABLE 7.54e: Descriptive analysis: Item Z1 (Section B6) ............................323
TABLE 7.54f: Descriptive analysis: Item Z2 (Section B6) ............................323
TABLE 7.54g: Descriptive analysis: Item Z4 (Section B6) ............................324
TABLE 7.54h: Descriptive analysis: Item Z3 (Section B6) ............................324
TABLE 7.54i: Descriptive analysis: Item Z5 (Section B6) ............................325
TABLE 7.54j: Descriptive analysis: Item Z7 (Section B6) ............................325
TABLE 7.55: KMO and Bartlett's Test (Section B6)....................................326
TABLE 7.56: Non-parametric test (Section B6) .........................................327
TABLE 7.57: Summary of hypotheses developed and tested......................330
TABLE 8.1: Summary results: Section B1 – The chartered accountant
and his/her profession ( ) ..................................................337
TABLE 8.2: Summary results: Section B2 – The continuous professional
development of chartered accountants ( ) ..........................341
LIST OF TABLES xxxiii
TABLE 8.3: Summary results: Section B3 – Lifelong learning of
chartered accountants ( ) ..................................................345
TABLE 8.4: Summary results: Section B4 – Aspects of ethics education
related to chartered accountants ( ) ...................................347
TABLE 8.5: Summary results: Section B5 – Perceived core values within
the chartered accountant profession ( ) ..............................349
TABLE 8.6: Summary results: Section B6 – Aspects of the education
and training of chartered accountants at the RAU ( ) ...........351
TABLE A1: Glossary of terms ...............................................................414
TABLE C1: Student profile distributed by gender ...................................431
TABLE C2: Year of matriculation according to respondents.....................431
TABLE C3: Year matriculated * Gender Crosstabulation..........................432
TABLE C4: Educational qualification * Gender Crosstabulation ................432
TABLE D1a: Descriptive statistics – Section B, Area 1 (Item 7 [U1] –
Item 19 [U13])...................................................................434
TABLE D1b: Descriptive statistics – Section B, Area 1 (Item 20 [U14] –
Item 31 [U25])...................................................................435
TABLE D2: Frequency distribution – Section B, Area 1 [U] ......................436
TABLE D3: Anti-Image Matrices (Anti-Image Correlation – Factor
Analysis 2) .........................................................................440
TABLE D4: Descriptive analysis of factor scores: Section B, Area 1 [U] ....441
TABLE E1: Descriptive statistics – Section B, Area 2 (Item 32 [V1] –
Item 45 [V14]) ...................................................................443
LIST OF TABLES xxxiv
TABLE E2: Frequency distribution – Section B, Area 2 [V] ......................444
TABLE E3: Descriptive analysis of factor scores: Section B, Area 2 [V] ....447
TABLE F1: Descriptive statistics – Section B, Area 3 (Item 46 [W1] –
Item 54 [W9])....................................................................449
TABLE F2: Frequency distribution – Section B, Area 3 [W] .....................450
TABLE G1: Descriptive statistics – Section B, Area 4 (Item 55 [X1] –
Item 65 [X11]) ...................................................................453
TABLE G2: Frequency distribution – Section B, Area 4 [X] ......................454
TABLE G3: Anti-Image Matrices (Anti-Image Correlation – Factor
Analysis) ............................................................................456
TABLE G4: Descriptive analysis of factor scores: Section B, Area 4 [X] ....457
TABLE H1: Descriptive statistics – Section B, Area 5 (Item 66 [Y1] –
Item 73 [Y8]).....................................................................459
TABLE H2: Frequency distribution – Section B, Area 4 [Y] ......................460
TABLE I1: Descriptive statistics – Section B, Area 6 (Item 74 [Z1] –
Item 83 [Z10]) ...................................................................463
TABLE I2: Frequency distribution – Section B, Area 6 [Z] ......................464
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xxxv
LIST OF ABBREVIATIONS AND ACRONYMS
AAT Associate Accounting Technician
AGA Associate General Accountant
ATO Approved Training Organisation
CA Chartered Accountant
CHE Council on Higher Education
CPD Continuous Professional Development
DoE Department of Education
FAESA Future of Accounting Education in South Africa Project
GAAP Generally Accepted Accounting Practice
IAS International Accounting Standards
IASB International Accounting Standards Board
IBE Institute of Business Ethics
IES International Education Standards for Professional
Accountants
IFAC International Federation of Accountants
IRBA Independent Regulatory Board for Auditors (formerly known
as PAAB)
KMO Kaiser-Meyer-Olkin Measure of Sampling Adequacy
LLL Lifelong learning
MSA Measures of Sampling Adequacy
NQF National Qualifications Framework
PAAB Public Accountants' and Auditors' Board (now known as
IRBA)
PBL Problem-based learning
LIST OF ABBREVIATIONS AND ACRONYMS xxxvi
PPE Public Practice Examination
RAA Registered Accountant and Auditor
RAU Rand Afrikaans University
RSA Republic of South Africa
RTO Registered Training Office
SAICA South African Institute of Chartered Accountants
SAIPA South African Institute of Professional Accountants
SAQA South African Qualifications Authority
SDL Self-directed learning
TIPP Training inside Public Practice
TOPP Training outside Public Practice
UJ University of Johannesburg
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1
CHAPTER 1 Introduction
1.1 INTRODUCTION
ll cultures and professions exist in an environment of change. Change may come
about as a result of an external ‘force’ (e.g. new legislation applicable to a
profession) or an internal ‘force’ (e.g. transformation within a profession). But it
may also occur as a result of a combination of both external and internal forces.
This view of change is in some ways applicable to the accounting profession, where
pressures for disclosure of more information, an increased public expectation of and
assurances about the quality of financial statements, as well as a greater use of
forecasts have had a holistic impact on chartered accountants (hereafter CAs),
management accountants and independent auditors alike.
The need to be competitive in a worldwide and globalised economy has prompted a
more intense focus on the role and responsibilities of professional accountants in
entities of all types. Add to that a magnified focus on recent corporate collapses (e.g.
Enron, WorldCom and others) and immediately there are calls for an investigation into
the competence and (ethical) behaviour of professional accountants.
Very often these calls are accompanied by a feeling that the root cause of these ‘wrong-
doings’ may have been inadequate education or a total disregard for the ethical
standards within the profession. A further aspect that then seems to be highlighted is
A
Introduction
CHAPTER 1 2
the reinforcement of the ‘expectation gap’ – the gap between society’s expectations of
professional accountants and auditors and the reality of their obligations.
Should one not perhaps objectively state that sometimes the professional (chartered)
accountant’s ethical obligation has to outweigh its statutory obligation? Staubus
(2005: 5) therefore summarised it as: “... accounting failures are failures of individuals
to perform their fiduciary duties, to fulfil their responsibilities, to behave ethically.”
In a speech by Ted Evans at the Griffith University Business School in August 2004, he
warned that major corporate collapses like Enron are bound to keep occurring due to
the business world’s wilful disregard of business values. “I believe that the solution to
this type of problem can only lie in a return to corporate behaviour that has a basis in
ethical values; behaviour that renders prescriptive law redundant” (Evans, 2004).
The goal of accounting education and training is to produce competent professional
accountants capable of, over their lifetimes, making a positive contribution to the
profession and society in which they work. Providing a basis of ethical values should
therefore be seen as an important element of the professional accountant’s education
and training phase.
Adding to that the maintenance of professional competence (i.e. technical and ethical)
in the face of the increasing changes that accountants encounter, it makes it even more
essential that accountants develop and maintain an attitude of learning to learn. “The
education and experience of professional accountants should provide a foundation of
knowledge, skills and professional values that enable them to continue to learn and
adapt to change throughout their professional lives” (International Federation of
Accountants (hereafter IFAC), 2002a: 2/3). It is important to note that the
‘professional accountants’ mentioned in this IFAC document can also be regarded as
‘prospective CAs’: the focus of this study (also see 1.7.7).
Introduction
CHAPTER 1 3
1.2 MOTIVATION FOR THE STUDY
As was pointed out earlier, change within the accounting profession has emphasised
the need for greater accountability and, as a result, the various demands on the
profession are high and continue to rise. In these days and times, an education
programme for CAs needs to go beyond the traditional educational approach that
emphasised ‘transfer of knowledge’ with learning defined and measured strictly in terms
of knowledge of principles, standards, concepts, facts and procedures at a given point
in time.
This change in the thinking about an educational programme for CAs was highlighted in
an exposure draft document by IFAC (2002a) entitled “Introduction to International
Education Standards for Professional Accountants”. In it the IFAC Education Committee
(2002a: 6-7) determined a range of International Educational Standards that are
intended to “advance the accounting profession” by establishing benchmarks for all the
learning requirements (at an undergraduate level) of prospective CAs, that include their
education, practical experience and training.
The Standards are directed toward establishing, inter alia, the:
goal of accounting [and auditing] education, training and experience leading to
final qualification; and
minimum benchmarks of professional education and experience that CAs should
meet to obtain membership in their respective professional bodies and to
continue in their profession (IFAC, 2002b: 11-12).
The International Education Standards (hereafter IES) for CAs proposed by IFAC cover
these minimum benchmarks of professional education and experience under the
following headings:
entry requirements;
professional education;
Introduction
CHAPTER 1 4
professional skills and general education;
professional values and ethics;
experience requirements;
assessment of professional competence;
continuing professional education and development; and
competence requirements for audit professionals.
These standards therefore prescribe a basic body of knowledge of principles, standards,
concepts, facts and procedures but augment it with additional skills and experience
highlighted by the IFAC minimum benchmarks. A training programme for prospective
CAs should thus combine and integrate aspects dealing with ethics, ethical values and
attitudes of CAs as well as issues of their continuing professional education and
development.
Formulating this ‘new’ training programme should involve detailed research not just on
the theoretical aspects contained in the programme but also into the current attitudes
among students as to their perception of ethics, ethical values and attitudes of CAs and
the incorporation of continuing professional education and development.
1.3 IDENTIFICATION OF THE PROBLEM
Educators have an obligation to respond not just to the ‘changes’ faced by the
accounting profession worldwide, but also to ‘changes’ in education legislation in South
Africa. In terms of the developmental outcomes proposed by the National Education
Policy Act of 1996 (Republic of South Africa (hereafter RSA), 1996b), the undergraduate
learner in higher education, in whatever of field of study, should inter alia be able to:
reflect on and explore a variety of strategies to learn more effectively;
participate as a responsible citizen in the life of local, national and global
communities; and
be culturally and aesthetically sensitive across a range of social contexts.
(Author’s emphasis)
Introduction
CHAPTER 1 5
A fundamental principle of the IFAC Code of Ethics for Professional Accountants (i.e.
CAs) states that (IFAC, 2004a: 7/8):
“A professional accountant has a continuing duty to maintain professional knowledge
and skill at the level required to ensure that a client or employer receives the
advantage of competent professional service based on current developments in
practice, legislation and techniques.”
During the education and training of prospective CAs (i.e. at undergraduate level),
teaching methods should not just focus on providing students with a basic grounding in
the knowledge, skills, professional values and ethics essential for professional
competency but also with the tools for learning and development after qualification (i.e.
continuous professional development (hereafter CPD)). This means providing a
foundation for lifelong learning (hereafter LLL).
LLL implies that learners should have the desire and ability to continue to learn, to
adapt and develop new knowledge, skills and technologies; to move flexibly between
occupations and to take responsibility for personal performance (RSA, 1995a: 21).
CPD is applicable to all CAs, regardless of sector or the size of the business in which
they operate, because (IFAC, 2004a: 4):
all CAs have an ethical obligation of due care to their clients, employers and
relevant stakeholders and need to demonstrate their ability to discharge this
responsibility in a competent manner;
CAs in all sectors hold positions of importance involving financial reporting,
public accountability and maintaining the public trust;
the public is likely to rely on the designation or standing of the CA. Moreover, all
CAs carry the chartered designation, and any lack of competence or ethical
behaviour has the same consequences to the reputation and standing of the
profession, irrespective of the sector or role in which they operate;
Introduction
CHAPTER 1 6
the rapidly changing environment creates the consequential need to adapt the
strategic or business plans of those organisations relying on the CA’s chartered
competence; and
employers hiring CAs in any sector rely, at least to some extent, on the
chartered designation as proof of competence.
The process of LLL and CPD for CAs should however commence early on in their
education and this should then be continued within their formal training programme
until their eventual qualification as a CA - and on through the individual’s career. Even
though CPD and LLL are seen as a post-qualification aspect, the initial LLL of ethics will
be strengthened if educators are able to provide students with a foundation through,
and reaffirming of the use of self-directed learning (hereafter SDL) and problem-based
learning (hereafter PBL) during their undergraduate education and training.
Important aspects of ethics education applied to the accounting profession that should
be included in undergraduate education and training include:
the importance of the teaching of business ethics as a core subject within the
education of a CA;
the importance of the applicative nature of ethics in accounting which may be
included in all or most of the supportive subjects within the field of accounting;
the advantages of a CPD approach to the teaching of ethics; and
the organising principles that may be used to entrench the CPD of ethics
amongst prospective CAs.
1.4 AIM OF THIS STUDY
This study aims to investigate the utilisation of the CPD of ethics amongst prospective
CAs.
Even though CPD is an aspect normally associated with qualified CAs, the
initiative is that an undergraduate learner (i.e. the prospective CA) should be
Introduction
CHAPTER 1 7
trained and become skilled in utilising this important work-related function.
This study will investigate, by way of thorough research, each of these issues in order
to come to a conclusion regarding its possible contribution to the outcomes envisaged
by the National Education Policy Act of 1996 to be achieved in conjunction with
prescriptions by various bodies and institutes affiliated with the education and training
of CAs.
1.5 OBJECTIVES
1.5.1 Issues addressed in the study
Issues to be addressed in this study will include:
researching the background to the CA and auditing professions in South Africa;
specifically emphasising (i) the role of CPD; and (ii) the ethical values
underpinning the education of prospective CAs as an indicator of professional
and ethical behaviour after the conclusion of the initial education of the CA;
proving the link between CPD and the various vehicles of achieving it (i.e. LLL,
SDL, and PBL); and
establishing the advantage of utilising CPD of ethics amongst prospective CAs
(i.e. at undergraduate level).
1.5.2 Specific objectives of the study
The objectives of this study are, by way of an empirical survey, to:
(i) demarcate the CA and the profession by way of undergraduate students’
perceptions;
(ii) determine undergraduate students’ perceptions of CPD, LLL and ethics within the
framework of a CA and their undergraduate education;
(iii) investigate the perceived core values within the CA profession; and
Introduction
CHAPTER 1 8
(iv) analyse certain aspects of the education and training of CAs at the Rand
Afrikaans University (hereafter RAU).
1.5.3 Demarcation of study
All of the above will be researched within the:
(i) international framework of education and training of CAs set by IFAC;
(ii) general legal framework of education and training in the country;
(iii) vision and standards of the South African Qualifications Framework through the
South African Qualification Authority (hereafter SAQA) and the National
Qualifications Framework (hereafter NQF); and
(iv) framework for training of CAs set by the South African Institute for Chartered
Accountants (hereafter SAICA) and the Public Accountants’ and Auditors’ Board
(hereafter PAAB) which was succeeded by the Independent Regulatory Board for
Auditors (hereafter IRBA).
1.6 RESEARCH METHODOLOGY
For the purpose of this study, a mixed research paradigm will be employed. Grounded
theory, as a phenomenological research paradigm, will be used within this study to
describe the world of the prospective CA. As a definition one may state that grounded
theory “... uses a systematic set of procedures to develop an inductively derived theory
about a phenomenon” (Collis & Hussey, 2003: 73).
The ‘systematic set of procedures’ mentioned above will be gained from a positivistic
research paradigm, where a descriptive, quantitative empirical study of third-year B
Com Accounting students at RAU will be conducted via a questionnaire. Information
obtained from the questionnaires will be analysed by providing a descriptive and
exploratory analysis of the data. This will then be followed by conducting a factor
analysis of the items in each section using the principal axis method of factor extraction
with Varimax rotation and Kaizer Normalisation.
Introduction
CHAPTER 1 9
If the Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Bartlett’s Test of
Sphericity indicate that various statistically significant factors can be extracted, an item
analysis will be performed on each. Appropriate factor scores will also be calculated
and interpreted, which will in turn be used to develop certain hypotheses. These will
then be tested using the t-test for independent samples.
In cases where factor analysis cannot provide adequate information to continue with
the calculation of factor scores and interpretation of factor items, the Mann-Whitney U
Test will be used to test differences between two independent groups as part of the
hypothesis testing.
Both research paradigms will be complemented with an in-depth literature study
describing the issues to be tested.
1.7 SCOPE OF THE STUDY
In order to demarcate the scope of the study in detail, the following aspects need to be
taken into consideration:
1.7.1 Rand Afrikaans University
An empirical analysis was performed in the latter part of 2004 on students at the then
RAU. In 2004 the Vista University campuses of Soweto and the East Rand were
incorporated into RAU. In 2005, the university merged with Technikon Witwatersrand
and became a so-called comprehensive institution known as the University of
Johannesburg or UJ. For the purposes of this study mention will however only be made
to RAU.
1.7.2 Learners and students
Although mention is made of the term student(s) in this study, one has to remember
that current South African education legislation rather refers to them as learners.
There is general agreement, however, that the term student is more appropriate at a
Introduction
CHAPTER 1 10
higher education level than learner and both these terms will be used interchangeably
in the study.
1.7.3 Undergraduate students
Although mention will be made of CPD of professional CAs (i.e. fully qualified CAs), one
has to take cognisance of the fact that the focus of this study will predominantly be on
prospective CAs (i.e. CA students at an undergraduate level at a residential university).
For the purposes of the empirical analysis, a group of third-year students with the
following characteristics from RAU were used as respondents:
they all had to be at third-year level in the prescribed four major subjects (i.e.
Accounting, Auditing, Financial Management and Taxation);
no students repeating any of the subjects were considered; and
they had to have the intention of continuing with an honours degree in
accounting the following year.
1.7.4 Educator and teacher
For the purpose of this study both the terms ‘educator’ and ‘teacher’ should be read
interchangeably with the term ‘lecturer’ – all of these should, for the purposes of this
study, be seen as someone specialising in educating/teaching undergraduate learners.
1.7.5 Continuous professional development
Throughout this study the abbreviation CPD will refer to continuous professional
development. However, one has to take into consideration that international sources
sometimes use the term continuing professional development and/or continued
professional education meaning the same as CPD for the purposes of this study.
Once again it should be emphasised that even though CPD is a post-qualification
function, the aim of this study is to investigate CPD with respect to teaching prospective
CAs (i.e. undergraduate students) the necessary skills to empower them to use and get
acquainted with the skills needed for CPD by way of SDL and PBL before qualifying as a
Introduction
CHAPTER 1 11
CA.
1.7.6 Education and training
Even though the literature refers to the education and training of CAs, this study
focuses on the education phase (i.e. before qualification) and not on the training phase
(i.e. after qualification) of the CA.
1.7.7 Professional accountants
Throughout this study the term ‘chartered accountant’ or ‘CA’ should be seen as an
example of a (registered) professional accountant. The empirical study to be discussed
in Chapter 7, however, focuses only on prospective CAs in their final or third year of
undergraduate studies (see 1.7.3 above).
1.7.8 Public Accountants’ and Auditors’ Board
With the signing of the new Auditing Profession Act, the Independent Regulatory Board
for Auditors or IRBA became the successor body to the Public Accountants’ and
Auditors’ Board or PAAB as of 1 April 2006. As the scope of this study only extends to
31 March 2006, mention will throughout be made to PAAB and not necessarily to IRBA.
1.8 CONTENTS OF THE STUDY
Chapter 2 of the study will commence by demarcating an educational framework for
the training of CAs nationally and internationally. As this chapter is very important in
setting the scene for what is to come, it will not only focus on the current state of
higher education in South Africa, but will also address the state of accounting education
with a focus on the dynamic nature of the accounting profession and the link to the
education and training of accountants worldwide. The standards used in the delivery of
education programmes for CAs will be discussed on a national and international level
with a focus on the prescribed content of curricula pertaining to the required knowledge
and skills.
Introduction
CHAPTER 1 12
In Chapter 3 the reader will be provided with a detailed discussion of the concept of
CPD but focusing on the use of SDL and PBL as a vehicle for CPD. This chapter will
also focus on the skills needed for CPD pertaining to a CA after qualification and how
these can be used in an undergraduate higher education environment (see section
1.7.7).
Chapters 4 and 5 of the study both deal with ethics. In Chapter 4 a holistic critique of
ethics is provided. Ethics is a topic that is receiving a great deal of attention
throughout society today. This attention is indicative of both the importance of ethical
behaviour to maintain a civil society, and a significant number of notable instances of
unethical behaviour within the (chartered) accounting profession. Ethics will be
discussed with a focus on descriptive ethics, perspective ethics and meta-ethics. The
concepts of general and professional ethics will also be addressed before an
investigation of the narrower concept known as ‘business ethics’ is undertaken.
Chapter 5 then continues with a discussion of the teaching of business ethics at a
higher educational level.
After providing the detailed literature study of the CPD of prospective CAs but also the
issue of professional values, ethics and morals, Chapter 6 will provide the background
to the research methodology to be used in Chapter 7 to test, analyse and interpret
various items as part of an empirical study conducted by way of a survey amongst
undergraduate students at RAU.
Chapter 8 will take the results found within the empirical analysis and interpret the
attitudes of undergraduate students toward continuous professional development of
ethics. A detailed summary of the study will be provided in Chapter 9.
1.9 PLANNED CONTRIBUTION TO RESEARCH
As pressure is mounting to ‘reform’ the CA profession, the emphasis on ethics as a field
of study integrated within the education and training of CAs is also becoming more
important.
Introduction
CHAPTER 1 13
CPD contributes to the competence of CAs and therefore acceptable CPD activities are
expected to develop the professional knowledge, skills, values, ethics and attitudes of
the CA, relevant to their current and future work and professional responsibilities. CPD
is an important aspect in the post-qualification and training of various professionals
these days, including the training of CAs.
This study aims to (i) bridge the gap between CPD and the appropriate theoretical
ethical values surrounding it by practically determining the current attitudes and values
of learners at undergraduate level and proposing a way forward; and also (ii) to show
how the skills needed for CPD as a post-qualification function can be used in an
undergraduate learning environment.
---o0o---
14
CHAPTER 2 Demarcating an educational framework for the training of chartered accountants
nationally and internationally
2.1 INTRODUCTION
n order to promote the continued professional development of ethics amongst
prospective chartered accountants, one needs to understand the context in which
chartered accountants are educated and trained in this country.
To qualify as a chartered accountant (hereafter CA), one will need to acquire the
required professional and technical knowledge. Professional skills as well as
professional values, ethics and attitudes are also needed (IFAC, 2003a: 78). The
‘learning process’ does not stop there. The prospective CA needs to be able to
integrate these elements within the learning process (IFAC, 2003a: 48).
This chapter will commence with an overview of the South African educational
landscape but ultimately focus on issues pertaining to higher education and the training
and education of CAs in South Africa in terms of the National Qualifications Framework.
This will be followed by an historical overview of the CA profession in South Africa
including a view into a future featuring proposed changes prescribed by the newly
enacted Auditing Profession Act and the restructuring of the accounting profession in
South Africa.
I
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 15
An assessment of the state of accounting education will be provided with a focus on the
dynamic nature of the accounting profession and the link to the education and training
of accountants worldwide. Before a discussion of the training of CAs is begun, an
overview of the international Education Standards as prescribed by IFAC will be
provided. Mention will also be made of the various definitions of the various terms and
conditions used within these Standards.
Following the discussion on the International Standards, the delivery of training
programmes for CAs will be discussed on a national and international level with a focus
on the prescribed content of curricula pertaining to the required knowledge and skills.
This chapter will conclude with an overview of national Education Standards for the
training of CAs as prescribed by the South African Institute of Chartered Accountants
(hereafter SAICA) with special mention of the role that the Public Accountants’ and
Auditors’ Board (hereafter PAAB) plays and the interaction with IFAC.
2.2 AN OVERVIEW OF THE EDUCATIONAL LANDSCAPE IN SOUTH AFRICA
Over the past ten years the standard of education at the secondary level has become a
major discussion point on the agendas of many national higher education institutions as
the throughput of undergraduates can all be traced back to the educational foundation
laid during their primary and secondary schooling years.
This section of the thesis will provide the reader with a summarised view of what has
happened in the educational landscape in South Africa since 1994. It also proposes to
put into context important issues related to the educating and training of prospective
CAs in South Africa.
2.2.1 Introduction
The year 1994 will forever be remembered as the time when South Africa became a
truly democratic society. Since then, the restructuring of all levels of the national
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 16
educational system has been a top priority of national government.
Prior to 1994, the provision of a quality educational system had for many years been a
top priority for the government of the day, albeit not a truly democratic one. The
fundamental problem was however that this priority extended to the education and
training of the minority white population in the country only, while quality education
and training was denied many South Africans, based on the colour of their skin. This
eventually led to massive protest action from the majority of the populace commencing
with the now famous 1976 uprising in Soweto. As quickly as government tried to quash
protest in one area, it would fuel protest in another. For 18 years our country was
characterised as politically unstable with the rest of the world wanting nothing to do
with us. In the early nineties things changed dramatically as the then government
sought ways and means to overcome our problems of the past, culminating in our first
democratic elections in 1994.
2.2.2 Primary and Secondary Education and Training
2.2.2.1 White Paper 1
Following the elections in 1994, the publication of the White Paper on Education and
Training (RSA, 1995a: 5) was the first policy document that ushered in a new era in
education and training in South Africa. In it, the Minister of Education reiterated the
central problem facing education and training in South Africa: “... South Africa has
never had a truly national [inclusive and democratic] system of education and training”.
The Minister of Education was adamant that the proposed new education system should
redress the legacies of the past by providing equal opportunities for and access to
education and training for all learners of this country.
The White Paper on Education and Training (RSA, 1995a: 21-23) contained the most
important policy initiatives for a new education system in South Africa. The issues
raised and principles and values mentioned included the point that education and
training should support lifelong learning (hereafter LLL) with a stimulation of
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 17
independent and critical thought (Van Wyk & Mothata, 1999: 3-5).
The first White Paper eventually culminated in the National Education Policy Act, 27 of
1996 (Van Wyk & Mothata, 1999: 7) and was published in the Government Gazette on
24 April 1996 (RSA, 1996b).
2.2.2.2 White Paper 2
In February 1996, a second White Paper on Education (RSA, 1996a), entitled The
organization, governance and funding of schools, was released. The principles
underpinning White Paper 2 were built on those set out in the first White Paper (Van
Wyk & Mothata, 1999: 5/6) and eventually passed as Act 84 of 1996 (RSA, 1996c),
known as the South African Schools Act.
The various changes that came about in the country’s secondary education and training
environment as a result of the publication of these two White Papers have borne fruit,
taking into account the 26,4% net increase in the overall pass rate of learners in the
Senior Certificate Examination from 1993 to 2003 (Department of Education (hereafter
DoE), 2005: 25).
2.2.3 Higher Education and Training
The origins of the institutional structure of the higher education system prior to 1994
can be traced to the geopolitical imagination of apartheid’s master planner, Hendrik F
Verwoerd, and his reactionary ideological vision of ‘separate but equal development’.
Many higher education institutions restricted access along racial and ethnic lines, which
was far from the universal idea of access to higher education being extended on the
basis of agreed-upon higher education values. These institutions eventually became
hotbeds of student resistance, which ultimately contributed to apartheid’s demise (DoE,
2002).
2.2.3.1 White Paper 3
The Education White Paper 3, entitled A programme for the transformation of higher
education (RSA, 1997a), was the culmination of a wide-ranging and extensive process
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 18
of investigation and consultation which had been initiated with the establishment of the
National Commission on Higher Education in February 1995 (Van Wyk & Mothata, 1999:
6) that sets out the needs and challenges of higher education. These included inter
alia:
an inadequate distribution of access and opportunity for students along the lines
of race, gender, class and geography;
a shortage of trained graduates in fields such as science, engineering,
technology and commerce;
an inability to lay the foundations of a critical civil society with a culture of public
debate and tolerance which accommodates differences and competing interests;
and
a tendency for teaching and research policies to favour academic narrow-
mindedness and closed-system disciplinary programmes (Van Wyk & Mothata,
1999: 6/7).
2.2.3.2 Higher Education Act
The Higher Education Act, 101 of 1997, (RSA, 1997b), based on the principles set out in
White Paper 3, relates to aspects dealing with higher education institutions and inter
alia aimed to:
regulate higher education within the country;
provide for the establishment, composition and functions of a Council on Higher
Education (hereafter CHE);
provide for the establishment, governance and funding of public higher
education institutions; and
provide for quality assurance and quality promotions in higher education (Van
Wyk & Mothata, 1999: 9).
2.2.3.3 National Plan for Higher Education
The National Plan for Higher Education (DoE, 2001) provided the strategic framework
within which the national system of higher education was re-engineered to meet the
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 19
demands of the 21st century. This plan identified policy goals and strategic objectives,
which are critical for the transformation and reconstruction of the higher education
system. These are to:
promote equity of access and outcomes and to redress past inequalities;
ensure diversity in the institutional landscape of the higher education system
through mission and programme differentiation to meet national and regional
skills and knowledge needs;
build high-level research capacity and promote research linked to national
development needs; and
build new institutional identities and organisational forms through restructuring
the institutional landscape of the higher education system (DoE, 2001).
Further goals included expanding general access to higher education from 15% to 20%
over a ten- to fifteen-year period, as it is necessary to address the imperative for equity
and the need for high-level professional and managerial skills (DoE, 2004).
In the short term, the focus would be on improving the efficiency of the higher
education system in producing graduates. The most recent national available
graduation (throughput) rate of 15% per annum is well below that of a normal system,
which should be graduating about 30% of enrolled students annually. The National
Plan established graduation rate targets that institutions would have to meet (DoE,
2004). In practice the student throughput required by government at higher education
institutions is not in reality attainable due to some major schooling gaps in the
education and training of undergraduate students.
Since 1997, numerous other reports on higher education in South Africa have been
issued. The most important of these, and following on the promulgation of the Higher
Education Act, must be a report highlighting a new institutional landscape for the
various higher education institutions in South Africa (DoE, 2001) known as the Higher
Education Qualifications Framework.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 20
2.2.3.4 Higher Education Qualifications Framework
For many years, separate and parallel qualifications structures for universities and
technikons hindered articulation and transfer between institutions and programmes. As
part of the National Plan for Higher Education, a consolidation of the number of higher
education institutions from 36 to 21 was proposed. This meant that certain universities
and technikons had to merge to become ‘comprehensive institutions’ (DoE, 2001).
These major changes to the higher education landscape were followed by the
publication of a document in July 2004, as a direct result of the Higher Education Act,
dealing with the Higher Education Qualifications Framework (RSA, 2004), that proposed
a single qualifications framework for all higher education qualifications in line with the
National Qualifications Framework (hereafter NQF), which establishes common
parameters and criteria for qualifications design. The proposed higher education
qualifications framework is essentially complementary to the National Plan for Higher
Education.
2.2.4 National Qualifications Framework
2.2.4.1 Introduction
The establishment of the NQF was a key accomplishment of the first democratic
government in South Africa where a new structure was designed with the aim of
improving the quality of education in South Africa (Mothata, 1999: 18).
The South African Qualifications Authority Act, Act 58 of 1995 (RSA, 1995b) established
The South African Qualifications Authority (hereafter SAQA) with a mandate to oversee
the development and implementation of an integrated framework of quality-assured
learning achievement (Mothata, 1999: 14; DoE, 2003: 1) that would:
facilitate access, mobility and progression within education, training and
employment;
enhance the quality of education and training;
accelerate redress of education and job opportunities; and
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 21
advocate personal, social and economic development.
2.2.4.2 The NQF Structure
The NQF is a framework for the provision of LLL opportunities in accordance with
nationally agreed qualifications levels. It consists of a classification of standards and
qualifications that may be formally, non-formally or informally obtained in this country
(Mothata, 1999: 18/19). As a detailed discussion of the NQF Structure does not fall
within the scope of this study, a mere indication of the structure will be given in TABLE
2.1.
Following the Consultative Document of the Departments of Education and Labour
(DoE, 2003) in which some of the proposals of the Study Team on the Implementation
of the National Qualifications Framework System (DoE, 2002) were incorporated, a
revised NQF is awaited (DoE, 2003: 17). The Minister of Education published a draft
discussion document to this effect in July 2004. It is foreseen that a new integrated
qualifications framework will be developed for all higher education qualifications in line
with the NQF in the near future (RSA, 2004: 3).
It has to be noted that, as at 31 March 2006, nothing has been forthcoming from
Government.
2.2.4.3 The training of chartered accountants and the NQF structure
In South Africa, the advent of an outcomes-based NQF has given substance to a
threefold conception of competence including knowledge, skills and values (Prozesky,
2001: 10).
Members of any profession have knowledge and skills that are grounded in tradition
and science. Some professions, like law, are grounded, in the main, in tradition, while
others, like medicine, place a stronger emphasis on science. Accounting draws in
roughly equal measure on both science and tradition. The scientific methods and
practices of accounting are transmitted through formal qualification-based training,
while the traditions are learnt mainly through apprenticeship (Prozesky, 2001: 10/11).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 22
TABLE 2.1: National Qualifications Framework Structure
NQF Level Learning Band Types of Qualifications and Certificates
8 Doctorates Further Research Degrees
7 Higher Degrees Professional Qualifications
6 First degrees Higher Diplomas
5
Higher Education and Training Band
(HET)
Diplomas Occupational Certificates
4 School/College/Training Certificates Mix of unit credits from all
3 School/College/Training Certificates Mix of unit credits from all
2
Further Education and Training Band
(FET) School/College/Training Certificates Mix of unit credits from all
Senior Phase Grades 7 – 9
Adult Basic Education and Training (ABET)Level 4
Intermediate Phase Grades 4 – 5
Adult Basic Education and Training (ABET)Level 3
Foundation Phase Grades 1 – 3
Adult Basic Education and Training (ABET)Level 2
1
General Education and Training Band
(GET) Pre-school Grade R
Adult Basic Education and Training (ABET)Level 1
SOURCE: Mothata, 1999: 19
Although the education of CAs in South Africa will be discussed in section 2.7, it is
important to point out that the national training of CAs does not specifically fall within
any single NQF level, as the training of CAs is seen as general in nature. For a student
to gain entry to the professional qualification examinations, the student needs to have
successfully completed an honours degree or equivalent qualification in accounting (e.g.
the Certificate in the Theory of Accounting or CTA level at RAU). This honours degree
or equivalent qualification currently falls within the NQF-level 7.
Before a detailed comparison of the international and national training requirements of
CAs follows, it may be worthwhile to understand how this profession has come to be
such an important one in South Africa.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 23
2.3 AN OVERVIEW OF THE CHARTERED ACCOUNTING PROFESSION IN SOUTH AFRICA
2.3.1 A historical overview
The history of the accounting profession in South Africa is illustrated by way of the
timeline in FIGURE 2.1. The discussion hereafter will refer back to the timeline
supplying additional information and highlighting certain aspects of it. Various
milestones have been indicated in brackets for easy referencing.
The formative period of the accounting profession in South Africa commenced in 1893
when the first organised body of accountants in the country was established in the
Transvaal under the name of the Institute of Accountants and Auditors in the South
African Republic (1).
The founder members were almost exclusively members of the Institute of Chartered
Accountants in England and Wales (established in 1880) and of the Society of
Incorporated Accountants and Auditors (established in the United Kingdom in 1885)
(SAICA, 2004b). This was followed, in 1894/95, by the establishment of The Institute
of Accountants in what was then Natal (2) (Puttick & Van Esch, 2004: 4).
Another body, the Institute of Chartered Accountants in South Africa, came into being
after the Anglo–Boer war in 1902 (3) and the first provincial society was formed in 1904
when Transvaal members of the existing bodies combined to establish the Transvaal
Society of Accountants (4) (SAICA, 2004b).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 24
1890 1928
1893 1894
1902Institute of Chartered Accountants
in South Africa(3)
1923Union Accountants’
Registration Bill
1905Transvaal Society
of Accountants(4)
1912Union Accountants’
Registration BillNatal Society
of Accountants(2)
1907Cape Society of
Accountants and Auditors
1921South African Accountants
Societies’ GeneralExamining Board
(5)
1908Society of Accountants
and Auditors in theOrange Free State
1914 - 1919World War I
Institute of Accountantsand Auditors in the
South African Republic(1)
1926Companies Act
1927The Chartered Accountants’Designation Act, 13 of 1927
(6)
1939 - 1945World War II
1947Draft Bill based on
AccountancyCommission Bill
1946The Joint Societies
of Chartered Accountantsof South Africa
(7)
1936Accountancy
Profession Commission
1951Public Accountants’ andAuditors’ Act, 51 of 1951
(9)
1934Private Member’s Bill 1949
Draft Auditing Act
1966The National Council
of Chartered Accountants (SA)(8)
1939Private Member’s Bill
1929 1967
1968 2006
1994First Democratic Election
in South Africa
1970Bowsher Commission on
Provincial Societies(10)
1980Formation of SAICA
(11)
2002Reconstitution
of IAASB
1976Commission of Enquiry into
Accountancy Profession2006
Auditing ProfessionAct, 26 of 2005
(15)
1991Revision of
Public Accountants’and Auditors’ Act, 80 of 1991
(12)2002
Setting of AuditingStandards transferred from SAICA to PAAB
2006Establishment
of IRBA(16)
1977Formation of IFAC
1973Companies Act
1994FAESA Report
(13)
1999Formation of EDCO
(14)
FIGURE 2.1: The historical development of the Accounting Profession in South Africa
SOURCES: Puttick & Van Esch, 2004: 4-22; SAICA, 2004a, 2004b, 2004c, 2004d; RSA, 2006
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 25
The establishment of the Transvaal Society was done by way of passing a provincial
ordinance (Puttick & Van Esch, 2004: 4). The Natal Society of Accountants came into
existence in 1909, as a result of similar legislation. No such legislation existed in the
Cape Province or in the Orange Free State, but societies were voluntarily formed there
(Puttick & Van Esch, 2004: 4).
Societies in each of the then four provinces of South Africa worked towards the goal of
unification of the profession and in 1921 established the South African Accountants
Societies' General Examining Board (5), with provision for uniform conditions of
admission, examinations and regulations for service under articles (SAICA, 2004b).
The exclusive right to the use of the designation ‘Chartered Accountant (South Africa)’
was conferred on members of the four provincial societies by the Chartered
Accountants Designation (Private) Act 13 of 1927 (6) (SAICA, 2004b).
Adoption of uniform by-laws by the provincial societies followed. Five years’ service
under articles was compulsory after February 1934 with a remission of two years for
graduates of a recognised university (SAICA, 2004b).
Then in 1946 the Joint Council of Societies of Chartered Accountants of South Africa
was formed to deal with professional matters at national level (7). It was renamed the
National Council of Chartered Accountants (SA) in 1966 (8). This body greatly
contributed to the enhancement of the status and image of the profession in South
Africa (SAICA, 2004b).
From 1934 to 1950, several abortive attempts were made to introduce controlling
legislation. Eventually, in March 1950, Joint Council submitted a draft bill, which was
accepted by the Treasury (Minister of Finance) and received the unanimous support of
the entire South African profession. The bill was enacted on 18 June 1951 as the Public
Accountants' and Auditors' Act (PAA) 51 of 1951, which came into operation on
1 November 1951 (9) (SAICA, 2004b).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 26
The Act provided for the establishment of a register of public accountants and auditors
who were entitled to engage in public practice and describe themselves as Registered
Accountants and Auditors. It further provided for the establishment of the PAAB, the
registration and control of articled clerks and for conducting of examinations.
Significantly, the Act established the right of all who passed the QE to be admitted to
one of the provincial societies and thereby to acquire the right to the designation
‘Chartered Accountant (SA)’ (Puttick & Van Esch, 2004: 8).
In 1956 the General Examining Board ceased to exist and its functions were from then
onwards undertaken by the PAAB, with the universities providing education to the level
of the Certificate in the Theory of Accountancy, which certificate (or equivalent) is the
entry requirement for the qualifying examination set by the PAAB (SAICA, 2004b).
In 1970, the National Council appointed Mr LF Bowsher to investigate the desirability of
a national society of CAs (10). He recommended that a national society be formed,
that it should take over all the assets and liabilities of the provincial societies, of their
benevolent funds (in trust) and of National Council and that thereafter the four
provincial societies should be dissolved.
These recommendations were not accepted but a National Society Committee consisting
of one representative from each province was nevertheless established as
recommended by Mr Bowsher. This National Society Committee had to:
monitor the progress of the establishment of regional associations; and
work towards the ultimate creation of a national society (SAICA, 2004b).
In 1978, that committee recommended the creation of a national institute without the
dissolution of the provincial societies as a step towards the unification of the profession.
At a meeting held on 12 February 1980, National Council was dissolved and the South
African Institute of Chartered Accountants (11) was established retrospective to
1 January 1980. At that time it had a membership of 9 012 members, of which just
over 2 800 were in public practice (SAICA, 2004b).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 27
From that time onwards, the PAAB has continued as the statutory regulatory body
looking after the public interest whereas SAICA has operated as the body servicing the
needs of its members. The Public Accountants' and Auditors' Act was revised in 1991
but the new Act was substantially the same as the 1951 Act (12) (SAICA, 2004b).
In 1990 the accounting profession commissioned a study, known as the Future of
Accounting Education in South Africa Project (hereafter FAESA), to consider the
restructuring of the profession to facilitate broader membership (Rowlands, Prinsloo &
Van Vuuren, 1998: 229; Puttick & Van Esch, 2004: 14).
Following the FAESA Report in 1994 (13), certain recommendations relating to
education and training at each tier of the profession were made. These addressed not
only the perceived technical and professional requirements of the South African
economy but also the articulation needs implicit in the notion of mobility within the tiers
(Rowlands, Prinsloo & Van Vuuren, 1998: 229-230).
The tiered structure of the profession with its characteristics of mobility is entirely
consistent with the principles of the National Qualifications Framework (NQF) (Human
Sciences and Research Council, 1995 quoted by Rowlands et al., 1998: 231). In this
context, the tiered structure refers to the mobility of accounting professionals. Mobility
within the tiered structures implies that an accountant registered at a particular tier has
the opportunity and right to enter the educational programme at the next highest tier
and in this way progress as far as his/her potential and desire to succeed dictate.
In 1999, the PAAB appointed a Director of Education and established an Education
Committee to develop and implement a recognition model and monitoring process to
oversee compliance by those institutes whose members become eligible to write the
Professional Practice Examination (hereafter PPE).
As the regulatory body for the auditing profession, the PAAB Education Committee
retains responsibility for the setting and adjudication of the PPE. As a result of these
changes, the Director of Education and staff in the education division of the PAAB
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 28
transferred to SAICA to form a new education division called Education and Training in
1999 (14). Education and Training retained responsibility inter alia for the academic
programme (CTA or equivalent); the setting and adjudication of the core assessment
programme namely the ‘Qualifying Examination (QE Part 1); and the setting and
adjudication of the Financial Specialism Examination (QE Part 2) (Puttick & Van Esch,
2004: 7/8).
A major change to the accounting profession has come about with the signing of the
new Auditing Profession Act (Act 26 of 2005) on 16 January 2006 (15) (RSA, 2006).
This new Act became effective as of 1 April 2006 following a publication in the
Government Gazette (PAAB, 2006b).
However, the implementation of the Act will follow a 9-month phased-in approach in
terms of the implementation plan that PAAB submitted to the National Treasury. This
plan sets out the dates when the various sections of the legislation will be phased in
(PAAB, 2006c).
This new legislation establishes a new juristic person to be known as the Independent
Regulatory Board for Auditors (16), the successor body to the PAAB, which will regulate
the auditing profession. While the IRBA will have similar functions to that of the PAAB,
it is intended to be more independent of the profession (PAAB, 2006a; 2006b). The
restructuring of the accounting profession will be dealt with in section 2.3.4 of this
thesis.
2.3.2 A current overview
2.3.2.1 Background on transformation
The acute shortage of qualified black CAs in South Africa has been the catalyst for
many educational and upliftment initiatives over the past years. The accounting
profession, and particularly SAICA, has over the past 18 years been running numerous
programmes to assist learners from disadvantaged backgrounds with entry into the
profession. Most of these programmes have focused on the higher education level.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 29
For many years, however, the main problem has been the way that these programmes
have been organised. There was no comprehensive and all-inclusive approach to these
upliftment and equity programmes (Els, 2004). It accordingly became evident that if
SAICA, and in the broader sense, the profession, were serious about taking accounting
to the nation and more so, to ensure that the membership of SAICA will reflect the
demographics of the South African population, the introduction of a comprehensive
approach was crucial.
It was thus decided to have upliftment programmes introduced at school and tertiary
level where appropriate. In addition, an extensive career-awareness programme
needed to be undertaken. As SAICA was already working with the University of Fort
Hare, it became evident that the first targeted area for this upliftment project should be
the Eastern Cape (SAICA, 2002a: 4). This project, funded by the Fasset SETA, the
National Skills Fund, the Department of Labour and the service provider PMG2 Education
(Pty) Ltd, is known as Thuthuka - a Zulu word meaning, “to develop” (Els, 2004).
The success of the Thuthuka Project continues and is enjoying widening acclaim. Over
the past five years the Thuthuka school programme reached over 20 000 learners and
6 000 teachers. In addition, the university assistance programme has been extended to
the University of Limpopo and now benefits nearly 500 students. The results at both
the University of Limpopo and Fort Hare were outstanding. Students at these
universities performed better than their counterparts at the University of Johannesburg
whilst writing the same examinations (SAICA, 2004e: 3).
2.3.2.2 Some statistical evidence
The shortage of black CAs in South Africa has been a major cause for concern for a
long time. SAICA set itself a target of 3 000 black CAs by 2005 (Mulder, 2003). From
1999 to 2005 there has been a 29.46% increase in the total number of CAs registered
with SAICA. The same cannot be said of the number of black accountants, however
(SAICA, 2003b; 2005b).
In FIGURE 2.2 below one can see that the percentage of white CAs still outnumbers
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 30
the overall percentage of ‘black’ CAs by a ratio of nearly 9.8:1. On the gender front
(FIGURE 2.3) it also looks very bleak, with females still being in the minority.
0
5000
10000
15000
20000
25000
Num
ber o
f reg
iste
red
CA
s
2001 2002 2003 2004 2005 2006
White Black Coloured Indian
FIGURE 2.2: Total number of registered of CAs per race, 2001 – 2006*
SOURCES: SAICA, 2004f, 2005b, 2006b, 2006c
* Average per annum, 2006 based on January and February figures only
SAICA’s transformation initiatives are showing strong and visible signs of progress.
Strong growth occurred amongst the black female CAs, where there has been a 148.5%
increase since 2002.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 31
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000N
umbe
r of r
egsi
tere
d C
As
M F M F M F M F M F
2002 2003 2004 2005 2006
White Black Coloured Indian
FIGURE 2.3: Number of registered CAs per race and gender, 2002 – 2006*
SOURCES: SAICA, 2004f, 2005b, 2006a, 2006b, 2006c * Average per annum, 2006 based on January and February figures only
Since 2002, SAICA’s black membership has grown by 60.45% to 2 442 members. From
FIGURE 2.4 (on the following page) one can also see that the growth amongst black
CAs has been excellent with a general upward trend. Growth in the number of white
CAs also occurred, but at a slower rate.
However, if one looks at the pass rate of black CAs, the picture does not look that
good. In 2005 only 26.52% or 245 of the African black candidates passed the QE 1 of
SAICA. And of all the ‘black’ candidates, only 28.15% passed compared to the 71.85%
of ‘white’ candidates (SAICA, 2005a).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 32
0
200
400
600
800
1000
1200
1400
1600
1800
2002 2003 2004 2005 2006
Num
ber o
f reg
iste
red
'Bla
ck' C
As
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%Percentage grow
th
Black Coloured Indian White % Black %
FIGURE 2.4: Number of registered black CAs and growth amongst black and white CAs,
2002 – 2006*
SOURCES: SAICA, 2004f, 2005b, 2006b, 2006c * Average per annum, 2006 based on January and February figures only
In terms of the 2005 Public Practice Examination (hereafter PPE) of the PAAB, 424 or
56.75% of the 747 Black African, Coloured and Indian candidates who wrote the exam
passed. Increasing the number of black accountants and auditors is a national
imperative and the PAAB, SAICA, accredited universities and professional firms are
working aggressively to address this (PAAB, 2006d).
One such special initiative of the PAAB and the Fasset SETA is the implementation of a
Support Programme for black candidates who have been unsuccessful in previous
attempts to pass the PPE. Of the 117 black candidates who participated in and
completed the PAAB's programme 58 passed; this represents a pass rate of 49.57%.
The pass rate for Black repeat candidates who did not attend the Support Programme
was 42% (PAAB, 2006d).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 33
2.3.3 Roles and responsibilities of SAICA and PAAB
Confusion often arises regarding the differing roles and responsibilities of SAICA and
the PAAB. TABLE 2.2 clarifies the respective roles of the two bodies.
TABLE 2.2: The roles of SAICA and PAAB
SAICA PAAB
Introduction
Non-profit, voluntary body
Provides a wide range of services to its
members and associates
Statutory body that regulates the public audit
function in South Africa, and functions in terms
of the Public Accountants' and Auditors' Act,
1991 (Act 80 of 1991) as amended
Control
Controlled by a Board, elected by members
through regional committees, and by bodies
representing other key constituencies
Key constituencies include
o commerce and industry;
o large practices;
o small practices; and
o the Association for the Advancement of
Black Accountants in Southern Africa
The Minister of Finance appoints its members
Members come from
o state departments,
o the accounting profession nominated
by the regional committees; and
o academics nominated by the
Committee of University Principals
Mission
To serve the interests of the Chartered
Accounting profession and society, by upholding
professional standards and integrity, and the
pre-eminence of South African CAs nationally
and internationally, through:
o delivering competent entry level
members;
o providing services to assist members to
maintain and enhance their
professional competence thereby
enabling them to create value for their
clients and employers;
o enhancing the quality of information
used in the private and public sectors
for measuring and enhancing
To protect the financial interests of the people
of South Africa, and other stakeholders.
Strives towards the maintenance and
improvement of standards of Registered
Accountants and Auditors.
Achieved by providing the means and a
regulatory framework for the education and
training of adequate numbers of competent and
disciplined accountants and auditors to serve
the needs of South Africa.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 34
SAICA PAAB
organisational performance;
o running and facilitating programmes to
transform the profession and to
facilitate community upliftment; and
o fulfilling a leadership role regarding
relevant business-related issues and
providing reliable and respected public
commentary.
Education and training
Sets and adjudicates the [generic] qualifying
examination (QE Part 1) and the financial
management specialism examination in QE Part
2, for those trainees who have opted to take
the financial management route.
Exercises a monitoring role over the SAICA
public practice trainee and QE1 examination
processes.
Setting and marking the PPE for those trainees
choosing the public practice route.
Support
Provides technical support and continuing
professional education.
Disseminates and communicates the latest
information on technical developments to its
constituency
Conducts practice review investigations for
registered accountants and auditors.
Conducts disciplinary processes for registered
accountants and auditors.
Professional body
Registration of trainees and management of
their training contracts, either in public practice
(i.e. at a firm of approved registered
accountants and auditors) or outside public
practice (i.e. an organisation in either
commerce or industry or the public sector that
is registered as an approved provider).
After completing their training contract and
passing both QE1 and QE2 or PPE, candidates
are required to register with SAICA in order to
use the prestigious Chartered Accountant (CA
(SA)) designation.
Any person wishing to perform the attest
function must register.
SOURCES: SAICA, 2004c; 2004d; Prozesky, 2001: 11
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 35
2.3.4 The restructuring of the accounting profession
2.3.4.1 Accounting Profession Bill
The restructuring process of the accounting profession was initiated by the PAAB in
1991 and culminated in 1997 in a proposed Act drafted by the Interim Representative
Council of Accountants. A tiered profession, under a co-ordinating structure of all
accounting institutes and accounting bodies, without compromising the independence
of the auditor, was envisaged. After much exposure and consultation with interested
parties, the co-ordinating committee drafted a revised Accountancy Profession Bill,
which was presented for comment in November 1999 (SAICA, 2004c).
As the Draft Bill was very different from the original, members of the PAAB, SAICA
(SAICA, 2004e: 2) and other interested parties formulated their comments and
submitted them to the National Accountancy Consultative Forum for consideration
(SAICA, 2004c).
The Act that came about as a result of the Bill has moved away from the broader
perspective of the professional accountant and focuses solely on the Auditor.
2.3.4.2 Audit Profession Act
The new Audit Profession Act of 2005 (RSA, 2006: 11) has as its objectives to:
protect the public in the Republic by regulating audits performed by registered
auditors;
provide for the establishment of an Independent Regulatory Board for Auditors;
improve the development and maintenance of internationally comparable ethical
standards and auditing standards for auditors that promote investment and as a
consequence employment in the Republic;
set out measures to advance the implementation of appropriate standards of
competence and good ethics in the auditing profession; and
provide for procedures for disciplinary action in respect of improper conduct.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 36
The Act sets out that the PAAB is replaced by a successor body, the Independent
Regulatory Board for Auditors (hereafter IRBA) (RSA, 2006: 11/12; 64). The IRBA will
be responsible for the regulation of the auditing arm of the profession through a
registration, accreditation and disciplinary process.
The Act furthermore proposes that the IRBA must, at least, establish the following
permanent committees:
a committee for auditor ethics in accordance with section 21;
a committee for auditing standards in accordance with section 22;
an education, training and professional development committee;
an inspection committee;
an investigating committee; and
a disciplinary committee (RSA, 2006: 24).
For the purposes of this study it may be useful to focus on the committee for auditor
ethics in accordance with section 21 of the Act (RSA, 2006: 25).
The committee for auditor ethics must consist of at least the following members
appointed by the IRBA (RSA, 2006: 25):
“… three registered auditors;
three persons representing users of audits;
one person representing an exchange which is the holder of a stock exchange
licence issued under the Securities Services Act, 2004 (Act 36 of 2004); and
one advocate or attorney with at least 10 years’ experience in the practice of
law.”
The committee for auditor ethics must assist the IRBA (RSA, 2006: 25):
in determining what constitutes improper conduct by registered auditors by
developing rules and guidelines for professional ethics, including a code of
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 37
professional conduct;
by interacting on any matter relating to its functions and powers with
professional bodies and any other body or organ of state with an interest in the
auditing profession; and
by providing advice to registered auditors on matters of professional ethics and
conduct.
2.4 THE CHANGING FACE OF ACCOUNTING EDUCATION
2.4.1 Introduction
Historically, accounting has been looked upon as a profession that plays an important
role in all societies. Both Lehman (1992: 1) and Schoonraad (2004: 42) noted that the
influence of accounting as a subject spans the full range of one’s life experience, from
the mundane to the globally consequential. Rapid change has routinely been the
predominant characteristic of the environment in which CAs work (Nelson, 1995: 62).
As the world moves toward globalised market economies, and with investments and
operations crossing borders to an ever greater extent, CAs need a broad-based global
perspective to understand the context in which businesses and other organisations
operate.
2.4.2 The dynamic nature of the accounting environment
The changes and trends evident within the accounting profession lead to the need for
greater accountability and, as a result, demands on the profession are high and
continue to rise. It is the profession’s capacity to satisfy these demands that
determines its value to society, both nationally and trans-nationally.
These trends challenge CAs to make greater contributions to society than ever before,
and they also present a challenge to maintain competence. The viability of accounting
as a profession depends on the ability and willingness of its individual members to
accept responsibility for meeting these challenges.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 38
To meet these challenges, the profession (through the various professional bodies)
needs to ensure that individuals becoming CAs achieve an agreed level of competence,
which is then maintained. The means by which individuals obtain competence is
through education and experience. The profession, therefore, needs to aspire to set
and meet high standards in both these areas (IFAC, 2003b: 7, 28). In these days and
times, a programme of accounting education and experience needs to go beyond the
traditional approach, which emphasised “transfer of knowledge”, with learning defined
and measured strictly in terms of knowledge of principles, standards, concepts, facts
and procedures at a given point in time.
2.4.3 Accounting education at higher education institutions
The literature is saturated with research that has been done on the accounting student
at tertiary institutions. Many higher education institutions around the world are
experiencing a decrease in the number of students who wish to study to become a CA
(Albrecht & Sack, 2001: 17). Moreover, many practising accountants and educators say
that they would not choose an accounting education if given the chance to do it again
(Albrecht & Sack, 2001: 17; Person, 2002: 84/85; Diller-Haas, 2004: 60). Albrecht and
Sack stated that: “This indicates a serious problem at the profession’s most vulnerable
point: the quality of its professionals ...” (2001: 16).
Bedford and Shenkir (1987: 86) stressed the shortcomings of accounting education in
the following scathing indictment: “Despite widespread complaints that accounting
graduates do not know how to communicate, do not reason logically, are deficient in
inter-personal skills, and cannot think creatively and responsibly, university education
has persisted in teaching the content of textbooks rather than developing students’
capabilities.” This notion was also expressed by Dempsey and Stegmann (2001: 16).
Over the past few years this notion may have changed more positively. Myers (2005:
109) found that changes may have occurred (even unnoticed) and students coming
from higher education institutions “... are smarter ... better educated today ...”
According to data compiled by the American Institute of Certified Public Accountants,
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 39
undergraduate students opting for studies to become CAs increased by 6% from 2001
to 2002 (Myers, 2005: 111).
Educators delivering professional accounting education programmes will need to
respond to the changing needs of the international accounting profession, as well as
individual CAs (IFAC, 2003a: 33). During undergraduate education, teaching methods
should focus on providing students with the tools for self-directed learning after
qualification. Educators are free to adopt the methods that work best in their particular
cultures. However, educators may need to be trained and encouraged to use a broad
range of learner-centred teaching methods that include:
using case studies, projects and other means to simulate work situations;
working in groups;
adapting instructional methods and materials to the ever-changing environment
in which the CA operates;
pursuing a curriculum that encourages self-learning so that students learn to
learn on their own and carry this skill with them after qualification;
using technology and e-learning;
encouraging students to be active participants in the learning process;
using measurement and evaluation methods that reflect the changing
knowledge, skills, as well as professional values, ethics and attitudes required of
CAs;
integrating knowledge, skills, professional values, ethics and attitudes across
topics and disciplines to address the many-sided and complex situations typical
of professional demands;
emphasising problem-identification and problem-solving, which encourages
identifying relevant information, making logical assessments and communicating
clear conclusions;
exploring research findings; and
stimulating students to develop professional scepticism and professional
judgement (IFAC, 2003a: 33-34).
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 40
Educational programmes need to include a reflective component where students are
required to consider an experience and the approach that should be taken in future in
similar circumstances. Achieving the goal of providing a foundation for LLL requires a
thorough grounding in the professional knowledge, skills and values, ethics and
attitudes essential to professional competency and this may need to be the focus of a
programme of professional accounting education.
2.5 INTERNATIONAL ACCOUNTING EDUCATION STANDARDS
2.5.1 Introduction
IFAC has developed International Education Standards for Professional Accountants
(hereafter IES). These Standards:
describe the scope of issues covered within them;
prescribe standards of generally accepted ‘good practice’ in the education and
development of CAs;
establish the essential elements of the content and process of education and
development at a level that is aimed at gaining international recognition,
acceptance and application;
discuss the ways in which they may be adopted and applied to the education
programmes of IFAC member bodies;
express the benchmarks that member bodies are expected to meet in the
preparation and continuous development of professional accountants; and
prescribe the learning and development requirements of CAs (IFAC, 2004a: 26,
31).
IESs cannot legally override local laws and regulations but will provide an authoritative
reference for informing and influencing local regulators regarding generally accepted
‘good practice.’
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 41
All IFAC member bodies are expected to comply with IESs, and the Standards are
directed primarily at IFAC member bodies rather than individuals. Member bodies are
expected to use their best endeavours to:
work towards implementation of all IESs and other statements developed by the
IFAC Education Committee; and
incorporate in their education programmes the essential elements of the content
and process of education on which IESs are based (IFAC, 2003a: 26).
SAICA is a member body of IFAC. SAICA also contributed to the various Standards by
way of its membership of IFAC.
2.5.2 Definition of terminology
IFAC devised a glossary comprising a collection of defined terms, many of which have
been specifically defined within existing Education Committee statements.
Even though these terms have been defined within the parameters of the various
Education Standards, IFAC (2003a, 14) is of the opinion that “… terms may be
understood to have different common meanings, nuances of meaning, and applications
among the various countries in which member bodies operate”.
For the purposes of this study, only specific terms commonly used throughout the
Standards will be highlighted in TABLE A1 (APPENDIX A) at the end of this study.
Many of these terms will also be ‘redefined’ or put into a South African context for the
sake of clarity later, in this and other chapters of this study.
2.5.3 International Education Standards
The various International Education Standards issued by IFAC are indicated in FIGURE
2.5 below (IFAC, 2003a: 31).
In IES 2 - International Education Standards for Professional Accountants, IFAC (2003a:
30) determined a scope of international Education Standards.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 42
International Education Standards for Professional
Accountants (IES)
Scope Application
Entry requirements
(IES 1)
Professionaleducation
(IES 2)
Professional skills and general education
(IES 3)
Professional values and ethics
(IES 4)
Experience requirements
(IES 5)
Continuous Professional Development
(IES 7)
International Federation of Accountants
(IFAC)
Assessment of professional competence
(IES 6)
Competence Requirements for
Audit Professionals(IES 8)
FIGURE 2.5: International Education Standards
SOURCE: Own deductions
These Standards are intended to advance the accounting profession by establishing
benchmarks for the minimum learning requirements of qualified accountants, including
education, practical experience and continuing professional development (hereafter
CPD).
One of the aims of the IESs prescribed by IFAC (2003a: 30) is to identify the subject
areas that need to be covered, rather than to suggest actual courses that should be
taken. That is because the subjects identified are described differently in different parts
of the world. It is recognised that some member bodies require a greater range of
subjects; others may place greater emphasis on certain subjects to meet the specific
purposes for which their students are being trained.
Demarcating an educational framework for the training of chartered accountants nationally and internationally
CHAPTER 2 43
Even though IFAC uses IES 4 - Professional Values, Ethics and Attitudes to lay a
foundation for the member bodies with regards to ethics within the profession, IES 2 -
International Education Standards for Professional Accountants states that:
“Professional values, ethics and attitudes, however, run through all areas and may be
integrated with many of the other subjects” (IFAC, 2003a: 30).
One furthermore may argue that a so-called ‘one-size-fits-all’ approach to professional
values, ethics and attitudes may not be the best option when it comes to the education
of CAs in developing countries such as South Africa.
IFAC has made provision for such circumstances and states in the preamble to its
Standard detailing professional values, ethics and attitudes “… IFAC recognises that the
accounting profession throughout the world operates in environments with different
cultures and regulatory requirements. IFAC has, nevertheless, established an
international Code of Ethics for Professional Accountants. Professional values, ethics
and attitudes relate directly to IFAC’s mission to develop and enhance the profession to
enable it to provide services of consistently high quality in the public interest”. (IFAC,
2003a: 60) The issue of culture and ethics will be discussed in detail in Chapter 3 to
this study.
In providing for these Standards, IFAC went further and stipulated certain variables
within the standards. These are:
2.5.3.1 Education and practical experience needs
It is understood that the education and practical experience needs (as discussed in
section 2.4.3), as well as the institutional and cultural environment in different countries
and regions will differ. Those responsible for the development of accountants will need
to adapt their requirements to these needs. While IESs need to be complied with, it is
acknowledged that needs vary and the IESs may be complied with in a variety of
different but equivalent ways (IFAC, 2003a: 32).
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2.5.3.2 Dynamic profession
IFAC recognises that each professional body will need to determine not only how to
best comply with the IESs, but also what emphasis to place on the various parts
thereof. As the accounting profession is seen as dynamic in nature (as discussed in
section 2.4.2), care needs to be taken to continually monitor the environment in which
each body operates to ensure that the education process remains relevant and
professional values are upheld (IFAC, 2003a: 32).
2.5.3.3 Lifelong learning
Admission to membership of an IFAC member body is a recognition that, at a given
point in time, a person is deemed to have met the requirements for qualification as a
CA. In a time of continuous change (see section 2.4.2), however, development of
professional competence (IFAC, 2003b: 3) and LLL (IFAC, 2004a) is critical to meet the
needs of the users of professional services (IFAC, 2003a: 32).
2.5.3.4 Continuous professional development
The process of LLL commences early and continues throughout the individual’s career.
CPD may be seen as an extension of the education programme leading to qualification
as a CA, as was pointed out in section 2.4.3 of this thesis. The professional knowledge,
professional skills and professional values, ethics and attitudes gained continue to
develop and are refined appropriately for the professional activities and responsibilities
of the individual (IFAC, 2003a: 32/33; IFAC, 2004a: 3).
2.5.3.5 Competence assessment
Much work is being done on the emerging concept of competence assessment (IFAC,
2002a; IFAC, 2003a: 73). Member bodies need to have regard for the emerging
concept of competence and how it can best be incorporated into their own systems. To
demonstrate competence at work, CAs need to have a defined set of professional
knowledge, professional skills, professional values, ethics and attitudes. This set is wide
and is increasing (IFAC, 2003b: 4, 109-119).
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Competence is gained through a mix of study, work and training (as discussed in
section 2.4.3). Although the combination of these parts may vary, it should lead to
equally valid educational and practical experience programmes, which will develop the
required competence for the profession (IFAC, 2003a: 33).
2.6 PRESCRIBED CONTENT OF CHARTERED ACCOUNTANT EDUCATION PROGRAMMES – AN INTERNATIONAL PERSPECTIVE
2.6.1 Introduction
In the previous section it was indicated that, in the education of CAs, emphasis needs
to be placed on a set of knowledge, skills and professional values broad enough to
enable adaptation to constant change. It is furthermore important to note that the goal
of accounting education is to produce competent professional accountants.
This means that the education and training programme of a CA should consist of
professional knowledge, non-professional knowledge (i.e. skills) and general education.
The professional knowledge component complements the non-professional knowledge
as well as the intellectual, personal, interpersonal, communication, and organisational
and management skills developed in general education.
In order for a CA to operate effectively, with integrity and discernment in an
environment of change, IFAC prepared IES 4 - Professional values, ethics and attitudes
(IFAC, 2003a) to ensure that their members have a continuing understanding of
professional values, ethics and attitudes. This is furthermore augmented by IFAC,
highlighting the issues of CPD and LLL (IFAC, 2004a).
All these components are highlighted in FIGURE 2.6 below.
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Non-professionalknowledge component
(Skills)
(IES 3)
Promotion of lifelong learning
(IES 7)
Professional valuesand ethics
(IES 4)
General education component
(IES 1 & 3)
Continuous Professional Development (CPD)
(IES 7)
Professional knowledge component
(IES 2)
Education environment of a
charteredaccountant
FIGURE 2.6: Education environment of a chartered accountant
SOURCE: Own deductions
2.6.2 Education and training components
2.6.2.1 Professional knowledge component
a) Introduction
Before one examines the knowledge component in detail, one should take note of the
following aspects regarding professional accounting education stated in IES 2 - Content
of Professional Accounting Education Programs (IFAC, 2003a: 44):
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the professional accounting knowledge component of pre-qualification education
should consist of at least two years of full-time study (or the part-time
equivalent);
students should pursue a degree in accounting, or a professional qualification, to
gain this knowledge; and
students may take non-accounting degrees or no degrees at all, and then
acquire the necessary knowledge of professional accounting subjects through
studying for the examinations of a professional body.
The content of professional accounting education should consist of the following
knowledge components:
accounting, finance and related knowledge;
organisational and business knowledge; and
information technology knowledge and competences (IFAC, 2003a: 44).
The three knowledge areas are not set out to indicate relative importance or order.
The components listed above represent the minimum areas in professional accounting
education programmes. However, the relative depth and weighting of coverage will
depend on the needs of individual IFAC member bodies and any restrictions placed on
them by statutory authorities (IFAC, 2003a: 45).
The knowledge components prescribed above will be discussed in more detail later in
this section. The components discussed in this section of the chapter are not
necessarily intended to be completed in the order shown as long as the syllabus of the
professional body covers all of the subject content listed in this Standard (IFAC, 2003a:
44, 45).
In addition, the subjects and elements of the programme may be integrated, for
example, by incorporating aspects of IT knowledge in specific accounting courses. This
may assist the learning process and help candidates understand how the individual
components are interrelated (IFAC, 2003a: 44).
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The accounting curriculum is in itself also dynamic. In its Standard, IES 2, the IFAC
Education Committee (IFAC, 2003a: 45) stated, “… the [accounting] curricula is
changing and will continue to change in response to rapidly changing market demands.
New topics are entering the curriculum and the relative emphasis among topics is
altering. Member bodies may wish to add topics, or alter the balance of their
programmes to meet the needs of their particular environments”.
b) Content
(i) Accounting, finance and related knowledge
The accounting, finance and related knowledge component should include the following
areas:
financial accounting and reporting;
management accounting and control;
taxation;
business and commercial law;
audit and assurance;
finance and financial management; and
professional values and ethics (IFAC, 2003a: 46).
This component includes:
history of the accounting profession and accounting thought;
content, concepts, structure and meaning of reporting for organisational
operations, both for internal and external use, including the information needs of
financial decision makers and a critical assessment of the role of accounting
information in satisfying those needs;
national and international accounting and auditing standards;
the regulation of accounting;
management accounting, including planning and budgeting, cost management,
quality control, performance measurement, and benchmarking;
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the concepts, methods and processes of control that provide for the accuracy
and integrity of financial data and safeguarding of business assets;
taxation and its impact on financial and managerial decisions;
a knowledge of the corporate legal environment, including securities and
companies law, appropriate for the role of the profession in the particular
country;
the nature of auditing and other assurance services, including risk assessment
and fraud detection, and the intellectual and procedural bases for performing
them;
a knowledge of finance and financial management, including financial statement
analysis, financial instruments, capital markets (both domestic/national and
international) and managing resources;
ethical and professional responsibilities of a CA in relation to both the
professional and wider public environment which includes professional values,
ethics and attitudes;
governmental and not-for-profit accounting issues; and
the use of non-financial performance measures in business (IFAC, 2003a:
46/47).
(ii) Organisational and business knowledge
The organisational and business knowledge component should include the following
areas:
economics;
business environment;
corporate governance;
business ethics;
financial markets;
quantitative methods;
organisational behaviour;
management and strategic decision-making;
marketing; and
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international business and globalisation (IFAC, 2003a: 47).
Organisational and business education includes:
a knowledge of macro- and micro-economics;
a knowledge of business and financial markets and how they operate;
the application of quantitative methods and statistics to business problems;
an understanding of corporate governance and business ethics;
an understanding of organisations and of the environments in which they
operate, including the major economic, legal, political, social, technical,
international and cultural factors;
economic forces and their influences and values;
an understanding of environmental issues and sustainable development;
an understanding of interpersonal and group dynamics in organisations,
including the methods for creating and managing change in organisations;
an understanding of personnel and human resource issues, managing people,
project management, and marketing;
an understanding of decision support and strategy, including business advice,
strategic management and general management;
an understanding of organisational and operational risk;
a basic knowledge of international trade and finance and the ways in which
international business is conducted, as well as the processes of globalisation;
and
an ability to integrate the above components in accomplishing strategic
objectives (IFAC, 2003a: 48).
(iii) Information technology
The information technology component should include the following subject areas and
competences:
general knowledge of IT;
IT control knowledge;
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IT control competences;
IT user competences; and
one of, or a mixture of, the competences of the roles of manager, evaluator or
designer of information systems (IFAC, 2003a: 49).
At the point of qualification, candidates are expected to have a knowledge and
understanding of the competency elements in at least one of these roles. This may be
evidenced by the ability to describe or explain the significance of the issues related to
the listed competences in a relevant business setting. A candidate needs to be able to
participate effectively in the activities listed in this section as part of a team or under
supervision, but would not to be expected to demonstrate proficiency in all the
competences (IFAC, 2003a: 49).
IFAC does however state that as part of their pre-qualification education, all prospective
CAs are expected to participate in at least one of the roles of manager, designer or
evaluator of information systems or a combination of these roles (IFAC, 2003a: 49).
The following broad areas of competence relate to the user role:
apply appropriate IT systems and tools to business and accounting problems;
demonstrate an understanding of business and accounting systems; and
apply controls to personal systems (IFAC, 2003a: 49).
The information technology knowledge component may be provided in a variety of
ways, perhaps as separate courses or by integrating the subject into the organisational
and business knowledge component or into the accounting and accounting-related
knowledge component. Competence may also be acquired through work experience in
addition to the IT knowledge component. For the formal IT education component, case
studies, interactions with experienced professionals and similar techniques may be used
to enhance the presentation of subject matter and to help students develop practical
skills, in combination with relevant IT work experience (IFAC, 2003a: 49-50).
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2.6.2.2 Non-professional knowledge (skills) component
a) Introduction
Skills are part of the set of capabilities required by CAs to demonstrate competence.
These capabilities, set out in IES 3 - Professional Skills (IFAC, 2003a: 51), include
knowledge, skills, professional values, ethics and attitudes (IFAC, 2003a: 52). IEP 2 -
Towards Competent Professional Accountants, (IFAC, 2003b: 3) provides an extension
to these listed capabilities and lists the following:
attitudes (for example, professional demeanour/values);
behavioural skills (for example, leadership);
broad business perspective (for example, strategic/critical thinking);
functional skills (for example, risk analysis);
technical knowledge (for example, audit); and
intellectual skills (for example, knowledge, understanding, application, analysis,
synthesis and evaluation).
Capabilities are an indication of potential competence that can be transferred across
different environments. It is important to ensure that chartered accounting education
programmes integrate the development of knowledge, skills, professional values, ethics
and attitudes (IFAC, 2003a: 53).
Rising expectations from employers, clients and the public as to what CAs contribute at
work and toward society generally have prompted an increased emphasis on
professional skills (Myers, 2005: 110).
Various lists of skills have been classified and described in several ways. The skills CAs
require are grouped under five main headings:
intellectual skills;
technical and functional skills;
personal skills;
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interpersonal and communication skills; and
organisational and business management skills (IFAC, 2003a: 52).
b) Content
(i) Intellectual skills
Intellectual skills are often divided into six levels. In ascending order, these are:
knowledge;
understanding;
application;
analysis;
synthesis; and
evaluation (IFAC, 2003a: 52).
What is very interesting is that these skills, which are listed in IES 3 – Professional
Skills, are much the same as the so-called Bloom’s Taxonomy for the cognitive domain.
The cognitive domain includes learning outcomes that relate to the head or intellect,
such as memory, understanding and reasoning (Van der Horst & McDonald, 1997: 37).
Bloom’s taxonomy consists of six levels. These levels also progress from the simplest to
the most complex. They are:
Level 1: Knowledge – this level involves recall of specific facts or other
information. The focus on knowledge outcomes is thus the act of
remembering, or the recall of verbal information.
Level 2: Comprehension – this level is the first level of understanding. At
this level a statement must not only be recalled, but its meaning
must be understood.
Level 3: Application – this refers to the ability to use information in new
situations. Information used in the application phase would
include general ideas, rules, methods, principles, or theories that
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must be remembered and applied.
Level 4: Analysis – this refers to the ability to break down a whole into its
component parts. In this way the elements embedded in a whole
are identified and the relations among the elements are
recognised.
Level 5: Synthesis – this level refers to the ability to put elements together
to form a new whole.
Level 6: Evaluation – at this level judgements are made, based on certain
criteria (Van der Horst & McDonald, 1997: 37-38).
It is important that candidates must reach the highest levels of competence at the point
of qualification. Intellectual skills enable a CA to solve problems, make decisions and
exercise good judgement in complex organisational situations. These skills are often
the product of a broad general education (See section 2.6.4 for an explanation).
The required intellectual skills include the following:
the ability to locate, obtain, organise and understand information from human,
print and electronic sources;
the capacity for inquiry, research, logical and analytical thinking, powers of
reasoning, and critical analysis; and
the ability to identify and solve unstructured problems which may be in
unfamiliar settings (IFAC, 2003a: 54).
(ii) Technical and functional skills
Technical and functional skills consist of general skills, as well as skills specific to
accounting (IFAC, 2003a: 55). They include:
numeracy (mathematical and statistical applications) and IT proficiency;
decision modelling and risk analysis;
measurement;
reporting; and
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compliance with legislative and regulatory requirements (IFAC, 2003a: 55).
(iii) Personal skills
Personal skills relate to the attitudes and behaviour of CAs. Developing these skills
promotes individual learning and personal improvement (IFAC, 2003a: 55). These
include:
self-management;
initiative, influence and self-learning;
the ability to select and assign priorities within the parameters set by restricted
resources;
to organise work to meet tight deadlines;
the ability to anticipate and adapt to change;
considering the implications of professional values, ethics and attitudes in
decision-making; and
professional scepticism (IFAC, 2003a: 55).
(iv) Interpersonal and communication skills
Interpersonal and communication skills enable a CA to work with others for the
common good of the organisation, receive and transmit information, form reasoned
judgements and make decisions effectively (IFAC, 2003a: 55).
The components of interpersonal and communication skills include the ability to:
work with others in a consultative process, to withstand and resolve conflict;
work in teams;
interact with culturally and intellectually diverse people;
negotiate acceptable solutions and agreements in professional situations;
work effectively in a cross-cultural setting;
present, discuss, report and defend views effectively through formal, informal,
written and spoken communication; and
listen and read effectively, showing a sensitivity to cultural and language
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differences (IFAC, 2003a: 55/56).
(v) Organisational and business management skills
Organisational and business management skills have become increasingly important to
CAs as they play a more active role within the management function of organisations
(IFAC, 2003a: 56).
Organisational and business management skills include:
strategic planning, project management, management of people and resources,
and decision-making;
the ability to organise and delegate tasks, to motivate and to develop people;
leadership; and
professional judgement and discernment (IFAC, 2003a: 56).
2.6.2.3 General education component
a) Introduction
The general education component of the educational programmes for CAs as provided
in IES 3 - Professional Skills (IFAC, 2003a: 51), provides the following generic
comments:
all professional educational programmes should include some portion of general
education (IFAC, 2003a: 56);
a good foundation of general education, although not an end in itself, is one way
of helping candidates become broad-minded individuals who think and
communicate effectively and who have the basis for conducting inquiry, carrying
out logical thinking and undertaking critical analysis (IFAC, 2003a: 56);
general education requirements vary greatly from programme to programme and
from country to country (IFAC, 2003a: 56);
general education focuses on the development of a CA’s non-professional
knowledge, intellectual skills, personal skills, interpersonal and communication
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skills, and organisational and management skills (IFAC, 2003a: 56);
a general education may be gained through a degree programme with the
balance of the programme devoted to professional accounting topics, including
accounting, finance and related knowledge, organisational and business
knowledge and information technology knowledge as highlighted in IES 2 -
Content of Professional Accounting Education Programs) (IFAC, 2003a: 41-50);
students may also acquire key skills through experience at work, combined with
studying for the examinations (IFAC, 2003a: 57). This combination would
include elements of general knowledge and skills and thus develop the
competence and capabilities, including the underlying technical knowledge,
required to qualify as a CA.
A broad general education can contribute significantly to the acquisition of professional
skills. This is also highlighted in IES 1 – Entry Requirements to a Program of
Professional Accounting Education (IFAC, 2003a: 37-40).
b) Content
A broad general education can encourage LLL and provide a foundation on which to
build professional and accounting studies and may consist of:
an understanding of the flow of ideas and events in history, the different
cultures in today’s world and an international outlook;
basic knowledge of human behaviour;
a sense of the breadth of ideas, issues and contrasting economic, political and
social forces in the world;
experience in inquiry and evaluation of quantitative data;
the ability to conduct inquiry, carry out logical thinking and understand critical
thinking;
an appreciation of art, literature and science;
an awareness of personal and social values and of the process of inquiry and
judgement; and
experience in making value judgements (IFAC, 2003a: 57).
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2.6.3 Professional values, ethics and attitudes
2.6.3.1 Introduction
IFAC considers that member bodies have an obligation to their current and future
members, as well as to society at large, to ensure that their members have a continuing
understanding of professional values, ethics and attitudes. This understanding needs to
be sufficient to enable them to operate effectively and with integrity and discernment in
an environment of change. In order to assist member bodies in this task, IFAC
prepared IES 4 - Professional values, ethics and attitudes (IFAC, 2003a: 59-65).
Professional values, ethics and attitudes need to be treated in their own right within the
education framework. If future CAs are to perceive professional values, ethics and
attitudes as important to their work, it is essential that they do not perceive the
treatment of professional values, ethics and attitudes as peripheral to their main
education programmes. A thorough investigation of professional ethics, values and
attitudes and ethics as a whole will be conducted in Chapter 3 of this study.
Society has high expectations of the accounting profession. It is essential for CAs to
accept and observe ethical principles regulating all their relationships. Professional
values, ethics and attitudes identify CAs as members of a profession and should shape
everything they do as professionals. It is the responsibility of member bodies to ensure
that their members have an adequate understanding of the principles of professional
ethics and the underlying rationale of the constraints that professional ethics place on
CAs.
2.6.3.2 Content
The programme of professional accounting education should provide potential CAs with
a framework of professional values, ethics and attitudes for exercising professional
judgement and for acting in an ethical manner that is in the best interest of society and
the profession (refer to the questionnaire in APPENDIX B, statement 26).
The required values, ethics and attitudes of CAs include a commitment to comply with
Demarcating an educational framework for the training of chartered accountants nationally and internationally
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the relevant local codes of ethics, which should be in conformity with the IFAC Code of
Ethics (IFAC, 2003a: 59-63; IFAC, 2005).
The coverage of values and attitudes in education programmes for CAs should lead to a
commitment to:
the public interest and sensitivity to social responsibilities;
continual improvement and LLL;
reliability, responsibility, timeliness, courtesy and respect; and
laws and regulations (IFAC, 2003a: 62).
While the approach of each programme to the learning of professional values, ethics
and attitudes will reflect its own national and cultural environment and objectives, all
programmes should include, as a minimum:
the nature of ethics;
differences of detailed rules-based and framework approaches to ethics, their
advantages and drawbacks;
compliance with the fundamental ethical principles of integrity, objectivity,
commitment to professional competence and due care, and confidentiality;
professional behaviour and compliance with technical standards;
concepts of independence, scepticism, accountability and public expectations;
ethics and the profession: social responsibility;
ethics and law, including the relationship between laws, regulations and the
public interest;
consequences of unethical behaviour to the individual, to the profession and to
society at large;
ethics in relation to business and good governance; and
ethics and the individual CA: whistle blowing, conflicts of interest, ethical
dilemmas and their resolution (IFAC, 2003a: 62/63).
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2.6.3.3 Teaching professional values, ethics and attitudes
Because of the importance of professional values, ethics and attitudes to future CAs,
the presentation of the topic may be treated as a separate subject (IFAC, 2003a: 63).
As students progress and gain a wider knowledge of other subjects, it will be
appropriate to integrate subject matter. This will encourage students to look for and
consider the possible ethical implications of problems being discussed in their study of
other subjects. Students:
need to understand that values, ethics and attitudes run through everything that
CAs do and how CAs contribute to confidence and trust in the market;
need to be encouraged to study the role of, and critically appraise, relevant
codes of ethics;
may be invited to view professional pronouncements in this area as a positive
effort to create a framework of trust and integrity within which CAs can operate;
and
need to be encouraged to examine the ethical pronouncements of other
professions and examine and discuss other potential approaches [to ethics] for
the accounting profession (IFAC, 2003a: 63).
Rote learning of codes and subsequent tests of memory will not produce the desired
effect. The presentation of professional values, ethics and attitudes to accounting
students can be enhanced greatly through the use of participative approaches. These
may include:
the use of teaching materials such as multi-dimensional case studies;
role playing;
discussion of selected readings and videos;
analysis of real life business situations involving ethical dilemmas;
discussion of disciplinary pronouncements and findings; and
seminars using speakers with experience of corporate or professional decision-
making (IFAC, 2003a: 64).
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Using a participative teaching approach at RAU seems to create more problems than
solutions. Very few (if any) of the modes mentioned in the previous paragraph are
possible due to practical constraints, for example infrastructure (to be discussed in
sections 3.6 and 5.5 again). However, these certainly will provide an added value in
the training of prospective CAs as students would have to apply themselves and prove
by way of a specific assessment standard that they understand professional values,
ethics and attitudes.
The teaching of professional values, ethics and attitudes will be discussed in depth via
an empirical study done at RAU. The empirical study will be discussed in Chapter 7 of
this study.
2.6.3.4 Workplace learning and professional values, ethics and attitudes
Professional values, ethics and attitudes affect the work of all CAs. Proper ethical
behaviour is as important as technical competence (IFAC, 2003a: 64). Member bodies
will require trainees to gain appropriate training and practical experience prior to
admission to membership. Accordingly, the period of training and practical experience
needs to be structured to give trainees an opportunity to observe the application of
professional values, ethics and attitudes in the work situation.
Those responsible for the supervision of practical experience need to stress to their
trainees the ethical dimensions of the role CAs play in the workplace (IFAC, 2003a: 65).
This may be done by encouraging them to:
identify any apparent ethical implications and conflicts in their work;
form preliminary views on such occurrences; and
discuss them with their superiors (IFAC, 2003a: 65).
Trainees, and those recently qualified as CAs, would also benefit from exposure to, and
involvement in, discussions on relevant issues relating to the work of their employers
that are perceived to have potential ethical implications, for example conflicts of interest
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related to:
CAs’ job responsibilities (including responsibilities defined by the policies of
organisations and the instructions of supervisors) and their professional
responsibilities (as defined by their professional codes of conduct amongst other
sources);
confidentiality of information, including the limits of confidentiality;
the structure and purpose of professional associations (including lobbying
activities on behalf of members);
the variety of ways in which CAs can face conflicts of interest, including, for
example, inappropriate advocacy and earnings management (IFAC, 2003a: 65).
Ethical problems and potential dilemmas may occur. Where there is doubt about the
ethical aspects of a course of action or situation, trainees need to consult some
recognised ethical reference point, within their work environment or member body,
whichever may be the appropriate course of action (IFAC, 2003a: 65).
2.6.4 Continuous professional development
2.6.4.1 Introduction
In all the Standards for the education of CAs prescribed by IFAC, the issue of
professional values, ethics and attitudes has been highlighted. These Standards
furthermore also highlight the issue of LLL and CPD. For this reason IFAC issued
Standard IES 7 - Continuing professional development (IFAC, 2004a: 1-12).
2.6.4.2 Purpose and scope
IES 7 prescribes that member bodies:
foster a commitment to LLL among CAs;
facilitate access to CPD opportunities and resources for their members;
establish benchmarks for members for developing and maintaining the
professional competence necessary to protect the public interest; and
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monitor and enforce the continuing development and maintenance of
professional competence of CAs (IFAC, 2004a: 1).
This Standard is based on the principle that it is the responsibility of the individual CA to
develop and maintain the professional competence necessary to provide high quality
services to clients, employers and other stakeholders.
IES 7 is of the opinion that member bodies should implement a CPD requirement as an
integral component of a CA’s continued membership (IFAC, 2004a: 1) (refer to the
questionnaire in APPENDIX B, statement 39). Such a requirement contributes to the
profession’s objective of providing high-quality services to meet the needs of the public
(including clients and employers).
CPD is not just a requirement within the CA profession. Ongoing professional
development is also a requirement for example within the medical profession and the
chartered management accountant profession. In a document produced by Certified
Management Accountants (hereafter CMA) Canada (2002: i), this is stipulated as:
“Certified Members will be required to complete a minimum of 75 hours of Ongoing
Professional Development over a three-year period.”
CPD refers to learning activities that develop and maintain capabilities to enable CAs to
perform competently within their professional environments (IFAC, 2004a: 1). CPD
does not stand alone as just another one of the IFAC Standards; it is an integrated
approach to the training of CAs. This is clear when one reads IES 4 – Professional
values, ethics and attitudes, and the reader is reminded that IES 4 and IES 7 should be
read as a whole.
A fundamental principle of the IFAC Code of Ethics for Professional Accountants states:
“A professional accountant has a continuing duty to maintain professional knowledge and
skill at the level required to ensure that a client or employer receives the advantage of
competent professional service based on current developments in practice, legislation and
techniques” (IFAC, 2003a: 61; IFAC, 2004a: 2/3).
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CAs face increased knowledge and skill expectations. They and their professional
associations also face unprecedented scrutiny about the quality of internal control,
governance, financial statements and independent audits. These pressures apply to
CAs in both the private and public sectors.
In addition, the need to be competitive in a worldwide economy has prompted a more
intense focus on the role and responsibilities of CAs in entities of all types. CAs in all
sectors have important contributions to make. Continued development of professional
competence and LLL is critical if the CA is to meet these expectations (IFAC, 2004a: 1,
2). The profession has a responsibility to ensure that CAs continue to develop and
maintain the competence demanded by their professional roles and the users of their
services.
On its own, CPD does not provide the assurance that all members will provide a high
quality professional service all the time. Achieving this involves more than maintaining
professional competence; it involves applying knowledge with professional judgement
and an objective attitude (IFAC, 2004a: 1).
Also, there cannot be assurance that every person who participates in a CPD
programme will obtain the full benefits of that programme, because of variances in
individual commitment and capacity to learn. Nevertheless, it is certain that members
who are not up-to-date on current technical and general knowledge pertinent to their
work will not be able to provide professional services competently. Therefore, despite
the inherent limitations of any CPD programme, a CPD requirement is important to
maintaining public confidence (IFAC, 2004a: 1/2).
SAICA’s vision of CPD will be discussed in Chapter 3 in detail.
2.6.5 Promotion of lifelong learning
Member bodies should promote the importance of continuous improvement of
competence and a commitment to LLL for all CAs (IFAC, 2004a: 3) (refer to the
questionnaire in APPENDIX B, statement 18). All CAs have an obligation to develop
Demarcating an educational framework for the training of chartered accountants nationally and internationally
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and maintain their professional competence, relevant to the nature of their work and
professional responsibilities. This obligation applies to all CAs, irrespective of whether
they are involved in traditional accounting fields or other areas (IFAC, 2004a: 3).
The process of LLL commences early, continuing with the education programme to
become qualified as a CA, and on through an individual’s career. CPD is an extension
of the education process that led to qualification as a CA. The professional knowledge,
professional skills, and professional values, ethics and attitudes gained by the time of
qualification continue to develop and are refined appropriately for the professional
activities and responsibilities of the individual (IFAC, 2004a: 3).
CPD will be discussed again in Chapter 3 to this study.
2.7 PRESCRIBED CONTENT OF CHARTERED ACCOUNTANT EDUCATION PROGRAMMES – A SOUTH AFRICAN PERSPECTIVE
2.7.1 Introduction
Various training routes are recognised within SAICA (SAICA, 2003a: 1). From FIGURE
2.7 (on the following page) one can see that a student wishing to qualify as a CA may
choose to follow one of two routes: either Training Inside Public Practice (hereafter
TIPP) or Training Outside Public Practice (hereafter TOPP) (SAICA, 2003a: 1).
Within the TIPP programme training will take place at a Registered Training Office
(hereafter RTO) of a firm of approved registered accountants and auditors with a
minimum required training period of 36 consecutive months if the student is in
possession of a recognised degree or academic equivalent.
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CTA (e.g. B.Com Honours in Accounting) or equivalent
EDUCATION TRAINING
Completed B degreeor academic equivalent
Three year training contract
Completed B degreeor academic equivalent
Qualifying Examination (QE) Part I (SAICA)
Complete specialist course in auditing
Complete specialist course in financial management
Public Practice Examination (PPE)(PAAB)
Minimum 18 months’ practical experience(training contract) and a pass in QE Part I
Registered Accountant and Auditor
CA(SA) RAA
Five yeartraining contract
No formal degree
Minimum 18 months’ practical experience(training contract) and a pass in QE Part I
Qualifying Examination (QE) Part II(SAICA)
Chartered AccountantCA(SA)
Complete CTA or equivalentFour yeartraining contract
No formal degree
TIPP TOPP
RTO ATO/RTO
FIGURE 2.7: Qualifying as a chartered accountant
SOURCES: SAICA, 2003a: 7 (adapted); Marx, Schönfeldt, Van der Watt & Potgieter,
2006: 11 (adapted)
Within the TOPP programme training will take place at an Approved Training
Organisation (hereafter ATO), in either commerce or industry or the public sector, with
Demarcating an educational framework for the training of chartered accountants nationally and internationally
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a minimum required training period of 36 consecutive months if the student is in
possession of a recognised degree or academic equivalent or 60 consecutive months in
the case of non-graduates. Remission of 12 months will be granted on the attainment
of a relevant degree or academic equivalent (SAICA, 2003a: 1).
An ATO/RTO is an environment approved by SAICA as suitable for training prospective
members of SAICA, either in commerce and industry, public practice or the public
sector. No firm/organisation will be excluded solely on the grounds of size or sector.
The most important criterion will be the ability to deliver the appropriate breadth, depth
and quality of training (SAICA, 2003a: 3).
Under the auspices of SAICA it used to be possible to qualify at any one of three levels,
namely the CA, Associate General Accountant (hereafter AGA) and Associate Accounting
Technician (hereafter AAT) level. In 2004 the SAICA Board took a decision to
discontinue the AGA(SA) and AAT(SA) colleges but there are however still trainee
accountants in the system who still need to qualify. Current AGA(SA) and AAT(SA)
designation holders may however retain their association status with SAICA (SAICA,
2003a: 3).
2.7.2 Training as a chartered accountant
From FIGURE 2.7 it can be seen that students wishing to qualify at the CA level can
do so by means of either the TIPP or the TOPP route. If one is training for the audit
specialisation, the training must be done at an RTO. In respect of training for the
financial management specialisation, the training must be done at an ATO. However, if
a firm of registered accountants and auditors can offer training in the financial
management specialisation because of specialist departments within the firm, that
training environment may apply for recognition as an ATO (SAICA, 2003a: 8).
Various other accounting bodies play a role in South Africa. Of these the CPA
designation of the Institute of Certified Public Accountants of South Africa (now known
as the South African Institute of Professional Accountants or SAIPA) is well known.
These accountants mainly act as accounting officers for close corporations (SAIPA,
Demarcating an educational framework for the training of chartered accountants nationally and internationally
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2006).
In South Africa only SAICA manages the designation CA(SA). A separate registration is
needed for a CA wishing to act as an auditor, namely Registered Accountant and
Auditor (hereafter RAA). At the writing of this chapter, the RAA designation was
controlled by the PAAB and will in future be controlled by the IRBA. No person other
than a person holding both the CA(SA) and RAA designations may act as an auditor for
companies.
2.7.3 The training environment
A suitable environment is one with a stated commitment to provide training for
prospective members of SAICA and should contain adequate training structures or
facilities. Features of a suitable environment will include:
an environment that is clearly conducive to the training of professional
accountants;
a clearly defined policy for keeping staff up to date with developments in the
profession (e.g. a commitment to CPD);
a senior person responsible for the coordination of training who is well versed in
SAICA’s training and admission requirements;
members of the relevant Colleges who are capable and willing to act as mentors
and/or training officers;
a formal training programme;
an adequate spread and mix of work providing
o an acceptable range, depth and continuity of experience;
o opportunities for personal and professional development, and in
particular, arrangements for ensuring that trainees acquire an
understanding of the ethical dimension of the profession;
the ability to provide continuing quality monitoring and supervision, especially
adequate time for on-the-job training and counselling; and
arrangements for
o trainees to attend the necessary lectures;
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o monitoring the academic progress of trainees and counselling the
trainees accordingly (SAICA, 2003a: 3).
To achieve the levels of competence deserving of the public’s trust, professional
associations (such as SAICA) have a direct interest in standards of preparation, service
and practice. SAICA monitors the quality of education at accredited universities and in
training offices, as was pointed out in the last bullet of the previous list (SAICA, 2003b:
5).
It is also important to note that SAICA is an Education and Training Quality Assuror
registered with the South African Qualifications Authority (refer to section 2.2.4 for a
discussion), which means that SAICA facilitates access, mobility and progression within
education and training of CAs but also provides the necessary input to enhance the
quality of education and training of CAs.
One also has to remember that, in the case of SAICA, the responsibility for
qualification-based preparation is furthermore shared with providers and statutory
bodies such as the PAAB, the CHE and the DoE (Prozesky, 2001: 11).
2.7.4 The goal of training
The goal of accounting education and training must be to produce competent
professional accountants who make a positive contribution over their lifetimes to the
profession and to the society in which they work. The maintenance of professional
competence in the face of increasing change makes it imperative that accountants
develop and maintain an attitude of learning to learn (SAICA, 2003a: 8).
The education and training of professional accountants must provide a foundation of
knowledge, skills and professional values that will enable them to continue to learn and
adapt to change throughout their professional lives (SAICA, 2003a: 8) (refer to the
questionnaire in APPENDIX B, statement 7).
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2.7.4.1 Knowledge fundamental to training
There are four main categories of topics, which are fundamental to the work of CAs
specialising in auditing. These are:
auditing;
accounting, financial management and secretarial services;
business information systems; and
taxation and estates (SAICA, 2003a: 12).
A detailed inspection of these four areas provides the following information. In each of
the cases it commences with the general outcomes pertaining to CAs followed by a
detailed analysis of the various assessment standards.
a) Auditing
Outcomes Assessment standards
Expressing an audit opinion as to the fairness
of financial statements and compliance with
applicable statutes; and
the audit of other reports and representations
of a financial nature.
Preparing and updating systems notes
Evaluating systems in general
Planning an audit
Evaluating audit risk
Test of controls
Substantive testing
Evaluating results of audit testing
Reporting to management
The auditor’s report on financial statements
Special purpose audit reports
SOURCE: SAICA, 2003a: 13
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b) Accounting, financial management and secretarial services
Outcomes Assessment standards
Prepare and advise on financial information
for internal or external reporting purposes;
and
provide consulting support to management,
mainly of a financial nature.
Initiating accounting entries
Preparing financial statements in accordance
with GAAP
Analysing financial statements
Forecasting and budgeting
Reporting as an accounting officer
Review/preparation of statutory records
SOURCE: SAICA, 2003a: 13/14
c) Information technology
Outcomes Assessment standards
Effective communication with computer audit
and information systems specialists;
the ability to recognise potential computer
applications; and
the evaluation of existing computer
applications.
Practical computer experience
Impact of computers on controls
Computer-assisted audit techniques
SOURCE: SAICA, 2003a: 14
d) Taxation and estates
Outcome Assessment standards
Interpretation and application of laws and
procedures relating to taxes levied in terms
of the Income Tax Act.
Preparation and/or review of tax
computations for corporates and individuals
Preparation and/or review of VAT calculations
SOURCE: SAICA, 2003a: 14
2.7.4.2 Skills fundamental to training and development
A training programme should provide a wide range of experience that is structured,
progressive in content and responsibility and non-repetitive (SAICA, 2003a: 9).
Training and the gaining of experience will be complementary to formal educational
programmes and should form a valuable basis for career development. It is in the
interests of all concerned (i.e. the trainee, the training officer and the profession) that
Demarcating an educational framework for the training of chartered accountants nationally and internationally
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the period of training should be used effectively, with the trainee gaining breadth and
diversity of experience at progressive levels of responsibility.
The training offered by ATOs/RTOs should be of sufficient depth for trainees to develop
inter alia the following skills (refer to the questionnaire in APPENDIX B, statement
16):
a) Intellectual skills
The capacity for inquiry, research, abstract logical thinking, inductive and
deductive reasoning and critical analysis;
the ability to identify and solve unstructured problems in unfamiliar settings and
to apply problem-solving skills in a consultative process;
the ability to select and assign priorities within the parameters set by restricted
resources and to organise work to meet tight deadlines;
the ability to adapt to change; and
the ability to apply accounting knowledge in solving real world problems (SAICA,
2003a: 9).
b) Interpersonal skills
The ability to work with others, particularly in groups, to influence them, to lead
them and to withstand and resolve conflict;
the ability to interact with culturally and intellectually diverse people; and
the ability to negotiate acceptable solutions (SAICA, 2003a: 9).
c) Communication skills
The ability to present, discuss and defend views effectively through formal and
informal, written and spoken language;
the ability to listen effectively; and
the ability to locate, obtain, organise, report and use information from human,
printed and electronic sources (SAICA, 2003a: 10).
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2.7.4.3 Professional values
The training programme must provide potential CAs with a framework of professional
values for exercising good judgement and for acting in an ethical manner that is in the
best interests of society and the profession (SAICA, 2003a: 10).
Professional values pervade the work of CAs, wherever they may be engaged. Proper
technical competence and ethical behaviour are of equal importance. Accordingly, the
period of practical training should be structured to provide the prospective CA with an
opportunity to observe the application of ethics in the work place (SAICA, 2003a: 10).
Professional values are made up of the following components:
a commitment to act with integrity and objectivity and to be independent under
applicable professional standards (refer to the questionnaire in APPENDIX B,
statement 17);
a knowledge of the standards of professional ethics;
a concern for the public interest and sensitivity to social responsibilities; and
a commitment to LLL (SAICA, 2003a: 10) (refer to the questionnaire in
APPENDIX B, statement 67).
Although the issue of professional values, ethics and attitudes is discussed in depth in
other SAICA documents (which will be discussed in Chapter 3 to this study), there is
one remark in the section dealing with training of CAs: “the training officer should
ensure that the Code of Professional Conduct is explained to all trainees at an early
stage in their employment” (SAICA, 2003a: 11). Perhaps there should have been
greater mention in this document about this very important issue for all CAs worldwide.
In its training manual, SAICA (2003: 11/12) mentions the ‘continuity of supervision’.
What is more important is SAICA’s commitment to CPD. “In order to ensure that those
who supervise are themselves up to date, all partners, managers and professional staff
in the office or managers in the organisation must be aware of Continuing Professional
Development (CPD) and be given the opportunity to meet their CPD obligations.”
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2.8 A SUMMARISED INTERNATIONAL AND NATIONAL COMPARISON OF THE TRAINING OF A CHARTERED ACCOUNTANT
To compare the training of CAs prescribed by SAICA and the training as prescribed by
IFAC, a tabular approach will be used in TABLE 2.3. The comparisons will be done on
the basic outline as provided in the various IFAC and SAICA documents pertaining to
training and education (IFAC 2003a, 2004a; SAICA 2003).
The prescriptions of IFAC will be used and that of SAICA will be compared with them.
TABLE 2.3: A training comparison of chartered accountants
IFAC SAICA
General remarks
“This document (i.e. International Education
Standards for Professional Accountants) outlines
subject areas rather than actual courses (IFAC,
2003a: 30)”. (Author’s own emphasis)
“The document (i.e. SAICA Training Guidelines) is
not to set out a uniform programme, but rather
to provide guidelines to facilitate the review and
development of a training programme” (SAICA,
2003a: 8/9)”. (Author’s own emphasis)
Professional knowledge component
Accounting, finance and related knowledge
Organisational and business knowledge
Information technology (IFAC, 2003a: 42)
Auditing
Accounting, financial management and
secretarial services
Business information systems
Taxation and estates (SAICA, 2003a: 12).
Critical comment:
Even though SAICA indicates the main categories of topics which are fundamental to the work of
CAs specialising in auditing within four components, it generally agrees with the components listed
by IFAC using three categories. It is noticeable, however, that SAICA includes Auditing as one of
the components, thereby raising the bar on the knowledge component needed.
Non-professional knowledge (skills) component
Intellectual skills
Technical and functional skills
Intellectual skills
Interpersonal skills
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IFAC SAICA
Personal skills
Interpersonal and communication skills
Organisational and business management
skills (IFAC, 2003a: 52)
Communication skills (SAICA, 2003a: 9-10)
Critical comment:
SAICA collapsed both the personal and interpersonal skills prescribed by IFAC into one component.
The technical and functional skills, as well as the organisational and business management skills, are
evident in all three skills listed by SAICA, but were not grouped as separate skills. One cannot
however infer that by collapsing these it is now less important than that which IFAC requires.
General education component
Understanding of the flow of ideas and
events in history, the different cultures in
today’s world and an international outlook.
A basic knowledge of human behaviour.
A sense of the breadth of ideas, issues and
contrasting economic, political and social
forces in the world.
Experience in inquiry and evaluation of
quantitative data.
The ability to conduct inquiry, carry out
logical thinking and understand critical
thinking.
An appreciation of art, literature and science.
An awareness of personal and social values
and of the process of inquiry and judgement.
Experience in making value judgements.
(IFAC, 2003a: 57)
INDUCTION COURSES
On joining an ATO/RTO and before
undertaking responsible practical work or
contact with clients it is important that
trainees undergo an induction programme.
The purpose of such an induction programme
should be to give the trainee a preliminary
introduction to the work, practices and ethics
of the profession and an overview of its role
in the business community.
The trainee should also be introduced to the
working systems of the ATO/RTO. (SAICA,
2003a: 9)
Critical comment:
Both SAICA and IFAC refer to a general education component. In the case of SAICA it is called an
induction programme. On closer inspection it is actually clear that these two have absolutely
nothing in common. SAICA mentions the induction programme as an introductory programme for
new trainees. IFAC mentions its general education component in a sense that any person wishing
to become a professional accountant needs a knowledge component that is greater than just the
sum of accounting and auditing. IFAC’s components also seem to have more of a skills dimension,
rather than being made up of ‘mere knowledge’.
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IFAC SAICA
Professional values, ethics and attitudes
The coverage of values and attitudes in education
programmes for CAs should lead to a
commitment to:
the public interest and sensitivity to social
responsibilities;
continual improvement and LLL;
reliability, responsibility, timeliness, courtesy
and respect; and
laws and regulations (IFAC, 2003a: 62).
Professional values are made up of the following
components:
a commitment to act with integrity and
objectivity and to be independent under
applicable professional standards;
a knowledge of the standards of professional
ethics;
a concern for the public interest and
sensitivity to social responsibilities; and
a commitment to LLL (SAICA, 2003a: 10).
Professional values pervade the work of CAs,
wherever they may be engaged. Proper technical
competence and ethical behaviour are of equal
importance. Accordingly, the period of practical
training should be structured to provide the
prospective CA with an opportunity to observe
the application of ethics in the work place
(SAICA, 2003a: 10).
Critical comment:
Both bodies highlight the importance and outcomes of professional ethics, values and attitudes
within the CA profession. Where IFAC prescribes the contents of what a professional ethics, values
and attitudes education programme should consist of, SAICA looks at it more from an experiential
viewpoint once the CA is in practice. A more detailed discussion of professional ethics, values and
attitudes will be given in Chapter 4 to this study.
Continuous professional development
Education Standard IES7 - Continuing
professional development (IFAC, 2004a: 1-
12).
The education and training of professional
accountants must provide a foundation of
knowledge, skills and professional values that
will enable them to continue to learn and
adapt to change throughout their
professional lives (SAICA, 2003a: 8).
“ … must be aware of Continuing Professional
Development (CPD) and be given the
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IFAC SAICA
opportunity to meet their CPD obligations”
(SAICA, 2003a: 12)
Critical comment:
Both bodies highlight the importance and outcomes of continuous or continued professional
development within the CA profession. A more detailed discussion of CPD will be given in Chapter 3
to this study.
SOURCES: IFAC, 2003a & 2004a; SAICA, 2003a
Even though the education and training requirements prescribed by IFAC are not
incorporated to the letter by SAICA, one may be assured that everything and more than
IFAC requires has been included in the education and training requirements of SAICA.
2.9 SUMMARY
Following the election of South Africa’s first truly democratic government, education
and training within South Africa was restructured and transformed.
The establishment of the NQF and the SAQA were key accomplishments of the first
democratic government within South Africa where a new structure was designed with
the aim of improving the quality of education in South Africa. The NQF is a framework
for the provision of LLL opportunities in accordance with nationally agreed qualifications
levels.
In 1995 the National Commission on Higher Education came about as a result of White
Paper 3 and set out the needs and challenges of higher education. In 1997 this was
followed with the promulgation of the Higher Education Act of 1997.
In order to meet the demands of the 21st century, the National Plan for Higher
Education identified policy goals and strategic objectives which are critical for the
transformation and reconstruction of the higher education system. One of these goals
is to expand the general access to higher education from 15% to 20% over the next
Demarcating an educational framework for the training of chartered accountants nationally and internationally
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ten to fifteen years.
The most fundamental aspect that came about following the National Plan for Higher
Education was the consolidation of the number of higher education institutions in the
country and the publication of the Higher Education Qualifications Framework. It
proposed a single qualifications framework for all higher education qualifications in line
with the NQF that establishes common parameters and criteria for qualifications design.
The history of the public accounting profession in South Africa can be traced back to
1894 when the first organised body of accountants in the country was established.
Over the years several abortive attempts were made to introduce controlling legislation
for the professional accounting profession and eventually in 1951 the Public
Accountants' and Auditors' Act was enacted. The Act provided for the establishment of
a register of public accountants and auditors but also provided for the establishment of
the PAAB.
Nearly a century after the establishment of the first organised body of accountants in
the country, SAICA was established. From that time onwards, the PAAB has continued
as the statutory regulatory body looking after the public interest whereas SAICA has
operated as the body servicing the needs of its members.
A major change to the accounting profession has come about with the signing of the
new Auditing Profession Act on 16 January 2006. This Act establishes a new juristic
person to be known as the Independent Regulatory Board for Auditors as the successor
body to the PAAB, which will regulate the auditing profession.
Accounting has historically been looked upon as a profession that plays an important
role in society. However, rapid change has also been a predominant characteristic of
the environment in which the CA works. To meet these challenges, the profession
needs to ensure that individuals becoming CAs achieve an agreed level of competence,
which is then maintained. This also opens up the profession to criticism, however.
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To meet these challenges, educators delivering professional accounting education
programmes at an undergraduate level will also need to respond to the changing needs
of the individual CA. Education programmes need to include reflection: students should
be required to consider an incident and the approach that should be taken in future in
similar circumstances. Achieving the goal of providing a foundation for LLL requires a
thorough grounding in the professional knowledge, skills and values, ethics and
attitudes essential to professional competency.
IFAC has developed International Education Standards for Professional Accountants and
all IFAC member bodies (of which SAICA is one) are expected to comply with these.
IFAC recognises, however, that the accounting profession throughout the world
operates in environments with different cultures and regulatory requirements.
Within these IESs an emphasis is placed on a universal set of knowledge, skills and
professional values broad enough to enable adaptation to constant change but also to
produce competent professional accountants. These IESs address the education and
practical experience needs of prospective CAs; their dynamic profession; the importance
of LLL and CPD and the importance of competence assessment throughout their
training but also whilst practising.
CPD refers to learning activities that develop and maintain capabilities to enable CAs to
perform competently within their professional environments and does not stand alone
as just another one of the IFAC Standards; it is an integrated approach to the training
of CAs.
CAs face increased knowledge and skill expectations. In addition, the need to be
competitive in a worldwide economy has prompted a more intense focus on the role
and responsibilities of CAs in entities of all types. Continued development of
professional competence and LLL are critical if the CA is to meet these expectations.
The profession has a responsibility to ensure that CAs continue to develop and maintain
the competence demanded by their professional roles and the users of their services.
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On its own, CPD does not provide the assurance that all members will provide a high
quality professional service all the time. Achieving this involves more than maintaining
professional competence; it involves applying knowledge with professional judgement
and an objective attitude. As such, the process of LLL commences early. It also
continues during the education programme to become qualified as a CA and on through
an individual CA’s career. CPD is an extension of the education process that led to
qualification as a CA.
The goal of accounting education and training must be to produce competent
professional accountants who make a positive contribution over their lifetimes to the
profession and to the society in which they work. A student wishing to qualify as a CA
in South Africa may choose to follow one of two routes: either TIPP or TOPP.
In South Africa only SAICA manages the designation CA(SA). A separate registration is
needed for a CA wishing to act as an auditor, namely Registered Accountant and
Auditor (RAA). The RAA designation is controlled by the PAAB and will in future be
controlled by the IRBA.
To achieve the levels of competence deserving of the public’s trust, professional
associations (such as SAICA) have a direct interest in standards of preparation, service
and practice. SAICA monitors the quality of education at associated universities and in
training offices. It is also important to note that SAICA is an Education and Training
Quality Assuror registered with SAQA, which means that SAICA facilitates access,
mobility and progression within the education and training of CAs but also provides the
necessary input to enhance the quality of education and training of CAs.
Even though the education and training requirements prescribed by IFAC are not
incorporated to the letter by SAICA, one may be assured that everything and more than
IFAC requires has been included in the education and training requirements of SAICA.
---o0o---
81
CHAPTER 3 Continuous professional development
through self-directed learning
3.1 INTRODUCTION
ven though CPD is something that CAs will engage with only once they have
qualified (i.e. after the ‘education’ phase), it is important that prospective CAs
become au fait with the skills involved in practising CPD. This study therefore
focuses on the skills needed by prospective CAs (i.e. at an undergraduate level) to
utilise CPD of ethics properly.
The goal of accounting education is to produce competent CAs capable of making a
positive contribution over their lifetimes to the profession and society in which they
work. Professional undergraduate education programmes share the goal of preparing
competent graduates who will successfully make the transition to the world of CAs.
Education programmes in undergraduate accounting should perhaps be designed to
expose prospective CAs to the strategies that might assist them to develop the ability to
become self-directed in continuing to learn after qualification.
In an era of exponential knowledge proliferation and technological change, society
demands continued professional accountability for competence. Maintaining this
professional competence in the face of the ever increasing changes accountants
E
Continuous professional development through self-directed learning
CHAPTER 3 82
encounter on a daily basis makes it essential that they develop and maintain an attitude
of learning to learn as part of their own CPD.
Supporting LLL requires a suite of complementary approaches including intelligent
teaching systems, design environments, performance support systems, on-demand
learning, coached simulation systems, intelligent help and advisory systems, and
collaborative systems.
This chapter focuses on the most important approach in support of LLL – namely, self-
directed learning (hereafter SDL). SDL will however have no effect if the learner does
not use problem-based learning (hereafter PBL) as well.
This chapter furthermore also puts some of the theory to be tested by way of the
questionnaire and as part of the empirical analysis in the spotlight. Where applicable,
the reader will be directed to an area that will be used as part of the questionnaire to
be described and discussed in Chapters 7 and 8 of this study.
This chapter commences by providing an overview of CPD. Even though the study is
focused on the skills needed in utilising CPD at an undergraduate level, it is important
to understand the role of CPD holistically. It also links CPD as it pertains to the CA by
looking at the links between competence, LLL and SDL. It then starts to investigate
and analyse the concepts of SDL, as well as PBL in detail.
In the section on SDL (section 3.3), it investigates current theories of learning and also
provides a historical perspective on SDL, some definitions, characteristics and skills
appropriate to SDL. Some myths, realities and challenges pertaining to SDL are also
discussed.
A detailed discussion of PBL and LLL is offered, but it still focuses on the link to SDL
and CPD. In the investigation the chapter will also provide both the positive and
negative aspects of these ‘theories’.
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Before the close of the chapter, a South African perspective on all of this is provided in
which the various aspects discussed are linked back to an approach that can be utilised
by prospective CAs at an undergraduate level.
3.2 CONTINUOUS PROFESSIONAL DEVELOPMENT
3.2.1 Introduction
Over the past 15 years or so, there has been mounting criticism of accounting
education. A number of reports and studies (mentioned in Chapter 2) criticised the way
learners are taught accounting at higher education institutions. Several authors (e.g.
Sundem, Williams & Chironna, 1990; Deppe, Sonderegger, Stice, Clark & Streuling,
1991; Lovell, 1992; May, Windall & Sylvestre, 1995; Adler & Milne, 1997a, 1997b;
Hasall, Lewis & Broadbent, 1998) addressed the lack of LLL and SDL skills that
accounting graduates (also prospective CAs) should possess for success in the
profession. The need for improved problem-solving, teamwork, communication, and
interpersonal skills is an issue that many of the reports and authors raise (Milne &
McConnell, 2001: 61/62).
Questioning whether higher education is generating the right kinds of learning
outcomes for graduates, however, is not something peculiar to accounting education.
Higher education has in general been subject to criticism by educationalists for its
failure to adequately provide graduates with the competencies needed to utilise their
knowledge base and to continue learning long after graduation (e.g. Barnett, 1992;
Gibbs, 1992; Candy, Crebert & O’Leary, 1994).
Even though the undergraduate education programme for CAs is prescribed by SAICA,
Candy et al., (1994) and Candy (1995) see universities cramming their undergraduate
programmes (also the undergraduate CA programmes) with technical content at the
expense of broader and more general aims, including LLL.
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Far too many learners, the educationalists argue, conceive of learning as acquiring,
memorising and reproducing facts rather than as making sense of these – i.e.
understanding the relationships between these facts. Far too many learners also
believe that teachers are responsible for the learning: they select the content, present it
and test whether it has ‘stuck’. Instead, learners should themselves be responsible for
their own learning (Milne & McConnell, 2001: 62).
As a means of overcoming these perceived deficiencies, educators have been called
upon to (IFAC, 2002b: 9/10; 2003a: 33-34):
adapt instructional methods and materials to the ever-changing environment in
which the professional accountant works;
pursue a curriculum that encourages students to learn on their own;
encourage students to be active participants in the learning process;
use assessment, measurement and evaluation methods that reflect the changing
knowledge, skills and values required of CAs;
integrate knowledge and skills across topics and disciplines to address many-
sided and complex situations typical of professional demands; and
emphasise problem-solving, which encourages identifying relevant information,
making logical assessments and communicating clear conclusions.
In order to ensure that learners are more active participants in the learning process,
educators need to use a broad range of learner-centred teaching and training methods
(IFAC, 2002b: 9/10; 2003a: 33-34) which may include:
case studies, projects and other means to simulate actual work situations;
working in groups;
using technology creatively;
problem-solving that involves identifying relevant information, making logical
assessments and communicating clear conclusions.
These will again be addressed in Chapter 5.
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Society also demands continued professional accountability for the competence of CAs
in an era of exponential knowledge proliferation and technological change (e.g. Houle,
1980; Rhoades, 1991; Cavanaugh, 1993). One essential way to meet this demand is to
engage in continuous professional education (after qualification) (Clark, 1980; Williams,
2001: 2). LLL has emerged as one of the major challenges for the worldwide
knowledge society of the future (Fischer & Scharff, 1998: 2) and the continued
development of professional competence and LLL is critical if the CA is to meet the
standard expectations set by the profession, employers and the general public (refer to
the questionnaire in APPENDIX B, statement 32).
Learning to learn involves developing skills and strategies that help individuals to learn
more effectively and to use these effective learning strategies to continue to learn
throughout life. This process results from, leads to, and enhances a questioning spirit
and a lifelong desire to learn (refer to the questionnaire in APPENDIX B, statements
46 & 67). Competence is therefore not a static term, but evolves over a lifetime of
learning.
Professional accounting bodies should require all CAs to develop and maintain
competence relevant and appropriate to their work and professional responsibilities
(IFAC, 2004a: 3). However, the responsibility for developing and maintaining
competence rests primarily with the individual CA (IFAC, 2004a: 4).
3.2.2 Definitions and descriptions
3.2.2.1 Continuous professional development
According to IFAC (2003a: 16), CPD for CAs can be defined as: “Learning activities for
developing and maintaining the capabilities of professional accountants to perform
competently within their professional environments.”
It is interesting that IFAC (2003a: 16) sees CPD as being aimed at “... the post-
qualification development and maintenance of professional competence” (refer to the
questionnaire in APPENDIX B, statement 43). SAICA (2005c: 1) however is of the
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opinion that this process should start during the pre-qualification education and training
process (i.e. undergraduate level) and continue after qualification (refer to the
questionnaire in APPENDIX B, statement 40). SAICA feels that higher education
institutions should encourage the development of LLL by, inter alia, making learners
take responsibility for their own learning and become active participants in the learning
process.
The focus of this study is precisely that: learners should be ‘taught’ how to use
CPD specifically for the acquisition of ethic principles at an undergraduate
level in order to use it to its fullest extent after qualifying as CAs.
Even though monitored CPD is compulsory from 2006 for all CAs in South Africa (SAICA,
2005d: 2), SAICA cannot provide the assurance that all members will provide high
quality professional service all the time (refer to the questionnaire in APPENDIX B,
statement 34). Doing so involves more than monitoring professional competence; it
would involve the application of that knowledge using professional judgement and an
objective attitude to further learning and enrichment (IFAC 2004: 2; SAICA, 2005c: 1;
SAICA, 2005d: 3) (refer to the questionnaire in APPENDIX B, statement 36). In their
CPD Policy, SAICA also states that members who do not comply with CPD requirements
will, as a sanction, be referred to SAICA’s Investigation Committee (SAICA, 2005d: 3)
(refer to the questionnaire in APPENDIX B, statements 38 & 39).
SAICA cannot be assured that every person who participates in a CPD programme will
reap the full benefits of that programme, because of variances in individual
commitment and capacity to learn (SAICA, 2005d: 3) (refer to the questionnaire in
APPENDIX B, statement 36). Despite the inherent limitations, a CPD programme is
important for an individual member to fulfil his/her professional activities and
responsibilities and the maintenance of professional standards, ethics and knowledge
(IFAC 2004a: 2).
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In Chapter 4 the issue of ethics (professional and otherwise) will be discussed in greater
detail and will be followed in Chapter 5 by looking at a way of teaching and learning
ethics by incorporating CDP as well.
3.2.2.2 Competence and continuous professional development
In the definition of CPD, developing and maintaining the capabilities of CAs to perform
competently within their professional environments was included as an outcome of CPD.
Competence, according to IFAC (2003a: 16), is “... being able to perform a work role
to a defined standard, with reference to real working environments.” According to
SAICA (2005d: 1) competence “... is the ability to perform the tasks and roles expected
of a professional accountant (CA), both newly qualified and experienced, to the
standard demanded by the profession, employers and the general public.” It is
interesting to note that the term ‘professional accountant’ is used here. The issue of a
CA being a professional will be discussed in detail in Chapter 4.
Competence therefore refers to the demonstrated ability to perform relevant roles or
tasks to the required standard. Whereas capability refers to the attributes held by
individuals that give them the potential to perform, competence refers to the actual
demonstration of performance.
The primary responsibility for competence lies with the CA, and all CAs have an
obligation to enhance and maintain their professional competence, relevant to the
nature of their work and professional responsibilities.
3.2.2.3 Lifelong learning and continuous professional development
In most current accounting curricula, learning is defined and measured in terms of
knowledge of principles, standards, concepts and facts as published by professional
bodies or regulatory agencies. This ‘transfer’ of a ‘body of knowledge’ approach to
education has been the traditional focus of accounting education, with the result that
the ‘accumulation of knowledge’ approach is these days no longer adequate (IFAC,
2003c: 9) (refer to the questionnaire in APPENDIX B, statements 16 & 25). The focus
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of accounting education must change from mere knowledge acquisition and
accumulation to one based on a 'learning to learn' approach – an LLL approach.
Osler (1935) holds that LLL practices need to be instilled at the commencement of
higher education and reinforced throughout the formal stage of learning (refer to the
questionnaire in APPENDIX B, statement 18). In order to transfer these practices to
students, as much emphasis should be placed on the ability to acquire and apply
knowledge as on the depth and breadth of the knowledge itself.
Cavanaugh (1993: 114) notes that, in practice, professionals acquire much more
learning from reading, discussions with colleagues, and experience than through formal
classroom training. Therefore, focusing on outcomes, she says that educators must
“…help students develop an effective system for learning that will facilitate their
transition from education to practice”.
CAs need to develop an attitude of LLL (SAICA, 2005d: 1). LLL can be described as
‘self-directed growth’. The process entails gaining knowledge and an understanding of
learning, and in particular, of how to direct one’s personal learning experience.
In the IFAC document International Education Standard for Professional Accountants
IES 7: Continuing Professional Development: A Program of Lifelong Learning and
Continuing Development of Professional Competence (IFAC, 2004a), it is said that LLL is
an integral part of the whole CPD process.
Learners in continuing education (i.e. LLL) have a special need for flexible SDL. They
need to choose the learning content according to their actual needs, as it is not
practical to demand that they work through a large, predefined curriculum. As they
have a fixed work schedule they also need to choose the learning time and place
(Areglado, Bradley & Lane, 1996: 26, 102; Böhne, Faltin & Wagner, 2002: 8).
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3.2.2.4 Self-directed learning and continuous professional development
As was previously stated, LLL is something a CA does for self-growth purposes or as an
investment in him- or herself. This means that new skills and knowledge are acquired
through SDL (SAICA, 2005d: 2). Interestingly, IFAC does not use the term SDL
anywhere in its definition and description of the CPD process. It does however refer to
SDL in the introduction to its Education Standards, where SDL is used as an ‘approach’
to learning (IFAC, 2003a: 33). This is important for this study as SDL would be
described as a vehicle for CPD at an undergraduate level. Professional education
programmes in undergraduate accounting must be designed to expose prospective CAs
to the strategies that can assist them to develop the abilities to become self-directed in
continuing to learn.
Taking the term competence, which was discussed earlier in this section, further, we
may say that for SDL, a learner should have the following competencies (Böhne et al.,
2002: 8/9; Ibrahim, 2002: 2):
self-observation, self-reflection, self-judgement;
development of own objectives;
reactivation of initial knowledge;
autonomous organisation of learning (e.g. time management);
autonomous development of learning motivation and concentration;
development of learning and problem-solving strategies; and
knowing when to seek the assistance of other learners or the tutor.
The crux of CPD lies in the fact that it is aimed at an LLL approach or a ‘learning to
learn’ approach. In further sections of this chapter, LLL and SDL will be investigated in
detail.
3.2.3 The need for continuous professional development of
chartered accountants
CPD is an extension of the learning process leading to qualification as a CA, where the
professional knowledge, professional skills and professional values, ethics and attitudes
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gained continue to develop and are refined and become appropriate for the professional
activities and responsibilities of the individual (IFAC, 2004a: 3) (refer to the
questionnaire in APPENDIX B, statement 45). When the CA recognises that learning
is necessary or desired, the individual will need to determine what is to be learned, how
best to learn it and how well it is to be learned. “This essentially means that
continuous professional learning needs to be self-directed” (Williams, 2001: 2).
CPD is applicable to all CAs, regardless of the sector or the size of business in which
they operate, because (refer to the questionnaire in APPENDIX B, statements 27 &
65):
all CAs have an ethical obligation of due care to their clients, employers and
relevant stakeholders and need to demonstrate their ability to discharge this
responsibility in a competent manner;
CAs in all sectors hold positions of importance involving financial reporting,
public accountability and maintaining the public trust;
the public is likely to rely on the designation or professional standing of the CA.
Moreover, all CAs carry the professional designation, and any lack of competence
or ethical behaviour has the same negative consequences for the reputation and
standing of the profession, irrespective of the sector or role in which they
operate;
all sectors are affected by the rapidly changing environment and the consequent
need to adapt the strategic or business plans of those organisations relying on
the CA’s professional competence; and
employers hiring CAs in any sector rely, at least to some extent, on the
professional designation as proof of professional competence (IFAC, 2004a: 4).
As this study concentrated on the use of CPD of ethics at an undergraduate level, one
may question why the applicability of CPD for CAs is mentioned above. The reason is
that prospective CAs should be exposed to CPD at an undergraduate level in order for
them to understand the potential consequences of not subscribing to this lifelong
process of learning.
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3.3 SELF-DIRECTED LEARNING
3.3.1 Introduction
SDL is critical when learning becomes an integral part of life driven by one’s desire and
need to understand something or to get something done, instead of merely solving a
problem given in a classroom setting. An LLL perspective implies that universities need
to prepare learners to engage in SDL processes because this is what they will have to
do in their professional and private lives outside of the classroom (Fischer & Scharff,
1998: 2) (refer to the questionnaire in APPENDIX B, statement 9).
3.3.2 Current theories of learning
Current trends in educational theory make the following fundamental assumptions
about learning (Fischer & Scharff, 1998: 3) and these are important precursors for the
analysis of SDL that is to follow in the next section.
3.3.2.1 Learning is a process of knowledge construction
Learning is a process of the social construction of knowledge, not of knowledge
recording or absorption (Harel & Papert, 1991; Maehl, 2000: 51); it is a process of
acquiring understanding and using a variety of strategies to improve the ability to attain
and apply knowledge and it requires environments in which learners can be active
designers and contributors rather than passive consumers (Fischer & Scharff, 1998: 4)
(refer to the questionnaire in APPENDIX B, statement 25).
In a study by Burroughs-Lange (1996), it was found that teachers (and not learners)
seem to be doing the cognitively demanding tasks during class time.
3.3.2.2 Learning is knowledge-dependent
As learning is knowledge-dependent, people use their existing knowledge to construct
new knowledge, requiring environments that support user-tailored information
presentations such as differential descriptions of new information (Fischer & Scharff,
1998: 4; Schmidt, 1983, 1993).
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3.3.2.3 Learning is situation-bound
Learning is highly tuned to the situation in which it takes place (Fischer & Scharff,
1998: 4) requiring environments that are domain-oriented and that support human
problem-domain interaction (the connection between people and the domain specific
problems that they face).
Schön (1983) calls this ‘reflection-in-action’, whereas Norman (1993) refers to it as
‘experiential mode’ and ‘reflective mode’. This action is known as ‘autodidactics’ and
the learner is referred to as an ‘autodidact’ (Greyling, Geyser & Fourie, 2002: 114) (also
see section 3.3.5.3). Because self-reflection is difficult, a human coach or a teacher can
help the learner to identify the breakdown situation and to provide task-relevant
information for reflection.
3.3.2.4 Learning needs to account for distributed cognition
Learning needs to account for distributed cognition (Fischer & Scharff, 1998: 4), by
which the knowledge and effort required to solve a problem is distributed among
various participants. Teaching in a classroom is often conceptualised very differently: it
is often fitted “into a mould in which a single, presumably omniscient teacher explicitly
tells or shows presumably unknowing learners something they presumably know
nothing about” (Hammond & Collins, 1991: 153). A critical challenge is a reformulation
and reconceptualisation of this misleading conception.
Learning is not limited to any discrete group of individuals. Even though educational
systems deal with ‘teachers’ and ‘learners’ as separate groups, in reality these labels are
not universally applicable (Fischer & Scharff, 1998: 4). As tasks and responsibilities
change, all individuals should be learning continuously (Kaufman, 2003: 1-2) (refer to
the questionnaire in APPENDIX B, statements 7 & 9). For example, educators who
are traditionally ‘teachers’ may desire to investigate new technologies to use in their
classrooms. However, when exposed to new technology and methodologies for
creating educational curricula, teachers become learners in order to understand how to
use new opportunities effectively (Fischer & Scharff, 1998: 4).
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3.3.2.5 Learning is affected by motivational issues
Learning is affected as much by motivational issues (Fischer & Scharff, 1998: 4) as by
cognitive issues requiring environments that allow people to experience and understand
why they should learn and contribute something to their field.
Motivation is commonly defined as an individual’s degree of persistence in undertaking
goal-directed behaviour (in this case self-directed behaviour) (Adler, Milne & Stablein,
2001: 1). The ability to promote high student motivation is a function of both the
student’s personal characteristics, e.g. his/her prior knowledge, as well as teaching
context – i.e. the learning methods relied upon (Adler et al., 2001: 1). Sadly, as Biggs
(1994) noted, it is all too often the case that models of learning focus exclusively on
one or the other.
A common factor that has been associated with the motivation potential of a learning
context is the amount of autonomy provided (Adler et al., 2001: 2). Autonomy will be
discussed in detail in section 3.3.5 (which investigates the characteristics of a self-
directed learner).
3.3.3 Historical perspective on self-directed learning
SDL has become a central theme in adult education, as evidenced by meta-analyses,
critical reviews of research, and annual international symposia and conferences devoted
solely to research on SDL, along with millions of ‘hits’ on this topic on various internet
sites (Brookfield, 1993: 227). SDL is also not a new concept.
The notion of self-direction in learners has existed under numerous different guises
from classical antiquity to the present day. Self-study played an important part in the
lives of such Greek philosophers as Plato and Aristotle. Other historical examples of
self-directed learners include Alexander the Great, Caesar and Descartes (Hiemstra,
1994: 1).
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Education literature provides evidence that philosophers and theorists have utilised
associated teaching and learning strategies since Socrates in the fifth century BC (Rossi,
2002: 2).
“I shall only ask him, and not teach him and he shall share the enquiry with me: and do you
watch and see if you find me telling or explaining anything to him, instead of eliciting his
opinion.”
(Socrates quoted by McQueeney, 1999: 1)
The ‘modern’ origins of SDL can be traced to John Dewey as far back as 1918. Dewey
proposed that all persons are born with unlimited potential for growth and development
(Williams, 2001: 3).
Almost one hundred years ago, William Osler implied that much of a practising
physician’s learning would not be done “under teachers,” but would be self-directed
continuing education. Despite his comments, SDL has only come to the attention of the
educational world in the past few years (Snell, 2000: 1). Osler (1935) wrote: “The
hardest thing to get into the mind of the beginner is that the education upon which he
is engaged is ... a life course, for which the work of a few years under teachers is a
preparation.”
In 1961, Cyril Houle was the first to popularise the term SDL when he described adults
involved in a learning activity without external support or guidance (Candy, 1992: 24).
This line of research was carried further by his student Allen Tough in 1967 and 1978
(Bonham, 1992: 48; Casworm, 1992: 56; Confessore, 1992: 7).
It is important to note at this stage that even though Houle and Tough expanded the
theory on SDL, Thorndike had in 1928 already shown empirically that adults could learn
– a new thought for his day (Bonham, 1992: 51).
In 1975, Malcolm Knowles defined SDL and his writing on SDL was born out of the
development of andragogical philosophy (Knowles, 1975: 19): the art and science of
teaching adults (Long, 1992: 37; Williams, 2001: 4).
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Most theorists however agree that andragogy is not really a theory of adult learning but
“they regard Knowles’ principles as guidelines on how to teach learners who tend to be
at least somewhat independent and self-directed” (Kaufman, 2003: 2). The various
instructional approaches associated with andragogy typically incorporate SDL principles
(Hiemstra, 1992: 103).
Andragogy is based on five assumptions about how adults learn and their attitude to
and motivation for learning (Barrows, 2000; Kaufman, 2003: 1-2). They are:
adults are independent and self-directing;
they have accumulated a great deal of experience, which is a rich resource for
learning;
they value learning that integrates with the demands of their everyday life;
they are more interested in immediate, problem-centred approaches than in
subject centred ones; and
they are more motivated to learn by internal drives than by external ones.
SDL skills, which are associated with LLL (Shokar, Shokar, Romero & Bulik, 2002: 197),
are particularly important in the medical field, where knowledge is continuously
changing and advancing (refer to the questionnaire in APPENDIX B, statements 11 &
28). How much more important is it in the field of chartered accountancy, where the
last decade has been filled with calls for ‘change’ and where actions have taken place
based on these calls (refer to the questionnaire in APPENDIX B, statement 28)?
It is very important to note that although Tough and Knowles looked at a similar aspect
of learning, they did so from different perspectives. Tough was more concerned with
the individual and his/her learner-orientated approach, whereas Knowles looked at the
learner engaged in group learning activities (Long, 1992: 37/38). Farquharson (1995)
and Brookfield (1980, 1981) documented how learning networks form the context
within which many SDL activities take place (Brookfield, 1985: 7).
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3.3.4 Defining self-directed learning
Perhaps because SDL is so central to the tenets of adult education (Mezirow, 1985), it
has been one of the high-interest topics of research for more than a decade.
Researchers, theorists, and practitioners have all asked the questions: What is SDL?
Who is engaged in it? What are the proper roles for educators and institutions wanting
to provide it?
Malcolm Knowles’ definition of SDL (1975: 18) was a “... process in which individuals
take initiative, with or without the help of others”, to diagnose their learning needs,
formulate learning goals, identify resources for learning, select and implement learning
strategies, and evaluate learning outcomes.
CAs will be familiar with many of the terms used in this definition, such as learning
needs, educational goals, resources, strategies and outcomes, as these are often
described as important factors in planning, implementing and evaluating formal (often
termed ‘other-directed’) activities.
Knowles did not insist that SDL be a solitary activity, but suggested that it might be
done with the help of others in a participative learning environment. He furthermore
argued that the adult learner moves from a state of dependence to increasing
independence in learning (Long, 1992: 37) but that this movement to SDL will differ
from learner to learner (Hiemstra, 1992: 108; Hiemstra, 1994: 134).
Kaufman (2003: 213) attempted to describe SDL as “organising teaching and learning
so that learning is within the learners’ control” and also remarked that SDL is “a goal
towards which learners strive so that they become able to accept responsibility for their
own learning”.
Studies on the effectiveness of learning in various environments have shown that adults
learn what they want to learn (i.e. self-efficacy or self-effectiveness) (Boyatzis, 2001: 5;
Kaufman, 2003: 214) and because they are task-orientated their learning may be linked
to problems, challenges or needs arising from their social or vocational roles (Greyling
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et al., 2002: 112). Other things, even if acquired temporarily (e.g. surface learning for
a test), are soon forgotten (Boyatzis, 2001: 11). In this way, it appears that most, if
not all, sustainable behavioural change is intentional.
Boyatzis (2001: 11) therefore defines SDL as “an intentional change in an aspect of
who you are (i.e., the real) or who you want to be (i.e., the ideal), or both.” SDL is
self-directed change in which you are aware of the change and understand the process
of change.
Based on initial descriptions of SDL by Brockett and Hiemstra (1991), Candy (1991) and
Caffarella (1993), Williams1 (2001: 4) described SDL as: “a self-initiated process of
learning that stresses that ability of individuals to plan and manage their own learning”
and “an attribute or characteristics of learners and a way of organising learning in
formal settings that allows for greater learner control.”
Mocker and Spear (Lowry, 1989: 1) included SDL in a descriptive model of LLL based
entirely on the locus of control for decision-making about the objectives and means of
learning. The model is a two-by-two matrix (FIGURE 3.1 on the following page) of
the learner and the institution; the SDL situation occurs when learners, and not the
institution, control both the learning objectives and the means of learning.
The following situations occupy the other cells of the matrix:
formal learning, in which institutions, not learners control the objectives (or
outcomes) and means (or method) of learning;
non-formal learning, in which learners control the objectives (or outcomes) and
institutions control the means (or method of learning) and it does not lead to
any qualification or recognition; and
informal learning, in which institutions control the objectives (or outcomes) but
learners control the means (or methods) of learning.
1 Williams refers to works of Hiemstra as ‘Heimstra’ in her research. All other resources consulted, however, use
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Formal learning
Non-formal
learning
Informal learning
Self-directed learning
Institution Learner
Learning outcome
FIGURE 3.1: Learning matrix
SOURCE: Own deductions and reasoning
Brookfield (1985: 14) has also provided many definitions or descriptions of SDL. These
include:
SDL implies both a philosophy and a process. The philosophy or goal is that of
personal autonomy and self-management of learning, the willingness or capacity
to conduct one’s own education; and
SDL is concerned with an internal change of consciousness but it is also an
activity or process that allows the independent pursuit of learning and learner
Hiemstra.
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control of goals, instructional strategies, content, pace and evaluation. In SDL
the learner manages learning and has control over the what, who, where, when
and how of learning.
Guglielmino (1992: 114) described SDL as a mode of learning characteristically found in
adults who are in the process of realising their adulthood by an internal change of
consciousness as well as an external management of instructional events.
Autonomous learners are characterised as independent, able to make choices based on
rational reflection and having a strong sense of personal values and beliefs (Garrison,
1992). A rationalist perspective of learning assumes that knowledge acquisition occurs
primarily as a result of individual cognitive study (Schmidt, 1993).
Even autonomous learners may however on occasion choose not to display or pursue
this characteristic. Factors that may influence learners may include familiarity with
content, degree of technical skill, sense of personal competence and the context of the
learning situation (Williams, 2001: 5).
Kroenke (2004: 1) defined SDL as a “process in which the learner is involved in
identifying what needs to be learned and takes the learning in finding ... answers.”
Ibrahim (2002: 2) agrees and also labels SDL as ‘self-planned learning’; ‘self-
instruction’; and ‘self-education’. Within SDL one must realise three important views,
namely:
SDL is a lifelong process: i.e. it is continuous and not ‘once and for all’;
SDL is an enabling technique: i.e. learners are actively involved in the process
and they are not ‘spoon-fed’; and
SDL is a humbling experience: i.e. learners realise that they learn constantly –
also from each other – and teachers realise that they have limitations in time
and knowledge and therefore are not the ‘encyclopaedia of all answers’
(Kroenke, 2004: 3).
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3.3.5 Characteristics or dimensions of a self-directed learner
There are a number of attributes that characterise good self-directed learners. Some
are personal characteristics that might be considered innate, for example the learner is
reflective, curious, and motivated – all attributes that allow the learner to ask questions
and define a learning gap. The learner is also confident, persistent, independent, self-
sufficient and flexible. These characteristics foster the learner’s management and
control skills. A self-directed learner is methodical and analytical. This allows the
learner to develop and use frameworks and see connections (Snell, 2000: 2).
Although the previous characteristics might be difficult to acquire or develop, the
following skills can be learned or modified:
the self-directed learner is skilled at the learning process and has a repertoire of
learning skills that can be adapted to a specific context;
the learner is information-literate, with good information-seeking and retrieval
skills; and
the self-directed learner is skilled at evaluating and assessing the relevance of
what he or she has learned and its application to practice (Snell, 2000: 2).
The central assumption underlying the work is that adult learners strive toward self-
direction and autonomy. The salient characteristics of adult learners constitute a major
contribution of the research on SDL (Williams, 2001: 5). Self-directed learners can be
characterised in four ways (e.g. Pintrich, 1995; Troskie-de Bruin, 1999; Greyling et al.,
2002: 114-115):
define their own needs and goals (i.e. exercise autonomy);
acquire information or skills that address these needs (i.e. independent pursuit
of learning);
use the new knowledge or skill and evaluate its effectiveness (i.e. self-
management of self-regulation); and
understand the process or steps of learning (i.e. learner control).
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Although these four dimensions overlap, one may attempt to distinguish between them.
3.3.5.1 Personal autonomy
A common factor that has been associated with the motivation potential of a learning
context is the amount of autonomy provided (Adler et al., 2001: 2). Gibbs (1979: 121)
notes this concept “... is probably the most familiar, for it is part of an individualistic,
anti-authoritarian ideology ... deep-rooted in Western capitalistic democracies.”
Personal autonomy can be described as having “... a disposition toward acting and
thinking autonomously in all situations (self-determination)” (Candy, 1991: 101). SDL
promotes learner autonomy, initiatives and control (Hammond & Collins, 1991: 120).
Students who are permitted the opportunity to choose and control their learning report
higher motivation, greater commitment, deeper involvement and more strategic
thinking; “Autonomy is synonymous with empowerment” (Adler et al., 2001: 2, 3).
Three additional overlapping components of autonomy can furthermore be identified
(Candy, 1991: 104), namely:
intellectual autonomy – a person will base his/her primary beliefs on his/her own
experience, reflection of evidence and sense of what is right and wrong;
moral autonomy – independent thought and capacity to carry into practice what
one has decided to do (i.e. tenacity or strength of will); and
emotional autonomy – a person will exercise self-mastery in the face of strong
emotional involvement (i.e. be emotionally detached).
3.3.5.2 Self-management (self-regulation)
In a conventional learning programme, decisions about learning will be made by the
educator or other relevant authorities. Learners are excluded from these decisions
(Hammond & Collins, 1991: 153). In an SDL situation, autonomy refers to a willingness
and capacity or “... an inclination to exert control over one’s learning endeavours (self-
management)” (Candy, 1991: 101). It is widely assumed that adults are involved in
some sort of quest for self-improvement and perhaps self-actualisation.
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Self-management includes the regulation of three aspects (Pintrich, 1995: 7; Craig,
1988: 4) namely:
regulation of behaviour – control by the learner of knowledge and skills to
utilise resources in the academic environment, e.g. time and physical
infrastructure;
motivation – responsibility by the learner to control and change attitudes and
beliefs to be successful in the learning process; and
metacognitive strategies – reflecting skills that learners utilise in their own
learning.
The encouragement of self-management of learning is consistent with the philosophy of
SDL; it prepares learners for continuing learning; and it takes account of individual
differences (Hammond & Collins, 1991: 153/154).
3.3.5.3 Independent pursuit of learning
Independent learning is part of SDL and it is that part of learning where the learner is
uncertain about something and enquires about it after performing self-reflection. This
activity is known as ‘autodidactics’ or ‘autodidaxy’ and the learner is referred to as an
‘autodidact’ (Hiemstra, 1994: 3; Greyling et al., 2002: 114). This merely means that
learning occurs outside formal instruction (Grow, 1991).
Other reasons why the learner may seek assistance outside of formal instruction as part
of the independent pursuit of learning would be for emotional support and
encouragement. Brockett and Hiemstra (1991: 12) refer to this as the “fellowship of
learning”.
3.3.5.4 Learner control
Learner control is an approach to learning and to planning instruction in which learners
assume control over the learning process. People may vary in their ability and capacity
for SDL but the individual’s willingness to take responsibility for his/her own learning
can be enhanced (Greyling et al., 2002: 115).
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In section 3.4.2 one is introduced to the teacher/learner-control continuum – the
learner moving from a state of total dependence on a teacher to a state of total
independence. The end state, however, is not independence but interdependence.
During this final stage, learners take responsibility (‘social responsibility’) not only for
their own learning but also for each other’s learning when using co-operative learning
methods (Hammond & Collins, 1991: 158; Parks Daloz, 2000: 105) and where students
are expected to be interdependent and co-responsible for the group’s learning (Grow,
1991: 58; Greyling et al., 2002: 115).
3.3.6 Skills needed for self-directed learning
To be characterised as a good self-directed learner, one therefore needs a number of
essential skills (Snell, 2000: 2). In order to define their needs and goals, learners must:
be able to reflect on practices, identify learning gaps, and have well-honed
questioning skills;
have well-developed information-location and retrieval skills (e.g. the ability to
search a computer database efficiently) in order to acquire information;
have well-developed critical appraisal skills to allow them to access and assess
the value of new knowledge;
be skilled at translating this newly gained knowledge into practice and reflecting
on the usefulness of the newly acquired knowledge or skills;
have an awareness of the steps of SDL and the ability to plan and document
learning, including understanding the process of learning. This metacognitive
ability – to stand back and look at the learning process with an awareness of
the structure of, or framework for learning – may lead to more effective
learning as it allows learners to adapt or modify their own learning process.
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3.3.7 Learner-centred approaches in self-directed learning
3.3.7.1 Introduction
As early as the 1930s, Dewey (Williams, 2001: 3) defined education as the agency for
growth and cautioned that “the teacher should be the one who guides, but does not
interfere with nor control the process of learning”. Fuller (1998: 3) explains that “...
effective learning focuses on the learner rather than the teacher, and it results in
classes that are quite different from what students often experience.” He quotes
Johann Comenicus (1630 in Fuller, 1998: 3) as saying that “... students do more
learning when teachers do less teaching”.
3.3.7.2 Teacher-centred learning versus self-directed learning
Teacher-control and learner-control should not be understood as a dichotomous,
mutually exclusive relationship but rather as a continuum, with teacher-control (total
teacher dependence) at one end and learner-control (or teacher independence) at the
other end (Candy, 1991: 10-11; Grow, 1991: 58, 65; Greyling et al., 2002: 115).
The following table (TABLE 3.1) illustrates the differences between teacher-directed
learning and SDL:
TABLE 3.1: Differences between TDL and SDL environments
Assumptions about
the learner
Teacher-directed
environment
Self-directed
environment
View of the learner The learner has a dependent
personality and the teacher
has the responsibility for the
decision-making of learning.
The individual learner
‘grows’ in capacity (i.e.
becomes more independent)
and needs to be self-
directed.
Role of the learner’s
experience
The learner’s learning
experience is of less value
than that of the teacher.
The teacher has the
responsibility of transmitting
The learner’s learning
experiences become an
increasingly rich resource for
learning.
As these resources are
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Assumptions about
the learner
Teacher-directed
environment
Self-directed
environment
information locked up in
resources to the learner.
essential for learning, the
learner exploits this along
with resources from various
experts (e.g. peers).
Learning readiness Learners become ready to
learn different things at
different levels of
maturation.
A given set of learners will
therefore be ready to learn
the same things at a given
level of maturation.
Individual learners have
different patterns of
readiness/maturation.
The learners’ ‘growth’ will
prescribe what they need to
know and at what stage this
need to happen.
This will normally develop
through the completion of
tasks and problems.
Learner orientation Learners see learning as the
accumulation of subject
matter.
Learning experiences are
organised according to units
of contents.
Learners are task- or
problem-orientated.
Learning experiences should
be organised (i.e.
structured) as task-
accomplishing or problem-
solving learning projects.
Learner motivation Learners are motivated to
learn in response to external
rewards e.g. certificates or
the fear of failure.
Learners are motivated to
learn in response to internal
incentives e.g. the desire to
achieve; the urge to grow;
the satisfaction of
accomplishment.
SOURCES: Knowles, 1975: 19-21; Areglado et al., 1996: 19; Vincent, 1999: 2
The Mocker and Spear descriptive model can furthermore be elaborated on by using the
Staged Self-Directed Learning Model developed to describe how learning programmes
might produce graduates who have self-direction (Grow, 1991: 58). The Staged Self-
Directed Learning Model (hereafter SSDL) takes its inspiration from the Situational
Leadership Model of Paul Hersey and Kenneth Blanchard (1988), presented in their
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influential text, The Management of Organizational Behavior. In this work, teaching
was reconceptualised in the following way:
different learners have different abilities to become self-directed;
teachers must adapt their teaching methods in response to these differences;
and
the basic tenets of self-direction can be taught.
If one now combines the outcomes of the Mocker and Spear model with the
Grow/Hersey and Blanchard model in tabular form (TABLE 3.2), one finds the
following:
TABLE 3.2: Comparison of the Mocker & Spear and Hersey & Blanchard Models of SDL
Mocker & Spear Model Grow/Hersey & Blanchard Model
(SSDL) Learning situation
Learning objectives controlled by ...
Means of learning controlled by ... Level of self-direction
Low self-direction Formal
learning
Institutions Institutions
Learner is dependent on the teacher for learning
Teacher is the authority or coach
Moderate self-direction Non-formal
learning
Institutions Learners
Learner is interested in learning
Teacher is the motivator or guide
Intermediate self-direction Informal
learning
Learners Institutions
Learner is actively involved in learning
Teacher is the facilitator
High self-direction Self-directed
learning
Learners Learners
Learner is motivated and self-directed in his/her learning
Teacher is the consultant or delegate
SOURCES: Adapted from Lowry, 1989; Grow, 1991
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These days, terms such as ‘lifelong learner’ and ‘an evidence-based approach to
learning’ are commonplace, and are often linked to SDL. Learning needs are expressed
in the form of focused questions or problems, which are solved using steps in learning.
These steps include (Snell, 2000: 2):
clarifying the issue to be solved;
deciding on the most efficient way to learn;
critically appraising the information acquired;
trying out the solution in practice;
evaluating the outcome; and
reflecting on the broader implications for learning in practice.
These changing philosophies of learning have been associated with a shift to
instructional strategies that foster and facilitate lifelong, self-directed and reflective
learners. These steps mentioned above are also closely linked with the PBL approach,
which will be discussed later in this chapter.
3.3.7.3 The lack of learner-centred approaches in the education of
chartered accountants
Educational philosophies at all levels of education have evolved over the past few
decades to a move from teacher-directed to self-directed (i.e. learner-centred) models
(Newman, 2002: 200). Even within the CA fraternity the call for more learner-centred
approaches to teaching has ‘fallen on deaf ears’ and surveys have revealed a
disappointing lack of learner-centred approaches (Adler & Milne, 1998: 12). The
question may be asked why higher education institutions generally have shied away
from these approaches.
Adler and Milne have found three reasons for this, namely:
a) Student readiness
The lack of student readiness creates a substantial barrier to the use of learner-centred
approaches such as SDL. In the study it was found that students were not mature
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enough to engage in self-directed activities, as they placed too great an expectation on
the role of the ‘teacher’ in the learning process. Another factor identified was
cultural/language divisions within the learning process (Adler & Milne, 1998: 12-15).
b) Teacher support mechanisms
Educator support mechanisms comprise teaching resources as well as structural support
(i.e. infrastructure) (Adler & Milne, 1998: 15). The lack of qualified ‘tutors’ and
adequate space to work with small groups (e.g. when utilising problem-based activities)
were cited as major barriers (Adler & Milne, 1998: 16).
Other issues identified were the lack of educator development in applying a learner-
centred approach rather than a teacher-centred approach and what was labelled as
‘university traditions’ (Adler & Milne, 1998: 17). This may refer back to the vision of
teaching within a faculty that must be filtered down within the faculty.
c) Non-reflective teaching approaches
Barriers listed here were the failure of teachers to keep abreast of educational
developments and to recognise skills development as a goal of learning. Educators
seem to be oblivious to their shortcomings and omissions in their teaching (Adler &
Milne, 1998: 17).
From the study it was also clear that the single focus of ‘teaching content’ coupled with
the lack of curriculum re-development were huge barriers in moving towards a learner-
centred approach (Adler & Milne, 1998: 17).
3.3.8 Myths, realities and challenges of self-directed learning
3.3.8.1 Introduction
In the previous sections, a detailed analysis of SDL in terms of its characteristics and
the current theories surrounding it was given.
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The next section will point out certain ‘controversial’ aspects of SDL by providing an
overview of the myths surrounding it, the realities of SDL and also the challenges one
faces in utilising it.
3.3.8.2 Myths of self-directed learning
a) Autonomy
Myth statement: Working in a group limits the freedom and self-directedness of a
single learner.
Most efforts to understand self-direction in learning to date have centred on the notion
of an instructional process in which the learner assumes a primary role in planning,
implementing, and evaluating the experience. Chené (1983: 40) addressed the concept
of autonomy, which she largely equated with SDL. Chené distinguished between two
meanings of autonomy, where one view is psychological and the other “is related to a
methodology which either assumes that the learner is autonomous or aims at achieving
autonomy through training”.
In a book entitled Self-Directed Learning: A Practical Guide to Design, Development,
and Implementation, Piskurich (1993:4) defines self-directed learning as “… a training
design in which trainees master packages of predetermined material, at their own pace,
without the aid of an instructor” (refer to the questionnaire in APPENDIX B, statement
44). This may be interpreted as implying that SDL is a process for the ‘single’ learner –
i.e. is not group-bound.
Even though Piskurich focuses on SDL as an individual ‘activity’, SDL in a group setting
is possible and may be a workable solution. Although the learner must coordinate the
preparation and implementation of the learning with the other learners in his/her group,
the character of SDL is not lost in a collaborative or group setting. It is therefore
important to note that SDL should not be confused with absolute autonomy (Böhne et
al., 2002: 10). One school of thought notes that SDL is based on the autonomous,
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independent individual (i.e. student) who chooses to undertake learning for personal
growth (Merriam & Caffarella, 1999).
In their analyses of learning, Strong (1977) and Chené (1983) argued that autonomy
cannot simply be equated with learner control over goals and methods of learning.
These authors assert that truly autonomous learning can only occur when learners have
full knowledge of all possible alternative learning methods. In practice it means that
when adults take action to acquire skills and knowledge in order to effect these
interventions, they are realising their autonomy in the act of learning and they are
investigating that act with a sense of personal meaning (Brookfield, 1985: 14; Areglado
et al., 1996: 28).
In the above one is made aware of the fact that the group activity of SDL may be
contrary to what the literature suggests about autonomous SDL. Kerka (1994: 4) took
her myth about SDL to the other extreme by pointing out that SDL is not about learning
in isolation. The solitary learner or so-called “intellectual Robinson Crusoe” is not what
SDL is about, as learning is increasingly being viewed within a social (group) or cultural
context.
SDL in a group environment typically involves a deeper commitment from teachers
because they need to focus their energy on each learner, as well as on the group as a
whole. Hiemstra (1988) has described this teaching-learning transaction in SDL
situations as a “learning partnership”.
b) Emancipation
Myth statement: Working in a group might lead to disempowerment of individuals.
Of all the models of SDL they reviewed, Merriam and Caffarella (1999: 304) found that
the Hammond and Collins model (1991) is the only one that explicitly addresses the
goal of promoting emancipatory learning and social action within a group as a central
tenet of SDL. In the Hammond and Collins model, learners critically examine the social,
political, and environmental contexts that affect their learning and develop both
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personal and social learning goals. However, Merriam and Caffarella found no studies
using this model as a conceptual framework.
Merriam and Caffarella (1999) also identified the promotion of emancipatory learning
and social action as one goal of SDL, as did O’Donnell’s (1999: 251) critical theory of
‘selves-directed learning’ in that it has as its purpose the emancipation of individuals
from domination and exploitation.
Brookfield (1980) found that learners working part of the time in isolation often come
together in what he calls a “fellowship of learning”, where competition among learners
is balanced with a degree of cooperation and sharing within a group. Can this perhaps
be seen as the emancipation of the individual in SDL?
c) Socio-cultural perspective
Myth statement: SDL fosters group conformity.
Schooler (1990) viewed self-directedness as a cultural adaptive mechanism that permits
a society to respond to change. Successful societies adapt more readily. According to
Vann (1996), there are studies that suggest self-direction is an orientation learned
through socialisation. Percival (1996) takes exception to this characterisation; she
distinguishes between learning as a social activity (the constructivist view) and as a
socialised, conditioned response (the behaviourist view), noting the oppressive potential
of behaviourism (Kerka, 1999: 2).
The constructivist perspective or view of learning assumes that knowledge acquisition is
a continuous process of building and reshaping understanding as a natural consequence
of experience in the world (Parks Daloz, 2000: 104). Constructivism has important
implications for teaching and learning, as this theory proclaims that learning is active
rather than passive (Kaufman, 2003: 215, 216). In addition, learning is also described
as a collaborative process in which the individual understanding has its roots in social
interaction.
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Another school of thought stresses the social construction of knowledge and the social
context of learning (Fischer & Scharff, 1998: 4). Maehl (2000: 51) asks: “Is SDL
possible if knowledge is socially or culturally constructed?” One of Brookfield’s
criticisms of SDL research (Long, 1994) was that it ignored the social context by
focusing on the individual, isolated learner – a notion also endorsed by Tough. Long
also refutes Brookfield’s criticism in an analysis of more than 50 studies where as much
as 90% of the studies were concerned with SDL in social settings.
3.3.8.3 Realities of self-directed learning
a) Empowerment to self-direction
For several decades SDL has been a major focus of adult education (Kerka, 1999: 1),
although the notion of its centrality in adult learning tends to be assumed without
question (Rowland & Volet, 1996: 90).
Similarly, in British learning centres, O'Mahony and Moss (1996: 30) found that adult
basic education learners identified a common bond and developed a collective self-
direction through work on a student committee; it also enhanced their sense of
individual self-direction.
A study of empowerment in community groups (Kerka, 1999: 2) suggests that group
learning processes can empower individuals to move from low to high self-directedness.
In addition, the enhancement of individual SDL abilities tends to help groups become
more empowering.
b) Communal learning
In order to use SDL, workers do not need to go through complex, comprehensive
programmes. SDL occurs in the workplace every day: when one worker asks advice
from another, SDL has occurred. SDL can be formalised in the workplace by providing
an environment that makes it acceptable for individuals to question and seek
information (Confessore, 1992: 9).
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Perhaps O'Donnell (1999: 251) goes the furthest in emphasising the collective over the
individual dimension when he presents a rationale for what he calls “selves-directed
learning”. Such communal learning is based on Habermas’s concept of communicative
rationality, part of which includes the process of reaching understanding through the
cooperative negotiation of common definitions of a situation.
Building on the liberatory approaches of Paulo Freire, O'Mahony and Moss (1996), note
that SDL can be used just like any other approach to deliver a traditional curriculum.
c) Assessment
Piskurich (1993: 30-31) points out that SDL cannot be effectively developed in
situations where either the content is so obvious and effective that it is difficult to
assess, or where the learning materials constantly change because of the dynamic
environment, with the result that learners are unable to study.
3.3.8.4 Challenges of self-directed learning
a) Self-directed learning must be ‘taught’
Learners must be prepared and orientated to use SDL in their learning. They should
not be “thrown into the strange waters of SDL” (Knowles, 1980). Because of this
variation in the readiness for self-direction, it is important to note that assistance will
have to be given to learners once they start the process of SDL by way of facilitation
(Brockett & Hiemstra, 1985: 33). There may be initial hesitancy, frustration and
confusion about the use of SDL and many educators will also require special training in
certain techniques that promote SDL and therefore LLL (Hiemstra, 1992: 107/108).
One such a technique is the use of case studies, which will be discussed in Chapter 5.
Despite the fact that the use of case studies in accounting education is likely to
increase, very little is known about how educators should use case studies. While it is
suspected, as Gallagher, Stevenson and Fordyce (1998: S49) suggest, for example, that
traditionally “the case study has been used to allow students to apply theories studied
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in courses to practical business problems”, this is not the only way in which accounting
educators can use case studies.
b) Self-directed learning and cross-cultural perspectives
Braman (1998) found a significant relationship between readiness for SDL and
individualism. The goals of an individual and his/her cultural group may be in conflict,
thus hindering the opportunity for self-direction. He argues that more research
examining SDL from cross-cultural perspectives is needed.
In their study of SDL in community learning centres, Rowland and Volet (1996: 100)
also call for greater awareness of socio-cultural perspectives. They suggest that a more
post-modern view of the ‘self’ in SDL challenges the notion of universal individualism
and that, from this perspective, adult learning has significance for the community in
which the individual learns as well as for the individual learner.
c) Collaborative aspects of self-directed learning
No one can be completely autonomous all of the time and in all situations and some
writers challenge the exclusive emphasis on the ‘autonomous self’ (Kerka, 1999: 2).
They call for wider recognition of the interdependent and collaborative aspects of SDL.
Matuszowicz (1996) provides one example of this in his work, which focused on
developing self-direction in homeless adults. For perhaps the first time in their lives,
the members of this group recognised themselves and others as learning resources and
learned through the practice of interpersonal behaviours and skills such as giving and
receiving feedback.
d) Use of technology
One of the major misunderstandings in the SDL debate about enhancing learning with
new media (e.g. technology), is the assumption that technological advances will, by
virtue of their very existence, improve the quality of learning. New technologies and
media must be more than add-ons to existing practices. New technologies and learning
theories must together serve as catalysts for fundamentally rethinking what learning,
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working, and collaborating can and should be in the next century (Fischer & Scharff,
1998: 5).
Gray (1999: 120) proposes that the Internet may be one of the most powerful and
important SDL tools in existence. The Internet does have the liberating potential to
deliver new modes of learning, overcome resource, time, and place barriers, and
equalise learning opportunities. However, income imbalances still exist among users;
vested interests may act to exert control over what is transmitted and who has access
to it; and instructional deficiencies in online learning have yet to be adequately
addressed (Merriam & Caffarella, 1999; Hiemstra, 1992: 107).
According to the visionary, Malcolm Knowles (1975), by 2020 all learning, from
elementary school through postgraduate education, will be based on the principles of
SDL (Hatcher, 1997: 37). How close is this vision to becoming a reality?
Supporting Knowles's contention is Bedard's assertion (1997: 288) that new social
realities will force the next century to become a ‘learning century’. Bedard believes that
more and more learning will take place outside of traditional teacher-student
interactions. The speed of information proliferation and the complexities of new social
networks and workplace transformations will make SDL abilities imperative.
e) Self-directed learning – a future learning methodology?
It would be extremely short-sighted to suddenly proclaim that SDL is the learning
methodology of the future by virtue of the use of advanced technology. Perhaps it is
more appropriate to think of SDL as an ideal mode of learning for certain individuals
and for certain situations (Böhne et al., 2002: 9). When reflecting on SDL, one has to
remember that no act of learning can be self-directed if it means the absence of
external sources of assistance. Tough (1967, 1979) repeatedly highlighted the strong
reliance on external sources, both human and material, in the conduct of learning
(Hiemstra, 1992: 107; Spear, 1992: 127).
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Even as more learning shifts to electronic media, Gray (1999: 122) thinks it likely that
forms of teacher control will still persist. Teachers rather than learners often dominate
seemingly democratic interactive facilities such as e-mail forums. Although the Internet
has been promoted as accommodating different learning styles, ‘hypertext’ does not
suit all types of learners (Skillman, 2000: 68).
Gray (1999) cites a study of Swedish adults showing that those from the upper classes
made the greatest gains from SDL. Will other socio-economic groups achieve greater
self-direction through the use of information technology, or will IT perpetuate the
inequities? It is also possible that those upcoming generations, especially those for
whom the Web is becoming a natural habitat, are adapting to change by developing an
SDL orientation (McCausland, 2000: 50, 52; 2002: 44).
f) Assessment
Many variables can alter the effectiveness of SDL. One such variable is the extent to
which students are responsible for their own learning. Since assessment drives
learning, the intended goals of SDL will not be realised unless assessment methods
reflect these goals. However, use of such assessment threatens many widely accepted
values and procedures of traditional education, especially the reliance and over-
dependence on ‘objective’ and efficient testing methods (Arndt, 2003: 2).
3.3.9 Facilitation of self-direction in learning
3.3.9.1 Roles of educators
Knowles (1975) and Tough (1979) were amongst the first to argue that facilitating self-
direction in learning must be incorporated into organised learning. The following list
summarises points made by several writers (e.g. Reisser 1973; Cross 1978; Ash 1985;
Bauer 1985; Brockett & Hiemstra 1985; Brookfield 1985; Hiemstra 1982, 1985; Milne &
McConnell, 2001) regarding the ways adult educators can best facilitate SDL using a
PBL approach that will:
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help the learner identify the starting point for a learning project and discern
relevant modes of examination and reporting;
encourage adult learners to view knowledge and truth as contextual, to see
value frameworks as cultural constructs, and to appreciate that they are able to
act on their world individually or collectively to transform it;
create a partnership with the learner by negotiating a learning contract for goals,
strategies, and evaluation criteria;
be a manager of the learning experience rather than an information provider;
help learners acquire the needs assessment techniques necessary to discover
what objectives they should set;
encourage the setting of objectives that can be met in several ways and offer a
variety of options for evidence of successful performance;
provide examples of previously acceptable work;
make sure that learners are aware of the objectives, learning strategies,
resources, and evaluation criteria once they have been decided upon;
teach inquiry skills, decision-making, personal development, and self-evaluation
of work;
act as advocates for educationally underserved populations to facilitate their
access to resources;
help match resources to the needs of learners and help learners to locate these
resources;
help learners develop positive attitudes and feelings of independence relative to
learning;
recognise learner personality types and learning styles;
use techniques such as field experience and problem-solving that take
advantage of adults' rich experience base;
develop high-quality learning guides, including programmed learning kits;
encourage critical thinking skills by incorporating such activities as seminars;
create an atmosphere of openness and trust to promote better performance;
help protect learners against manipulation by promoting a code of ethics; and
behave ethically, which includes not recommending an SDL approach if it is not
congruent with the learners' needs.
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It is true that educators who are familiar with being in control of both the syllabus and
classroom may find it difficult to relinquish some control to the students involved in
PBL. As Albanese and Mitchell (1993) suggest, the role of facilitating discussion, rather
than directing it, is foreign to many teachers, even those with a great deal of
experience.
3.3.9.2 Roles of educational institutions
For educational institutions and employers engaged in providing SDL experiences,
Hiemstra (1982, 1985) and Brockett and Hiemstra (1985) recommend the following:
have the faculty meet regularly with panels of experts who are able to suggest
curricula and evaluation criteria;
conduct research on trends and learners' interests;
obtain the necessary tools to assess learners' current performance and to
evaluate their expected performance;
provide opportunities for self-directed learners to reflect on what they are
learning;
recognise and reward learners when they have met their learning objectives;
promote learning networks, study circles, and learning exchanges; and
provide staff training on SDL and broaden the opportunities for its
implementation.
Finding a ‘blueprint’ that faculties can use in SDL and PBL is not a simple matter.
Faculty resistance is often connected with insecurity and anxiety about the learning
process and comes as part and parcel of courses designed to promote increased
independence (Milne & McConnell, 2001: 74).
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3.4 PROBLEM-BASED LEARNING
3.4.1 Introduction
Böhne et al. (2002: 7) state that SDL seeks to optimise the learner’s control of the
learning process. “It is the learner rather than an institution, a teacher or a learning
programme that chooses the educational objectives, emphases and learning strategies.”
Learners set their own goals, analyse a given problem, observe the learning progress
and assess the learning results. What is interesting in their view is that SDL is born
from an approach known as PBL (Böhne et al., 2002: 6).
The development of continuous learning skills is an essential educational outcome of
PBL. Branda (1990) states that SDL is an integral part of PBL: in fact, PBL cannot occur
in the absence of SDL. During the last 15 years, PBL has received much attention in
education literature and more particularly medical education literature (Schmidt, 1998:
429; Arndt, 2003: 1). Over the last decade many developed and developing countries
around the world have also initiated problem-based curricula (Kantrowitz, Kaufman,
Mennin, Fulop & Guilbert, 1987).
PBL has been identified as one way to facilitate the development of abilities to become
self-directed in learning (Barrows, 1983; Wood, 1995, Dunlap, 1997). A strong
argument in favour of PBL is therefore that it provides a learning experience in the way
cognitive psychologists suggest people successfully acquire, retain and recall knowledge
and is found enjoyable by students (Norman & Schmidt, 1992).
PBL is an instructional method that challenges students to ‘learn to learn’, working
cooperatively in groups to seek solutions to real-world problems. These problems are
used to engage students’ curiosity and initiate learning of the subject matter. PBL
prepares students to think critically and analytically, and to find and use appropriate
learning resources (Watson, 2002).
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3.4.2 Defining problem-based learning
PBL may be regarded as a range of pedagogic approaches that encourage students to
learn through the structured exploration of a research problem. Torp and Sage (2002:
15-16) regarded PBL as “…focused, experiential learning (i.e. minds-on and hands-on)
organised around the investigation and resolution of messy, real-world problems.”
Advocates of PBL argue that the development of the ability to become self-directed in
learning should be inextricably linked to professional development in the discipline
(Williams, 2001: 3) in that learners are engaged problem-solvers, identifying the root
problem and the conditions needed for a good solution, pursuing meaning and
understanding and becoming self-directed learners in the process.
PBL furthermore fosters the development of knowledge and skills within a professional
discipline by “... utilising authentic situations that have been encountered by
professional practitioners [i.e. CAs] as the initial stimulus for student learning activity”
(Barrows, 1986).
PBL clearly rejects the idea of ‘telling’ as sufficient for learning, but simply ‘doing’
according to Biggs (1989) is also not sufficient for learning. The learning activity must
be planned, reflected upon and processed if learning is to take place (Ault & Carver,
1987: 167).
3.4.3 Problem-based learning environments
Reinmann-Rothmeier and Mandl propose the following guidelines for PBL environments
(Böhne et al., 2002: 6/7):
situated and authentic learning: allowing students to solve realistic problems will
enable them to apply their knowledge in practical situations. Authentic problems
will motivate students;
learning from multiple perspectives and contexts: solving several related
problems which all require the same basic skill will make it more likely that the
skill can be applied in a different practical situation;
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learning in a social context: learning and problem-solving should be done in
student groups. If students have experts as models they can acquire skills,
knowledge and orientation; and
learning with instructional support: complex problem-solving tasks without
instructional support will often demand too much from the students and will lead
to ineffective learning. Many students need instructions and help for solving
problems. The learning environment should provide knowledge for solving the
problem.
3.4.4 Principles of problem-based learning methodology
The PBL process is normally done with groups of students and these sessions may last
2-3 hours. By grappling with complex situations, and probing deeper into issues,
looking for connections, students are motivated to:
determine whether a problem exists;
define what they believe the problem to be;
identify their current understanding of the problem;
identify further information needed to understand the problem more fully;
identify resources from which further information can be obtained;
generate possible solutions;
analyse their solutions, their information gathering and their reasoning; and
if desired, recommend and present a solution (Milne & McConnell, 2001: 63).
In two of his works (1983, 1993), Schmidt described six principles of PBL instructional
methodology:
the amount of existing prior knowledge: this is the key determinant of the
amount of new information that can be processed. Unlike traditional problem-
solving techniques, it is critically important that students should have sufficient
prior knowledge to be able to solve the problem in the right way. PBL acts as
catalyst to promote the acquisition of new knowledge;
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prior knowledge needs to be activated: in order to understand and remember
new information, prior knowledge needs to be activated by cues embedded in
the context in which the information is being presented. Prior knowledge
activation may occur through engagement of students in small group
discussions;
knowledge is structured: this means that accessibility of knowledge is dependent
on the way it is structured in memory. Because the practical situations drive the
learning of content and skills, students are continuously restructuring their
knowledge as they work towards the best outcome;
elaborate on the information: this improves storing and retrieving information
from memory. Elaborations include writing summaries and discussing
information with peers;
future retrieval of information depends on encoding retrieval cues: the closer the
learning situation resembles the situation in which the information is to be
applied, the better the retrieval of the information is likely to be. Authentic
practical situations that reflect the types of situations students will face as
professionals serve as the framework for storing contextual cues, thereby
improving the student’s ability to retrieve relevant knowledge when faced with
similar situations in the future; and
motivation: this is intertwined with learning effectiveness and learner
performance. Students are more motivated and spend more time processing
information when they are discussing authentic practical situations which they
perceive as relevant and meaningful.
From a rationalist perspective of learning (Williams, 2001: 7), PBL utilises instructional
strategies that can assist prospective CAs to process and store knowledge in such a way
that it can be easily retrieved when required in future.
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3.5 LIFELONG LEARNING IN PRACTICE USING A SELF-DIRECTED LEARNING APPROACH
3.5.1 Introduction
The old adage of ‘studying’ followed by ‘working’ or then completing a postgraduate
qualification is no longer tenable. Learning is no longer place- and time-bound. In an
emerging knowledge society, an educated person will be someone who is willing to
consider learning a lifelong process.
In a climate of continual change and innovation, LLL is a critical professional
developmental objective that has a direct impact on an organisation’s effectiveness and
ability to compete and innovate (Dunlap, 2005: 5). LLL envisages that humans benefit
from an opportunity to learn over a sustained period (McDonnell, 2005: 54). More and
more knowledge, especially specialised knowledge, is acquired well past the age at
which people complete formal schooling, and in many situations through educational
processes that do not centre on a traditional schooling approach (Fischer & Scharff,
1998: 2).
An educational strategy most likely to produce professionals prepared for LLL is SDL.
SDL is effective because it is learner-centred, addresses practice needs, solves problems
in a timely way, often involves active learning and builds on prior experience (Slusarski,
1994: 72-73; Rossi, 2002: 1). All of these are key factors in adult learning and CPD.
3.5.2 Understanding lifelong learning
LLL presents us with one of those concepts that is almost easier to define by saying
what it is not. From various academic sources we may conclude the following about
LLL and lifelong learners:
lifelong learners know that learning is not difficult. Lifelong learners see a need
to learn something but they are not compelled or coerced to do so;
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lifelong learners know that learning cannot be produced in people and people
cannot produce learning in others;
LLL is not dependent on time and place;
LLL is not teacher-driven but rather learner-driven, as it involves learning and
living;
LLL does not involve memorised theory so much as it requires the application
thereof; and
LLL is not prescribed by a curriculum (Priesnitz, 2003: 1-2).
LLL is thus about trusting learners to learn what they need to know and about teachers
helping them to learn and grow in their own ways, thereby developing learners’
capacity for and disposition towards LLL (Dunlap, 2005: 5) (refer to the questionnaire in
APPENDIX B, statements 48 & 54).
3.5.3 Self-directed learning as a vehicle for lifelong learning and
continuous professional development
Why would SDL therefore be such an important aspect of LLL and CPD? Knowles
(1975: 14-15) identified three reasons for promoting SDL:
learners who take the initiative (i.e. proactive learners) for learning learn more
and in a better way than learners who “... sit at the feet of teachers passively
waiting” (i.e. reactive learners). Proactive learners tend to retain and apply what
they have learnt longer and better than reactive learners;
SDL is more in tune with our natural processes of psychological development.
As individuals grow up they develop an increasingly deep psychological need for
independence – i.e. to become increasingly self-directed; and
new developments in education (e.g. multi-modal learning environments;
continuously changing curricula; ‘quantity of information’ etc. as in the case of
RAU), indicate that learners should take a great deal of initiative in their own
learning. Students entering these programmes without having learned the skills
of self-directed inquiry will experience anxiety, frustration, and often failure.
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3.5.4 Implications of self-directed learning in continuous
professional development
Knowles (1975: 15-16) also identified the implications of SDL. These are that one can
no longer:
define the objective of education as that of transmitting what is known to the
learner. The main purpose of education must now be to develop the skills of
inquiry;
think about learning as ‘being taught’. Learning should become the same as
living and one should have an outlook of ‘no living without learning’; and
equate education with the youth. Education or learning has become a lifelong
process.
3.6 A SOUTH AFRICAN PERSPECTIVE
SDL is important in practice – in fact it is the educational strategy most likely to produce
any professionals prepared for LLL and able to meet the changing needs of the
business community in which they function. In previous sections of this chapter, it has
been shown that the use of SDL and PBL methodology may have a positive implication
for ‘learning’ in general. Would it therefore not then mean that the use of these
methodologies could greatly improve the ‘learning’ of prospective CAs? This is even
more important when one understands that the transformation of the CA profession is
of the utmost importance in the country with its ongoing drive to provide black CAs.
University educators are increasingly under an extreme amount of pressure to ensure
that already overloaded syllabi are completed on time and at the correct standard to
ensure that these prospective CAs have the necessary knowledge and skills to attempt
writing their QEs and or PPE.
Even though the use of technology within SDL is proclaimed as the way of the future,
one has to bear in mind that the average South African learner, owing to a history of
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socio-economic disparity, may not be able to access all the technological tools that are
available. This may further be exacerbated by lack of student readiness – i.e. the
student’s ability to adapt to a formal higher education milieu.
This country has a limited number of accredited higher education institutions that may
provide qualified (black) CAs but with an excess of students all seeing themselves as
prospective CAs. One is now placed in the difficult position of having to balance a
supply of scarce resources against an over-demand for education.
At RAU a large portion of the students studying to become CAs come from a previously
disadvantaged background. In effect this also means that many of these students are
taught in a language that is not their mother tongue. As language is still a very real
barrier in learning for many, SDL and PBL can be very effective as it may provide
consensus through the cooperative or communal negotiation of common definitions of a
situation. Learning with instructional support is therefore vital, as solving complex
problems and tasks without instructional support may mean that language again
becomes a barrier and may lead to ineffective learning.
Communal learning and problem-solving should also be done with experts as models in
these groups. Just as the CA profession is to be transformed, so should the educators
involved in teaching these students. If potential black CAs can have a (black) expert as
a model, the acquiring of skills, knowledge and orientation will be so much simpler, as
there would be no cultural or language difference. The problem, however, is that once
black CAs qualify, they are immediately snatched by the big accounting firms at a
premium. Few of them come back into academia to share their knowledge and
expertise.
Introducing ways and means of providing adaptive undergraduates (i.e. prospective
CAs) who possess the necessary SDL and PBL skills to ensure an output of ‘lifelong
learners’ will remain the biggest challenge in educating and training CAs in South Africa
(refer to the questionnaire in APPENDIX B, statement 66).
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3.7 SUMMARY
Over the past 15 years a number of studies have criticised the way learners are taught
accounting at higher education institutions. A particular target has been undergraduate
programmes overcrowded with technical content – sometimes at the expense of
broader and more general aims, including LLL. Amongst other things, it is these LLL
and SDL skills that prospective CAs should possess for success in the profession.
Society has also started to demand the continued professional accountability for the
competence of CAs in an era of knowledge proliferation and technological change.
As a means of overcoming these perceived deficiencies, educators have been called
upon by IFAC to ensure that learners are more active participants in the learning
process. One essential way to meet this demand is to engage in continuous
professional education where LLL has emerged as one of the major challenges for the
worldwide knowledge society of the future.
Learning to learn involves developing skills and strategies that help individuals to learn
more effectively and to use these effective learning strategies to continue to learn
throughout life. This process results from, leads to, and enhances a questioning spirit
and a lifelong desire to learn. Competence is therefore not a static term, but evolves
over a lifetime of learning.
CPD for CAs can therefore be defined as ‘learning activities for developing and
maintaining the capabilities of professional accountants to perform competently within
their professional environments.’ At higher education institutions (at an undergraduate
level) the focus of accounting education should change from mere knowledge
acquisition and accumulation to one based on a ‘learning to learn’ approach – an LLL
approach that encourages learners to take responsibility for their own learning and
become active and competent participants in the learning process.
Competence refers to the demonstrated ability to perform relevant roles or tasks to the
required standard. Whereas capability refers to the attributes held by individuals that
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give them the potential to perform, competence refers to the actual demonstration of
performance.
LLL is something a CA does for self-growth purposes or as an investment in him- or
herself. SDL should be an introduction to the potential CA’s education standards where
SDL is used as an approach to learning and SDL would be described as a vehicle for
CPD at an undergraduate level. Professional education programmes in undergraduate
accounting must be designed to expose prospective CAs to the strategies that can assist
them to develop the ability to become self-directed in continuing to learn. CPD is aimed
at an LLL approach or a ‘learning to learn’ approach. CPD is applicable to all CAs,
regardless of the sector or the size of the business in which they operate.
Current trends in educational theory make the following fundamental assumptions
about learning: learning is a process of knowledge construction; learning is knowledge-
dependent; learning is situation-bound; learning needs to account for distributed
cognition; and learning is affected by motivational issues.
The notion of self-direction in learners has existed under numerous different guises
from classical antiquity to the present day. The ‘modern’ origins of SDL can be traced
back to as early as 1918. In 1961 the term SDL was first popularised when it was
described as adults involved in a learning activity without external support or guidance.
Whether SDL is individual or collective, emancipatory or oppressive, inevitable or not,
the biggest misconception might arise in trying to capture the essence of SDL in a
single definition. It is clearly a multifaceted concept that should not be approached
from one perspective. Although there may be no single correct way to look at SDL, the
issues involved warrant debate because they shape educational practices.
Studies on the effectiveness of learning in various environments have shown that adults
learn what they want to learn (i.e. self-efficacy or self-effectiveness) and because they
are task-orientated their learning may be linked to problems, challenges or needs
arising from their social or vocational roles.
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Educational philosophies at all levels of education have evolved over the past few
decades with a move from teacher-directed to self-directed (i.e. learner-centred)
models. Even within the professional accounting fraternity, the call for more learner-
centred approaches to teaching has ‘fallen on deaf ears’ and surveys have revealed a
disappointing lack of learner-centred approaches.
This may be ascribed to the lack of student readiness to use a learner-centred approach
such as SDL; the lack of ‘qualified teachers’ and adequate space to work with small
groups; as well as the failure of teachers to keep abreast of educational developments
and to recognise skills development as a goal of learning.
SDL does not replace, but complements formal learning. It may be associated with
increased curiosity, may improve critical thinking skills and understanding, and may be
more likely to result in a change in practice performance. These factors all point to a
move from ‘surface’ to ‘deep’ learning.
SDL is an integral part of PBL: in fact, PBL cannot occur in the absence of SDL. PBL has
been identified as one way to facilitate the development of abilities to become self-
directed in learning. PBL is an instructional method that challenges students to ‘learn to
learn’, working cooperatively in groups to seek solutions to real-world problems. These
problems are used to engage students’ curiosity and initiate learning the subject matter.
PBL prepares students to think critically and analytically, and to find and use
appropriate learning resources.
The old adage of ‘studying’ followed by ‘working’ is no longer tenable. Learning is no
longer place- and time-bound. In the emerging knowledge society, an educated person
will be someone who is willing to consider learning a lifelong process.
SDL is in fact the educational strategy most likely to produce professionals prepared for
LLL and able to meet the changing needs of clients. SDL is effective because it is
learner-centred, addresses practice needs, solves problems in a timely way, and often
involves active learning and builds on prior experience.
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In facilitating SDL and PBL both the educator and the institution have an important role
to play. SDL must be incorporated into organised learning. It is true, however, that
educators used to being in control of both the syllabus and classroom may find it
difficult to relinquish some control to the students involved in PBL.
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131
CHAPTER 4 A holistic critique of ethics
4.1 INTRODUCTION
he aim of this study is to investigate the utilisation of CPD of ethics amongst
prospective CAs. Before this process can commence, one needs to appreciate the
ethical values applicable to CAs.
Ethics is a topic that is receiving a great deal of attention throughout society today.
This attention is an indication of both the importance of ethical behaviour to
maintaining a civil society, and a significant number of notable instances of unethical
behaviour.
In Chapter 2, it was explained that IFAC and SAICA are both involved in establishing
and enforcing codes of ethics. It was also noted that these activities constitute an
important part of the profession’s multilevel regulatory framework. But ethical
behaviour requires a consideration of more than a few rules of conduct and regulatory
activities. No professional code of ethics or regulatory framework can anticipate all the
situations which require personal judgements about ethical behaviour that may arise.
Accordingly, this chapter commences with a detailed discussion of ethics, focusing on
the theories on which ethics are built, and including a discussion of descriptive ethics,
perspective ethics and meta-ethics. It then continues to investigate the individual and
T
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combined concepts of morals, ethics and values where the integration of these is also
investigated.
This is followed by a detailed discussion of the concepts of general and professional
ethics by looking at the issue of a profession. This then culminates in an investigation
of the narrower concept known as ‘business ethics’; however, morals and values are
still incorporated into the discussion, and stakeholder theory is also dealt with.
The chapter then concludes with a detailed discussion of professional ethics applicable
to CAs. It also provides examples of business ethics in practice.
As the questionnaire, used as part of the empirical analysis in this study, wished to
provide an assessment of whether CPD of ethics is understood and possible to
communicate to prospective CAs at an undergraduate level, the reader will be directed
to some theoretical aspects of ethics included in the questionnaire to be described and
discussed in Chapters 7 and 8 of this study.
A full discussion of business ethics as it applies to a prospective CA will be undertaken
in Chapter 5.
4.2 THE THEORY OF ETHICS
4.2.1 Introduction
Ethics as a subject is as old as humanity itself. Ethics is derived from the Greek word
ethos or ethikos, meaning ‘character’.
4.2.2 Definitions
Ethics can be defined as “the philosophical study of morality and, accordingly, morality
is clearly identified as the characteristic subject matter of ethics” (Huss & Patterson,
1993: 236). Morality, derived from the Latin mores or ‘custom’, focuses on the ‘right’
and ‘wrong’ of human behaviour (Baker, 1996: 78-79; Boynton & Kell, 1996: 70/71;).
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Thus, ethics is about people and deals with questions about the way people act
towards one another (Cragg, 1997: 232). Miettinen (2004: 2) goes even further and
states: “Ethics is basically a discipline about good life.”
Wheelwright (1959, quoted by Robertson, 1993: 118) defined ethics as “that branch
of philosophy which is the systematic study of reflective choice, of the standards of
right and wrong by which it is to be guided, and of the good toward which it may
ultimately be directed”.
In this definition, one can detect three key elements:
ethics involves questions requiring reflective choice (decision problems);
ethics involves guides of right and wrong (moral principles); and
ethics is concerned with the consequences of decisions (Robertson, 1993: 118).
Ethics has thus since the beginning of time sought to define right and wrong conduct.
In the Collins Concise Dictionary (Sinclair, Wilkes & Krebs, 2001: 495) ethics is defined
as “… the philosophical study of the moral values of human conduct and of the rules
and principles that ought to govern it” and “… the moral fitness of a decision, course
or action.” It could also be called ‘philosophy of morals’ or ‘the language of morals’
(MacIntyre, 2004: 1)
According to Trevino and Nelson (1999: 34) ethics “... is a moral perspective that asks
you to judge your conduct in terms of what’s right and wrong, what’s decent, what’s
good, what’s honest, what’s honourable. The reason to be ethical is simply that it’s the
right thing to do.”
4.2.3 Theories of ethics
Although this study aims to look at the issue of ethics within the framework for a CA,
one has to be cautious not to fall into a theoretical and philosophical discourse of the
subject. However, one cannot discuss ‘ethics’ per se without providing some
fundamental theoretical background to it. Ethics can be divided into three distinctive
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CHAPTER 4 134
theories or groups, namely descriptive ethics, prescriptive ethics and meta-ethics
(Rossouw & Van Vuuren, 2004: 42).
4.2.3.1 Descriptive ethics
Descriptive ethics provides an accurate description of the ethical dimensions of
business. It describes and explains the state of ethical affairs so as to enable managers
to manage these affairs (Stevens, 1999: 116; Rossouw & Van Vuuren, 2004: 43).
Various theories of moral development provide a good descriptive approach to ethics
with pioneering work done by Jean Piaget (1948) and Lawrence Kohlberg (1981) (e.g.
Maclagan, 1994: 3; Schick, Ponemon, Fettus & Nagoda, 1998: 276; Rossouw & Van
Vuuren, 2004: 43-45).
a) Piaget
Studies of ethical beliefs in relation to behaviour are generally founded on a
psychological model derived from the work of Piaget (The moral judgement of the
child) (Baker, 1996: 76; Rossouw & Van Vuuren, 2004: 43), which theorised that moral
development must account for the active interpretation and cognitive organisation of
the individual (Carroll, 1996: 17).
Piaget studied many aspects of moral judgement, but most of his findings fit into a
four-stage theory i.e. sensorimotor stage (infancy); pre-operational stage (toddler and
early childhood); concrete operational stage (elementary and early adolescence); and
formal operational stage (adolescence and adulthood) (Huitt & Hummel, 2003).
Children younger than 11 years (i.e. during the sensorimotor stage and pre-operational
stage) think about moral dilemmas one way; they believe that rules are handed down
by adults or by God and that one cannot change them (Crain, 1985: 118).
There are many more details to Piaget's work on moral judgement, but he essentially
found a series of changes that occur after the age of 11, just when the child begins to
enter the general stage of formal operations. Intellectual development, however, does
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CHAPTER 4 135
not stop at this point. This is just the beginning of formal operations, which continue
to develop at least until age 16 (Crain, 1985: 118-119).
b) Kohlberg
The ethical or moral development paradigm of the individual is well established in
psychology by Kohlberg (Wright, Cullinan & Bline, 1998: 31, 32). His Cognitive Moral
Development Theory is based on the assumption of co-operative social organisations
(Gul, Y Ng & Jen Wu Tong, 2003: 382).
Kohlberg’s theory of moral development was dependent on the thinking of the Swiss
psychologist Jean Piaget and the American philosopher John Dewey. All these men
had emphasised that human beings develop philosophically and psychologically in a
progressive fashion (Barger, 2000).
Kohlberg believed (and was able to demonstrate through empirical studies) that people
progressed in their moral reasoning (i.e., in their bases for ethical behaviour) through
a series of stages. He believed that there were six identifiable stages which could be
more generally classified into three levels (Barger, 2000). Only the first three of these
stages shared many features with Piaget's stages (Crain, 1985: 119).
Kohlberg's classification is outlined in FIGURE 4.1 on the following page.
The first level of moral thinking is that generally found at the elementary school level
and is especially common in children, although adults can also exhibit this level of
reasoning. In the first stage (stage 1) of this level, people behave according to
socially acceptable norms because they are told to do so by some authority figure (e.g.
parent or teacher). This obedience is compelled by the threat or application of
punishment. The second stage (stage 2) of this level is characterised by a view that
right behaviour means acting in one's own best interests. It also shows a limited
interest in the needs of others, but only to a point where it might further one’s own
interests, such as 'you scratch my back, and I’ll scratch yours’ (Sridhar & Camburn,
1993: 729; Fraedrich, Thorne & Ferrell, 1994: 830).
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STAGE LEVEL OF MORAL
REASONING
SOCIAL ORIENTATION
SOCIAL PERSPECTIVE
LEVEL VIEW OF PERSONS
6 Universal ethical
principles (“Principled conscience”)
Mutual respect – a universal principle
Sees how human fallibility and frailty are impacted on by communication
5 Post-conventional
Social Contract Contractual perspective
Recognises that contracts will allow persons to increase welfare of both
4 Authority and social
order (“Law and Order”)
Social systems perspective
Able to see abstract normative systems
3 Conventional
Interpersonal accord and conformity (“Good boy/girl”)
Social relationship perspective
Recognise good and bad intentions
2 Individualism and
self-interest (“What’s in it for me?”)
Instrumental egoism
Sees that (i) others have goals and preferences; and (ii) either conforms to or deviates from norms
1 Pre-conventional
Obedience and punishment
Blind egoism No view of persons; only self and norms are recognised
FIGURE 4.1: An outline of Kohlberg’s Stages of Moral Development
SOURCES: Crain, 1985 (adapted); Kohlberg, Levine & Hewer, 1983 (adapted)
The second level of moral thinking is that generally found in society, hence the name
‘conventional’, and is typical of adolescents and adults. In the first stage of this level
(stage 3) the self enters society and is characterised by an attitude which seeks to do
that which will gain the approval of others. The second stage (stage 4) is one oriented
to abiding by the law and responding to the obligations of duty (Sridhar & Camburn,
1993: 729-730; Fraedrich, Thorne & Ferrell, 1994: 830).
The post-conventional or third level, also known as the ‘principled’ level, consists of
stages five and six of moral development. The realisation that individuals are separate
entities from society now becomes salient. Kohlberg felt that this level is not reached
by the majority of adults. Its first stage (stage 5) is an understanding of social
mutuality and a genuine interest in the welfare of others. Individuals are viewed as
holding different opinions and values, and it is paramount that they be respected and
honoured impartially. The last stage (stage 6) is based on respect for universal
A holistic critique of ethics
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principles and the demands of individual conscience (Sridhar & Camburn, 1993: 730;
Fraedrich, Thorne & Ferrell, 1994: 830).
c) Foucault
The issue of moral behaviour has further been refined by the incorporation of a
postmodernist perspective. Of importance here is the work done by Michel Foucault
(1986, quoted by Baker, 1996: 78). His work, very closely related to the deontological
approach to be discussed later in this section, claims that moral behaviour consists of
actual behaviour of individuals in relation to their moral code (Baker, 1996: 79).
4.2.3.2 Prescriptive ethics
Prescriptive or normative ethics provides guidance as to what is ethically ‘good or bad’.
Rational arguments framed within theoretical approaches to prescriptive ethics
normally provide the grounds for deciding whether something is morally pleasing or
culpable (Stevens, 1999: 116).
Through the centuries a number of such moral theories have been developed. These
include:
the Virtue Theory of Aristotle;
the Deontological Theory of Kant; and
the Utilitarian Theory of Mill (Rossouw & Van Vuuren, 2004: 58).
Each of these will be discussed below.
a) Virtue Theory
The Virtue Theory dates back to the ancient philosophers, e.g. Plato, but the Greek
philosopher Aristotle is most closely associated with it (Rossouw & Van Vuuren, 2004:
59). Aristotle noted the etymological relation between ethics (or ήθος, ‘virtue of
character’ as he refers to it) and habit (έθος). As Peacock (2004, quoted by Dolfsma,
2006: 209) observes about Aristotle’s position: ‘‘Thus if we get into the habit of acting
virtuously (by performing virtuous acts), we will acquire a virtuous character.’’
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The primary question the Greeks sought to answer was not: "What actions are
universally morally right?" Instead, it was: "What is the best sort of life for human
beings to live?" (Mintz, 1995: 252) For most Greek philosophers, the end or goal of
life was happiness or a life of excellence, and the excellences were virtues (MacIntyre,
2004: 98-99).
In writing about Aristotle's account of the virtues, MacIntyre (1984: 149-150) states
that the exercise of virtue requires “... a capacity to judge and to do the right thing in
the right place at the right time in the right way.” Judgement is exercised not through
the routine application of rules, but by possessing a ‘character’ which enables choices
to be made about what the good of humankind is and by holding in check desires for
something other than that which will help to achieve this goal (Mintz, 1995: 252).
According to Aristotle, the excellence of character and intelligence cannot be separated
(MacIntyre 2004: 93, 95, 96).
b) Deontological Theory
Where virtue ethics claims that morality depends on the moral virtues of one’s
character (as proclaimed by Aristotle in Nicomachean Ethics (Dolfsma, 2006: 209)),
deontological ethics insists that moral action requires conformity to moral principles
(MacIntyre, 2004: 183-186). Deontological theorists included WD Ross and John
Rawls but the classical representative of this theory was the German philosopher
Immanuel Kant. His influential work on ethics, first published in 1785, was called
Fundamental Principles of the Metaphysic of Ethics (Rossouw & Van Vuuren, 2004: 63).
Contrary to Aristotle’s Virtue Theory, Kant’s Moral Theory claims that there is indeed
an objective moral rule that can guide all our moral decisions regardless of the
circumstances (Baker, 1996: 75; Wright et al., 1998: 30). A major limitation of the
deontological theory, however, is that it excludes the consideration of consequences
(Agarwal & Malloy, 2002: 247).
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c) Utilitarian Theory
The Utilitarian Moral Theory claims that the morality of actions should be judged by
their consequences. In his influential book Utilitarianism, published in 1863, John
Stuart Mill became the classic representative of this theory (Rossouw & Van Vuuren,
2004: 67). Very often this is also referred to as the ‘teleological approach’ or
‘consequentialism’ (Baker, 1996: 76). Mill was convinced that actions are good when
they contribute towards fulfilling the ultimate goal of human beings (MacIntyre, 2004:
196, 231).
4.2.3.3 Meta-ethics
Meta-ethics has been part of philosophical thinking throughout the ages and is
applicable to both descriptive ethics and prescriptive ethics (Rossouw & Van Vuuren,
2004: 86) – a sort of hybrid approach.
Meta-ethics is of a reflective nature; the prefix ‘meta’ indicates that it is about rather
than on ethics. The problem with moral theories is that they do not offer any advice
on dealing with situations where moral theories collide. Meta-ethics moves away from
the question of what is morally right or wrong to an approach that questions which
moral theory is more valid than the others (Rossouw & Van Vuuren, 2004: 87).
4.3 THE MORALS, ETHICS AND VALUES DEBATE: A BROAD-BASED DISCUSSION
4.3.1 Introduction
From the previous discussion one can conclude that the issue of ‘moral’ and ‘the
morality of good and bad’ seem to be the essence of ethics. Although some scholars
have argued that ethics and morality are vague and fuzzy concepts, ethics and morality
are “... a highly practical invention”, as society expects that one conforms to a context
that endows human activity with meaning (Satava, Caldwell & Richards, 2006: 281).
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Before this study proceeds with a comprehensive investigation and discussion of ethics
and its related fields, this section will now only consider the issue of ‘morals’ versus
‘ethics’; ‘morals’ versus ‘values’; and that of ‘ethics’ versus ‘values’. These combined
yet mutually exclusive aspects can be illustrated by the diagram (FIGURE 4.2) on the
following page.
Morals
ValuesEthics
FIGURE 4.2: Combining morals, values and ethics
This section will not only look at these three aspects individually but will also consider
their overlapping aspects as suggested in FIGURE 4.2 above. Some of the issues
discussed at this point will be revisited when the concept of business ethics is discussed
in section 4.5.
4.3.2 Morals and ethics
Ethics and morals are closely connected yet separate subjects (Anon, 2004). This was
also evident from the definitions/description above in section 4.2.2. Morals are first
and foremost summed up in religious commandments, laws, rules and regulations that
in no uncertain terms define right and wrong (Baker, 1996: 78; Prozesky, 2003: 79).
Yet, real life and real situations are not always that simple. Is it immoral to kill a mass
murderer? Is it moral to kill an enemy in war? Is abortion a moral or immoral act?
There are many such difficult questions that are very hard to answer and this may be
the reason why ethics is a separate subject from morals. “If morality is the view that
all human beings are either right or wrong, then 99% of them are wrong” (Prozesky,
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2003: 11).
Morals can be described as a code for good conduct based on the experience of the
culture or race – i.e. the Virtue Theory. A more detailed definition would be “…
concerned with or relating to human behaviour, especially the distinction between
good and bad or right and wrong behaviour” (Sinclair et al., 2001: 972).
Morals are therefore agreed upon standards of good conduct of individuals and groups
(Cragg, 1997: 234). For the Greek philosopher Aristotle, morality started with the self
(Rossouw & Van Vuuren, 2004: 60).
At a time when secularisation is a major feature of public and professional workplaces,
when the influence of religion, traditionally a highly influential channel of moral
influence, and when ethical nurture through the traditional family has been
significantly reduced, education comes to the fore as the single most important means
of fostering moral competence (Prozesky, 2001: 6).
Moral codes have their place but morals tend to continue beyond their time. For
example, in the Jewish faith it is immoral to eat pork. At the time this moral rule was
formulated pork was a source of disease and sometimes death so the rule made sense;
today this is less of a real threat (Anon, 2004).
No society can flourish, especially in the long term, unless its people understand what
it means to be an ethical human being and unless large numbers of the population
genuinely seek to live in ways that transcend selfishness, violence and dishonesty by
means of an active concern for the well-being of others (Miettinen, 2004: 6).
For this reason human beings need to re-invent and re-empower conscience because
it is seen as the “... inner voice of ethics, of right and wrong, of good and evil”
(Prozesky, 2003: 11). A dilemma occurs now when choices between right and wrong
have to be made. This leads to an ethical problem.
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4.3.2.1 Ethical problem
What is an ethical problem? A problem situation exists when one has to make a choice
among alternative actions, and the right choice is not absolutely clear. An ethical
problem situation may be described as one in which the choice of alternative actions
affects the well-being of other persons (Robertson, 1993: 118).
4.3.2.2 Ethical behaviour
What is ethical behaviour? One finds two standard philosophical answers to this
question (Arens & Loebbecke, 1991: 69):
ethical behaviour is that which (in terms of the ethical problem) produces the
greatest good; and
ethical behaviour is that which conforms to moral rules and principles.
Ethical behaviour is necessary for a society to function in an orderly manner. It can
be argued that ethics is the glue that holds a society together (Arens & Loebbecke,
1991: 69). What would happen if one could not depend on the people one dealt with
to be honest? If employers and colleagues all consistently lied, it would be almost
impossible for effective communication to occur (MacIntyre, 2004: 18).
The need for ethics in society is sufficiently important that many commonly held ethical
values are incorporated into laws. For example, laws dealing with driving while
intoxicated concern responsible citizenship and respect for others. However, a
considerable portion of the ethical values of a society cannot be incorporated into law,
because of the judgemental nature of certain values (Arens & Loebbecke, 1991: 68).
It is practical to have laws that deal with cheating, stealing, lying, or deceiving others.
It is far more difficult to establish meaningful laws that deal with many aspects of
principles such as integrity, loyalty, and pursuit of excellence. That does not imply that
these principles are less important for an orderly society.
Why would people then act unethically?
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4.3.2.3 Unethical behaviour
Most people define unethical behaviour as “conduct which differs from what they
believe would have been appropriate given the circumstances” (Arens & Loebbecke,
1991: 68).
Each person decides for him- or herself what he/she considers unethical behaviour to
be, both for him- or herself and for others. It is important to understand what causes
people to act in a manner that society decides is unethical. Bok (1976) suggests that
the inability to identify an ethical dilemma (ethical problem) is the reason individuals
behave immorally. This immoral behaviour comes about as a result of significant
differences that exist between the beliefs of the individual and that of an ‘organisation’.
This leads to (ethical) conflict, which is thus the result of contradictory obligations and
duties to two or more interest groups (Carroll, 1996: 10).
Arens and Loebbecke (1991: 69) provided two primary reasons why people act
unethically, namely (i) the person's ethical standards are different from those of society
as a whole; and/or (ii) the person chooses to act selfishly. In many instances, both
reasons exist.
a) The person's ethical standards differ from those of general society
Extreme examples of people whose behaviour violates almost everyone's ethical
standards are rapists and drug dealers. Most people who commit such acts feel no
remorse when they are apprehended because their ethical standards differ from those
of society as a whole (Arens & Loebbecke, 1991: 69) (refer to the questionnaire in
APPENDIX B, statement 69).
There are also many far less extreme examples where others violate our ethical values.
When people cheat on their tax returns, treat other people with hostility, lie on
employment applications, or perform below their competence level as employees,
most of us regard that as unethical behaviour. If the other person has decided that
this behaviour is ethical and acceptable, there is a conflict of ethical values that is
unlikely to be resolved (Arens & Loebbecke, 1991: 69).
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b) The person chooses to act selfishly
A considerable portion of unethical behaviour results from selfish behaviour. Political
scandals, for example, could result from the desire for political power; cheating on tax
returns and expense reports is motivated by financial greed; and performing below
one's competence and cheating on tests are typically due to laziness.
In each case, the person knows that the behaviour is inappropriate, but chooses to do
it anyway because of the personal sacrifice needed to act ethically (Arens & Loebbecke,
1991: 69).
4.3.3 Morals and values
Walton (1998: 124) describes (business) ethics as an integrated force within the
cultural and economic environment of business and very often cultural factors have an
impact on the ethical behaviour of people regardless of their ethical view (e.g.
utilitarian, deontological or virtues) (refer to the questionnaire in APPENDIX B,
statement 8).
Ethical values are affected by and exist between the other cultural and economic values
in the business environment. Morals and moral content may therefore be described in
the form of core moral values. This has to be done, however, with a full awareness
of the economic context and the dominant cultural realities in which these exist
(Prozesky, 2001: 3). It is interesting that Duska (1998) noted: “People learn values
at their mother’s knee, or they never learn them.”
The following cultural realities currently exist (RSA, 1996d: Chapter 2):
globalisation;
democracy;
human rights and responsibilities; and
cultural diversity.
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4.3.3.1 Globalisation
Economic globalisation has already made it imperative to think globally and not just
locally (Kriek, Beekman & Els, 2005: 9, 151). In that wider arena, the spread of
democracy is not just a political development of immense, world-changing significance.
It is also a tide of change that has extremely important implications for the nature of
professionalism and for ethics itself (Prozesky, 2001: 3). National and international
business transactions largely rely on shared perceptions as to what ethical or
acceptable behaviour is (Ahmed, Chung & Eichenseher, 2003: 89).
As more and more nations with vastly different histories of economic development
enter the global economy, the potential for misunderstandings based on different
expectations of business ethics is greatly exacerbated (Ahmed, Chung & Eichenseher,
2003: 89). Are nations morally and ethically distinct entities, or do the circumstances
of morality and rightness pertain to all humans regardless of origin? How much of a
role does ‘cultural divergence’ play within a globalised economy?
The renowned utilitarian philosopher Peter Singer puts it this way: “To what extent
should leaders see their role narrowly, in terms of promoting the interests of their
citizens, and to what extent should they be concerned with the welfare of citizens
everywhere?” (Eisenberg, n.d.)
To understand the forces that produce rapid economic development, one has to realise
that these forces lie largely in man himself – in his fundamental motives and in the way
he recognises his relationships with his fellow man. Achievement motivation is the
cornerstone of the whole economic development process. This is, at least to some
extent, the outcome of shared value systems and the ‘ethos’ of society at large
(Ahmed, Chung & Eichenseher, 2003: 90).
4.3.3.2 Democracy
Democracy can be described as a movement of power downward, sideways (from an
elite to all the adult members of society) and inward (into the convictions, values and
decisions of each individual) (Prozesky, 2001: 3; 2003: 43). It is this third aspect of
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democracy that is the most important and yet the least understood and the least
developed.
Extending power to the citizenry is in itself no guarantee that they will use that power
wisely and well. For that to happen, education and moral strength are needed. Need
one be reminded that Hitler came to power under the liberal, democratic Weimar
constitution to grasp the point that more is needed than just empowering the people,
or than both educating and empowering the people? Unless the people are also
governed by sound ethical values, they may well use their democratic power very
unwisely and destructively, as the people of Germany did in 1933 (Prozesky, 2001: 3-4)
(refer to the questionnaire in APPENDIX B, statement 19).
This is why it is not enough to foster a culture of human rights within a democracy.
Equal weight must be given to responsibility, to the duty of every individual to respect
and protect the rights of others just as much as his or her own (RSA, 1996d: Chapter
2). This is what is meant by democracy as involving that third, crucial movement
inward if it is to work for the benefit of the world, namely the movement of power into
the informed and responsible conscience of every individual. The issues of respect and
responsibility will again be addressed in section 4.6.2.
Seen from another perspective, democracy means a lessening of external constraints
in favour of an increase of internal ones such as a contribution to ethical transformation
(Prozesky, 2003: 43). This, clearly, means that democracy needs an ethically strong
population if it is to thrive. It also means that professional life becomes more and more
dependent on internal constraints rather than on external ones, though these do not
and should not disappear (Prozesky, 2001: 4).
4.3.3.3 Cultural diversity
The preceding paragraphs have already brought some key moral values to the fore,
namely responsibility and concern for the rights of others, equality and truth – this last
value being implied and fostered by good education and embodied in the knowledge
that education spreads (Prozesky, 2003: 63). But if one is to arrive at a sound
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conception of the core content of morality, one needs also to take cognisance of
another crucially important reality of contemporary life, namely cultural diversity.
The world has, it seems, always had a diversity of cultures, but only in relatively recent
times has this become a defining feature within most societies, rather than something
outside involving strangers and their ways. Now it is a feature of every classroom,
every business and every profession and with it comes a measure of diversity in that
which people value.
The idea of racial and cultural diversity also features in a paper by Miettinen (2004:
5) where the author cites Gonzales (2003): “To the extent that cultural diversity is seen
as an asset, this global trend seems to contradict the efforts to respect both personal
and cultural ethical pluralism.”
Within a new multi-cultural South Africa, the diversity of people means a diversity of
life-styles, faiths and philosophies. Within this new commonly formed South African
identity, an African ‘ethic’ was born – Ubuntu. Archbishop Desmond Tutu once
described it as “... the essence of being human” (Prozesky, 2003: 5).
Cultural diversity also plays an important role in determining the ethical requirements
of CAs. Therefore, due to national differences of culture, language, legal and social
systems, IFAC believes that the task of preparing detailed ethical requirements “is
primarily that of the member bodies in each country concerned”.
As Prozesky (2003: 63) has articulated, the identity of the accounting profession is
characterised worldwide by its endeavour to achieve a number of ‘common objectives’
and by its observance of certain fundamental principles for that purpose, i.e. the ‘core
content of morality’. These sentiments were echoed in an article which pointed out
that the accounting profession itself is seen as a way of transmitting social norms and
values to confer on or sustain legitimacy in the activities necessary to assure
profitability (Islam & Gowing, 2003: 355).
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4.3.4 Ethics and values
Although a direct causal link exists between ethics and values, these concepts are not
identical. Values can be defined (Rossouw & Van Vuuren, 2004: 5/6) as “relatively
stable convictions about what is good and desirable.” The clear difference is therefore
that one may have values that are not ethical or have absolutely nothing to do with
ethics.
Values are concerned with the way a person will behave in certain situations, whereas
ethics is concerned with the way a moral person should behave. “Values are basic and
fundamental beliefs that guide or motivate attitudes or actions” (Mintz, 1995: 255).
Describing values as ‘relatively stable’ certainly implies that changes may occur over
time. In a groundbreaking study by Brenner and Morlander in 1977, it was found that
the values of a group of sample managers had changed, according to increasing or
decreasing acceptance of ethically charged scenarios depending on the exact situation
(Miettinen, 2004: 4). This was echoed in a study by Lewis in 1989 that came to the
conclusion that values are generally stable but do change over time (Miettinen, 2004:
5).
After this landmark study, various other studies to measure changes in social views
(values) on ethics and business ethics became common. For example, in 1995 Harich
and Curren (1995) found that undergraduate business students were generally less
tolerant of ethically questionable behaviour than those surveyed in 1984.
Peterson, Beltramini and Kozmetsky (1991) found no significant difference in the
responses to 10 business ethics issues between 1980 and 1990. Zinkhan, Bisesi and
Saxton (1989) found an increasing willingness of respondents (MBA students) when it
came to deceptive advertising and bribery of sales agents. This was echoed by Cragg
(1997: 233).
Emerson and Conroy (2004) concluded in their recent study that ethical attitudes of
students appeared to have become higher over time. They found their results to be
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encouraging over the long term in the sense that current students are future business
leaders (Miettinen, 2004: 4).
Within business entities, three different forms of values may be identified. These are
strategic values, work values and ethical values (Rossouw & Van Vuuren, 2004: 6).
4.3.4.1 Strategic values
These refer to the shared conviction of the entity’s desired objectives. Strategic values
therefore point the direction in which the entity wishes to move. These values are
normally found within the entity’s mission and vision statements.
4.3.4.2 Work values
The work values in an entity are those priorities to which the entity’s employees should
adhere. These may be values such as punctuality, innovation and quality.
4.3.4.3 Ethical values
To ensure optimum functionality within an entity, good relations and interaction should
be upheld between various stakeholders. Typically, these ethical values are respect,
transparency and fairness.
For a CA the issue of values is even more important. Cragg (1997: 240) quotes a
foremost accounting lecturer stating that “accounting is not a science; accounting is
an art!” He then continues to make a case by stating that because accounting is an
art it means that judgement has to be exercised. “Judgement, in turn, is shaped by
individual and professional values as reflected in individual and corporate character.
Values are therefore an unavoidable component of the education of accountants”
(Cragg, 1997: 240).
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4.4 GENERAL VERSUS PROFESSIONAL ETHICS
4.4.1 Introduction
A pervasive sense of proper ethical conduct is very important for CAs. Two aspects
of ethics operate in the professional environment: general ethics (the spirit) and
professional ethics (the rules). Mautz and Sharaf have contributed the following
thoughts to the association of general ethics and professional ethics (Robertson, 1993:
118):
“The theory of ethics has been a subject of interest to philosophers since the beginnings of
recorded thought. Because philosophers are concerned with the good of all mankind, their
discussions have been concerned with what we may call general ethics rather than the
ethics of small groups such as the members of a given profession. We cannot look,
therefore, to their philosophical theories for direct solutions to our special problems.
Nevertheless, their work with general ethics is of primary importance to the development
of an appropriate concept in any special field. Ethical behaviour in any activity is no more
than a special application of the general notion of ethical conduct devised by philosophers
for men generally. Ethical conduct draws its justification and basic nature from the general
theory of ethics.”
4.4.2 General ethics
An individual’s ethical orientation (or approach to ethical decision-making) has been
shown to be a major factor influencing ethical sensitivity, which is defined as “the
ability of an individual to recognise that a decision has an ethical component” (Radtke,
2004: 74). Velasquez and Rostankowski (1985) suggest that moral issues exist if freely
performed actions may harm or help others; and the individual must recognise that
he is the moral agent.
People are also constantly confronted with the need to make choices that have
consequences both for themselves and others i.e. the Utilitarian Theory. Too often,
an ethical dilemma arises wherein what is good for one party affected by the choice is
not good for another party affected by the choice. It has been said that in such
situations, individuals should ask two questions: “What good do I seek?” and “What is
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my obligation in this circumstance?” (Boynton & Kell, 1996: 71).
General ethics attempts to deal with these questions by defining what is good for the
individual and society, and by trying to establish the nature of obligations or duties that
individuals owe themselves and each other. Typical examples of prescribed ethical
principles have been developed over the years. These incorporate the characteristics
and values that most people associate with ethical behaviour:
honesty;
integrity;
promise-keeping;
loyalty (fidelity);
fairness;
caring for others;
responsible citizenship;
pursuit of excellence; and
accountability (Arens & Loebbecke, 1991: 68/69)
In considering general ethics, one’s primary goal is to arrive at a set of acceptable
methods for making ethical decisions. Consequently, an understanding of some of the
general principles of ethics can contribute background for a detailed consideration of
the behaviour directed by IFAC Education Standard IES 4 – Profession values ethics
and attitudes (IFAC, 2003a: 59-65).
However, there is one problem with the view of general ethics and that is the inability
to agree on what ‘good’ and ‘obligation’ are. This has ultimately led philosophers to
divide themselves into four distinctive groups of thought.
4.4.2.1 Absolutists
The ethical absolutists say there are universal standards that do not change over time
and that apply to everyone (Arens & Loebbecke, 1991: 68).
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4.4.2.2 Relativists
Ethical relativists do not believe in universal moral rules (Forsyth, 1990 quoted by
Radtke, 2004: 74). They say that people's ethical judgements are determined by the
changing customs and traditions (principles) of the society in which they live and that
there are therefore many ways to look at moral issues (Arens & Loebbecke, 1991: 68).
4.4.2.3 Individualists
This group argues that both the absolutists and the relativists are correct. Every
individual makes numerous life choices that must be guided by unchanging universal
standards, and many other choices that are subject to the changing customs of society
(Boynton & Kell, 1996: 71).
4.4.2.4 Idealists
The tenet of the individualists can be taken further with the ideas of the moral idealists
who assume that good consequences can always be achieved, instead of admitting
that often both good and bad consequences result from every action (Radtke, 2004:
74).
4.4.3 Professional ethics
Earlier in the chapter, various possible definitions or descriptions of ‘ethics’ were given.
Taking into consideration the focus area of this thesis, another more appropriate
definition of ethics as found in the Collins Concise Dictionary (Sinclair et al., 2001: 495)
would be “… a code of behaviour considered correct, especially that of a particular
group, profession, or individual.”
In the earlier definition of ethics by Wheelwright (see section 4.2.2), one of the key
elements was reflective choice. This involves an important sequence of events
beginning with the recognition of a decision problem. Collection of evidence, in the
ethics context, refers to thinking about rules of behaviour and outcomes for alternative
actions. The process ends with analysing the situation and taking action (Robertson,
1993: 120).
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Ethical decision problems almost always involve projecting oneself into the future to
ask what it would be like to live with one’s decisions. Professional ethics decisions
usually turn on these questions: “What written and unwritten rules govern my
behaviour?” and “What are the possible consequences of my choices?”
Philosophers and ethicists have developed numerous theories of ethical conduct.
These theories should be considered in the light of the imperative, the utilitarian, and
the generalisation principles (Cottell & Perlin 1990: 2-7). One could dispense with the
theory/ies of ethics, however, if one were willing to accept the simple rule: “Let
conscience be your guide.”
Before an analysis of professional ethics per se is done, it is important to consider the
term ‘profession’.
4.4.3.1 What is a profession?
Even though the literature does not provide an exact definition for the term ‘profession’
or ‘professionalism’, it seems to be described in terms of a set of evolving
characteristics (Carroll, 1996: 1). Frankel (1989: 110-111) defined a profession as “a
moral community of shared norms, values and definitions of appropriate behaviour”.
Note that a moral concept is evident in this definition but can also be found in the
definitions of ethics earlier in this chapter. Consideration of a set of basic moral values
is a necessary part of ethics research and education and impacts on the goals of ethics
education as specifically applied to the accounting profession. The issue of ethics
education will be discussed in detail in Chapter 5 of this study.
According to IFAC (2001: 16; 2005: 4), a profession is distinguished by certain
characteristics, including:
mastery of a particular intellectual skill, acquired by training and education;
adherence by its members to a common code of values and conduct established
by its administrating body, including maintaining an outlook which is essentially
objective; and
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acceptance of a duty to society as a whole (usually in return for restrictions in
use of a title or in the granting of a qualification).
In the code of conduct produced by SAICA, a further characteristic was added (SAICA,
2002b: 1) namely “rendering personal services to a high standard of conduct and
performance.” (Refer to the questionnaire in APPENDIX B, statement 10)
In a later and updated version of the Code of Ethics for Professional Accountants
released by IFAC (2005: 79), the issue of ethics and the profession was again put to
the fore with this statement: “A professional accountant in business is expected,
therefore, to encourage an ethics-based culture in an employing organisation that
emphasises the importance that senior management places on ethical behaviour”
(Refer to the questionnaire in APPENDIX B, statement 17).
All this seems to suggest that the accounting profession is characterised by the
following:
a specialised body of knowledge;
specific business problems which need accounting expertise;
a long period of formal training;
the capacity for self-regulation; and
status and prestige (Carroll, 1996: 1/2).
Ethics and professionalism are intertwined concepts (refer to the questionnaire in
APPENDIX B, statement 64). Professionalism implies trust and trust is an ethical
concept (Carroll, 1996: 8) (refer to the questionnaire in APPENDIX B, statement 24).
4.4.3.2 The virtues of a professional accountant
Earlier in this section it was noted that ethics basically refers to standards of conduct
that indicate how one ought to behave based on specific values and moral duties and
virtues arising from principles about right and wrong (Mintz, 1995: 251).
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According to the philosopher Aristotle, a virtue is a character trait that enables you to
reach your ‘telos’ – the goal of something (Rossouw & Van Vuuren, 2004: 60).
MacIntyre (1984: 187; 2004: 62) equates virtues to goods (or rewards) that are
internal to practices. Practices, according to MacIntyre (1984: 187), are “... any
coherent and complex form of socially established cooperative human activity through
which internal rewards may be realized while trying to achieve those standards of
excellence specific to that form of activity”.
MacIntyre (1984: 190-192) differentiates between the external rewards of a practice
(such as money, fame, and power) and the internal ‘goods’ that relate to the intrinsic
value of a particular practice. He also points out that every practice requires a certain
kind of relationship between those who participate in it.
Virtues are “... acquired human qualities, the excellence of character which enables a
person to achieve the good life” (Mintz, 1996: 827). The virtues are those ‘goods’ that
define our relationship with others who share the same kind of purposes and standards
of practice. The virtues include truthfulness and trust, justice, courage and honesty.
A practice cannot be sustained without these standards of excellence and perhaps
some others that characterise relationships within a practice. To enter into a practice
is to accept the authority of those standards, obedience to rules, and the achievement
of goods (MacIntyre, 1984: 190-192).
Francis (1990, quoted by Mintz 1995: 254) states that the accounting practice (and
therefore the CA) has the capacity to be virtuous if one realises that it is both a moral
and discursive practice. By moral he means that: "Accounting is a practice involving
human agency that has the capacity to change things in the world." By discursive he
means that accounting not only reports the facts but, importantly, the accountant says
“something (what the accounting report is about) to someone (who the accounting
report is prepared for).” This discursive nature of accounting practice establishes a
moral agency role for accountants.
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One has to remember, however, that those who use accounting information do not
necessarily share the same accounting expertise. This dichotomous relationship
creates an obligation therefore to act ethically (refer to the questionnaire in
APPENDIX B, statements 13, 16 & 17). This inevitably leads to a public perception
that a CA plays the role of a ‘public watchdog’ (Carroll, 1996: 15).
Virtuous practitioners, such as accountants, are concerned about the moral
consequences of what they do. It is therefore ironic that Tang (quoted by Gul, Y Ng
& Jen Wu Tong, 2003: 379) argued that “... chartered professional accountants do not
have a strong understanding of ethical and unethical behaviour in their practices.” One
may look at this statement and think that the authors got it wrong. However, in the
empirical analysis performed on the data collected by way of a questionnaire, very
similar and more interesting conclusions were drawn. These will be discussed in more
detail in Chapters 7 and 8 of this study.
Francis (1990, quoted by Mintz 1995: 254) identifies five internal ‘goods’ that may be
uniquely realised through the practice of accounting:
honesty;
concern for the economic status of others (stewardship or accountability) (refer
to the questionnaire in APPENDIX B, statement 13);
sensitivity to the value of cooperation and conflict;
communicative character of accounting; and
dissemination of economic information.
He also identifies three obstacles in realising these virtues, namely:
the dominance of external rewards (i.e. prestige, status, and money);
the corrupting power of institutions;
and the failure to distinguish between rules and virtues.
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A number of empirical studies (e.g. Ponemon, 1990; Ponemon, 1993; Ponemon &
Gabhart, 1993; and Tsui & Windsor, 2001) have examined the ethical reasoning levels
of professional accountants (CAs) using Kohlberg’s CMD Theory. All these studies have
proven, for example, that there is a systematic relationship between auditors’ moral
reasoning and the way they resolve the conflict at hand. Others have shown that there
is a link between auditors’ ethical reasoning levels and audit quality (Gul, Y Ng & Jen
Wu Tong, 2003: 382) (refer to the questionnaire in APPENDIX B, statement 57).
4.4.3.3 Thoughts on professional ethics
From an ethical perspective, the most important aspect of professionalism is the strong
value that it places on autonomy. Members of a profession believe they have the right
to act autonomously and the profession as a whole expects to be granted relative
autonomy as a social actor (Prozesky, 2001: 10).
Autonomy means literally to be a ‘law unto oneself’, in contrast to being submitted to
the rule of an externally imposed authority (heteronomy). In the context of this study,
autonomy is understood to imply “self-rule” based on reason. An autonomous
professional is a person who, by the very nature of his/her occupation, has to make
decisions based on his/her own judgement and whose actions are based on free
choices (Prozesky, 2001: 10) (refer to the questionnaire in APPENDIX B, statements
14 & 59). The issues of heteronomy and autonomy will be discussed in more detail in
section 4.6.2.
The following thoughts are furthermore provided regarding professional ethics:
“Ethical standards are evolutionary and must change over time. A profession’s
ethical standards reflect the social, legal, economic, political and cultural norms
of a society at a given time. As norms and values and circumstances change,
ethics rules must change as well.” (Pendergast, 2001: 1)
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“Professional ethics are merely a special case of general ethics in which a
profession is given specific guides for conducting matters involving
responsibility to society.” (Cook & Winkle, 1988: 71)
“Professional ethics must extend beyond moral principles. They include
standards of behaviour for professional people that are designed for both
practical and idealistic purposes. While professional codes of ethics may be
designed in part to encourage ideal behaviour, they must be both realistic and
enforceable. To be meaningful, they should be above the law but below the
ideal.” (Boynton & Kell, 1996: 71)
“Professional ethics are imposed by a profession on its members, whom,
voluntarily accept standards of professional behaviour more rigorous than those
required by law ... professional ethics evolve over time and continue to be in the
process of change as the practice of chartered accounting changes.” (Boynton
& Kell, 1996: 71)
“Professional ethics are linked to the profession’s purposes and characteristic
activities and their scope is directly linked to the responsibilities that emerge
from professional relationships with clients and other role-players (other
professions, the judiciary, the state, etc).” (Prozesky, 2001: 12)
It is important to see if the various issues discussed in this section can be collapsed into
a single aspect still encompassing all the above features. One way, perhaps, would be
to collapse them into what is known as ‘business ethics’.
4.5 BUSINESS ETHICS
4.5.1 Introduction
Very often you will find people joking about the term ‘business ethics’, which is
something they refer to as a ‘contradiction in terms’ or an ‘oxymoron’. This and other
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such beliefs about business ethics play a negative role in the perception people have
about ethics and business ethics. These beliefs may even legitimise and sustain
unethical behaviour within business (Rossouw & Van Vuuren, 2004: 15).
But why should the business world care about (business) ethics? Prozesky (2003: 80)
formulated the following reason: “A strong morality is the only way to achieve what
all of us including the entire business community really want – the best kind of lasting
well-being.” There is also a heightened awareness that some accounting students (i.e.
prospective CAs) entering the work force have had little background on how to deal
with ethical issues (Carroll, 1996: 7).
4.5.2 Defining/describing business ethics
The term ‘business’ as used in business ethics can, according to Rossouw (2002: 2)
be described as “… any situation where people voluntarily enter into transactions of
economic exchange for goods or services. These goods and services can be provided
either by a single person, or by any number of people who have formed an organisation
for that purpose.” Business ethics therefore describes the collective behaviour in terms
of the relations or interactions between economic organisations and others (Rossouw
& Van Vuuren, 2004: 2).
A better description, perhaps, is given by Walton (1998: 118), who describes business
ethics as “the nature and operation of the market system, the corporation as a moral
agent, the behaviour of those who work within it, the meaning of fiduciary
responsibility, conflicts between role values and personal values, and the cluster of
issues related to them.” Integrity plays an important role in business ethics. The
author states that integrity includes moral values which can be identified as reliability,
justice, social responsibility, empathy and courage, principled consistency and
self-control (Walton, 1998: 118). These values were also highlighted in the SAICA
Code of Professional Conduct (2002b: 9-11).
Although the accounting profession was once considered by the public to evince the
highest integrity among all professions, the regard that this profession enjoyed has
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deteriorated in the wake of a succession of high-profile corporate scandals (Satava et
al., 2006: 271) (refer to the questionnaire in APPENDIX B, statement 70).
Trevino and Weaver (2001: 652) state that ethical or unethical behaviour was
previously attributed to issue-related factors such as the impact and size of the ethical
consequences, or circumstantial factors such as ethical climate or culture.
Organisational justice and ethics focuses on similar behaviour. Unethical conduct in
organisations includes a variety of behaviours like lying, cheating or stealing.
Organisational justice focuses on similar behaviour, such as employee theft.
DeGeorge (1997: 41) summed up business ethics perfectly when he stated that “… the
imperative to act with integrity cannot insist on moral perfection. It can and does
demand taking ethical considerations seriously.” This view is also endorsed by
Rushworth M Kidder (2001).
4.5.3 The ‘morals’ of business ethics
According to Wicks (2001: 503) business ethics should be present to create moral
practices in companies which will thus lead them to being successful in the market.
Today, managers are focusing on being successful to the detriment of moral and
ethical practices in the company. The trend in business thinking was that ethics and
business are opposing fundamental concepts and mutually exclusive.
In a business scenario one may ask who should be responsible for acting ethically. The
answer is quite easy – everybody! Ethical conduct within a business is the
responsibility of each and every person involved, either directly or indirectly. There
should be an awareness of and commitment to ethical practices which will inevitably
lead to a ‘healthy ethos’ within the organisation (refer to the questionnaire in
APPENDIX B, statement 60). As Kidder (2001) has put it: “Ethics is not a luxury or
an option: it is essential to our survival.”
Business ethics involves a lot more than mere compliance with company policies, laws
and financial regulations – it encompasses some major business, social and financial
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concerns with high visibility within a company (May, 2005a). Trevino and Nelson
(2004: 23) advocate that “… an organisation must care about ethics because
employees depend on them to help define the boundaries of acceptable and
unacceptable behaviour”.
The decision of management to operate its business ethically is not a new business
philosophy. For example, in the 1930s Rotary International developed its ‘code of
ethics’ which is still in use. It uses four simple questions as a ‘litmus test for ethics’:
Is it the truth?
Is it fair to all concerned?
Will it build goodwill and better friendship?
Will it be beneficial to all concerned? (Arens & Loebbecke; 1991: 71)
Griseri (1997: 11) is of the opinion that business and ethics cannot be separated.
Unethical business practice has its own cost. Although these costs may not be
immediately obvious they may appear at a later stage at a much higher level. Kidder
(2001) goes even further and advocates that there is no such a thing as ‘non-profit
ethics’. Indeed, he even goes on to state that business ethics does not exist; “ … only
ethics!”.
Within a business an entrepreneur may also face ethical dilemmas arising out of the
risks and costs inherent in innovation. Dees and Starr (1992, quoted by Miettinen,
2004: 3) refer to “Frankenstein’s problem” in this context. Dr Frankenstein made
several attempts to avoid the responsibility for his creations and to run away but he
could not.
4.5.4 Business ethics and the stakeholders’ theory
With the introduction of the stakeholders’ theory by the Nobel Prize-winning economist
Milton Friedman (Rossouw & Van Vuuren, 2004: 72), the idea was to generate profit
for stakeholders (shareholders) (Wright et al., 1998: 31).
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Friedman (1962: 133) denied that the business had any social responsibility other than
to make profit for shareholders and stated:
“In such an economy, there is one and only one social responsibility of business – to use its
resources and engage in activities designed to increase its profits so long as it stays within
the rules of the game, which is to say, engages in open and free competition, without
deception or fraud.”
According to this theory, still embraced by a large group of corporate executives, what
matters most in business is beating the competition and maximising the bottom line
(Jackson, 2006: 67).
However, the stakeholders’ theory came under great criticism in a paper by the late
Sumantra Ghoshal. According to Ghoshal (2005, quoted by Bidoli, 2004) many bad
ideas (with regard to ethics and the stakeholder theory) have their origins in the
“dismal influence” of the economists, in particular Milton Friedman’s belief that
business’s sole responsibility is to make money for shareholders. The same belief was
held by Edward Freeman (Rossouw & Van Vuuren, 2004: 72).
Ghoshal argues that the economic model of individual human behaviour (that of the
rational, self-interested, utility-maximising man) is simplistic and has resulted in a
flawed understanding of corporate behaviour (i.e. that corporates exist to maximise
shareholder value).: “Much of the worst examples of recent bad management practices
have their roots in a set of ideas that have emerged from business school academics
over the last 30 years” (Bidoli, 2004).
Kenneth Goodpaster later also took issue with the stakeholder idea and pointed out
that the stakeholder theory “… can be detrimental to both business and society.”
(Rossouw and Van Vuuren, 2004: 84) Goodpaster as well as Brooks (1995: 53) agreed
that businesses have a duty towards its shareholders to maximise profits (wealth), but
this does not mean that it should result in a situation where the interest of stakeholders
are sacrificed for the sake of the shareholders’ interest.
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4.6 MORALS, VALUES AND ETHICS IN PRACTICE
4.6.1 Introduction
The most difficult problem situations arise when two or more rules conflict or when a
rule and the criterion of ‘greatest good’ conflict. As W Michael Hoffman has put it:
“Clearly, the ethical thing to do is not always in the best interest of the party
concerned” (Cottell and Perlin, 1990: x).
To state this cliché is not to solve a problem but to present a set of challenges. How
are individual accountants (i.e. CAs) to think and act when they encounter moral
conflicts? How can persons act as professionals and retain integrity? How can the CA
profession as a whole respond to challenges when values conflict?
That is where practical ethics come in. As Singer (1979: 1) put it: “ … [it’s] about the
application of ethics or morality … practical issues like the treatment of racial
minorities, equality for women … and the obligation of the wealthy to help the poor.”
A ‘pocket guide’ to being ethical was proposed by May (2005b) in what he called his
‘“3R’s” approach’ – namely, respect, responsibility and results.
4.6.2 A ‘pocket guide’ to being ethical
4.6.2.1 The first “R” – Respect
The first "R" of business ethics is respect (May, 2005b). Respect is defined as “…
deferential esteem felt or shown towards a person or quality” (Thompson, 1997). It
is at the core of the principle of human dignity and is therefore a key requirement to
fulfilment of human moral purpose. Respect is an attitude (social value?) that must
be applied to people, organisational resources and the environment (Moment, n.d.).
Respect includes behaviour such as (Maccoby, 2003: 60):
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treating everyone (customers, co-workers, suppliers, shareholders,
stakeholders, etc.) with dignity and courtesy; and
abiding by laws, rules and regulations that exist to protect everybody in the
world and their way of life.
Treating others with respect will lead to a reciprocation of the same treatment. In the
1700s, Robert Owen, an English textile mill owner, ran “… the most profitable
operation in the country by going against prevailing management wisdom, and treating
his employees with respect” (Roth, 2005: 9). Henry Ford, one of the most respected
industrialists of his era, also went against the industry trend by doubling wages,
shortening working hours and providing education, health care and housing for his
employees (Roth, 2005: 9). Both of these men were condemned by their colleagues
at the time, but there was no doubting the long-term success of their enterprises.
Piaget, in his publication ‘The moral judgement of the child’ (Rossouw, 2002: 36),
mentions that each child goes through a moral development process. This moral
development occurs when the child moves from an ethic of heteronomy (morality from
duty) to an ethic of autonomy (morality from inner conviction) (MacIntyre, 2004: 188)
(refer to the questionnaire in APPENDIX B, statement 61).
Rossouw (2002: 36) points out that the key to this transition “… lies in co-operation.”
By sharing a common space with others, “… the reciprocity in relationships starts to
dawn”; at that moment one realises the importance of respecting others. For respect
to be an attitude one has to move to a higher stage of moral development, which
means interacting with others and more specifically co-operating with others
(Maccoby, 2003: 60). At this stage the attitude of respect will come to the fore whilst
internal moral values of goodness develop.
Ethical behaviour cannot just be based on an authoritative act or command. Immanuel
Kant argues that if one acts because one is commanded to do so, one may be in a
position to judge whether the command is right or not i.e. the Deontological Theory
(Rossouw & Van Vuuren, 2004: 63; Cragg, 1997: 234). All people therefore have in
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them their “… own moral authority ...” and external authority can provide no criterion
for morality (Rossouw, 2002: 51).
4.6.2.2 The second “R” – Responsibility
The second "R" of business ethics is responsibility (May, 2005b; Walton, 1998: 118).
One’s duty of responsibility extends to customers, fellow employees, the organisation
or business enterprise and one’s self.
Responsible behaviour includes things such as:
providing timely, high-quality goods and services;
working collaboratively and carrying your share of the load; and
meeting all performance expectations and adding value.
It is interesting that by working collaboratively, one exudes responsible behaviour. In
the discussion in the previous section of the attitude of respect, one is struck by the
notion that the attitude of respect occurs only when one treats others with respect
which is then reciprocated. This can only occur, however, if one shares a common
space with others – perhaps working collaboratively with others?
The sense of what is right and wrong is remarkably similar across many societies.
Research done by Kidder (1995, quoted by Parker, 2003: 17) provides a clear set of
common core values agreed to by most people: honesty/integrity; fairness/justice;
compassion; freedom. It is very interesting that the core values of responsibility and
dignity or respect also feature.
The practices of CAs involve providing services to clients through a special relationship
that brings with it various rights and responsibilities, privileges and obligations. The
‘power’ relationship of accountant over client is obviously open to abuse and vice versa.
To ensure that this power is morally and legally legitimate, the accounting profession
has to ‘guarantee’ that its members and the profession as a whole are accountable to
their clients and to the broader society. Accountants have to be seen to be fair and just
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and to act in ways that promote the well-being of individuals and the society. In other
words, they must be ethical (Prozesky, 2001: 11).
In Greek philosophy it was said that the concept of responsibility is presupposed by
different moral attitudes. MacIntyre (2004: 26) states that these presuppositions are
commanded by a technique of persuasion where the concept of rhetoric then comes
into play. The concept of responsibility (and duty) in modern ethics, however, is
secondary to the values of goodness, virtue and prudence (MacIntyre 2004: 81).
In the Second King Report on Corporate Governance, also known as King II, it is stated
that the characteristics of good corporate governance are discipline, transparency,
independence, accountability, responsibility, fairness, and social responsibility
(Institute of Directors, 2002).
From this short analysis of responsibility, it can be said that the value of responsibility
has changed over the past centuries but has also permeated other spheres of ethics
and ‘doing the right thing’. In a modern business environment where all stakeholders
wish to be seen to be ‘doing good’ and ‘doing the right thing’, the principle of
responsibility can also be incorporated into such issues as a business’s corporate social
responsibility and also an environmental impact responsibility (Schultz, 2004: 72).
4.6.2.3 The third “R” – Results
The third "R" of business ethics is results (May, 2005b). Essential to attaining results
is an understanding that the way results are attained – the ‘means’ – are every bit as
important if not more important than the ultimate goals – the ‘ends’. Using the phrase
‘The ends justify the means’ is an excuse that is too often used to explain an emotional
response or action that was not well planned or carefully considered.
Obviously, shareholders and other stakeholders expect a business to show good
results. However, it is also expected that the business attains these results in a legal
and moral manner by being ethical.
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The alignment of human moral purpose with the way in which business is conducted
results in benefits to the company which translate into sustainable profitability. By
treating employees in an ethical way, encouraging trust, co-operation and teamwork
and mutual respect (Maccoby, 2003: 59), businesses can optimise the functioning of
their core component, people.
Rossouw and Van Vuuren (2004: 14) have shown that attending to ethics is crucial for
the survival and sustainability of business. They have shown that ethics can build the
reputation of a business; instil confidence in investors; attract discerning consumers;
and very importantly “… enhance the financial performance [results] of business” –
good ethics is good business. A number of other studies (e.g. Waddock and Graves,
1997; and Preston and O’Bannon, 1997) have also demonstrated the positive
correlation between a business’s social and ethical performance and its financial
performance (Islam & Gowing, 2003: 357).
In a study by The Institute of Business Ethics (hereafter IBE), it was found that
companies displaying a “clear commitment to ethical conduct” consistently outperform
companies that do not display ethical conduct. The Director of IBE, Philippa Foster
Black, stated: “Not only is ethical behaviour in business life the right thing to do in
principle, we have shown that it pays off in financial returns” (Moment, n.d.).
Moreover, there can be no ‘efficient market’ unless people can trust each other.
When ethical behaviour is inspired, the business may profit in many ways. This may
be more than just the maximisation of shareholder wealth. Other ‘profits’ may be that
standards of ethical behaviour pave the way for developing the right ethical culture
within the business (Islam & Gowing, 2003: 357). As the famous Oxford philosopher
RM Hare said: “... the truth [is] that honesty in trade is the foundation for prosperity”
(Prozesky, 2003: 76).
Are these guidelines that one can use to formulate a code of ethics? But why does an
individual or group need a code of ethical conduct (code of ethics)? While it has been
said that a person should be upright and not be kept upright, a code serves a useful
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purpose as a reference or a benchmark for individuals. A code makes explicit some
of the criteria for conduct peculiar to the profession (Robertson, 1993: 119).
Therefore, codes of professional ethics are able to provide some direct solutions that
may not be available in general ethics theories.
4.7 CODES OF PROFESSIONAL ETHICS
4.7.1 Introduction
To create an ethical environment and to monitor the ethical behaviour of a business
and the ethical performance of the employees within a business, ethical guidance or
rules are often formalised in the form of a legally enforceable Code of Conduct or Code
of Professional Ethics (Procario-Foley & Bean, 2002: 103). A code of ethics significantly
affects the reputation of a profession and the confidence in which it is held (Prozesky,
2001: 13). Professional codes of ethics also stress the aim of lifetime adherence to
professional values (IFAC, 1998: 18).
Codes usually distinguish between personal and professional ethics. A professional
code covers only those practices that fall within the occupational domain – those
practices and relationships that form the professional’s working life (Prozesky, 2001:
12). The mere presence of a code of ethics is inadequate and insufficient. Knowing
the professional or organisational code of conduct does not necessarily imply proper
ethical reasoning skills nor does it guarantee ethically praiseworthy character and
behaviour (Acevedo, 2001: 165)
A huge drawback of using codes of ethics was that many businesses thought that by
publicising and betokening their code of ethics they had solved the ‘unethical problem’
widely experienced in business. Their code of ethics became the new ‘moral image’
of the company (Stevens, 1999: 113). Being ethical, however, does not stop here.
Ethical behaviour must be visible and a valued component in an organisation
(Procario-Foley & Bean, 2002: 103/104) but codes of conduct cannot serve as the final
moral authority. What is required is moral character and ethical reasoning ability
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(Carroll, 1996: 34).
Very often it is felt that a code of ethics merely focuses on policy and legality, not
morality and ethics. Such a compliance orientation, based on the fear of getting
caught, usually has little effect on employees’ ethical reasoning skills (Dean & Beggs,
2006: 16). Paine (1994: 111) concurred:
“Even in the best cases legal compliance is unlikely to unleash much moral imagination or
commitment. The law does not generally seek to inspire human excellence or distinction.
It is no guide to exemplary behavior or even good practices. Those who define ethics as
legal compliance are implicitly endorsing a code of moral mediocrity for their organisations.”
The values proposed by a code of ethics must be made practical, and one way of doing
this is to communicate (Stevens, 1999: 114) to and educate the employees of business
in what the code of ethics stands for. Moreover, it may be the case for CAs: they also
need to abide by the code of ethics set for them but this must be communicated to
them. Why then not use their undergraduate studies as a vehicle for communication?
The teaching of (business) ethics will be discussed in detail in the next chapter of this
study.
4.7.2 Codes of ethics for chartered accountants
While one of the main purposes of ethics is to guide the actions of decision-makers,
the role of decision-makers does not fully describe a professional person's entire
obligation. Each person acts not only as an individual but also as a member of a
profession (e.g. CAs) and as a member of society.
There is, furthermore, a direct correlation between ethical behaviour and self-interest
(Fisher, 2003: 97). Ethical decisions will coincide with decisions that are inherently
good for the person in the short or long term. Hence, CAs are spectators (e.g.
observing the decisions of colleagues), advisors (e.g. counselling with co-workers),
instructors (e.g. teaching prospective CA students), judges (e.g. serving on disciplinary
committees of professional bodies), and critics (e.g. commenting on the ethical
decisions of others) (Robertson, 1993: 119/120). All of these roles are important in the
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practice of professional ethics, which was discussed earlier in section 4.4.3.
In 1995, the Financial and Management Accounting Committee of IFAC initiated an
empirical study of Ethical Codes used in corporations. Their focus was on how
corporations developed and used ethical codes, under various labels and in various
guises (Birkett, 2000). Loeb (1990a: 123) also posed the question “... a code of ethics
for academic accountants?”
From the study by Loeb (1990a) it was evident that corporations operate within the
systems of ethics and moral principles of their host communities and within these
communities, such ethical systems or moral principles are seen as just, fair, normal,
or even incontestable; they represent ‘correct’ or commendable ways of thinking or
acting. Accordingly, when these principles are drawn into a ‘code of ethics’ for use
within corporations, they are unlikely to be rejected; they will be more likely to be
accepted voluntarily and willingly by the constituents of corporations - by employees,
customers, suppliers, agencies of government, and the community at large (Birkett,
2000).
Such codes also exist within the CA profession. IFAC (2004b: 11-116) has issued its
Handbook of International Auditing, Assurance, and Ethics Pronouncements, a whole
chapter of which is dedicated to ethics and values within the profession. IFAC also
produced a statement on ethics in 2001 (IFAC, 2001: 1-104) which was followed up
by a comprehensive Code of Ethics for Professional Accountants in 2005 (IFAC, 2005:
1-96).
In Chapter 2, a detailed discussion of the various IESs developed and published by
IFAC was done. IES 4 Standard “Professional Values, Ethics and Attitudes”
concentrates solely on this issue. The importance of ethics for accountants is so
important that this theme runs throughout all the IESs. It even forms an integral part
of IES 7 Continuing Professional Development: A Program of Lifelong Learning and
Continuing Development of Professional Competence, which is the essence of this
study.
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In South Africa, a code of conduct for CAs was developed by SAICA, based primarily
on the code of ethics for professional accountants produced by IFAC (SAICA, 2002b:
1). In the preamble to the Code of Conduct, it states clearly that “this Code deals with
professional attitudes and behaviour” (SAICA, 2002b: 1). The code produced by SAICA
strives to enhance these qualities in all their members, associates and students by
providing appropriate guidance.
It is very interesting that guidance on the other aspects of professionalism relating to
knowledge and skills is given in “... other documents issued by the Institute, the Public
Accountants’ and Auditors’ Board and the Accounting Practices Board” (SAICA, 2002b:
1) and not directly in the Code of Conduct as one may expect.
4.7.3 SAICA Code of Professional Conduct
According to SAICA’s revised Code of Professional Conduct, which became effective on
30 June 2006 (SAICA, 2006d: 113), a professional accountant is required to comply
with certain fundamental principles and not rules. These fundamental principles are:
Integrity: a professional accountant should be straightforward and honest in all
professional and business relationships (SAICA: 2006d: 5). Integrity also
implies fair dealing and truthfulness (SAICA, 2006d: 10).
Objectivity: a professional accountant should not allow bias, conflict of interest
or undue influence of others to override professional or business judgements
(SAICA: 2006d: 5).
Professional competence and due care: a professional accountant has a
continuing duty to maintain professional knowledge and skill [CPD] at the level
required to ensure that a client or employer receives competent professional
service based on current developments in practice, legislation and techniques
(SAICA: 2006d: 5/6).
Confidentiality: a professional accountant should respect the confidentiality of
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information acquired as a result of professional and business relationships and
should not disclose any such information to third parties without proper and
specific authority unless there is a legal or professional right or duty to disclose.
Confidential information acquired as a result of professional and business
relationships should not be used for the personal advantage of the professional
accountant or third parties (SAICA: 2006d: 6).
Professional behaviour: a professional accountant should comply with relevant
laws and regulations and should avoid any action that discredits the profession
(SAICA: 2006d: 6).
CAs are therefore professional in that they satisfy the general requirements of a
profession in the sociological sense, but they also subscribe to a code of ethical conduct
which is said to be superior to the ethical or moral conduct expected of ordinary
persons acting in their daily lives (Baker, 1996 75). It is important, however, to note
that CAs need to keep abreast of changes in these and other codes of conduct. The
use of CPD can be very helpful in this regard.
4.8 SUMMARY
Ethics as a subject is as old as humanity itself. Ethics is derived from the Greek word
ethos or ethikos, meaning ‘character’. Morality, derived from the Latin mores or
‘custom’, focuses on the ‘right’ and ‘wrong’ of human behaviour. Ethics is about people
and discipline; it’s about right and wrong; it’s about consequences of decisions. Ethics
is also about ‘morals’ and ‘morality’ and this can be described in the form of core moral
values. Ethics and morals are closely connected yet separate subjects.
Ethical, moral behaviour is necessary for a society to function in an orderly manner and
this is the glue that holds a society together. Many commonly held ethical values are
incorporated into laws but some ethical values cannot be incorporated into law,
because of the judgemental nature of certain values.
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Although a direct causal link exists between ethics and values, these concepts are not
identical. Values are relatively stable convictions about what is good and desirable but
do change over time. The clear difference is therefore that one may have values that
are not ethical or have absolutely nothing to do with ethics.
Ethical decisions will coincide with decisions that are inherently good for the person in
the short or long-term. If people then do not subscribe to these ethical values they
may act unethically for two reasons, namely a person's ethical standards differ from
those of general society, or the person chooses to act selfishly.
A pervasive sense of proper ethical conduct is very important for CAs. Two aspects
of ethics operate in the professional environment: general ethics (the spirit) and
professional ethics (the rules).
General ethics attempts to deal with these questions by defining what is good for the
individual and society, and by trying to establish the nature of obligations or duties that
individuals owe themselves and each other. Professional ethics deal with the written
and unwritten rules governing a CA’s behaviour and the consequences of his/her
choices.
Business ethics may be described as a governing principle in any situation where
people voluntarily enter into transactions of economic exchange for goods or services.
These goods and services can be provided either by a single person, or by any number
of people who have formed an organisation for that purpose. Business ethics involves
a lot more than compliance with company policies, laws and financial regulations. The
decision of management to operate its business ethically is not a new business
philosophy, and examples from the early thirties can be given to prove this.
The most difficult ethical situation arises when two or more rules of conduct conflict
or when a rule and the criterion of ‘greatest good’ conflict. Codes of professional ethics
are therefore able to provide some direct solutions that may not be available in general
ethics theories and make explicit some of the criteria for conduct peculiar to the
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profession.
Codes of ethics usually distinguish between personal and professional ethics. A
professional code covers only those practices that fall within the occupational domain
– those practices and relationships that form the professional’s working life. In the
case of CAs, the two most commonly known codes are the IFAC code and the South
African version issued by SAICA, which was produced in response to the IFAC code.
No society can flourish, especially in the long term, unless its people understand what
it means to be an ethical human being and unless large numbers of the population
genuinely seek to live in ways that transcend selfishness, violence and dishonesty by
means of an active concern for the well-being of others. Certain forms of grossly
antisocial and destructive behaviour can be criminalised but law enforcement alone
cannot produce a flourishing society, which depends on many things that cannot be
enforced, such as trustworthiness, integrity, respect and honour. It is the task of
morality to foster these.
That is why leading academics, politicians and others are emphasising the need for
ethics education, and why they are calling for the kind of ethics education that reflects
the moral values of at least the most widespread and influential of the world’s moral
traditions and ethical wisdom.
The issue of ethics education will be discussed in detail in the next chapter of this
study.
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CHAPTER 5 Ethics education
5.1 INTRODUCTION
necessary part of this study, which investigates the utilisation of CPD of ethics
amongst prospective CAs, is the consideration of a set of basic moral values, which
are part of ethics research and education. This also impacts on the goals of ethics
education that is specifically applied to the accounting profession.
Ethics education has been at the forefront for many years now. But has it made a
difference? This chapter commences by asking whether ethics can be taught. This
leads to an investigation into whether the teaching of ethics is the same as
indoctrinating one’s students. What are the aims of teaching ethics and what are the
problems?
Following the introduction, the chapter then investigates the various perspectives of
teaching business ethics nationally and abroad. It continues with the very important
section of approaching the teaching of ethics, where the focus will be on the teaching
of business ethics at an undergraduate level.
Various approaches will be studied, and in all cases the definition of ethics, as well as
the various theories surrounding it, will be taken into account. This will then be applied
to business ethics. The last section of this chapter concludes by discussing the criticism
of the teaching of business ethics from a South African perspective, since the
A
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approaches that may be followed in the teaching of business ethics elsewhere might
not necessarily work that easily within a South African context.
As with the previous two chapters, the reader will once again be informed where certain
theoretical aspects were tested as part of the questionnaire used in the empirical
analysis to this study.
5.2 TEACHING OF BUSINESS ETHICS: AN OVERVIEW
5.2.1 Introduction
In section 4.5, an apt description of business ethics was given by Walton (1998: 118),
who described it as “the nature and operation of the market system, the corporation as
a moral agent, the behaviour of those who work within it, the meaning of fiduciary
responsibility, conflicts between role values and personal values, and the cluster of
issues related to them.” Before proceeding, one has to note that in the bulk of the
available literature no distinction is made between ethics and business ethics per se, as
business ethics interrogates aspects of ethics in a specific milieu. For the purposes of
this study these two terms should be read interchangeably.
In his 1964 article, Grimstad suggested that accounting (business) ethics could be
taught in each accounting course in an accounting programme or possibly in a separate
course (Loeb & Rockness, 1992: 486). The issue of ethics being a course on its own
versus an integrated approach with other courses will be discussed later on in this
chapter.
The teaching of business ethics has been the subject of an ongoing debate for many
years (e.g. Carlson & Burke, 1998; Baetz & Carson, 1999; Maclagan, 2002). In the UK
this goes back more than a decade, where the issue has been addressed at
undergraduate, postgraduate and post experience levels (Mahoney, 1990; Snell, 1997);
in the USA this has been an even longer debate (Dunfee & Robertson, 1988). Even
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before the seventies, business ethics was widely criticised by the media and the general
public (Baumhart, 1968 quoted by Stevens, 1999: 113).
Over the last few years, issues relating to the teaching of business ethics seem to have
evolved from questions of “Should ethics be taught to students?” to questions of “How
should ethics be taught to students?” (Wright, Cullinan & Bline, 1998: 35). McWilliams
and Nahavandi concurred with this and stated that the question should rather be
whether one can really teach ethics to adult students (2006: 422). It is now accepted
that the teaching of business ethics has become a core part of undergraduate curricula
across the world (Kenny & Eining, 1996: 160; Cragg, 1997: 238).
Advocates of ethics education are optimistic about the positive impact of business ethics
education and adamant about the necessity of it in the higher education setting (Dean
23). Swanson (2004 cited in Dean & Beggs, 2006: 23/24) likened teaching ethics to
teaching other behavioural subjects that have been an entrenched, unquestioned part
of business curricula for decades, such as organisational behaviour and human resource
management. She ultimately wondered why there is still a debate as to whether
business ethics can, in fact, be taught.
Within the higher education context, the importance of ethics education is increasingly
recognised because the possession of knowledge alone is no guarantee of moral
character (Prozesky, 2001: 5; Cowton & Cummins, 2003: 37). Acevedo (2001: 164)
has found that when students are required to write down their understanding of the
term ‘ethics’, their responses are varied: some see it as religion, etiquette or efficiency,
while others relate it to law and professional or organisational codes of conduct.
Learning furthermore plays an important role in our lives as some aspects of our
existence are fixed while others are flexible, and we learn from these experiences
(Prozesky, 2003: 62, 63).
In response to this one may ask: can values (ethics) be taught; and can ethics be
taught at higher education institutions?
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5.2.2 Can ethics be taught?
In the weeks that followed Enron’s and WorldCom’s spectacular falls, much was written
in the popular press and newspapers across the world about the business school
backgrounds of those fallen leaders in the various corporations. Business school
professors were especially singled out as having been negligent in not teaching these
corporate leaders proper business ethics (Dean & Beggs, 2006: 15/16).
Ghoshal (2003: 21) presented this criticism in a scathing attack when he wrote:
“Faculty members need to own up to their own role in creating Enrons. It is their ideas that
have done much to strengthen the practices they are all now so loudly condemning … Much
of the problem has arisen from the excesses of business school academics in pretending that
business is a science. Not only economists but also those in areas such as marketing and
organisational behaviour increasingly treat business as if it were a kind of physics in which
individual intentions and choices either do not play a role or, if they do, can safely be taken
as being determined by economic, social and psychological laws.”
In the literature, a clear distinction is made between moral or ethical reasoning, and
moral or ethical behaviour. The great majority of work examines reasoning; the ability
to empirically link such reasoning with subsequent behaviours and thus gain predictive
power between reason and action appears to have eluded most researchers (Dean &
Beggs, 2006: 20).
The relationship between moral judgement and behaviour has been very problematic to
define. Rest (1979: 260) had a view that “moral judgement is an important factor in
real-life decision making, but that the interaction with other factors complicates the
relationship so that simple, linear correlations can not be expected.” Kohlberg
(previously discussed in detail in section 4.2.3) makes it clear that his work focused on
reasoning rather than behaviour.
The question of the ‘trainability’ of ethical decision-making is multifaceted. Some may
argue that ethics cannot be taught because character development has already
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occurred by the time an individual reaches the age of entering a higher education
institution (Ritter, 2006: 154).
There is little empirical evidence to suggest that a formal business ethics course can
impact on students in such a way as to change their behaviour (Grasso & Kaplan, 1998:
80; Douglas & Schwartz, 1998: 90). The few studies that have actually been conducted
do agree that it is possible to change behaviour by using the concept of participative
learning (Stevens, 1999: 119). Some critics have actually voiced their concern about
these courses, stating that these may weaken rather than strengthen the moral
commitment of students (Cragg, 1997: 240).
Interestingly, Callahan (1980 in Hiltebeitel & Jones, 1992: 39) does not believe that
‘changing moral behaviour’ is an appropriate goal of ethics education but rather that the
‘potential for change’ should be aspired to.
Hiltebeitel and Jones (1992: 37), quotes Bok from a 1976 article as stating: “If other
sources of ethical values have declined in influence, educators have a responsibility to
contribute in any way they can to the moral development of their students.” It is
interesting that May’s virtue of ‘responsibility’, discussed in Chapter 4, even came to the
fore in such a way!
While many argue that ethics or values cannot be taught (e.g. Lampe, 1996; Cragg,
1997; Stevens, 1999; Sims, 2002b), the current literature suggests a contrary stance
(e.g. Sisaye, 1997; Duska, 1998; Birck, 2002: 534). Gioia (2002: 142) asserted that the
idea that lecturers at a higher education institution cannot influence students’ ethics is
absurd. He remarked: “Why on earth would we assume that when we assume that we
can influence so many other educational values and orientations?”
Churchill (1982) offers a solution to this dilemma, suggesting that the key to the
question of the education of ethics lies in the distinction between ethics and moral
values. In Chapter 4 of this study, it was pointed out that ethics concerns the values of
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people. Values can be taught, because values are communicated from one generation
to another (Sisaye, 1997: 234; Stevens, 1999: 119).
Churchill felt very different to this in 1982 by stating that ethics, as a systematic,
rational reflection upon a choice of behaviour, can be taught. Moral values, on the
other hand, may develop much earlier in an individual’s life and the trainability during a
short segment of time is questionable. Melè (2005: 100) also noted that teaching
values could also diminish a concept of ethical teaching by reducing it to a mere
application of rules. Acevedo (2001: 163) stated that training in ethical reasoning,
perception and judgement is correlated to actual behaviour.
If, however, one links the teaching of business ethics with the transfer of values, one
may then agree with Sims (2002b: 393) when he states that the teaching of ethics can
develop a student’s moral reasoning skills, ethical sensitivity and behaviour, in that
acceptable values can be transferred. Empirical evidence lends credence to this point,
demonstrating that the introduction of an ethics component into the classroom can
often lead to improvement in ethical sensitivity, moral reasoning, and even ethical
behaviour (Wittmer, 1992; Weber & Glyptis, 2000; Sims, 2002b; Lowry, 2003). Hence,
it seems likely that a concerted effort to address ethics issues in the classroom is
sometimes able to counter the opposing forces.
Educators and professional bodies need to distinguish between teaching students about
professional values, ethics and attitudes, and developing a sense of ethical behaviour in
a business context (Hall & Berardino, 2006: 406). This may be done by perhaps
merging the financial (accounting) and social imperatives within business ethics
education.
Because this transfer of values occurs from generation to generation, one should rather
be asking if, within a pedagogical environment, this process can be communicated and
integrated within the learning environment. One theorist supported this idea by
suggesting that if students get into the ‘habit’ of applying ethical decision-making
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strategies in a higher education institution setting, they will be more likely to use them
in business situations (Oddo, 1997).
5.2.3 Can ethics be taught to undergraduate accounting students?
Should one perhaps accept that accounting is a discipline “… that is thoroughly ethical
in nature” (Francis, 1990)? A case can be made that accounting indeed has ethical
bases and it is something that can be made use of in the classroom.
Originally published in 1494 (but from 1509 in substantial numbers), the Italian, Luca
Pacioli, was the first to bring out a book where the principles of double-entry
bookkeeping were explained (Bloom & Solotko, 2004; Dolfsma, 2006: 212). For many
years after, double-entry bookkeeping, which allowed for internal controls for
consistency, was known as Italian bookkeeping and would-be bookkeepers would travel
to Italy to study these principles, as did painters to learn from the Italian painters of the
Renaissance.
Beyond the neo-classical view, where utilitarian considerations are the sole ethical
considerations, the balance has always been more towards deontological principles (see
section 4.2.3) and even a communitarian perspective in accounting. Indeed, one
reason for starting to keep accounts was a moral one: to be able to know and keep
track of which individuals and organisations were due how much (De Wal, 1927 cited in
Dolfsma, 2006: 212).
The Dutch colonial East India Company (or VOC) – granted a monopoly by the state to
trade with the East – was the first to regularly publish ‘financial reports’. The struggle
within this company between management and financiers is well-known, with the latter
arguing that the capital invested gave them a right to determine the course of the
company. The Dutch East India Company was the first firm where ownership and
management were separated, leading to a struggle over control wherein moral
arguments played an important role (De Boer, 1957 cited in Dolfsma, 2006: 212).
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In the 20th century, accounting came to be seen as distinct from bookkeeping.
Bookkeeping was the practice or craft of keeping track of the financial aspects of
businesses, whereas accounting was considered to be more scientific. Accounting
involved discussing the principles that underlie the way in which accounts for
institutions can be kept and distinctions between managerial and financial accounting
developed (Dolfsma, 2006: 212).
Not only is it important to keep track of who is due what, but the available budget is
also divided into items that determine what the money may be used for. Spending
such money in ways that are not in accordance with the purpose(s) for which the item
was created is deemed a transgression that will be objected to in ways that suggest
that items in a budget have moral characteristics (Dolfsma, 2006: 212).
The communitarian nature of the practice of keeping accounts (mentioned earlier) is
evident from the way in which the standards that they need to abide by emerged.
Standards, such as the Generally Accepted Accounting Principles (hereafter GAAP), have
over a long period of time developed into an explicit set of rules. In these days and
times the International Accounting Standards Board (hereafter IASB) seem to be able to
act independently in the development of International Accounting Standards (hereafter
IAS), suggesting accounting rules similar to deontological ethical principles (Dolfsma,
2006: 212).
The seemingly positivist approach to accounting standards-setting (Zmyewski &
Hagerman, 1981) turns out to be a communitarian type of discussion. Differences of
degree remain, however, between the Continental European approach, which relies
more on issuing general principles, and an Anglo-Saxon approach, which relies more on
issuing larger numbers of rules for more specific situations (Dolfsma, 2006: 213). The
former is more deontological, while the latter is more communitarian. In both,
however, utilitarian considerations play a role. Perceiving of the process by which IASs
are developed and adopted across countries in terms of the different strands of ethical
thought is likely to be illuminating.
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5.2.4 Is ethics teaching also indoctrination?
Woo (2003) highlighted the importance of producing students who do right rather than
just know right and argued that ethics cannot be taught in the conventional academic
manner. Phillips (2005) followed on by stating that Business Schools have responded
to the mandate to add ethics to their courses, but how best to teach ethics is a topic for
further research.
For many years, universities have therefore been reluctant to teach ethics in the
classroom because of fear of indoctrination or dogma (Huss & Patterson, 1993: 235;
Cragg, 1997: 233). This even led to an ‘ethics witch-hunt’ across the United States of
America where “… values [were] purged from curricula ...” (Brooks & McCarthy, 1989,
quoted by Solberg, Strong & McGuire, 1995: 1).
The issues of dogma and indoctrination can also be illustrated with a quote by Albert
Einstein, who saw at first hand how even the advanced academic quality of German
education and science in the early decades of the 20th century could be subverted by
Nazism. Later in life Einstein would write (Prozesky, 2001: 5) as follows about this vital
insight:
“It is not enough to teach people a speciality. Through it they may become a kind of useful
machine, but not a harmoniously developed personality. It is essential that the students
acquire an understanding of and a lively feel for values. They must acquire a vivid sense of
the beautiful and the morally good. Otherwise, they with their specialised knowledge more
closely resemble a trained dog than a harmoniously developed person.”
Many of the arguments presented for teaching business ethics rely on the assumption
that value-neutral instruction is a fallacy, and therefore that universities should be
instilling the ‘right’ kinds of values in their students (Solberg et al., 1995: 1; Lampe,
1996: 190). Such thinking leads inevitably to discussions of who decides what the
‘right’ values are. Some authors have actually gone further and proclaimed that ‘right
values’ or ‘moral truths’ do not exist (Baker, 1996: 82, 84).
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In Chapter 4, morals were described as a code for good conduct based on the
experience of the culture or race or “[to be] concerned with or relating to human
behaviour, especially the distinction between good and bad or right and wrong
behaviour” (Robertson, 1993: 118). Good (ethical) behaviour is that which conforms to
moral rules and principles.
In Chapter 4 it was also argued that values are concerned with how a person will
behave in certain situations, whereas ethics is concerned with how a moral person (i.e.
one who grasps the distinction between good and bad) should behave. Values are
therefore the fundamental beliefs that guide or motivate attitudes or actions. It was
also pointed out that one may have values that are not ethical or have absolutely
nothing to do with ethics.
Many studies indicate that ethics education leads to more complex and flexible thinking
(Carslon & Burke, 1998). Van Hooft (2001, quoted by Watson, 2003: 93) concurred
with this statement and stated that: “Ethical education needs to achieve ... not just
familiarity with principles and with logical methods of moral thinking, but also a
commitment to those principles and to those moral values and virtues.”
Ethics education cannot be seen as indoctrination if these commonly accepted morals
and values are put forward in a classroom situation. To therefore state that ‘right
values’ do not exist, might be taking a rather extreme view. By coupling values, morals
and ethics the educator may be able to transfer a great number of ideas mutually
agreeable to all in the classroom situation, without indoctrination.
Teaching business ethics to undergraduate accounting students in an ‘educative’ rather
than ‘doctrinarian’ manner may lead students toward understanding ethical concepts
and reasoning by themselves rather than arguing them passively as a list of ‘do’s’ and
‘don’ts’.
In this ‘educative’ atmosphere of self-examination, the students are presented with
other social and cultural issues, including alternate views of ethical behaviour and the
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idea of social responsibility, with which to challenge their belief systems (refer to the
questionnaire in APPENDIX B, statement 65).
5.2.5 Aims of teaching business ethics
When discussing what the aims of teaching business ethics are, one may note that
perhaps it is not to teach the difference between right and wrong, but “… to make
people comfortable facing moral complexity” (Solomon, 1992).
It should also never be construed that a course in business ethics aims at ‘moral
conversion’ of students but rather that moral development can be enhanced through
the educational process (refer to the questionnaire in APPENDIX B, statement 61)
(Huss & Patterson, 1993: 2). Rest (1979) stated that “... older, educationally advanced
students have higher moral judgement scores” (Huss & Patterson, 1993: 2).
In her 1992 Inaugural Address, Professor Brenda Gourley, Principal and Vice-Chancellor
of the University of Natal and a former Professor of Accounting said: “There can be no
more relevant item on the curriculum of our students than the ethics of their particular
professions and career choices at this time in the history of our country and our world”
(Prozesky, 2001: 6).
Similarly, Bok (1988 in Kidder, 1994: 100, 102) discussed the critical importance of
ethical conduct for the long-term health of businesses in a free-market society. This
former President of Harvard University said in a transcribed interview with Dr
Rushworth Kidder that society needs “... a strengthening of individual virtues, ethical
virtues, civic virtues on the part of individuals – especially the kind of influential
individuals who flow through our colleges and universities.” This means that “…
universities should be taking an active role in moral education” (Kidder, 1994: 100,
102).
According to Bunke (1988) and Hosmer (1988), the reasons for teaching ethics in
business schools are related to community standards, which confer social legitimacy
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over the long term. Higher education could serve both as a capable disseminator of
ethical principles and as a developer of ethical reasoning (IFAC, 1998: 26).
Pincoffs (1986: 169) believes that the primary objective of moral education is to
encourage the development of the right sort of person. This entails paying attention to
interrelated aspects of moral judgement. Huss and Patterson (1993: 236) feel that:
“Ethics education in accounting is based on the premise that moral development can be
enhanced through the educational process.”
Often regarded with a degree of cynicism, accounting is sometimes perceived merely as
a particular way of controlling processes in businesses, even of allowing for and
facilitating exploitative relationships (Lovell, 1995). In addition, accounting is claimed
to have led to the emergence of the ‘economic man’ (Bhimani, 1994). The practice of
accounting has itself done little to create a more favourable view of the discipline either
– portraying it as a discipline in which not only do ethical considerations not play a role,
but in which they may even be alien. People generally, however, seem to interpret
their world in ethical terms, be it informed or uninformed by ethical theory (Dolfsma,
2006: 209).
Solberg et al., (1995: 2) do not take exception to the enlightened self-interest argument
for teaching business ethics and concede that community standards are available for
guidance as to the content of such instruction. They are of the opinion, however, that
“… there exists a small but crucial body of literature which questions the use of so-
called community standards of conduct for ethical education. Effective education in
business ethics may not be possible if such education relies on community standards as
defined by others.”
A typical nineteen-year-old will frequently reject the community standards of conduct
(reasoning based on convention) but he/she does not possess sufficiently developed
moral reasoning skills to understand principle-based reasoning, a finding supported in
part by Weber and Green (1991, quoted by Solberg et al., 1995: 2).
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5.2.6 An integrated approach?
Several options seem to compete for the preferred method to incorporate ethics into
education programs (Felton & Sims, 2005). One choice is to provide students with one
core course that focuses solely on ethics. Another possibility is to integrate ethics
content throughout multiple courses (Ritter, 2006: 155).
A review of the theoretical literature on this issue leads to a different conclusion.
According to theorists, the ideal situation occurs when students learn basic philosophical
theories underlying ethical decision-making in a required ethics class (e.g. normative
ethical theories, deontological theories, etc.) and ethics is further integrated throughout
additional business classes to apply the concepts to specific contexts that the students
may face in their careers (McDonald, 2004; Felton & Sims, 2005). An advantage of this
method is that by directly applying ethics to situations very similar to those which
individuals may face in a work setting, transfer of the material from school to work is
increased (Noe, 1999; Oddo, 1997).
The approach of teaching ethics in isolation, however, appears to have limited effect on
the moral development of accounting students. IFAC even stated that “values
education suffers most when it is separated from reality and taught as a dry, self-
contained topic. A well-planned programme, especially integrated with work
experience, can handle the topic very effectively” (IFAC, 1998: 18).
Carroll (1996: 40) stated that an integrated approach to the teaching of business ethics
is sought, as “... accounting ... is such a highly complex discipline ... with unique
quandaries ...”
In studies conducted by St. Pierre, Nelson and Gabbin (1990) as well as by Shaub
(1991) it was found that, while ethical awareness and reasoning skills tend to improve
after ethics has been taken as a separate course, the effects appear to be short-term in
nature (Kenny & Eining, 1996: 161) (refer to the questionnaire in APPENDIX B,
statement 55).
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Loeb (1988, 1990b) gave ideas on how to resolve the contentious issue of teaching
ethics to accounting students (see section 5.3). He also investigated whether ethics
should be taught as a separate course or integrated with the rest of the curriculum.
Josephs (1978, quoted by Michel, 1999: 27) argues that emphasising the
interdisciplinary acquisition of knowledge will better prepare students for practice.
Therefore, programmes must strive to achieve the outcome of a professional who is
able to recognise and address a wide range of business issues in a changing context.
Some accounting research suggests "... that ethics training might affect the process by
which accounting students and accountants resolve ethical dilemmas" (Hiltebeitel &
Jones, 1991: 272). As these dilemmas may occur in any of the various fields of
practice, many academics see the teaching of business ethics as an integrated approach
rather than a subject on its own in a vacuum (e.g. Kenny & Eining, 1996; Nelson &
Wittmer, 2001; Sims, 2002b; Sims & Brinkmann, 2003) (refer to the questionnaire in
APPENDIX B, statement 21).
5.3 PERSPECTIVES ON THE TEACHING OF BUSINESS ETHICS
The goals of ethics education are based on wider moral issues. Ethics education
increases the “... moral depth, cognitive development, analytical and ethical reasoning
development of students ...” (Sisaye, 1997: 234).
Shenkir (1990, quoted by Huss & Patterson, 1993: 3) emphasised, “ethics education
should recognise that different students will be operating at different stages of moral
maturity”. Individuals will therefore advance through the stages of moral reasoning at
various rates, although the stages occur in an invariant sequence and are universal to
all. In addition, individuals may reach moral maturity at any level.
Six stages of moral maturity or development were defined by Lawrence Kohlberg and
discussed in section 4.2.3.1. These will not just impact an individual's “sense of moral
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obligation” and ability to “deal with ethical conflict” (e.g. Loeb, 1988; Baker, 1996;
Lampe, 1996) but also represent ‘structured wholes’ (Kohlberg, 1981: 120; Rossouw &
Van Vuuren, 2004: 43) – that is, an individual does not reason at different stages for
specific situations but reasons at one stage for all situations.
Researchers have argued that educators have a responsibility to contribute to the moral
development of their students (Hiltebeitel & Jones, 1991). Since the moral
development of university students is never complete (Langenderfer & Rockness,
1989), the identification and support of basic values should enhance the moral
development of accounting professionals. A positive relationship furthermore exists
between the integration of ethics modules in accounting courses and students’ moral
development (Mintz, 1995: 249; Sisaye, 1997: 237).
5.3.1 International perspective
In 1980, Callahan identified five goals or objectives for the teaching of business ethics
at an undergraduate level. These are:
stimulate the moral imagination;
recognise ethical issues;
elicit a sense of moral obligation;
develop analytical skills; and
tolerate and reduce disagreement and ambiguity (Hiltebeitel & Jones, 1992: 39).
Loeb (1988: 319-322) modified the goals proposed by Callahan and presented these as
seven goals or outcomes. Loeb’s possible goals include the ability to recognise ethical
conflicts, and ‘set the stage’ for a change in ethical behaviour. These goals have the
ability to:
relate accounting education to moral issues;
recognise issues in accounting that have ethical implications;
develop a sense of moral obligation or responsibility;
develop the abilities to deal with ethical conflicts;
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learn to deal with the uncertainties of the accounting profession;
‘set the stage’ for a change in ethical behaviour; and
appreciate and understand the history and composition of all aspects of
accounting ethics and their relationship to the general field of ethics (Hiltebeitel
& Jones, 1992: 39).
Bok proposed that providing students with an opportunity to discuss ethical situations
encountered by professionals (such as CAs) would enable them to identify ethical
predicaments more readily. After identifying the ethical dilemma, students must
determine how to react to and resolve the situation. This resolution will be based on
the individual's moral understanding (Huss & Patterson, 1993: 3).
Brinkmann and Sims (2001) also reviewed the goals for teaching business ethics and
proposed the following:
knowing thyself, your own moral values and thresholds;
learning to see moral issues, conflicts and responsibilities;
learning to identify specific moral aspects of a situation;
learning to share moral understanding;
learning how to handle moral issues and conflicts;
acquiring moral courage; and
acquiring a critical attitude to the curriculum and its disciplines.
The modern literature suggests three broadly defined aims for business ethics
programmes (Maclagan, 1994: 4). These are:
raising awareness and stimulating the moral imagination;
providing concepts, theories and analytical skills to engage in moral reasoning
and decision-making; and
creating organisations which encourage and support ethical conduct at the
personal and organisational level.
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The clearest goals for teaching business ethics, however, are found in the Hastings
Centre study “Ethics Teaching in Higher Education” (Stiles, Jameson & Lord, 1993:
246). According to this study, there are five aims of an ethics course. These are:
stimulating the students’ moral imagination;
identifying ethical issues;
bringing out a sense of moral obligation in accordance with their own value set;
developing analytical competence; and
tolerating disagreement (Stiles et al., 1993: 246).
Following research done by Maclagan (1991), Stiles et al. (1993: 246) added that it is
imperative that competence in moral reasoning and actions should be linked directly to
managerial competence in general.
Michel (1999: 27) also feels that the whole faculty “... are ethics educators when it
comes to the motivational component of professional life.” He furthermore continues:
“The final task is to call on all faculty members to pay attention to their role as teachers of
professional motivation and to examine the process collectively in order to explicitly identify
what its goals ought to be, and to determine not just how faculty members ought to act in
order to achieve these goals but also how they can help one another through mutual
observation, correction, and support.”
5.3.2 South African perspective
Business ethics, as an academic field, has also been researched in detail within the
South African context. Rossouw (1997: 1540-1542) points out that although there is
broad consensus amongst academics and business leaders, there are issues that should
be regarded as priorities within the field of business ethics.
The issues he highlights as important are:
cultivation of a moral business culture;
affirmative action;
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work ethic;
information security;
business and society; and
other.
In 2001, SAICA commissioned a report on ethics in the education of South African CAs
(Prozesky, 2001) followed by the preparation of a draft curriculum on business ethics
applicable to CAs (SAICA, 2004g). This has been finalised (SAICA, 2005e) and has
been incorporated in the undergraduate education of CAs throughout South Africa.
The design of the curriculum is such that it provides not just a foundation of general
and specific ethical knowledge, but also a background to the study of the professional
code of conduct of SAICA which is taken by accounting students in the latter years of
their undergraduate years of tertiary studies, besides leading on to the ethics education
interventions during the training period and in professional life (SAICA, 2005e: 1).
The curriculum emphasises applied rather than theoretical ethics, containing just as
much theory as is necessary for an understanding of moral principles. A particularly
novel feature of the curriculum is that it is tailored to the realities of a culturally diverse
national and global context. It does this by including a short introduction to
comparative ethics, intended to equip students for meaningful relationships with people
from cultural backgrounds that differ from their own (SAICA, 2005e: 1).
Within each of these proposed ‘set of goals’, one has to take cognisance of its relevance
for the student. Earlier, the perceived lack of relevance of a course was cited as a
possible negative influence impacting on the teaching of business ethics. A possible
‘test of relevancy’ may be to:
create and foster an awareness of the ethical components within business as a
whole;
legitimise the consideration of ethical components as an integral part of the
decision-making process within business;
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provide a conceptual framework for analysing the ethical components of the
decision-making process within business; and
assist students in the application of ethical analysis within business (Sims,
2002b: 397).
SAICA’s code of professional conduct (2002b: 9, 27; 2006d) also sets forth ethical
standards in the form of behavioural objectives and enforceable behavioural norms.
Competence, integrity, and objectivity are the subject of both the objectives and the
norms (refer to the questionnaire in APPENDIX B, statement 73).
According to Ozar (1993, quoted by Michel, 1999: 23-24), the central values of the
profession, the competence of its members, the ideal relationship among co-
professionals, and the relationship between the profession and the larger community,
comprise the essence of ethics which is brought to the fore in the SAICA curriculum.
Accordingly, the goals of professional ethics education should be to:
enhance the modelling-imitating-habituating process;
heighten students’ awareness of ethical issues in professional practice (refer to
the questionnaire in APPENDIX B, statement 55);
strengthen students’ moral reasoning skills (particularly in judging whether
professional norms are sufficient) (refer to the questionnaire in APPENDIX B,
statement 57);
build a basic understanding of the nature of a profession and the content of the
norms of the specific profession (refer to the questionnaire in APPENDIX B,
statements 55 & 58);
enhance students’ abilities to implement ethical judgements and address
barriers to such implementation (refer to the questionnaire in APPENDIX B,
statement 59); and
make students more articulate in discussing ethical dimensions of professional
practice (refer to the questionnaire in APPENDIX B, statement 60).
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5.4 VARIOUS APPROACHES TO THE TEACHING AND LEARNING OF BUSINESS ETHICS
5.4.1 Introduction
Before investigating the various approaches applicable to teaching and learning
business ethics, one needs to understand the concepts of teaching and learning within
the business ethics milieu, without becoming too philosophical.
5.4.1.1 Defining teaching
Krüger and Müller (1990: 2) see teaching “… as a practical activity demanding reflection
and insight”. The ‘practical activities’ mentioned might include activities like explaining,
demonstrating and motivating. By teaching, opportunities for learning are created
(Krüger & Müller, 1990: 26).
5.4.1.2 Defining learning
There are a variety of ‘definitions’ of learning. Perkins (1974: 453) sees learning as a
universal, lifelong activity during which “… individuals modify their behaviour to adapt
to their environment”.
For the purposes of this study, one should take cognisance of Guilford’s explanation of
learning where “… learning implies a change in behaviour” (1967: 268). Nelson and
Wittmer (2001: 269) go further and see learning as a process that “... fosters
development”. This also entails the presence of effectiveness within the learning
process (Sims, 2002b: 394).
5.4.1.3 Linking teaching and learning
When teaching business ethics, one should ask the question “what do you want to
achieve by teaching business ethics?” Rossouw (2004: 36) points out that a survey of
the literature on the teaching of business ethics reveals that three basic positions can
be distinguished with regard to the purpose of teaching business ethics. These are:
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the cognitive competence position, i.e. acquiring intellectual knowledge and skills
to make proper judgements about the ethical dimension of economic activity;
the behavioural competence position, i.e. developing the capacity of students to
behave morally in a business setting; and
the managerial competence position, i.e. enabling managers or policy-makers to
extend their managerial competence to the ethical dimension of economic
activity.
The element of change appears to be present in all of the above positions – most
particularly a desire to change an individual’s behaviour on a moral and values level.
This may be attributed to what was described in section 5.4.1.1: that teaching demands
reflection and insight.
5.4.2 The conventional or institutional approach
Walk into the majority of classrooms in higher educational institutions the world over,
and one will find the typical teacher-centred approach – a lecturer or teacher standing
in front of a group of students and ‘teaching’ with ‘learning’ noticeably absent (Sisaye,
1997: 240).
With the conventional approach to teaching business ethics, the ‘teacher’ emphasises
facts and skills, knowledge, measurable principles. Teachers ask the questions, they
teach the students, they think and they take responsibility (Nelson & Wittmer, 2001:
268). O’Banion (1997, quoted by Nelson & Wittmer, 2001: 268) noted: “If the
dominant role for teachers has been that of a conveyor of information, the conveyor
belt has been the lecture.”
Applying this conventional approach to the teaching of business ethics is perhaps more
utilised at present for a variety of reasons, namely:
the perceived need for a scientific answer to everything;
the desire for a ‘pill to cure all ills’;
the need for instant gratification;
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the need to protect oneself and the organisation from legal problems;
the desire for a to-do list; and
a preference for the measurable versus the significant (Heames & Service, 2003:
118; Nelson & Wittmer, 2001: 268/269).
The excessive use of this method, however, does not mean it is the best. A study by
McNair and Milan (1993, quoted by Sisaye, 1997: 240) points out that the lecture
approach is the least effective method of (business) ethics instruction. The reasons
they list include inter alia less class interaction; passive involvement in the learning
process; and regurgitation of facts in assessments.
Jackson and McKergow (2002, quoted by Heames & Service, 2003: 118) are of the
opinion that “teaching excellence requires concentrating on solutions, not problems.”
By focusing on solutions, amendments can be made to the conventional approach. This
means a move from a teacher-centred responsibility and thinking to student-centred
learning; from rote memory to application; from answering questions to developing
questions; and from taking responsibility to giving responsibility (Winn, 1996; Heames
& Service, 2003: 118/119).
5.4.3 Community learning approach
The movement to a student-centred approach can be summarised by referring to it as a
community learning approach (Nelson & Wittmer, 2001: 269). Within this approach,
the teacher is no longer the ‘expert’ but is rather a ‘learning manager’ playing various
roles such as coordinator, facilitator, evaluator, mentor and coach (Nelson & Wittmer,
2001: 272/273).
Within this approach, the sharing of experiences by students (i.e. participative learning)
can be very helpful in the learning process (Stevens, 1999: 116, 119; Birck, 2002: 535;
Sims, 2002a: 192). Berry and Chisholm (1999, quoted by Procario-Foley & Bean, 2002:
108) feel that “students [are] taught to believe that schooling is the only source of
learning ... [students] are unable to learn from the first and primary ‘teacher’ –
experience.”
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The community learning approach is very closely linked with the experiential learning
approach (Sims, 2002b: 399) by the use of case studies in teaching and learning,
something that will be discussed in detail in the next section of this chapter. Very
important within this approach is the emphasis placed on the development of a shared
responsibility for learning and growth amongst the student community as a whole
(Nelson & Wittmer, 2001: 273) – a process of self-directed learning that was focused on
in Chapter 3 of this study.
Collaborative learning can also be accomplished by using Computer Mediated
Communication (Spence & Wadsworth, 2002: 336), which will be discussed later in this
section. This approach, however, also has its drawbacks. In an empirical study
completed by Nelson and Wittmer in an ‘MBA Values in Action course’ at the University
of Denver (2001: 270), it was found that assessing students within this process has
been daunting. After reflecting and re-evaluating their process they noted that:
keeping up with the evaluation of the various ‘practical assignments’ students
had to complete during lectures was very difficult. Students also felt that the
assessment process should be more objective in nature;
more formal assessment opportunities needed to be created – e.g. examinations.
Initially in their study, Nelson and Wittmer felt that eliminating formal
assessment opportunities would give the students a better idea of ‘shared
responsibility’. However, this was not such a good idea in the short term (2001:
279).
5.4.4 The conversational approach
Developing the climate or environment for learning in the teaching of business ethics
requires careful attention by the business ethics teacher. Business ethics teachers are
responsible for managing the content, process, and learning environment of all the
efforts if they intend to teach business ethics successfully (Sims, 2004: 201).
Of particular importance to successful business ethics teaching is the recognition that
speaking about values, beliefs, morals, virtue, integrity and other ethically related issues
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often generates powerful emotional responses in students, ranging from self-doubt and
shame to frustration and confusion (Sims, 2002a: 186).
In recent years, experience has shown that the successful teaching of business ethics
depends on the ease, frequency, and quality of conversations among students and the
lecturer/teacher. These conversations are more likely to occur in a classroom-learning
environment based on trust, risk, and student sharing (Sims, 2004: 203). Sims (2004:
202) even went further to state that: “Business ethics education without dialogue is
programmed for failure.”
A conversational learning approach is especially advantageous for business ethics
teaching efforts when it involves:
recognition of student differences as essential for the continuous learning
required;
the creation of a safe learning environment built on trust and risk-taking; and
collaborative learning among students with differing ethical backgrounds,
experiences, worldviews, skills, areas of expertise, vocabularies, and so on.
Much of the spirit of conversational learning is reflected in the thoughts of Howard Stein
(1994: 111): “To listen is to unearth rather than to bury. It is to feel rather than to be
compelled to act. It gives us all greater liberty and responsibility in our actions … the
heart of listening deeply ... its attentiveness to others’ voices ... It is a willingness to be
moved, changed”.
To support the kind of listening that Stein is describing, the creation of receptive spaces
for conversations is essential in business ethics teaching. When these safe, receptive
spaces in the classroom are created and held sacred, students are more likely to trust
and can learn to listen deeply to their own inner voice and to the voices of others – to
listen in the spirit of learning, of being surprised, of being willing to slow down and
reflect upon new possibilities, and of letting go of control (Sims, 2004: 204).
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Conversational learning in teaching business ethics requires many substantial shifts in
thinking for most students, including (Sims, 2004: 204):
listening to others with the intention of learning with them;
reflecting intentionally to gain more understanding of the complexities of
organisational life;
moving away from the assumption there is one way of thinking (either/or),
toward the assumption that there are multiple legitimate and viable perspectives
and possibilities in any situation;
moving away from the assumption that there is a right answer or a right
approach in each ethical situation, toward placing more value on trying to learn
from the multiple perspectives of as many other people as is reasonably
possible; and
avoiding reactive behaviour by becoming highly proactive in anticipating
potential ethical or moral dilemmas and finding different ways to learn from
different perspectives about how one might address such dilemmas.
5.4.5 The games approach
Coverage of ethics can often be dry, and textbook activities can fail to grab the
students’ attention. Furthermore, classroom coverage usually does not emphasise the
responsibilities professionals have in ethical dilemmas. Such an emphasis is vital
because the public perceives the recent corporate scandals as the fault of professional
accountants (Haywood, McMullen & Wygal, 2004: 86).
Educational research indicates that students learn and retain more of what they learn
when they actively participate in problems rather than just listen to lectures (Pascarella
& Terenzini, 1991 quoted by Haywood et al., 2004: 90).
Research provides numerous ideas of how to get students actively involved in learning.
These include the keeping of a journal (e.g. Wygal and Stout, 1989; Sims, 2002a;
2002b) and role-playing (e.g. Cunningham, 1996; Sims, 2002b). The value of playing
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games has also been highlighted by Cermignano, Hargadon and McMullen (1998,
quoted by Haywood et al., 2004: 90).
A related advantage of games is the potential to stimulate the student’s interest in the
subject matter and in classroom dialogue. Given that students are much more likely to
be familiar with playing and observing games than they are with the realities of the
workplace, the game mechanism can be a useful medium to stimulate interest
(Haywood et al., 2004: 90).
In an impact study done by Haywood et al. (2004: 93) at Rider University, students in
the Managerial Accounting and Auditing lectures were asked to respond anonymously
to a short survey that questioned their reactions to the game, if and how it improved
their understanding of ethical and professional responsibilities, and their views on its
effectiveness as compared to other approaches in covering ethics.
Their responses were overwhelmingly positive. While a couple of students noted that
they did not enjoy playing games in general, most used such descriptors as ‘fun’,
‘enjoyable’, ‘unique’, ‘interesting’, ‘entertaining’, and ‘informative’ to record their general
reaction to the game. Student feedback also suggests that the game served to engage
their interest in learning about ethical responsibilities.
Role-playing, as a form of games, also provides students with the opportunity to
participate with a high level of personal involvement (Cage, 1997: 1). Students could,
for example, be asked to develop a code of ethics for an organisation (Sims, 2002b:
399). Students noted that the stimulating nature of the game and the overall
competitive environment contributed to their desire to think critically about ethics
(Haywood et al., 2004: 93).
5.4.6 The computer learning approach
The continuing globalisation and cultural diversity trends within the workplace, present
challenges for the modern professional accountant as well as opportunities for
educators to address. For the delivery of business (ethics) education, the message is
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clear: professionals of the future need to understand these trends in order to cope
effectively with the pressures of the global market.
As David Harrison (2000) has highlighted, three key trends promise to change and
shape the professional landscape well into the next century:
continued globalisation of business;
enhanced information technology; and
increasingly diverse workplaces (Harrison, quoted by Walker & Jeurissen, 2003:
114)
Embracing information technology in the classroom may provide a way to realise this
goal (Walker & Jeurissen, 2003: 114/115) – an integrated learning approach bringing
together business ethics and computer technology. The virtual learning space
(commonly referred to as e-learning) may well then present a medium for sharing ideas
and exchanging knowledge.
Linking business ethics with e-learning may seem like a contradiction in terms. This is
because teaching ethics tends to be associated with more discursive, face-to-face
methods of learning (Ottewill & Wall, 2002: 320). The literature provides many
examples to illustrate the interpersonal dimension of ethics teaching as being very
important (e.g. Sanyal, 2000; Latif, 2001; Jones & Ottaway, 2001; Nelson & Wittmer,
2001).
By contrast, there are fewer articles which refer to the use of electronic learning in
teaching business ethics. One may argue, however, that in the initial stages of
developing an ethical awareness amongst students there is much to be gained from an
interactive electronic facility. Such a facility can assist in familiarising the student with
the language and concepts of ethical discourse and also by demonstrating the
ambiguity of ethical issues and dilemmas (Ottewill & Wall, 2002: 320).
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Sophisticated e-learning applications also offer greater scope for designing interactive
and supportive learning environments (Ottewill & Wall, 2002: 321; Galea, 2001: 487).
5.4.6.1 E-learning: closed approach
In many cases where e-learning has been introduced, it represents a departure from
the traditional applications of technology. Walker and Jeurissen (2003: 115) even went
so far as to defend their choice of learning approach by adding: “E-learning should be
distinguished from conventional uses of the ‘web’ in universities, which conform more
to an ‘e-teaching philosophy’.”
Here the focus of technology is aimed at knowledge dissemination rather than
knowledge creation. This can involve the placing of teaching materials on the web as
well as some ancillary (collaborative) web-based activities (Böhne, Faltin & Wagner,
2002: 9). This environment, known as a ‘closed’ system, allows learners to input
information; however, the responses to that input are prescribed and predetermined. A
computer-aided instruction environment would suit this type of approach.
Instructional interventions using this type of tool would typically aim at controlling the
sequence and content of instruction, and seek to map a particular model of thinking for
offering feedback and prompting to learners (Walker & Jeurissen, 2003: 115).
The closed approach can also be applied by using dedicated electronic bulletin boards
which may complement the traditional lecture or seminar (Spence & Wadsworth, 2002:
335).
5.4.6.2 E-learning: open approach
A more effective applicable approach that can be used in the teaching of business
ethics is a vision of e-learning based on the application of technology in such a way that
learners are presented with an ‘open’ environment, matching the needs of individual
learners and complementing individual learning pathways (Walker & Jeurissen, 2003:
116).
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An open system fosters personal meaning, allowing individuals to construct their own
knowledge through exploration and discovery learning. It provides high levels of
learner control, allowing users to restructure the learning experience in ways not
feasible within closed environments. An open environment will also support discourse
among communities of learners, supporting the social negotiation of meaning (Walker &
Jeurissen, 2003: 116).
5.4.7 The experiential learning approach
Recent work on the provision of (or at least the possibility of) comprehensive
management development programmes in ethics has indicated that learning from
experience is vital (e.g. Maclagan & Snell, 1992; Maclagan, 1994: 4). Laditka and
Houck (2006: 157) suggest that experiential learning can help students understand
ethical situations they are likely to encounter in the workplace.
Much of the work in this field has drawn on the ideas of the philosophical psychologist
Lawrence Kohlberg concerning individuals' moral development, where he refined the
work postulated by Piaget (Maclagan, 1994: 3; Baker, 1996: 76). Kohlberg stressed
that emotional experiences are a near-necessity for moral development to take place;
not only do they provoke awareness of ethical situations, but they often force people to
rethink their position on the moral issues arising. Such experiences arise in the reality
of working life rather than in the classroom (Maclagan, 1994: 4).
Furthermore, people must have the personal capacity to act. They must have the
courage, assertiveness, communicative skills, and so on, to enable them to stand up for
what they believe in, to argue their case – perhaps even, in extreme instances, to
resign from an organisation (Maclagan, 1994: 5).
In the previous two paragraphs it was indicated that Kohlberg stressed the importance
of moral development and judgement. Moral judgement is action-oriented and
students in business ethics should participate in experiential (learning) activities that
require them to ask themselves what the right thing is to do (Sims, 2002b: 399). An
experiential learning exercise is a complex event in teaching business ethics. It is
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important during experiential learning that the student must have the capability to use
this new knowledge gained not just in the classroom but also in real business settings
(Sims, 2001a: 179).
Experiential activities that expect students to respond to moral questions that are
personal in nature and involve interpersonal relations require normative responses to
determine the appropriate course of action (Sims & Sims, 1991; Radtke, 2004).
In this age of moral relativism (Cragg, 1997: 239), business school curricula should
provide students with continuous experience in examining the underlying moral issues.
What are managers’ or employees’ responsibilities or obligations to an organisation,
work group, themselves, their families, and society? And what will the possible
consequences be of a particular action if they make an immoral decision and knowingly
harm others (Sims, 2002b: 399)?
The use and value of experiential methods, or activities, as a teaching medium are well
recognised and have been widely reported. Within the CA fraternity the call for more
learner-centred approaches to teaching has unfortunately ‘fallen on deaf ears’ and
surveys have revealed a disappointing lack of learner-centred approaches (Adler &
Milne, 1998: 12).
In Chapter 4 of this study, reasons for tertiary educational institutions generally shying
away from these approaches were given. On the other hand, studies by Hemmasi and
Graf (1992, quoted by Sims, 2002b: 399), for example, show that experiential exercises
(activities) have positive attributes. These include:
students retain material longer over time;
students are actively involved in the learning process;
actual work environments are simulated;
students enjoy the activities; and
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activities serve as an effective training and teaching tool to prepare students to
understand and cope with ethical minefields that they are likely to encounter
(Sims, 2002b: 399).
The experiential approach has evolved further in other approaches to teaching business
ethics, however.
5.4.7.1 Simulation approach
The goal of combining theory and practice has always been a challenge in the
classroom; supplementing theory with hands-on practical examples makes the theory so
much more applicable. Simulation is an experiential tool that may be very helpful in
bridging this divide (Galea, 2001: 473).
Simulations “model some aspects of reality in a safe and time-compressed setting” and
“... create a world ... while lessening the inherent risks” (Galea, 2001: 476).
Simulations have also been called “a powerful learning tool” (Galea, 2001: 476).
In simulations designed for teaching business ethics, students can be faced with ethical
dilemmas that encourage them to react to and act on the problems as though they
were in a real-life situation (Sims, 2002b: 399).
5.4.7.2 Case studies
According to the Accounting Education Change Commission (Mintz, 1995: 255), one of
the objectives of education for accountants is to develop the skills that are necessary
for success in the accounting profession. One such group of skills is the intellectual
skills (IFAC, 2003a: 46, 54). These include "the ability to identify and solve
unstructured problems in unfamiliar settings and to exercise judgement based on
comprehension of an unfocused set of facts." One way of enhancing these skills is to
use case studies as a teaching method (IFAC, 2003a: 50).
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Business cases and field-based applications can provide another pedagogical vehicle to
actively engage students in analysing ethical problems and identifying creative solutions
(e.g. Sims, 2002b; Nelson & Wittmer, 2001; Milne & McConnell, 2001).
Case studies are used in accounting ethics instruction, but not as widely as one would
expect (Sisaye, 1997: 241). They provide students with “an external referent” (Castro,
1989: 481) to apply in business situations, both actual and/or hypothetical (Sisaye,
1997: 241; Sims & Sims, 1991: 213). Case studies also increase a student’s awareness
and sensitivity to ethical issues and dilemmas (Sisaye, 1997: 241). Sensitivity as a
virtue of a CA was also highlighted in the previous chapter of this study.
On the whole, students tend to accept the use of cases in teaching business ethics very
favourably (Nelson & Wittmer, 2001: 278).
5.4.7.3 Journals
Another useful pedagogical approach is to schedule discussions that are focused on
current events that have ethical ramifications. Reports and individual journals can be
prepared from current periodicals based on recent headline-making fraud and
embezzlement cases, and the class discussion can focus on how these problems could
have been avoided (Sims, 2002b: 399; Nelson & Wittmer, 2001: 274).
Sims (2001: 385) takes the issue of journals even further by advocating the use of a
learning log (‘diary’). By maintaining a learning log over a period of time, students can
record their experiences and reflections, thereby ‘self-tracking’ personal growth and
cognitive development. “Journal writing significantly extends the learning process in
the experiential learning exercise. The writing not only substantiates learning, but it
enhances analytical thinking” (Sims, 2002a: 194).
Business ethics teaching that extends beyond the rote mastery of fact should strive to
be an intensive, interactive experience in which students are asked to identify with a
problem and take a stand. These experiences offer tremendous potential for student
development and growth.
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However, there is also the potential for confusion, misunderstanding, and alienation.
To manage the potential for adverse consequences, it is critical that experiential
approaches are carefully designed and safely and thoughtfully executed so as to include
the creation of an environment conducive to sharing experiences that are carefully
debriefed (Sims, 2002b: 400; 2004: 201).
5.4.7.4 Debriefing – a crucial aspect in experiential learning activities
As was indicated previously, experiential learning activities can be a powerful form of
teaching in which participants acquire new knowledge, skills and abilities by
internalising theory through guided practice (Sims, 2002a: 179). Of crucial importance
in experiential learning is the often neglected processing stage known as ‘debriefing’
(Sims, 2002a: 196).
An experiential learning activity is a complex event in ethics education. It needs to
provide students with the basis for understanding why and how the new knowledge
they acquire is related to what they already know. It must convey to the students that
they have the capability of using this new knowledge not only in the classrooms in
which they learn it but in other settings as well (Sims, 2002a: 179).
In designing a business ethics curriculum, designers spend a vast amount of time on
the design and implementation of experiential learning activities (i.e., role plays,
simulations, games, etc.). Unfortunately, that is not true about the planning and
implementation of the debriefing sessions accompanying experiential learning activities,
which are just as, if not more, important (Sims, 2002a: 179).
While a number of authors write about the debriefing process, not all use the term
‘debriefing’ in the same sense.
Debriefing is defined as “the post-experience analysis designed to provide insight into
the cases, journalising, role-plays or other experiential learning approaches used in
teaching business ethics” (Sims, 2002a: 181).
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Pearson and Smith (1986: 156) offer the following insight into the relationship between
the experience of learning and the debriefing phase: "Active experience [by students] is
involving and interesting, even exciting. Debriefing means the termination of this
experience and the deliberate decision to reflect on action".
In his model of experiential learning, Thatcher (1986), drawing on the earlier work of
Kolb (1984), emphasises that reflective observation (debriefing) is the crucial link
between experience and the process of change that makes the elements of the
experience a part of the conceptual foundation of the learner.
Thatcher (1986: 151) notes: “Debriefing is the part of the process in which the
reflection takes place and from which the change in the person will occur, because it is
the part of the activity which focuses on the complex processes which took place in
each individual and in the group as a whole.” Nelson & Wittmer (2001: 275-278) also
use debriefing but refer to it as ‘case discussion’.
Debriefing has always been a key component of successful experiential learning
exercises. The link between objectives or outcomes, course materials and the
experiential learning activity seems rarely, if ever, crystal clear to the participants.
5.5 SOME CRITICISM FROM A SOUTH AFRICAN PERSPECTIVE
5.5.1 Introduction
Even though the integrated approach to the teaching of ethics has been high on the
academic agendas of many universities across the world, it certainly has not guaranteed
an automatic change. The role of universities in the teaching of business ethics has
been criticised. An educator from India, Mithra Augustine, noted the following at an
international conference of service-learning (Procario-Foley & Bean, 2002: 105):
“The role and function of the universities and colleges were earlier seen as integral to the
processes of social engineering, developing students’ critical faculties ... Amidst current
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trends of modernisation and globalisation the culture of self-interest is growing dominant in
centres of higher education.”
Berry and Chisholm (1999, quoted by Procario-Foley & Bean, 2002: 107/108) went
further and criticised the specialisation, fragmentation and isolation of knowledge
through division into disciplines and departments. Their worry is also born from the
fact that “... too little dialogue [occurs] between faculty and the community in which it
operates.”
Adding an ethics component to a core course does not necessarily mean systematic
integration. Far from integrating, this option trivialises the subject thus ignoring that,
with few exemptions, business ends and means have ethical implications and,
consequently, are subject to ethical evaluation (Acevedo, 2001: 167) (refer to the
questionnaire in APPENDIX B, statement 21).
Grasso and Kaplan (1998: 80) conducted a study that dealt with ethics and taxation,
and concluded by providing three reasons for the failure of ethics to be properly
integrated in the teaching of taxation. These were:
the large amount of technical detail that must be covered within the [prescribed]
curriculum;
the lack of ethics training for the educators; and
the effectiveness of ethics coverage within the curriculum.
For the purposes of this study, the author used these together with reasons taken from
the works of various authors (e.g. Loeb & Rockness, 1992; Kenny & Eining, 1996;
Lampe, 1996; Cragg, 1997; Baetz & Carson, 1999; McAdams & Duclos, 1999; Buerck,
2002; and Sims, 2002b) and postulated his own reasons for the failure of business
ethics to be properly integrated into a curriculum applicable to CA students in South
Africa. These will be discussed below.
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5.5.2 Amount of technical detail
As there is an ethical aspect to all areas of business, ethics should permeate the
content of business courses throughout the syllabus. However, there is a case to be
made for the inclusion of the large volume of technical detail that must be covered
within the curriculum of the undergraduate CA. Past neglect of ethics may well have
been a function of business schools’ traditional approach to the teaching of technical
skills while “ethical values seem to be left to chance ...” (Agarwal & Malloy, 2002: 245).
At this stage, integrating business ethics into the syllabus relegates it to the lower
status of an added extra: something that is covered simply by being acknowledged as
an issue, no matter how superficial the treatment may be in practice. Business ethics
should however not be viewed as an ‘add on’ to an already-crowded curriculum. It may
be further argued that in being taught as a component of a grouping of other subjects,
the treatment is almost certainly going to be superficial since the specialist teaching the
subject demands, will be absent because of the complexity that results from its
involvement with all aspects of business.
5.5.3 Effectiveness of coverage
The effectiveness of ethics coverage in the undergraduate curriculum for prospective
CAs may be affected due to the fact that, at certain higher education institutions, those
teaching business ethics frequently take a detached, non-committal moral stance in
discussing the quality of various moral perspectives (Cragg, 1997: 240). There is also
the issue of the lack of proper ethics training (either theoretical and/or didactical) for
the educators of business ethics (Baetz & Carson, 1999: 1).
At many South African institutions, prospective CAs are taught by qualified CAs. To say
therefore that because CAs teach business ethics this instruction will be good and the
‘non-committal moral stance’ will not be evident may not be correct.
The only time many of these educators were exposed to ‘business ethics’ per se would
have been at an undergraduate level when they were completing their undergraduate
degrees themselves. Their education did not involve an in-depth study of, for example,
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Western and Eastern theories and philosophies of ethics. Does this then qualify an
educator to be an ‘ethics specialist’?
At some universities it is felt that that the teaching of business ethics should be the
exclusive preserve of those qualified in philosophy. While accepting that the business
ethics educator should have an understanding of the theoretical underpinning of the
subject, the notion may also be that business ethics is just other component of a broad
understanding of ‘business activity’ for CAs in general.
As long as both components (i.e. theory and application in business) are there, it
matters little which route is taken, provided the grasp of both components is secure.
5.5.4 Theory versus application
Unquestionably, ethical theory is the area of business ethics that causes both students
and educators the most trouble: students because it is both difficult and new to them;
teachers because not only might it be a relatively new subject to them as well, but also
because they have to treat what is a huge subject in its own right as simply a
component part of business ethics.
The problem is how to compress theory and practice while still conveying enough of the
complexities of ethical theory to equip students to use it effectively. Moreover, it is a
problem that is made even more difficult by the prevalence in textbooks of a view of
ethical theory as a series of contending schools of thought – e.g. utilitarian, virtue-
based, feminist, etc.
To circumvent this, educators may find that they need to ‘simplify theory’. This
alternative, however, may lead to over-simplification, which is another matter of
concern.
5.5.5 Use of computer technology
In section 5.4.6 the use of computer technology in the teaching of business ethics was
highlighted. There has been some criticism of this method in a South African context,
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however. The first may be whether the computer learning approach may lead students
down a set path of learning that might not be appropriate for their needs. The use of
such technology needs to be specific in nature in that it should address a specific issue
or skill that needs to be taught.
Language in terms of computer terminology may also be a problem in the use of
computer technology in that certain students will not understand what is required and
cannot provide explanatory feedback. One has to remember that the subject itself is
new, presenting a new set of terminology that has to be grappled with. If learners are
furthermore required to be able to critically evaluate any statement or to complete
certain activities, this might lead to further problems as many students do not have the
necessary language skills. This has already been discussed in detail in Chapter 3.
In general, the use of computer-assisted or -aided technology in the teaching of
business ethics should also be viewed with caution: a major drawback is the cost
involved in setting up and maintaining the physical environment in which the student
must operate. This is not such a problem at the UJ, however.
5.5.6 Classroom realities
In Chapter 3 of this study the issue of SDL and PBL was highlighted. Earlier in section
5.4 the use of SDL by way of case studies was again brought to the fore where it was
stated that the use of case studies places an emphasis on the development of shared
responsibility between the educator and the learner for learning.
There is a downside to this philosophy, however. At many of the higher education
institutions in South Africa accredited to produce prospective CAs, educators are
snowballed by the sheer number of students they have to contend with. Speaking
about a ‘classroom full of students’ is an understatement as there may be between 300
and 600 students in a lecture hall at a time.
Therefore to look at a so-called ‘collaborative learning’ approach together with the use
of case studies or journals may have its drawbacks – e.g. the number of assignments
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that need to be assessed and the fact that a final assessment opportunity in the form of
an examination has to be completed at the end of a semester as an exit-level
assessment opportunity.
Business ethics educators in South Africa will have to find a solution to these drawbacks
as the use of case studies and (learning) journals is now part of the official SAICA
syllabus for business ethics. Creative ways of assessment also need to be sought as
the journals that learners will produce will contain their own experiences, and this
means that they cannot be assessed in an objective manner but rather subjectively
using Rubrics.
5.5.7 Other
Other reasons for the lack of proper integration may also be the unwillingness of either
the educator and/or the learner to discuss uncomfortable topics and potentially
offensive issues in class; and the increased emphasis on business ethics teaching may
also raise ethical dilemmas for the educator.
5.6 SUMMARY
How to teach business ethics has been an ongoing debate for many years. Over the
last few years, issues relating to the teaching of business ethics seem to have evolved
from questions of “Should ethics be taught to students?” to questions of “How should
ethics be taught to students?” and it has now been accepted that the teaching of
business ethics has become a core part of undergraduate curricula across the world.
While many argue that ethics or values cannot be taught, the current literature
suggests a contrary stance and states that teaching ethics can develop a student’s
moral reasoning skills, ethical sensitivity and behaviour. The teaching of business
ethics to prospective CAs at an undergraduate level is important because these students
are seeking to discover a set of ethical standards suitable for themselves. Universities
seem to be appropriate institutions in which to inculcate in students a sense of the
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importance of ethics. Indeed, they should go so far as to influence the ethical
reasoning of graduates.
Studies have found that the teaching of business ethics as an integrated approach
rather than a subject on its own in a vacuum does provide better results over the long
term. Even though the integrated approach to the teaching of ethics has been high on
the academic agendas of many universities across the world, it certainly did not
guarantee an automatic change.
The teaching of business ethics, whether on its own or integrated with the rest of the
curriculum, has also led to many criticisms, obstacles and negative concerns about the
subject. The role of universities in the teaching of business ethics in terms of the
amount of specialisation, fragmentation and isolation of knowledge through a division
into various disciplines and departments has been cited as a negative concern.
The goals of ethics education are based upon wider moral issues and should recognise
that different students will be operating at different stages of moral maturity.
Researchers have argued that educators have a responsibility to contribute to the moral
development of their students. Since the moral development of university students is
never complete, the identification and support of basic values should enhance the moral
development of accounting professionals.
The clearest goals for teaching business ethics are:
stimulating the students’ moral imagination;
identifying ethical issues;
bringing out a sense of moral obligation in accordance with their own value set;
developing analytical competence; and
tolerating disagreement.
With the conventional approach to teaching business ethics, the ‘teacher’ emphasises
facts and skills, knowledge, measurable principles. Teachers ask the questions, they
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teach the students, they think and they take responsibility. This method is not the best
as it contributes to less classroom/learner interaction, creates passive involvement in
the learning process, and means regurgitation of facts in assessments.
By moving to a student-based approach, the teacher is no longer the ‘expert’; he or she
is rather a ‘learning manager’ playing various roles such as coordinator, facilitator,
evaluator, mentor and coach. Very important within this approach is the emphasis
placed on the development of a shared responsibility for learning and growth amongst
the student community as a whole.
Coverage of ethics (and business ethics) can often be dry, textbook activities that fail to
grab the students’ attention, and classroom coverage usually does not emphasise the
responsibilities professionals have in dealing with ethical dilemmas. Educational
research indicates that students learn and retain more of what they learn when they
actively participate in problems rather than just listen to lectures. This includes the
keeping of a journal and role-playing.
Recent studies have shown that learning from experience is vital. Experiential activities
that expect students to respond to moral questions that are personal in nature and
involve interpersonal relations require normative responses to determine the
appropriate course of action. The experiential approach has however evolved further in
other approaches to teaching business ethics and includes the simulation approach,
case study approach, and the use of journal or journal-keeping.
As was indicated previously, experiential learning activities can be a powerful form of
teaching in which participants acquire new knowledge, skills and abilities by
internalising theory through guided practice. Of crucial importance in experiential
learning is the often neglected processing stage known as ‘debriefing’.
Some of the reasons for failing to properly integrate business ethics into a South African
curriculum applicable to the undergraduate CA student may well be the traditional
approach of focusing on technical detail (albeit a requirement of professional bodies),
the ineffective coverage of the business ethics in an undergraduate curriculum, the
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prevalence of conveying a concept draped in theory in an applicative manner and
various classroom realities in South Africa in the 21st century. This may include student
readiness, the use of technology and language barriers.
The problem of how to teach ethics is rich in controversy about nature, purpose and
method. The moral point of view for those who teach business ethics is to work
towards sculpting individuals who are morally autonomous, technically competent and
caring (professional) members of society. The pillar upon which this goal rests is that
of integrity: integrity in terms of curriculum content, the setting in which learning takes
place, and the development of the moral virtue of integrity itself.
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CHAPTER 6 Research methodology
6.1 INTRODUCTION
n order to determine how to utilise CPD of ethics amongst prospective CAs at an
undergraduate level, one has to be able to develop a ‘model’ or ‘method’ of
approaching this ‘learning process’. Moreover, this model needs to be implemented
during a student’s undergraduate learning experience.
Before one can actually commence with the development of this so-called ‘integrated
teaching and learning model’, one has to be certain that students grasp the issues of
CPD and ethics within a holistic process. Chapter 7 therefore provides an assessment
of whether CPD of ethics is understood and possible to communicate to prospective
CAs at an undergraduate level by focusing on the attitudes and perceptions of
undergraduate students toward the CPD of ethics. Chapter 6, however, first provides
the background to the research methodology to be used in the empirical analysis in
Chapter 7.
This chapter will initially provide the reader with some thoughts on research design,
incorporating issues such as qualitative and quantitative research. The quality of
measurement is also discussed looking at the issues of reliability and validity specific
to this study.
I
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Next, the chapter provides an overview of the design of a questionnaire as an
instrument to be used in an empirical analysis, which is then also investigated within
the ambit of this empirical study.
Discussions surrounding issues such as the questionnaire layout, the issue of
pre-testing, sampling approach, administration, data analysis, research ethics and
confidentiality are also provided.
6.2 RESEARCH DESIGN
Planning an empirical analysis for research purposes requires the researcher to
investigate various issues around the research design. For the purpose of this thesis,
a mixed research paradigm employing a combination of both quantitative and
qualitative research methodologies will be used.
6.2.1 Qualitative research
Grounded theory, as a phenomenological or qualitative research paradigm, will be
used in this thesis to describe the world of the prospective CA. In order to define it
one may state that grounded theory “... uses a systematic set of procedures to develop
an inductively derived theory about a phenomenon” (Collis & Hussey, 2003: 73). Data
will therefore be gathered and analysed in order to generate hypotheses.
6.2.2 Quantitative research
A quantitative, descriptive survey will be used to investigate opinions, attitudes and
perceptions of third year B Com Accounting students at RAU on the utilisation of CPD
of ethics amongst prospective CAs. Quantitative research or a positivistic paradigm
(Collis & Hussey, 2003: 47) is a formal, objective, systematic process to obtain
information and describe variables and their relationships (Burns & Grove, 1993: 26).
Quantitative research is also a conclusive research format involving large samples and
fairly structured data-collection procedures (Struwig & Stead, 2001: 4).
The design will be quantitative in nature in that the strategies the researcher used to
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collect and measure data were in a numerical format. Measuring or measurement is
simply the allocation of numbers to objects or events according to predetermined rules.
Huysamen (1998: 7) defines it as “... the assignment of numbers or numerals,
according to fixed rules, to persons or objects in order to reflect differences between
them in the attribute or characteristic of interest.”
The reason for the use of numbers, as is evident from Huysamen’s definition, is that
numbers can show distinction between different mutually exclusive categories;
numbers can indicate rank; and numbers can indicate equal intervals between
successive numbers (Uys, 2003: 118) – i.e. measurement can describe characteristics
of variables (Eiselen; Uys & Potgieter, 2005: 11).
The definition furthermore encapsulates the issue of “... differences in attributes ...”
This implies that the level of measurement for each variable may differ. Based on work
done by Stevens (1946), the literature describes basically four levels (or scales) of
measurement – namely, nominal, ordinal, interval and ratio measurement scales (Uys,
2003: 119).
6.2.2.1 Nominal scale
Within nominal measurement (sometimes called categorical scales), the issue of
mutual exclusiveness stands out. This means that when completing a questionnaire,
the respondent has to choose one aspect relating to his/her circumstances. Examples
of nominal measurements are gender, language or marital status (Bryman & Cramer,
1997: 56).
6.2.2.2 Ordinal scale
As is the case with nominal measurement levels, ordinal levels are also distinguishable,
with one difference: categories can now be sequenced in terms of ‘more’ or ‘less’. The
respondent can, for example, provide additional characteristics about his/her career
status or educational background (Bryman & Cramer, 1997: 56).
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6.2.2.3 Interval scale
Within this measurement level, equal intervals are placed between different
categories. Numbers now correspond to differences in degree, and ranking of
characteristics is also now possible (Bryman & Cramer, 1997: 56). This scale is very
often used in surveys and questionnaires and will be predominantly applied to the
empirical analysis in Chapter 7.
6.2.2.4 Ratio scale
This measurement level is an extension of the interval measurement level with an
addition: absolute zero values are now included. Examples are income, family size and
age (Bryman & Cramer, 1997: 56/57).
6.2.3 Quality of measurement
Various conditions for good measurement are found in the literature. Neuman (1997:
152-153) argues that good measurement must satisfy three conditions, namely:
categories must be mutually exclusive;
possibilities must be exhaustive; and
measurement must be one-dimensional in order to measure a single construct.
Further conditions for quality of measurement are reliability and validity.
6.2.3.1 Reliability
Reliability demonstrates the consistency of measurement (Bryman & Cramer, 1997:
63; Uys, 2003: 122). This means that with repeated measurements, equivalent results
must be found. Neuman (1997: 138-141) states that reliability is mainly tested in three
ways. These are:
stability reliability: i.e. whether the instrument will provide the same results over
time;
representative reliability: i.e. whether the instrument will provide the same
results when applied to different sub-populations e.g. different age groups or
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gender groups; and
equivalence reliability: i.e. whether the instrument will provide the same result
when multiple indicators are used to measure a construct.
For this study, the issue of equivalence reliability is of great concern, as multiple
indicators were used. Equivalence reliability can be measured by using item analysis.
With this test, the response to each item versus the response to all the items in the
questionnaire is measured. The coefficient of reliability (Cronbach’s alpha or α) must
be at least 0.7 or higher to be reliable (Bryman & Cramer, 1997: 63/64).
6.2.3.2 Validity
Validity is the degree to which the measuring instrument actually measures what it is
supposed to measure (Uys, 2003: 123). Validity can firstly be divided into internal and
external validity.
a) Internal validity
In a quantitative study, the test for internal validity is how confident the researcher is
that the independent variable is at least partly responsible for the variation found in the
dependent variable (Smallbone & Quinton, 2004: 154).
Cooper and Schindler (2003: 231-236) sub-divide internal validity into three ‘types’ of
validity. These are:
content validity – is the definition of what is to be researched represented in the
measuring instrument?;
criterion validity – how does a measuring instrument weigh up to other
instruments if results are compared?; and
construct validity – to what degree do different measurement indicators
correspond to results from these indicators?
Very often a process called factor analysis is used to determine construct validity (Uys,
2003: 124). Factor analysis was invented nearly 100 years ago by psychologist Charles
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Spearman, who hypothesised that the enormous variety of tests of mental ability –
measures of mathematical skill, vocabulary, other verbal skills, artistic skills, logical
reasoning ability, etc. – could all be explained by one underlying ‘factor’ of general
intelligence that he called g (Williams, Zimmerman, Zumbo & Ross, 2003: 114).
Neuman (1997: 142) and Bryman and Cramer (1997: 66-67) also distinguish between
Cooper and Schindler types of validity but include a fourth type: face validity, i.e.
whether the measuring instrument is measuring what it is supposed to.
b) External validity
External validity concerns whether the results could be applied to other contexts or
situations and to what extent this might be possible. In quantitative studies the
representativeness of the sample is the key issue in generalising about a larger
population (Smallbone & Quinton, 2004: 154).
The validity of a sample depends on two considerations – namely, accuracy and
precision. Accuracy is the degree to which bias is absent from the sample (Cooper &
Schindler, 2003: 181). Even though precision is a criterion of a good sample design,
no sample will be fully representative of the population in all aspects (Cooper &
Schindler, 2003: 181).
6.3 QUESTIONNAIRE DESIGN
6.3.1 Introduction
Polit and Hungler (1991: 189) defined a survey as “... designating any research activity
in which data is obtained from a specific population for the purpose of examining
characteristics, opinions or intentions of that population.” The survey method of data
collection requires (Struwig & Stead, 2001: 41):
the application of questionnaires for data gathering;
the population (or universum) being studied must be accurately described;
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the sample should be representative of the population;
the scientific character of the data should not be adversely affected or
influenced by bias; and
data gathered should be systematically organised in order to make valid and
accurate interpretations.
Questionnaires (or surveys) have formed and will continue to form the bases of many
different research projects. Questionnaires are considered an appropriate method of
research if the ‘individual’ is the unit of analysis (Booysen, 2003: 129). A questionnaire
often provides unique ways of ascertaining attitudes, opinions, perceptions and reports
of individual behaviour (Booysen, 2003: 129).
Using questionnaires as a measuring instrument often compromises the validity of the
results as ‘direct intervention’ is not possible in many instances, for example mail
surveys. However, when the survey is done in a direct, personal format (as was done
in this study), the validity of the results tends to increase. This is done by, for example,
administering the questionnaire to a group of people where respondent behaviour can
be controlled (Booysen, 2003: 129).
6.3.2 General guidelines in constructing questionnaires
Various aspects to be considered in questionnaire design can be found in the literature
(for example Booysen, 2003; Struwig & Stead, 2001; Cooper & Schindler, 2003; Eiselen
et al., 2005). Some of these are:
ensuring that the research problem fits the questionnaire contents – it does not
leave space for respondent assumptions;
taking note of style and paying attention to language and formulation –
language must be unambiguous and clear;
looking at the order of the questions – that it is logical and does not allow for
bias in answers; and
paying attention to the format of the questionnaire – think ahead to the way
data will have to be analysed.
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6.3.3 Types of questions
Questions (or items) used in questionnaires are basically classified as either
unstructured with an open-ended response or structured with a closed response
(Cooper & Schindler, 2003: 373).
6.3.3.1 Open-ended questions
As open-ended questions have no pre-coded ‘answers’ and respondents are therefore
open to undue influence, they should be used with caution and only when necessary
(for example in a qualitative research design) (Eiselen et al., 2005: 21).
6.3.3.2 Closed questions
Closed questions in a questionnaire have response categories attached and
respondents should therefore only choose an applicable answer or answers (Eiselen
et al., 2005: 21). These responses can then be coded and analysed statistically.
Examples of closed questions include (Struwig & Stead, 2001: 94-95):
dichotomous questions with nominal scales e.g. yes/no or male/female;
scaled response questions which include Likert scales and semantic differential
scales; and
ranking questions such as ranked order scales.
For the purposes of this study a series of closed questions or items were used.
6.3.3.3 Likert scales
Likert scales, named after the ‘inventor’, Renis Likert, are by far the most common type
of survey item used in conjunction with questionnaires. Likert proposed a summated
scale for the assessment of respondents’ attitudes in questionnaires in 1931/32 (Gliem
& Gliem, 2003: 82).
Individual items in Likert’s sample scale had five response alternatives: strongly
approve; approve; undecided; disapprove; and strongly disapprove. Academics and
scholars use a ‘rule-of-thumb’ that there must be a certain minimum number of classes
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or responses. In general, five would be acceptable (as Likert suggested) but Berry
(1993: 47) states five or fewer is “… clearly inappropriate …”; others have insisted on
7 or more. The use of 5-point Likert scales with interval procedures is extremely
common in the literature, however.
a) Advantages of using Likert scales
Cooper and Schindler (2003: 253-256) provide the following advantages of using the
Likert scale in a questionnaire:
responses are gathered in a standardised way;
it is a relatively quick method of collecting information;
questionnaires can be relatively easy to construct;
responses can be collected from a large portion of a sample;
it is relatively easy to use; and
it gives participants a wide range of choices, which may make them feel more
comfortable in responding to questions.
b) Disadvantages of using Likert scales
Cooper and Schindler (2003: 253-256) also provide some disadvantages of employing
the Likert scale in a questionnaire. These are:
participants may not be completely honest, intentionally or unintentionally;
bias may be introduced as participants may base their responses on feelings
with regard to the assessor or the subject area;
participants may respond according to what they feel is expected of them as
participants;
the scale used in the questionnaire requires a great deal of decision-making;
and
it can take a long time to analyse and interpret the data.
c) Criticism of the use of the Likert scale
Although the Likert-scale is a useful method to determine judgements, it also has its
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fair share of assumptions that may be regarded as negative and should be taken into
consideration when utilising it. Clason and Dormody (2004: 31-33) noted:
Likert’s original work assumed an attitude scale would first be pilot-tested to
assess the reliability of the individual items before it would be used. Items that
would not correlate would be discarded;
Likert scaling presumes the existence of an underlying (or latent) continuous
variable whose value characterises the respondents’ attitudes and opinions;
Likert Scales are considered a misnomer by some, as their ordinality refers only
to an ordinal relationship of values within a single item. Many psychometricians
would argue that they are interval scales because, when well constructed, there
is equal distance between each value;
Likert items on the same subject are referred to as scales even though no test
of intercorrelation is employed to ensure a common meaning of items
comprising a latent variable; and
ignoring the discrete nature of the response can lead to inferential errors.
d) Likert scale employed in this study
Clason and Dormody (2004: 31) noted: “We see contemporary work using many
classifications besides the traditional five-point classifications; some researchers use
an even number of categories, deleting the neutral response.” Because Likert implied
that the number of alternatives were open to manipulation, this study employed a
manipulated Likert scale by only allowing for a 4-scale response and thereby
eliminating a ‘default’ median-response.
6.3.3.4 Ambiguity and bias
Some inherent ambiguity and bias is present in the research field of ethics (Rossouw,
2004: 30-31). This ambiguity stems from two sources, namely the nature of ethics and
the stage of development in this field of research. Rossouw (2004: 30-31) states that
this inherent ambiguity should be accounted for in the research strategy by using
open-ended questions, personal interviews or focus groups.
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This notion was taken into consideration in the research design of this study but for
practical and logistical reasons a questionnaire using closed questions was used, as
unstructured, open-ended questions would have meant the use of a qualitative
research design that required a different emphasis in its analysis. Even though it was
stated in section 6.2.1 that data gathered within a qualitative research design may be
used to generate hypotheses, this study used factor analysis for this purpose. Even
though open-ended type of questions cannot adequately deal with “... complex
attitudinal issues ...” (Booysen, 2003; 135), they were taken into consideration in the
ultimate design of the survey instrument used in this study.
6.4 THE SURVEY INSTRUMENT
6.4.1 Introduction
In order to address the research problem of the study, the researcher decided on the
use of a research questionnaire as a measurement instrument. Various questionnaires
used for other very similar studies were investigated to determine their usefulness to
this study (e.g. Diamond & Reidpath, 1992; Lee, 1997; Felicetti & Stewart, 1998;
Chambliss, 2003; Balotsky & Steingard, 2005; Hoffman, 2005).
Some features of these questionnaires were applicable but the majority of them were
not as they used a qualitative research design with the aid of vignettes. A detailed and
comprehensive questionnaire utilising a quantitative research design was therefore
developed in collaboration with the Statistical Consultation Service at the UJ.
6.4.2 Questionnaire layout
The questionnaire that students were asked to complete consisted of two sections.
The first section (Section A) dealt with the biographical background of the
respondents. Although the biographical background may not be central to this study,
it did assist the researcher in analysing the data in a holistic manner.
Section B of the questionnaire focused on six areas pertaining to the prospective CA.
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These were judgement items related to:
the CA and his/her profession (Section B1 – 25 items labelled as U1 – U25);
the CPD of CAs (Section B2 – 14 items labelled as V1 – V14);
aspects of LLL of CAs (Section B3 – 9 items labelled as W1 – W9);
aspects of ethics education related to CAs (Section B4 – 11 items labelled as
X1 – X11);
the core values CAs should demonstrate within their profession (Section B5
– 8 items labelled as Y1 – Y8); and
the education of CAs at RAU (Section B6 – 10 items labelled as Z1 – Z10).
FIGURE 6.1 indicates the various independent variables focused on in the study.
The CAprofession
CPD and CAs
LLL and CAs
Ethics and CAs
Core valuesof CAs
Educationof CAs
CPD of ethicsamongst
prospective CAs
FIGURE 6.1: Independent variables focused on in this study
SOURCE: Own deductions
One inherent limitation in the questionnaire design is the large number of items it
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included. As this study wished to describe something with a wide focus, the main issue
was estimating the effect of every possible variable that is likely to affect the
dependent variable (i.e. the CPD of ethics amongst prospective CAs) and therefore to
include as many independent variables – e.g. the CA profession; CPD and CAs; LLL and
CAs; Ethics and CAs; Core values of CAs; and Education of CAs (also see FIGURE 6.1).
Descriptive research, as was undertaken in this study, also provides an accurate
account of characteristics of a particular individual, event or group in real-life situations
(Hlongwa, 2003: 33).
6.4.3 Testing of the instrument
Testing the instrument (i.e. questionnaire) before it is used invariably brings to light
item ambiguities and other sources of bias and error. In fact, Converse and Presser
(1986: 65) argue persuasively that a minimum of two pre-tests are necessary, with
pre-test sizes of 25 – 75 administered to respondents similar to those who will be in
the final sample.
In the case of this study, five junior lecturers in the Department of Accounting at RAU,
who had just completed and passed their professional CA qualification examination,
completed the questionnaire and commented on it. Experts in the field of statistics
were also consulted on the probable effectiveness of the instrument. Due to the length
of the questionnaire, the ‘pre-testers’ were asked to see if respondents’ attention could
be maintained and if they felt that the survey had a natural flow.
As RAU is a bilingual higher education institution, the translation of the questionnaire
from English into Afrikaans was also an issue. After consideration and discussion with
statisticians at STATKON, it was a decided not to translate it into Afrikaans due to the
problem of validity. This is also the opinion of Behling and Law (2000), who suggested
that the simple direct translation of validated scale items into another language often
will not necessarily create a valid scale in that language.
After receiving feedback and comments, the researcher then made adjustments and
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came up with the final questionnaire that was given to students to complete. An
example of this questionnaire can be found in APPENDIX B of this study.
It is important to note at this point that the role of STATKON in this study was only that
of a soundboard for ideas and the entering of data in a spreadsheet format. All
calculations, analysis and interpretation in respect of the data were performed solely
by the writer/researcher himself (also see section 6.4.6).
6.4.4 Sampling approach
The sampling approach is a process of selecting a portion of the population to
represent the entire population (Cooper & Schindler, 2003: 181). The sample must
therefore be valid.
The non-probability sampling approach used in this research was purposive
(judgement) sampling. Judgement sampling occurs when a researcher selects sample
members to conform to some criterion (Cooper & Schindler, 2003: 201). For the
purposes of the empirical analysis in Chapter 7, a group of third-year students at a
residential university were used as respondents with the following criteria:
they all had to have the prescribed four major subjects (i.e. Accounting,
Auditing, Financial Management and Taxation) at a third-year level;
no students repeating any of the subjects were considered; and
they had to have the intention of continuing with an honours degree in
accounting the following year.
6.4.5 Administration
As this questionnaire was aimed at final-year accounting students at RAU, all the
third-year B Com Accounting students were visited at a combined lecture on the first
day of the second semester of their third year. This meant that a large percentage of
the population of accounting students were then targeted as the sample for this study.
Before commencing with the completion of the questionnaire, the aim of the study and
its various administrative aspects were explained to the students. Students were then
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given 30 minutes to complete this questionnaire under controlled conditions.
After the students completed the questionnaire, it was collected by the
writer/researcher and three student assistants.
6.4.6 Data analysis
The completed questionnaires were then handed to a data capturer for coding and
capturing. The data capturer was fully briefed on all categories of data as well as on
the pre-determined code rules to be used. After coding and capturing on a
spreadsheet, the data was forwarded to the writer/researcher by STATKON for analysis
and interpretation using the SPSS13® software package.
6.5 ETHICAL CONSIDERATIONS
In order to comply with the ethical constraints underlying the undertaking of a research
project such as this, attention was given to the following aspects:
6.5.1 Permission to collect data
Permission to conduct the survey amongst the students was sought and given by the
Head of the Department of Accounting, RAU.
6.5.2 Informed consent
Prior to the handing out of questionnaires (see section 6.4.5), consent was asked from
each participant. Although no written consent was sought, participants were informed
that if they did not wish to participate, they were free to hand back their uncompleted
questionnaires.
6.5.3 Confidentiality and anonymity
To ensure confidentiality, respondents were reassured verbally and in writing (on the
cover of the questionnaire) that the information would be treated with the utmost
confidence. Although various research reports would be published, it would contain
figures, percentages and deductions based on the analysis and interpretation of the
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data provided without identifying any respondent personally.
An example of the questionnaire can be found in APPENDIX B of this study.
6.6 ANALYSIS OF DATA
6.6.1 Descriptive analysis of data
Within each of the areas in Section B of the questionnaire, described in section 6.4.2,
students had to respond to items by indicating to which extent they agreed or
disagreed with the items. Each item was judged using a 4-point Likert scale consisting
of:
1 = Strongly agree
2 = Agree
3 = Disagree
4 = Strongly disagree
The analysis pertaining to each area in Section B of the questionnaire will therefore
always commence with a descriptive analysis of the data. This will include providing
basic information about the data describing the:
number of valid and missing responses;
range of responses (i.e. range, minimum and maximum);
central tendency of responses (e.g. mean values);
standard deviation and variance of responses;
skewness of responses with the standard error of skewness; and
kurtosis of responses with the standard error of kurtosis.
6.6.1.1 Standard deviation
A standard deviation is a statistical measure which expresses the average deviation (or
dispersion) about the mean (Wegner, 1993: 92).
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6.6.1.2 Skewness
Skewness provides information on the symmetry of the distribution (Pallant, 2005: 51).
In a normal symmetrical distribution, one would find that the degree of skewness tends
to be equal to zero where the mean score is equal to the median score.
A positively skewed distribution indicates that scores are clustered to the left of the
graph at low values and in general the mean score is greater than the median score.
Negative skewness indicates a clustering of scores at the high-end (or right hand side)
of the graph and in general the mean score is less than the median score (Pallant,
2005: 52).
6.6.1.3 Kurtosis
Kurtosis provides information on the ‘peakedness’ of the distribution. Positive kurtosis
indicates that the distribution is peaked (i.e. scores clustered around the centre) or
‘leptokurtic’ (i.e. has long, thin tails). Kurtosis values below 0 indicate a distribution
that is relatively flat (i.e. too many cases in the extremes or ‘platykurtic’).
In a normal symmetrical distribution, one would find that kurtosis tends to be equal to
zero (Pallant, 2005: 51). Kurtosis may sometimes be the result of an underestimation
of the variance but this risk is reduced with a sample of 200 or more cases (Pallant,
2005: 52). Even though the results of this analysis done on the data used in this study
showed the presence of negative kurtosis, one can ignore it, however, as the sample
was greater than 200 (n = 491). (Also see section 6.6.2.2.)
As was pointed out in section 6.2.2, this was a descriptive study, which meant a large
number of items had to be included. In order to give statistical meaning to the
analysis, factor analysis was employed to determine the underlying dimensions of the
various attitudes emerging in the data (Eiselen et al., 2005: 104).
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6.6.2 Factor analysis
6.6.2.1 Introduction
Exploratory factor analysis and confirmatory factor analysis are two statistical
approaches used to examine the internal reliability of a measure. Both are used to
investigate the theoretical constructs, or factors, that might be represented by a set
of items.
Other characteristics of the two methods are:
either can assume the factors are uncorrelated (i.e. orthogonal);
both are used to assess the quality of individual items; and
both can be used for exploratory or confirmatory purposes (Pallant, 2005: 96).
6.6.2.2 Aim of factor analysis
The most common form of factor analysis, namely exploratory factor analysis, is used
to uncover the latent structure (or dimensions) of a set of variables or opinion-related
questions (items) (Eiselen et al., 2005: 104-105) and allows one to condense a large
number of variables or scale items into a smaller, more manageable number of
dimensions or factors (Pallant, 2005: 96). In exploratory factor analysis the
researcher’s à priori assumption is that any indicator may be associated with any
factor.
Using exploratory factor analysis (as was the case in this empirical study) reduces
attribute space from a larger number of variables to a smaller number of factors and
as such is a ‘non-dependent’ procedure, that is, it does not assume that a dependent
variable is specified (Pallant, 2005: 96).
The mathematical detail of factor analysis is beyond the scope of this study but there
will be instances where some mathematical detail will be provided for the sake of
completeness.
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6.6.2.3 Practical considerations when using exploratory factor analysis
a) Sample size
For factor analysis to provide valid results, the number of respondents should be at
least four times the number of variables (Eiselen et al., 2005: 105). Sometimes
statisticians are of the opinion that the ratio of respondents to the number of items
should be 10:1 (Pallant, 2005: 174). If this ‘ratio test’ is used in this analysis, factor
analysis can be employed because this would imply a total of 250 respondents. The
number of respondents in this analysis was 491.
b) Factor extraction method
Factor extraction involves determining the smallest number of factors that can be used
to best represent the interrelations among the set of variables (Pallant, 2005: 174).
If all variables in factor analysis are continuous and assumed to be normally
distributed, the maximum likelihood factoring method may be employed (Eiselen et al.,
2005: 105). As these two assumptions may not be valid for this analysis, the extraction
method of Principal Axis Factoring will be used in the analysis.
c) Method of rotation
Rotation is merely used to assist with the interpretation or identification of variables
making up or contributing most to a factor. Two types of rotation can be identified,
namely orthogonal and oblique rotation (Eiselen et al., 2005: 105-106).
For the purposes of this and further analyses in this study, the Varimax method of
orthogonal rotation with Kaizer Normalisation (or the Eigenvalue rule) will be used, as
orthogonal rotations yield factors uncorrelated with one another and authors also
believe that oblique rotations provide unstable results (Pallant, 2005: 175; Eiselen et
al., 2005: 106).
Orthogonal rotation also results in solutions that are easier to interpret; they do
however require an assumption that the underlying constructs are independent or not
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correlated (Pallant, 2005: 176).
d) Reliability of factor analysis
The reliability of the application of factor analysis will be determined by:
the Kaiser-Meyer-Olkin Measure of Sampling Adequacy;
Bartlett’s Test of Sphericity; and
Initial Eigenvalues.
(i) Kaiser-Meyer-Olkin Measure of Sampling Adequacy
Although some statisticians feel that the Kaiser-Meyer-Olkin Measure of Sampling
Adequacy (hereafter KMO) value should be greater than 0.5 or 0.6 (Eiselen et al.,
2005: 107), for the purposes of this analysis the statistical impact was placed at 0.7.
Any value greater than 0.7 will therefore mean that a factor analysis will be warranted
as there is enough correlation between an item and the rest of the other items (Eiselen
et al., 2005: 107/108)
(ii) Bartlett’s Test of Sphericity
Bartlett’s Test of Sphericity (hereafter Barlett’s Test) tests the hypothesis that the
correlation matrix is an identity matrix and all items will therefore be uncorrelated
(Eiselen et al., 2005: 107). Small p-values (i.e. significance or Sig. less than 0.05)
indicate that a factor analysis may be useful.
Two other diagnostic measures that are used to decide whether a factor analysis is
warranted is the Anti-image Correlations and Initial Eigenvalues (Eiselen et al., 2005:
107-108).
(iii) Initial Eigenvalues
The Initial Eigenvalues (also known as characteristic roots) are used to explain the total
variance. When one performs a factor analysis, the ideal situation is to use as few
factors as possible (i.e. to reduce the data) but to still allow these factors to contain
as much of the information provided as possible.
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The ‘ideal’ number of factors to be used can be determined using the Eigenvalue
criterion. This criterion states that the number of factors to be used is equal to the
number of factors with Eigenvalues greater than 1 (Eiselen et al., 2005: 108).
6.6.3 Item analysis
Factor analysis does not indicate whether each individual item is highly correlated with
the scale as a whole. To determine the extent to which the items in this study are
collectively correlated with the scale an item analysis will be performed. In an item
analysis one is interested in how well the responses of each item in a factor (scale of
items) correspond to the other items and the scale as a whole (Eiselen et al., 2005:
112).
6.6.4 Factor scores
Following the item analysis, factor scores will be calculated and interpreted. In order
to calculate the factor scores, i.e. the average score for each respondent for each of
the factors, the average (or mean) response for each respondent will be calculated
(Eiselen et al., 2005: 116).
The question now arises as to whether the means calculated (i.e. the factor scores) for
each factor differs on a gender basis. This will be tested by developing various
hypotheses and then exploring the differences between the gender groups.
6.6.5 Development of hypotheses
In order to explore the differences between the gender groups, various hypotheses
will be developed. The null-hypothesis will state that the means between the gender
groups are equal e.g. H0: µM = µF whereas the alternative hypothesis will state that the
means between the gender groups are not the same e.g. H1: µM ≠ µF.
6.6.6 Testing of hypotheses
6.6.6.1 Introduction
When one explores the differences between gender groups, for example, one is trying
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to see whether there is a statistically significant difference between male students and
female students (Pallant, 2005: 96/97).
6.6.6.2 t-tests for independent samples
An appropriate test that can be used is the t-test for independent samples between two
groups based on gender for example (Collis & Hussey, 2003: 244; Eiselen et al., 2005:
76; Pallant, 2005: 196). Within the t-test for independent samples, any p > 0.05 will
mean that the null hypothesis will not be rejected, as that there is no statistically
significant difference between the gender groups.
Other statistical alternatives do exist to measure differences in interval data items (as
was used in the questionnaire). These include the Mann-Whitney U test and the
Pearson Chi-square test (Cooper & Schindler, 2003: 596).
6.6.6.3 Mann-Whitney U test
The Mann-Whitney U Test is used to test differences between two independent groups
on a continuous measure (Pallant, 2005: 291) by comparing the means of two groups
i.e. male and female students.
6.6.6.4 Pearson Chi-square test
Another non-parametric test that may be used to explore the interrelationship amongst
variables is the Pearson Chi-square ( 2χ ) test for independence (Pallant, 2005: 104,
287).
6.7 SUMMARY
This chapter provided a logical basis and framework which will be used in the empirical
analysis to be completed in Chapter 7.
---o0o---
239
CHAPTER 7 Empirical analysis
7.1 INTRODUCTION
he focus of this study is to determine the utilisation of CPD of ethics amongst
prospective CAs. As part of the statistical analysis of this thesis, the objectives
provided in Chapter 1 of this study will be empirically analysed. These objectives
are to:
(i) demarcate the CA and the profession by way of undergraduate students’
perceptions;
(ii) determine undergraduate students’ perceptions of CPD, LLL and ethics within the
framework of CAs and their undergraduate education;
(iii) investigate the perceived core values within the CA profession; and
(iv) analyse certain aspects of the education and training of CAs at the Rand
Afrikaans University (hereafter RAU).
Chapter 3 of the study focused on CPD of CAs, but also showed that acquiring
professional ethics, values and attitudes should be done at an undergraduate level in
order to ensure an attitude of LLL. SDL was suggested as a method to acquire LLL
through the use of PBL.
In Chapter 4 of this study a detailed discussion of the terms ‘ethics’ as well as ‘business
ethics’ was given, and this was then taken further in Chapter 5, which outlined possible
T
Empirical analysis
CHAPTER 7 240
methods of teaching business ethics. Chapter 6 provided an overview of the research
methodology to be used in this chapter.
This chapter continues with a detailed and logical analysis of all the sections of the
questionnaire (see APPENDIX B) used in the empirical study. All information obtained
from the questionnaires (unless stated otherwise) will first be subjected to a descriptive
and exploratory analysis. This will then be followed by a factor analysis of the items in
each section using the Principal Axis method of factor extraction with Varimax rotation
and Kaizer Normalisation.
Where the calculation of the Kaiser-Meyer-Olkin Measure of Sampling Adequacy and
Bartlett’s Test of Sphericity indicate that the matrix of item intercorrelation can be
extracted, an item analysis will be performed on each factor. Appropriate factor scores
will also be calculated and interpreted, and these will then be used to perform
hypothesis testing using the t-test for independent samples.
In cases where factor analysis cannot provide adequate information to continue with
the calculation of factor scores and interpretation of factor items, the Mann-Whitney U
Test will be used to test differences between two independent groups as part of the
hypothesis testing.
The chapter commences with a narrative analysis of the attitudes of undergraduate
students toward CPD of ethics by focusing on the six groups of variables especially
analysed in Chapter 6 of this study. It then continues by way of providing some
thoughts on utilising CPD of ethics amongst prospective CAs. A full interpretation of the
empirical analysis provided in this chapter will be discussed in Chapter 8.
The chapter concludes with summary comments.
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7.2 STUDENTS’ PROFILE
7.2.1 Gender
All the data collected from the questionnaires with regard to Students’ profile
(Section A), has been analysed and is described and presented in detail in APPENDIX
C of this study.
The original sample consisted of 494 students. Due to the incomplete responses on
three questionnaires, statistical analysis was performed with a sample of only 491
students. As can be seen from FIGURE 7.1 below, the sample student profile
therefore consisted of 491 respondents and was fairly equally divided between male
(n = 241) and female (n = 250) respondents at 49.1% and 50.9% respectively.
Female50.9%
Male49.1%
FIGURE 7.1: Gender profile of respondents (n = 491)
SOURCE: Table C1
7.2.2 Year matriculated
Of these respondents, 61.3% (n = 301) matriculated in 2001 (FIGURE 7.2 on the
following page). Interestingly, 1.2% (n = 6) of the respondents matriculated prior to
1992, with one student stating that he/she matriculated as early as 1972!
Empirical analysis
CHAPTER 7 242
0
20
40
60
80
100
120
140
160
Freq
uenc
y
1972 1986 1989 1991 1993 1995 1997 1999 2001
Year
Male Female
FIGURE 7.2: Year of matriculation by respondents (n = 489; two respondents did not
provide this information)
SOURCE: Table C3
7.2.3 Highest educational qualification
From the sample of 491, 90.02% of the respondents indicated their highest educational
qualification to be Grade 12 (FIGURE 7.3 on the following page). Fewer than five
percent (4.68%) of the respondents do however have some form of post-school
qualification in the form of either a diploma or certificate.
Twenty-five (5.09%) of the respondents in the sample indicated that they are already in
possession of an undergraduate degree, with one student indicating that he had a
postgraduate qualification.
The most researched attribute, as regards the ethical views and behaviour of
accounting students, is gender, and this can be ascribed to the increase in the number
of female accounting students, but also the general view that females tend to be more
moral and ethical than males (Sadler & Barac, 2005: 113). Further analysis was done
using gender as an attribute.
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0
50
100
150
200
250
Freq
uenc
y
Grade 12 Post-schooldiploma
Post-schoolcertificate
Under-graduatedegree
Post-graduatedegree
Qualification
Male Female
FIGURE 7.3: Highest educational qualification (n = 491)
SOURCE: Table C4
7.3 THE CHARTERED ACCOUNTANT AND HIS/HER PROFESSION
7.3.1 Descriptive analysis
The first part of Section B included 25 items (U1 – U25) about the chartered
accountant and his/her profession. All the data collected from the questionnaires with
regard to this section has been analysed and is described in detail in TABLE D1a and
TABLE D1b in APPENDIX D of this study. The tables provide basic information about
the data describing the:
number of valid and missing responses;
range of responses (i.e. range, minimum and maximum);
central tendency of responses (e.g. mean values);
standard deviation and variance of responses;
skewness of responses with the standard error of skewness; and
kurtosis of responses with the standard error of kurtosis.
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CHAPTER 7 244
TABLE D2 (in APPENDIX D) provides a single, collated frequency tabulation of all the
responses in this data set. The mean response (in ascending order) and standard
deviation to the items are provided in TABLE 7.1 below.
TABLE 7.1: The chartered accountant and his/her profession
Items Mean Standard deviation
U4: CAs should have high ethical standards. 1.17 0.395
U7: CAs have an ethical obligation to their clients, employers and
stakeholders. 1.19 0.406
U9: CAs should act in accordance with applicable professional ethical
standards. 1.24 0.430
U10: A training programme for CAs should be more than a mere transfer of
knowledge. 1.38 0.568
U17: Competency is a critical issue in the CA’s profession. 1.38 0.530
U21: In addition to acquiring theoretical knowledge and skills, today's CAs
need other skills. 1.38 0.519
U5: CAs should continually adapt to change. 1.39 0.517
U1: CAs should learn continuously. 1.42 0.557
U22: The education of CAs should enable them to adapt to change. 1.45 0.530
U23: The education of CAs should provide a foundation of various
professional skills. 1.45 0.519
U6: The education of CAs should provide a foundation of ethical values. 1.46 0.589
U2: Training programmes for CAs should follow an integrated approach with
regard to professional ethics, values and attitudes. 1.49 0.516
U25: CAs are continuously challenged to maintain competence. 1.50 0.573
U13: The credibility of CAs depends on their ethical approach to the work
they do. 1.51 0.597
U20: The competency of CAs also includes their professional values, ethics
and attitudes. 1.54 0.557
U18: CAs are trusted professionals. 1.55 0.679
U24: CAs enable organisations to shape their financial future. 1.58 0.589
U3: A CA will be able to focus on continued learning throughout his/her
career if he/she learnt how to do this as part of his/her training. 1.60 0.629
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CHAPTER 7 245
Items Mean Standard deviation
U8: CAs are regarded as professionals once they have completed the
required basic training. 1.62 0.720
U12: The education of CAs should cultivate a culture of LLL. 1.70 0.585
U15: The teaching of professional values and ethics at an undergraduate
level should be seen as a process rather than a course. 1.74 0.642
U16: The education of CAs should provide a basic foundation of knowledge. 1.80 0.658
U11: A professional CA is the same as an ethical CA. 2.12 0.931
U19: The education of CAs should only entail relevant theoretical knowledge
at a given point in time. 2.81 0.774
U14: CAs only need sufficient theoretical knowledge for qualification
purposes. 2.96 0.885
SOURCE: SPSS Output
Twenty-two (or 88%) of the items scored a mean of less than 2 (i.e. ‘agree’). Two of
the items (i.e. U19 and U14) scored a mean close to 3 (i.e. ‘disagree’) and U11 scored a
mean just over 2 (i.e. ‘agree’). In respect of the latter, respondents were of the opinion
that an ethical CA is the same as a professional CA. It is important to note that none of
the responses were above a 3 (i.e. ‘disagree’). This issue will again be discussed in
section 7.3.2.1.
In FIGURE 7.4 (on the following page) one notices that, with the exception of eight
items, all had mean responses greater than the median response. For the majority of
the items posed, respondents replied close to a 1 (i.e. ‘strongly agree’) on the Likert
scale. From the responses it may seem that respondents confused issues regarding a
‘professional CA’ and an ‘ethical CA’ (item U11).
What is also interesting is that respondents were nearly all in complete agreement that
ethics is an important aspect in the professional life of a CA (item U4). This
corresponds well with a study by Sadler and Barac (2005).
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CHAPTER 7 246
0
0.5
1
1.5
2
2.5
3
3.5
4
U1 U2 U3 U4 U5 U6 U7 U8 U9U10 U11 U12 U13 U14 U15 U16 U17 U18 U19 U20 U21 U22 U23 U24 U25
Res
pons
e (L
iker
t-sca
le)
Median Mean FIGURE 7.4: Mean and median distribution for the chartered accountant and
his/her profession (n = 491)
SOURCE: TABLE D1
7.3.2 Some important aspects of the data found in the descriptive
analysis
For the purposes of this study it is important to highlight a few issues noticed in the
data pertaining to Section B1 of the questionnaire that dealt with aspects of the
chartered accountant and his/her profession.
7.3.2.1 A professional CA: an ethical CA?
In responses for item U11 (TABLE 7.2), it was found that 67.2% of the respondents
agreed (i.e. either ‘strongly agree’ or ‘agree’) with this statement, whereas 32.8% of
respondents disagreed (i.e. either ‘disagree’ or ‘strongly disagree’), which may explain
why the mean response was 2.12. It is interesting to note that the respondents (all
prospective CAs) generally see themselves as both ethical and professional in the same
sense.
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CHAPTER 7 247
TABLE 7.2: Descriptive analysis: Item U11 (Section B1)
RESPONSE f %
Strongly agree (1) 145 29.5
Agree (2) 185 37.7
Disagree (3) 119 24.2
Strongly disagree (4) 42 8.6
A professional CA is the same as an
ethical CA.
TOTAL 491 100.0
SOURCE: TABLE D2
It may be correct to presume that once you have qualified as a professional CA, you
may write the designation CA (SA) behind your name to indicate your professionalism,
as was discussed in section 2.3.3 and highlighted in the responses to Items U8 and U18
(TABLE 7.2a and TABLE 7.2b). On average about 89.5% of the responses were all
either in strong agreement (a response of 1) or agreement (a response of 2).
TABLE 7.2a: Descriptive analysis: Item U8 (Section B1)
RESPONSE f %
Strongly agree (1) 252 51.3
Agree (2) 178 36.3
Disagree (3) 57 11.6
Strongly disagree (4) 4 0.8
CAs are regarded as professionals once
they have completed the required basic
training.
TOTAL 491 100.0
SOURCE: TABLE D2
TABLE 7.2b: Descriptive analysis: Item U18 (Section B1)
RESPONSE f %
Strongly agree (1) 270 55.0
Agree (2) 179 36.5
Disagree (3) 37 7.5
Strongly disagree (4) 5 1.0
CAs are trusted professionals.
TOTAL 491 100.0
SOURCE: TABLE D2
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The 67.2% of the respondents who agreed that an ethical CA is the same as a
professional CA in item U11, however, held different views and responses to item U13
(TABLE 7.2c), where 94.7% of them agreed (i.e. either ‘strongly agree’ or ‘agree’) that
the credibility (i.e. professionalism) of a CA depends on the CAs’ ethical approach to the
work they do.
TABLE 7.2c: Descriptive analysis: Item U13 (Section B1)
RESPONSE f %
Strongly agree (1) 265 54.0
Agree (2) 200 40.7
Disagree (3) 26 5.3
Strongly disagree (4) 0 0.0
The credibility of CAs depends on their
ethical approach to the work they do.
TOTAL 491 100.0
SOURCE: TABLE D2
The responses gathered in item U13 above were furthermore highlighted by the
responses for item U4 (TABLE 7.2d), where 99.4% of the respondents were in
complete agreement that CAs should have high ethical standards.
TABLE 7.2d: Descriptive analysis: Item U4 (Section B1)
RESPONSE f %
Strongly agree (1) 409 83.3
Agree (2) 79 16.1
Disagree (3) 3 0.6
Strongly disagree (4) 0 0.0
CAs should have high ethical standards.
TOTAL 491 100.0
SOURCE: TABLE D2
This strong acceptance of ethical standards was taken further in item U9 (TABLE 7.2e
on the following page), where respondents were in complete agreement that CAs
should act according to applicable professional standards as they have an ethical
obligation towards their clients, employers and stakeholders (item U7, TABLE 7.2f on
the following page).
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CHAPTER 7 249
TABLE 7.2e: Descriptive analysis: Item U9 (Section B1)
RESPONSE f %
Strongly agree (1) 371 75.6
Agree (2) 120 24.4
Disagree (3) 0 0.0
Strongly disagree (4) 0 0.0
CAs should act in accordance with
applicable professional ethical standards.
TOTAL 491 100.0
SOURCE: TABLE D2
TABLE 7.2f: Descriptive analysis: Item U7 (Section B1)
RESPONSE f %
Strongly agree (1) 402 81.9
Agree (2) 86 17.5
Disagree (3) 3 0.6
Strongly disagree (4) 0 0.0
CAs have an ethical obligation to their
clients, employers and stakeholders.
TOTAL 491 100.0
SOURCE: TABLE D2
7.3.2.2 Basic theoretical knowledge versus additional knowledge
Some 74.3% of respondents disagreed (i.e. either ‘disagree’ or ‘strongly disagree’) with
item U14 (TABLE 7.3) that CAs do not only need sufficient theoretical knowledge for
qualification purposes.
TABLE 7.3: Descriptive analysis: Item U14 (Section B1)
RESPONSE f %
Strongly agree (1) 38 7.8
Agree (2) 88 18.0
Disagree (3) 220 44.9
Strongly disagree (4) 144 29.4
CAs only need sufficient theoretical
knowledge for qualification purposes.
TOTAL 490 100.0
SOURCE: TABLE D2
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CHAPTER 7 250
TABLE 7.3a: Descriptive analysis: Item U16 (Section B1)
RESPONSE f %
Strongly agree (1) 155 31.7
Agree (2) 282 57.7
Disagree (3) 44 9.0
Strongly disagree (4) 8 1.6
The education of CAs should provide a
basic foundation of knowledge.
TOTAL 489 100.0
SOURCE: TABLE D2
In item U16 (TABLE 7.3a) close to 90% of the respondents agreed that the education
of CAs should provide the basic foundation of theoretical knowledge for qualification but
item U21 (TABLE 7.3b) qualified this where nearly 97% of the respondents agreed
that there should be something extra than just the mere transfer of knowledge.
TABLE 7.3b: Descriptive analysis: Item U21 (Section B1)
RESPONSE f %
Strongly agree (1) 321 65.4
Agree (2) 153 31.2
Disagree (3) 15 3.1
Strongly disagree (4) 2 0.4
In addition to acquiring theoretical
knowledge and skills, today's CAs need
other skills.
TOTAL 491 100.0
SOURCE: TABLE D2
This so-called ‘something extra’ was hinted at in item U23 (TABLE 7.3c on the
following page), where it was stated that the education should provide a foundation of
various skills (with only one percent of the respondents now in disagreement).
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CHAPTER 7 251
TABLE 7.3c: Descriptive analysis: Item U23 (Section B1)
RESPONSE f %
Strongly agree (1) 272 55.6
Agree (2) 212 43.4
Disagree (3) 5 1.0
Strongly disagree (4) 0 0.0
The education of CAs should provide a
foundation of various professional skills.
TOTAL 489 100.0
SOURCE: TABLE D2
In item U6 (TABLE 7.3d), these additional skills were classified as a foundation of
ethical values, with only 20 respondents (4.1%) disagreeing or strongly disagreeing
with the statement.
TABLE 7.3d: Descriptive analysis: item U6 (Section B1)
RESPONSE f %
Strongly agree (1) 286 58.2
Agree (2) 185 37.7
Disagree (3) 18 3.7
Strongly disagree (4) 2 0.4
The education of CAs should provide a
foundation of ethical values.
TOTAL 491 100.0
SOURCE: TABLE D2
As was pointed out in section 7.3.1, the first set of items in Section B consists of 25
different categorical items. In order to reduce the large number of items to a smaller
number that may give meaning to the analysis, one would employ factor analysis to
determine the underlying dimensions of the various attitudes emerging in the data (also
see section 6.5.2.1).
7.3.3 Factor analysis of the items measuring the chartered
accountant and his/her profession
7.3.3.1 Factor analysis 1
This analysis wished to determine the underlying factors (or dimensions) in the 25
Empirical analysis
CHAPTER 7 252
opinion-related items. This means that one would require at least 100 respondents
(25 × 4) to have valid results. As this study had 491 respondents, factor analysis can
therefore be used.
In the first round of factor analysis the size consideration for the use of factor analysis
was determined by (i) the Kaiser-Meyer-Olkin Measure of Sampling Adequacy; and (ii)
Bartlett’s Test of Sphericity (see TABLE 7.4 below).
TABLE 7.4: KMO and Bartlett's Test (First factor analysis: Section B1)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .886
Bartlett's Test of Sphericity Approximate Chi-Square 3168.802
Degrees of freedom 300
Significance .000
SOURCE: SPSS Output
The Kaiser-Meyer-Olkin Measure of Sampling Adequacy (hereafter KMO) was calculated
at a level of 0.886. As 0.886 > 0.7, this value indicated that a factor analysis is
warranted as there is enough correlation between pairs of items. Barlett’s Test
indicated that a factor analysis may be useful with p-values smaller than 0.05 (p =
0.000).
TABLE 7.5 (on the following page) provides the Measures of Sampling Adequacy
(hereafter MSA) taken from the Anti-image Correlation table produced for the first
round of factor analysis by the SPSS13® software package. The MSAs running down
the main diagonal of the matrix are marked with an a. MSA is an indication of the
extent to which a particular item is correlated with other items.
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CHAPTER 7 253
TABLE 7.5: Anti-Image Matrices (Anti-Image Correlation – Factor Analysis 1)
Items U1 U2 U3 U4 U5 U6 U7 U8 U9 U10 U11 U12 U13 U14 U15 U16 U17 U18 U19 U20 U21 U22 U23 U24 U25
U1 .859a -.231 -.145 .031 -.140 .088 -.052 .011 -.009 .012 -.015 -.267 .041 .009 -.051 .071 -.051 .047 .081 .030 -.001 -.022 .020 .049 -.009
U2 -.231 .913a -.113 -.032 .028 -.202 .039 -.002 -.137 .002 -.088 -.012 -.074 .035 -.049 -.031 .026 -.032 -.022 -.152 -.027 .077 -.091 -.010 -.103
U3 -.145 -.113 .898a -.140 .031 -.153 .024 -.071 .102 -.033 -.042 -.103 -.169 .035 -.012 -.052 -.024 .080 -.021 .137 -.026 -.024 -.136 -.121 .010
U4 .031 -.032 -.140 .859a -.123 -.126 -.229 .034 -.220 -.047 -.009 -.029 -.030 .079 -.003 .093 .046 -.169 -.045 -.098 -.065 .070 .090 -.027 .081
U5 -.140 .028 .031 -.123 .925a -.060 -.037 .033 .044 -.067 .007 -.080 -.058 .062 -.033 .028 -.115 -.107 -.023 -.048 .090 -.217 -.076 -.019 -.055
U6 .088 -.202 -.153 -.126 -.060 .907a -.096 .004 -.086 -.075 .061 -.032 -.030 -.076 .011 -.054 .023 -.033 .049 -.096 .039 -.066 -.059 .134 .017
U7 -.052 .039 .024 -.229 -.037 -.096 .906a -.021 -.256 -.041 .055 -.038 -.001 .075 .034 -.067 -.065 -.005 -.028 -.072 -.079 .008 -.042 .000 -.001
U8 .011 -.002 -.071 .034 .033 .004 -.021 .860a -.187 .011 -.121 -.036 .046 -.070 -.027 -.023 -.012 -.065 .034 -.034 .016 .044 -.007 -.115 -.029
U9 -.009 -.137 .102 -.220 .044 -.086 -.256 -.187 .854a -.041 .005 .087 -.137 -.033 -.032 -.055 -.108 .043 .154 .002 .099 -.067 -.040 .008 -.019
U10 .012 .002 -.033 -.047 -.067 -.075 -.041 .011 -.041 .927a -.073 -.117 .025 .056 -.032 -.037 .031 .038 .015 -.002 -.056 .001 .000 .045 -.134
U11 -.015 -.088 -.042 -.009 .007 .061 .055 -.121 .005 -.073 .812a -.113 -.095 -.157 .131 -.014 .077 -.125 -.039 -.042 .029 -.036 -.019 .006 -.037
U12 -.267 -.012 -.103 -.029 -.080 -.032 -.038 -.036 .087 -.117 -.113 .917a -.177 -.067 -.033 -.045 -.005 .010 .012 -.067 -.036 -.103 -.006 .008 .009
U13 .041 -.074 -.169 -.030 -.058 -.030 -.001 .046 -.137 .025 -.095 -.177 .910a -.038 -.153 .011 -.115 .008 .075 -.067 .052 .046 .037 -.059 -.028
U14 .009 .035 .035 .079 .062 -.076 .075 -.070 -.033 .056 -.157 -.067 -.038 .576a -.078 -.149 .032 -.087 -.330 .012 .042 -.024 .080 -.005 .035
U15 -.051 -.049 -.012 -.003 -.033 .011 .034 -.027 -.032 -.032 .131 -.033 -.153 -.078 .880a -.199 -.017 .059 .003 -.116 -.132 .004 .038 .008 -.068
U16 .071 -.031 -.052 .093 .028 -.054 -.067 -.023 -.055 -.037 -.014 -.045 .011 -.149 -.199 .874a -.032 -.065 -.111 .023 .004 -.065 -.088 -.019 .016
U17 -.051 .026 -.024 .046 -.115 .023 -.065 -.012 -.108 .031 .077 -.005 -.115 .032 -.017 -.032 .892a -.151 -.057 -.020 -.133 -.138 .038 .130 -.162
U18 .047 -.032 .080 -.169 -.107 -.033 -.005 -.065 .043 .038 -.125 .010 .008 -.087 .059 -.065 -.151 .854a .037 .021 -.010 .002 -.021 -.168 -.039
U19 .081 -.022 -.021 -.045 -.023 .049 -.028 .034 .154 .015 -.039 .012 .075 -.330 .003 -.111 -.057 .037 .565a -.059 .037 -.029 .021 -.059 .018
U20 .030 -.152 .137 -.098 -.048 -.096 -.072 -.034 .002 -.002 -.042 -.067 -.067 .012 -.116 .023 -.020 .021 -.059 .933a -.056 -.044 -.053 -.043 -.053
U21 -.001 -.027 -.026 -.065 .090 .039 -.079 .016 .099 -.056 .029 -.036 .052 .042 -.132 .004 -.133 -.010 .037 -.056 .900a -.232 -.143 -.104 .005
U22 -.022 .077 -.024 .070 -.217 -.066 .008 .044 -.067 .001 -.036 -.103 .046 -.024 .004 -.065 -.138 .002 -.029 -.044 -.232 .886a -.353 -.137 .019
U23 .020 -.091 -.136 .090 -.076 -.059 -.042 -.007 -.040 .000 -.019 -.006 .037 .080 .038 -.088 .038 -.021 .021 -.053 -.143 -.353 .908a -.098 -.090
U24 .049 -.010 -.121 -.027 -.019 .134 .000 -.115 .008 .045 .006 .008 -.059 -.005 .008 -.019 .130 -.168 -.059 -.043 -.104 -.137 -.098 .859a -.269
U25 -.009 -.103 .010 .081 -.055 .017 -.001 -.029 -.019 -.134 -.037 .009 -.028 .035 -.068 .016 -.162 -.039 .018 -.053 .005 .019 -.090 -.269 .902a
SOURCE: SPSS Output
* a Measures of Sampling Adequacy (MSA)
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If MSA for a particular item is greater than or equal to 0.7, it has sufficient correlation
with at least one other item to be retained in the factor analysis. From TABLE 7.5 (on
the previous page) it was found that the MSAs for items U14 and U19 (items dealing
with the necessary theoretical knowledge a CA needs) are less than the cut-off of 0.7.
These two items were thus removed and were not used in any further analysis.
The Initial Eigenvalues (also known as characteristic roots) are used to explain the total
variance. As the factor analysis had to be repeated without the inclusion of these two
items/variables, the Initial Eigenvalues of the second factor analysis will only be
referred to.
7.3.3.2 Factor analysis 2
A second round of factor analysis was performed with the exclusion of items U14 and
U19 from the data. The KMO (see TABLE 7.6 below) was recalculated at a level of
0.895 > 0.7 and p < 0.05 (p = 0.000), and a factor analysis was warranted.
TABLE 7.6: KMO and Bartlett's Test (Second factor analysis: Section B1)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .895
Bartlett's Test of Sphericity Approximate Chi-Square 2990.179
Degrees of freedom 253
Significance .000
SOURCE: SPSS Output
TABLE D3 (in APPENDIX D) provides the MSAs for the second round of factor
analysis and all these values were greater than or equal to 0.7. The Initial Eigenvalues
drawn from the analysis are indicated in TABLE 7.7 on the following page.
In theory, 23 different factors can be formed, as 23 items were used in this factor
analysis; but if one uses all 23 items there will be no reduction in data. The ideal
situation is to use as few factors as possible (i.e. to reduce the data) but to still allow
these factors to contain as much of the information provided as possible.
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TABLE 7.7: Total Variance Explained (Section B1)
INITIAL EIGENVALUES FACTOR
Total % of Variance Cumulative %
1 6.457 28.075 28.075
2 1.552 6.749 34.824
3 1.273 5.535 40.359
4 1.251 5.440 45.800
5 1.089 4.737 50.536
6 .945 4.107 54.643
7 .908 3.947 58.590
8 .890 3.870 62.461
9 .852 3.706 66.167
10 .800 3.477 69.644
11 .764 3.323 72.967
12 .727 3.161 76.127
13 .686 2.985 79.112
14 .676 2.940 82.052
15 .587 2.554 84.606
16 .547 2.378 86.984
17 .514 2.235 89.219
18 .468 2.033 91.252
19 .457 1.988 93.240
20 .446 1.941 95.181
21 .411 1.788 96.969
22 .368 1.599 98.568
23 .329 1.432 100.000
SOURCE: SPSS Output
* Extraction Method: Principal Axis Factoring
From TABLE 7.7 it now becomes evident that five initial Eigenvalues are greater than 1
(i.e. 6.457; 1.552; 1.273; 1.251; and 1.089), which means that five factors can be
identified and used in the analysis. These five values explain 50.53% of the
information in the original 23 items and for the purposes of this analysis this is
acceptable.
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CHAPTER 7 256
TABLE 7.8 (below) indicates the rotated factor matrix for the second round of factor
analysis with the various items belonging to each of the five factors and the rotated
loading (weight) on each item. The highest loading for each item is shown in bold.
Where loading was negligible (i.e. < 0.1), no value is given. It therefore means that
item U22, for example, has a loading of 0.761 on factor 1 whilst the loading on factor 5
is negligible.
TABLE 7.8: Rotated Factor Matrix(a) (Section B1)
Factor Item
1 2 3 4 5
U22: The education of CAs should enable them to adapt to
change. .761 .142 .235 .114
U23: The education of CAs should provide a foundation of
various professional skills. .632 .160 .237 .201 .103
U21: In addition to acquiring theoretical knowledge and skills,
today's CAs need other skills. .551 .129 .138 .175
U5: CAs should continually adapt to change. .427 .284 .329
U17: Competency is a critical issue in the CA’s profession. .373 .262 .152 .159
U25: CAs are continuously challenged to maintain
competence. .352 .116 .159 .339 .197
U9: CAs should act in accordance with applicable
professional ethical standards. .634 .184 .173
U4: CAs should have high ethical standards. .633 .189 .122
U7: CAs have an ethical obligation to their clients, employers
and stakeholders. .234 .629 .115
U6: The education of CAs should provide a foundation of
ethical values. .162 .475 .297 .121
U20: The competency of CAs also includes their professional
values, ethics and attitudes. .254 .327 .207 .164 .219
U12: The education of CAs should cultivate a culture of LLL. .251 .146 .618 .149 .130
U1: CAs should learn continuously. .162 .128 .564
U3: A CA will be able to focus on continued learning
throughout his/her career if he/she has learnt how to do
this as part of his/her basic training.
.231 .174 .486 .198 .120
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CHAPTER 7 257
Factor Item
1 2 3 4 5
U2: Training programmes for CAs should follow an
integrated approach with regard to professional ethics,
values and attitudes.
.144 .336 .449 .236 .207
U13: The credibility of a CA depends on his/her ethical
approach to the work he/she does. .283 .391 .216 .265
U10: A training programme for CAs should be more than a
mere transfer of knowledge. .172 .216 .251
U24: CAs enable organisations to shape their financial future. .426 .479 .114
U11: A professional CA is the same as an ethical CA. .270 .416
U8: CAs should be regarded as professionals once they have
completed the required basic training. .166 .382 .115
U18: CAs are trusted professionals. .236 .207 .377
U15: The teaching of professional values and ethics at an
undergraduate level should be seen as a process rather
than a course.
.167 .123 .180 .663
U16: The education of CAs should provide a basic general
foundation of knowledge. .226 .171 .308
SOURCE: SPSS Output
Extraction Method: Principal Axis Factoring
Rotation Method: Varimax with Kaiser Normalization (a) Rotation converged in 6 iterations
As was pointed out earlier, factor analysis aims to reduce the number of items. Based
on the factor analysis just completed, TABLE 7.8 above shows that five factors were
extracted. Factor 1 consists of items U22, U23, U21, U5, U17 and U25; Factor 2
consists of items U9, U4, U7, U6, and U20; Factor 3 consists of items U12, U1, U3, U2,
U13 and U10; and Factor 4 consists of items U24, U11, U8 and U18.
As Factor 5 only consisted of two items (i.e. U15 and U16), no further analysis was
warranted.
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CHAPTER 7 258
7.3.4 Item analysis
7.3.4.1 Factor 1: CmpSkll
In the previous section, items making up a factor with the highest loading on that
specific factor were calculated. As was pointed out in Chapter 6, one performs an item
analysis in order to determine the extent to which the items are collectively correlated
with the scale. Factor 1 can be described as competency and professional skills of
CAs necessary in a period of change (hereafter CmpSkll).
The following items were found to have the highest loading on CmpSkll in the order of
loading:
U22 The education of CAs should enable them to adapt to change.
U23 The education of CAs should provide a foundation of various professional
skills.
U21 In addition to acquiring theoretical knowledge and skills, today's CAs
need other skills.
U5 CAs should continually adapt to change.
U17 Competency is a critical issue in the CA’s profession.
U25 CAs are continuously challenged to maintain competence.
A standardised Cronbach’s alpha (α) of 0.779 was generated, indicating a good level of
internal consistency of the data, since 0.779 > 0.7.
TABLE 7.9 (on the following page) provides an overview of the item statistics (in mean
ascending order) and indicates the mean, standard deviation and number of
respondents for each of the items included in the scale.
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CHAPTER 7 259
TABLE 7.9: Item statistics – Factor 1 (CmpSkll)
Items Mean Standard deviation N
U17: Competency is a critical issue in the CA’s profession. 1.37 .521 487
U21: In addition to acquiring theoretical knowledge and
skills, today's CAs need other skills. 1.38 .520 487
U5: CAs should continually adapt to change. 1.39 .518 487
U23: The education of CAs should provide a foundation of
various professional skills. 1.45 .519 487
U22: The education of CAs should enable them to adapt to
change. 1.46 .531 487
U25: CAs are continuously challenged to maintain
competence. 1.50 .573 487
SOURCE: SPSS Output
TABLE 7.10 (below) is an indication of the item-total statistics. Important here is the
column indicating the adjusted Cronbach’s alpha (α) if an item is to be deleted from the
scale. From this table one notices that if item U5, for example, was deleted, α would
have been 0.716. A standardised Cronbach’s alpha was however calculated at 0.779; it
would not have increased it at all. None of these items had to be deleted as they would
not have increased the value of Cronbach’s alpha.
TABLE 7.10: Item-total statistics – Factor 1 (CmpSkll)
Item Scale
Mean if Item
Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U5: CAs should continually adapt to change. 7.17 3.574 .497 .753
U17: Competency is a critical issue in the CA’s
profession. 7.19 3.633 .458 .762
U21: In addition to acquiring theoretical
knowledge and skills, today's CAs need
other skills.
7.18 3.568 .497 .753
U22: The education of CAs should enable
them to adapt to change. 7.11 3.248 .672 .709
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CHAPTER 7 260
Item Scale
Mean if Item
Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U23: The education of CAs should provide a
foundation of various professional skills. 7.11 3.379 .612 .725
U25: CAs are continuously challenged to
maintain competence. 7.06 3.544 .436 .770
SOURCE: SPSS Output
7.3.4.2 Factor 2: Ethcs
Factor 2 can be described as professional values, ethics and attitudes linked to
CAs (hereafter Ethcs). The following items were found to have the highest loading on
Factor 2 in order of loading:
U9 CAs should act in accordance with applicable professional ethical
standards.
U4 CAs should have high ethical standards.
U7 CAs have an ethical obligation to their clients, employers and
stakeholders.
U6 The education of CAs should provide a foundation of ethical values.
U20 The competency of CAs also includes their professional values, ethics and
attitudes.
A standardised Cronbach’s alpha (α) of 0.727 was generated, indicating a good level of
internal consistency of the data, since 0.727 > 0.7. TABLE 7.11 (below) provides an
overview of the item statistics and indicates the mean, standard deviation and number
of respondents for each of the items included in the scale in ascending mean order.
TABLE 7.11: Item statistics – Factor 2 (Ethcs)
Items Mean Standard deviation N
U4: CAs should have high ethical standards. 1.17 .395 491
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CHAPTER 7 261
Items Mean Standard deviation N
U7: CAs have an ethical obligation to their clients,
employers and stakeholders. 1.19 .406 491
U9: CAs should act in accordance with applicable
professional ethical standards. 1.24 .430 491
U6: The education of CAs should provide a foundation of
ethical values. 1.46 .589 491
U20: The competency of CAs also includes their professional
values, ethics and attitudes. 1.54 .557 491
SOURCE: SPSS Output
Based on the analysis of the item total statistics (TABLE 7.12), none of these items
need to be deleted as they will not increase the value of Cronbach’s alpha significantly.
TABLE 7.12: Item-total statistics – Factor 2 (Ethcs)
Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U4: CAs should have high ethical
standards. 5.43 2.017 .540 .668
U6: The education of CAs should
provide a foundation of ethical
values.
5.14 1.686 .487 .688
U7: CAs have an ethical obligation to
their clients, employers and
stakeholders.
5.42 1.987 .548 .663
U9: CAs should act in accordance with
applicable professional ethical
standards.
5.36 1.962 .524 .669
U20: The competency of CAs also
includes their professional values,
ethics and attitudes.
5.07 1.846 .410 .718
SOURCE: SPSS Output
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CHAPTER 7 262
7.3.4.3 Factor 3: EdcTrn
Factor 3 can be described as training, education and LLL of CAs (hereafter
EdcTrn). The following items were found to have the highest loading on Factor 3 in
the order of loading:
U12 The education of CAs should cultivate a culture of LLL.
U1 CAs should learn continuously.
U3 A CA will be able to focus on continued learning throughout his/her
career if he/she has learnt how to do this as part of his/her basic training.
U2 Training programmes for CAs should follow an integrated approach with
regard to professional ethics, values and attitudes.
U13 The credibility of a CA depends on his/her ethical approach to the work
he/she does.
U10 A training programme for CAs should be more than a mere transfer of
knowledge.
A standardised Cronbach’s alpha (α) of 0.738 was generated, indicating a good level of
internal consistency of the data, since 0.738 > 0.7. TABLE 7.13 (below) provides an
overview of the item statistics and indicates the mean, standard deviation and number
of respondents for each of the items included in the scale in ascending mean order.
TABLE 7.13: Item statistics – Factor 3 (EdcTrn)
Items Mean Standard deviation N
U10: A training programme for CAs should be more than a
mere transfer of knowledge. 1.39 .569 490
U1: CAs should learn continuously. 1.42 .557 490
U2: Training programmes for CAs should follow an
integrated approach with regard to professional ethics,
values and attitudes.
1.49 .516 490
U13: The credibility of a CA depends on his/her ethical
approach to the work he/she does. 1.51 .597 490
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CHAPTER 7 263
Items Mean Standard deviation N
U3: A CA will be able to focus on continued learning
throughout his/her career if he/she has learnt how to
do this as part of his/her basic training.
1.60 .629 490
U12: The education of CAs should cultivate a culture of LLL. 1.70 .585 490
SOURCE: SPSS Output
Based on the analysis of the item total statistics (TABLE 7.14), by deleting item U10 (a
training programme for CAs should be more than a mere transfer of knowledge) it will
be possible to increase the value of Cronbach’s alpha to 0.747. Because this item fits
perfectly into the scale of training, education and LLL of CAs (i.e. face validity) it was
decided that it would not be deleted.
TABLE 7.14: Item-total statistics – Factor 3 (EdcTrn)
Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U1: CAs should learn continuously. 7.69 3.831 .474 .701
U2: Training programmes for CAs
should follow an integrated
approach with regard to
professional ethics, values and
attitudes.
7.62 3.863 .515 .691
U3: A CA will be able to focus on
continued learning throughout
his/her career if he/she has learnt
how to do this as part of his/her
basic training.
7.51 3.543 .522 .686
U10: A training programme for CAs
should be more than a mere
transfer of knowledge.
7.72 4.151 .302 .747
U12: The education of CAs should
cultivate a culture of LLL. 7.41 3.560 .576 .670
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Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U13: The credibility of a CA depends on
his/her ethical approach to the
work he/she does.
7.60 3.742 .465 .703
SOURCE: SPSS Output
7.3.4.4 Factor 4: CmpPrf
Factor 4 can be described as competence and professionalism of CAs (hereafter
CmpPrf). The following statements were found to have the highest loading on Factor
4 in the order of loading:
U24 CAs enable organisations to shape their financial future.
U11 A professional CA is the same as an ethical CA.
U8 CAs should be regarded as professionals once they have completed the
required basic training.
U18 CAs are trusted professionals.
A standardised Cronbach’s alpha (α) of 0.491 was generated, indicating a level of
internal consistency lower than 0.7. Based on the analysis of the item total statistics in
TABLE 7.15 below, it clearly would not be possible to increase the value of Cronbach’s
alpha significantly by deleting any of the items. No further analysis was therefore
warranted.
TABLE 7.15: Item-total statistics – Factor 4 (CmpPrf)
Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U8: CAs should be regarded as
professionals once they have
completed the required basic training.
5.24 2.340 .279 .426
U11: A professional CA is the same as an
ethical CA. 4.74 1.933 .260 .471
Empirical analysis
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Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
U18: CAs are trusted professionals. 5.31 2.339 .325 .389
U24: CAs enable organisations to shape their
financial future. 5.28 2.530 .319 .405
SOURCE: SPSS Output
7.3.5 Factor scores
7.3.5.1 Calculation
In the previous section, three factors with a level of internal consistency (Cronbach’s
alpha) greater than 0.7 were extracted and explained. In order to calculate the factor
scores, i.e. the average score for each respondent for each of the factors, one
calculates the average (mean) response for each respondent (see section 6.5.4).
The mean response of competency and professional skills of CAs necessary in a
period of change is calculated using the formula:
625175212322 UUUUUUCpmSkll +++++
=
The mean response of professional values, ethics and attitudes linked to CAs is
calculated using the formula:
5206749 UUUUUEthcs ++++
=
The mean response of training, education and LLL of CAs is calculated using the
formula:
6101323112 UUUUUUEdcTrn +++++
=
Empirical analysis
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7.3.5.2 Interpreting factor scores
TABLE 7.16 indicates the calculated descriptive statistics of the various factor scores
after using the formulae indicated in the section above.
TABLE 7.16: Descriptive statistics summary (Factor scores: Section B1)
N Minimum Maximum Mean Standard deviation
Factor 1: CmpSkll 491 1.00 2.33 1.4268 .36502
Factor 2: Ethcs 491 1.00 2.60 1.3210 .33336
Factor 3: EdcTrn 491 1.00 2.83 1.5173 .37944
SOURCE: TABLE D4
Respondents had to indicate their response using a 4-point Likert scale. Based on the
above analysis, the minimum score for all factors was 1 (strongly agree). In terms of
the maximum scores, respondents tended to disagree with the statements as maximum
scores between 2.33 and 2.83 were recorded.
a) Factor 1: CmpSkll
In terms of CmpSkll, respondents were split nearly halfway between strongly agree
and agree with a mean response of 1.4268 (SD = 0.36502) with items such as:
CAs should be regarded as professionals once they have completed the required
basic training; and
CAs are continuously challenged to maintain competence.
A word of caution: respondents also fairly strongly agreed that a professional CA is the
same as an ethical CA (which was also pointed out in the descriptive analysis earlier in
sections 7.3.1 and 7.3.2.1). In the same vein they also generally agreed that CAs are
trusted professionals.
In Chapter 4 (section 4.4.3.3) it was indicated that there are various shared perceptions
as to the meaning of ethical and/or professional behaviour. It was noted that the CA
Empirical analysis
CHAPTER 7 267
operating in a professional environment has to apply both general ethics (the spirit) and
professional ethics (the rules) of the profession. To therefore state that a professional
CA is also an ethical CA may not be correct.
Graphically represented in FIGURE 7.5, the factor CmpSkll has a fairly flat or
platykurtic distribution (i.e. kurtosis = -1.169; kurtosis < 0). In a normal symmetric
distribution, one would find that kurtosis tend to be equal to zero (see section 6.5.1.3).
0
20
40
60
80
100
120
140
1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.8 1.9 2.0 2.1 2.2 2.3
Freq
uenc
y
FIGURE 7.5: Histogram and distribution of Factor 1 (CmpSkll)
SOURCE: SPSS Output
From FIGURE 7.5, the factor CmpSkll is positively skewed with skewness values
equal to 0.365. This may also indicate why the mean score (1.4268) is greater than the
median score (1.3333) (see section 6.5.1.2).
Within the frequency distribution, 123 respondents (25.1%) responded with a mean
score of 1 (i.e. ‘strongly agree’) and 53.6% of the respondents were all above a mean
score of 1.5.
b) Factor 2: Ethcs
In terms of the factor Ethcs, respondents strongly agreed that CAs:
Empirical analysis
CHAPTER 7 268
should act in accordance with applicable professional ethical standards;
have an ethical obligation to their clients, employers and stakeholders; and
have high ethical standards.
0
20
40
60
80
100
120
140
160
180
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5
Freq
uenc
y
FIGURE 7.6: Histogram and distribution of Factor 2 (Ethcs)
SOURCE: SPSS Output
Graphically represented in FIGURE 7.6, the factor Ethcs has a fairly peaked or
leptokurtic distribution (i.e. kurtosis = 0.306; kurtosis > 0) and is positively skewed
(skewness = 1.003), which may indicate why the mean score (1.3210) is greater than
the median score (1.2000). Less than 85% (417) of the respondents all gave a
response of less than a mean score of 1.6, with 162 respondents (33%) affirming their
response as ‘strongly agree’. The issue of ethics and the professional CA was also
discussed in great detail in sections 7.3.2.1 and 7.3.2.2.
c) Factor 3: EdcTrn
When it came to statements on education, training and LLL (EdcTrn), respondents
indicated a mean score of 1.5173 (strongly agree but leaning more perhaps to agree)
Empirical analysis
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and a standard deviation of 0.37944 on statements that:
the education of CAs should cultivate a culture of LLL;
CAs should learn continuously;
a CA will be able to focus on continuous learning throughout his/her career if
he/she has learnt how to do this as part of his/her basic training; and
a training programme for CAs should be more than a mere transfer of
knowledge.
0
10
20
30
40
50
60
70
80
90
1.1 1.2 1.3 1.4 1.5 1.7 1.8 1.9 2.0 2.2 2.3 2.4 2.5 2.6 2.8
Freq
uenc
y
FIGURE 7.7: Histogram and distribution of Factor 3 (EdcTrn)
SOURCE: SPSS Output
In FIGURE 7.7 above, the factor EdcTrn is positively skewed (0.401) but has a
platykurtic distribution with kurtosis less than zero (-0.344).
In contrast to the first two factors, 93.9% or 461 respondents were between mean
scores of 1 and 2 (i.e. ‘strongly agree’ or ‘agree’) with their responses. This was lower
as one finds that in the case of the first factor (CmpSkll) some 481 respondents or
98% were above a mean score of 2 (i.e. ‘agree’) and in the case of the second factor
Ethcs, this figure went up to 98.6% or 484 respondents.
Empirical analysis
CHAPTER 7 270
7.3.6 Hypothesis testing
In the previous section of this chapter, the average means of the three factors were
calculated. The question now arises as to whether the means calculated for each factor
differ on a gender basis. An appropriate hypothesis test to use in this case would be
the t-test for independent samples. The null and alternative hypotheses developed are:
Hypothesis 1:
H0: There is no difference between prospective male and female CAs in the
perceived need for competency and professional skills in a period of
change.
H1: There is a difference between prospective male and female CAs in the
perceived need for competency and professional skills in a period of
change.
Hypothesis 2:
H0: There is no difference in the perceptions of values, ethics and attitudes
for prospective male and female CAs.
H1: There is a difference in the perceptions of values, ethics and attitudes
for prospective male and female CAs.
Hypothesis 3:
H0: There is no difference in the perceptions of training, education and LLL
for prospective male and female CAs.
H1: There is a difference in the perceptions of training, education and LLL
for prospective male and female CAs.
Using an independent t-test, the following results are presented in TABLE 7.17 (below)
and TABLE 7.18 (on the following page).
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7.3.6.1 Factor 1: CmpSkll
In performing an independent samples test, a t-value of 0.001 was calculated with p =
0.999. Because p > 0.05 (0.999 > 0.05), it means the null hypothesis will not be
rejected as there is no statistically significant difference in the perceptions of the need
for competency and professional skills between prospective male and female CAs in a
period of change.
TABLE 7.17: Independent Samples t-Test (Factors: Section B1)
Levene's Test for Equality of Variances
t-test for Equality of Means
95% confidence interval of the
difference
Factors
F Sig. t df Sig. (2-tailed)
Lower Upper
CmpSkll Equal variances
assumed .278 .598 .001 489 .999 -.06478 .06484
Ethcs Equal variances
assumed 3.077 .080 2.297 489 .022* .00994 .12769
EdcTrn Equal variances
assumed 2.277 .132 2.309 489 .021* .01173 .14574
SOURCE: SPSS Output
* p < 05
This is also proven when one compares the means of male and female respondents and
finds that they are exactly the same (1.4268) but with different standard deviations
(Male SD = 0.35992; Female SD = 0.37058) in TABLE 7.18 on the following page.
Empirical analysis
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TABLE 7.18: Group statistics (Factors: Section B1)
Factor Gender N Mean Standard deviation
Standard error of mean
Male 241 1.4268 .35992 .02318 Factor 1:
CmpSkll Female 250 1.4268 .37058 .02344
Male 241 1.3560 .35434 .02283 Factor 2:
Ethcs Female 250 1.2872 .30877 .01953
Male 241 1.5574 .39593 .02550 Factor 3:
EdcTrn Female 250 1.4787 .35941 .02273
SOURCE: SPSS Output
7.3.6.2 Factor 2: Ethcs
For factor 2 (Ethcs) a t-value of 2.297 was calculated with p = 0.022 (see TABLE 7.17
on the previous page). As p < 0.05 (0.022 < 0.05), there is a statistically significant
difference in the perceptions of values, ethics and attitudes for prospective male and
female CAs and one would therefore reject the null hypothesis.
This can again be verified when the data in TABLE 7.18 (above) is compared, where
the mean score for male respondents is 1.3579 (SD = 0.35434) compared to the mean
score for female respondents of 1.2872 (SD = 0.30877).
7.3.6.3 Factor 3: EdcTrn
In the calculation of an independent samples test for factor 3 (EdcTrn), a t-value of
2.309 was calculated with p = 0.021 (see TABLE 7.17 on the previous page). Because
p < 0.05 (0.021 < 0.05), it means that there is a statistically significant difference in the
perceptions of training, education and LLL for prospective male and female CAs and the
null hypothesis would be rejected.
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7.4 CONTINUOUS PROFESSIONAL DEVELOPMENT OF CHARTERED ACCOUNTANTS
7.4.1 Descriptive analysis
Section B2 contained 14 items (V1 – V14) about the continuous professional
development of CAs. All the data collected from the questionnaires with regard to this
section, has been analysed and is described in detail in TABLE E1 (in APPENDIX E) of
this study.
TABLE E2 (in APPENDIX E) provides a single, collated frequency tabulation of all the
responses in this data set. The mean response (in ascending order) and standard
deviation to the items are provided in TABLE 7.19 below:
TABLE 7.19: Continuous professional development of chartered accountants
Items Mean Standard deviation
V1: The CPD of CAs is critical. 1.41 0.512
V7: CPD must be a requirement for all CAs in order to maintain the public’s
confidence in the profession. 1.57 0.554
V5: The benefits derived from CPD programmes depend on the attitude of
the CA. 1.58 0.595
V12: CPD is aimed at the post-qualification maintenance of professional
competence. 1.63 0.580
V14: CPD should be seen as an extension of the education process that
leads to the initial qualification as a CA. 1.69 0.574
V8: CPD should be a condition of a CA’s continued membership of a
professional body. 1.70 0.670
V3: CPD provides an assurance of professional service. 1.71 0.622
V10: The emphasis of CPD means a foundation for LLL. 1.72 0.557
V9: CPD refers to learning activities following qualification. 1.76 0.578
V2: Recent corporate collapses (e.g. Enron) can be attributed to the
unethical behaviour of CAs. 1.79 0.773
Empirical analysis
CHAPTER 7 274
Items Mean Standard deviation
V11: CPD implies further training in professional values, ethics and
attitudes. 1.83 0.656
V13: A training programme for CAs should provide students with the
necessary skills to learn by themselves and at their own pace. 1.88 0.765
V6: CPD means realigning one’s professional values and attitudes. 1.90 0.668
V4: The CPD of CAs will avert corporate collapses. 2.16 0.731
SOURCE: SPSS Output
Thirteen of the fourteen statements (i.e. 92.86%) all scored a mean response of less
than 2 (i.e. ‘agree’) which indicates that respondents were fairly adamant that they
strongly agreed (i.e. 1) with the statements given. In contrast to the results for
Section B1, this section (Section B2) of the questionnaire produced mean responses
all lower than median responses, with the exception of items V1 and V4 (see FIGURE
7.8 below).
0
0.5
1
1.5
2
2.5
3
3.5
4
V1 V2 V3 V4 V5 V6 V7 V8 V9 V10 V11 V12 V13 V14
Rep
onse
s (L
iker
t-sca
le)
Median Mean FIGURE 7.8: Mean and median distribution for the continuous professional
development of chartered accountants (n = 491)
SOURCE: TABLE E1
Empirical analysis
CHAPTER 7 275
Only the mean response of item V1 (1.41; SD = 0.512) was below the 1.5 range
indicating a very strong agreement that CPD of CAs is very important. With that said,
respondents also agreed that CPD is not the cure for all ills, as they have indicated a
mean response of 2.16 (SD = 0.731) for item V4.
7.4.2 Some important aspects of the data found in the descriptive
analysis
7.4.2.1 Ethics and corporate collapses
In item V2 (TABLE 7.20a) it was interesting to note that respondents felt a lack of
ethical behaviour was not the only contributing factor in some of the most recent
corporate collapses worldwide.
TABLE 7.20a: Descriptive analysis: Item V2 (Section B2)
RESPONSE f %
Strongly agree (1) 196 40.0
Agree (2) 215 43.9
Disagree (3) 66 13.5
Strongly disagree (4) 13 2.7
Recent corporate collapses (e.g. Enron)
can be attributed to the unethical
behaviour of CAs.
TOTAL 490 100.0
SOURCE: TABLE E2
Nonetheless, the fact that nearly 84% agreed (i.e. either ‘strongly agree’ or ‘agree’)
with this statement means that they do attribute some of the blame to a lack of ethical
behaviour.
In item V4 (TABLE 7.20b) close to 70% of the respondents felt that utilising CPD for
CAs would make it possible to avert corporate collapses.
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TABLE 7.20b: Descriptive analysis: Item V4 (Section B2)
RESPONSE f %
Strongly agree (1) 84 17.2
Agree (2) 258 52.8
Disagree (3) 133 27.2
Strongly disagree (4) 14 2.9
The continuous professional development
of CAs will avert corporate collapses.
TOTAL 489 100.0
SOURCE: TABLE E2
This is not possible, however, as some executives will, even whilst regarding
themselves as ethical, still be adamant that the ‘bottom line’ of profit needs to be the
be-all and end-all of business. This flawed understanding of corporate behaviour was
discussed in detail in section 4.5.4 of this study. Another reason for this response may
be the lack of experience within a practice.
7.4.2.2 Continuous professional development requirement for CAs
Even though 97.3% of the respondents felt that CPD should be a requirement for all
CAs (item V7, TABLE 7.21a below) and 90.0% felt that CPD should be a condition of a
CA’s continued membership of a professional body (item V8, TABLE 7.21b on the
following page), it does not necessarily mean that it will improve the public’s confidence
in CAs in general following a succession of high profile corporate scandals (see section
4.5.2).
TABLE 7.21a: Descriptive analysis: Item V7 (Section B2)
RESPONSE f %
Strongly agree (1) 225 45.9
Agree (2) 252 51.4
Disagree (3) 12 2.4
Strongly disagree (4) 1 0.2
CPD must be a requirement for all CAs
in order to maintain the public’s
confidence in the profession.
TOTAL 490 100.0
SOURCE: TABLE E2
Empirical analysis
CHAPTER 7 277
TABLE 7.21b: Descriptive analysis: Item V8 (Section B2)
RESPONSE f %
Strongly agree (1) 201 41.0
Agree (2) 241 49.2
Disagree (3) 43 8.8
Strongly disagree (4) 5 1.0
CPD should be a condition of a CA’s
continued membership of a
professional body.
TOTAL 490 100.0
SOURCE: TABLE E2
7.4.2.3 Teaching the skills of CPD
In the previous two sections it was noted how strongly respondents agreed (i.e. either
‘strongly agree’ or ‘agree’) on the importance of CPD. It was however not comforting to
notice (item V13, TABLE 7.22a below) that more than one-fifth of respondents did not
feel that they should be taught the necessary skills to engage in CPD within their
training programme (undergraduate studies).
TABLE 7.22a: Descriptive analysis: Item V13 (Section B2)
RESPONSE f %
Strongly agree (1) 169 34.6
Agree (2) 217 44.4
Disagree (3) 96 19.6
Strongly disagree (4) 7 1.4
CPD must be a requirement for all CAs
in order to maintain the public’s
confidence in the profession.
TOTAL 490 100.0
SOURCE: TABLE E2
This again then stands in sharp contrast to the following statement (i.e. item V14 in
TABLE 7.22b on the following page), which clearly indicated 94.3% of the respondents
agreeing (i.e. either ‘strongly agree’ or ‘agree’) that CPD should be seen as an extension
of the process of getting to be a qualified CA.
Empirical analysis
CHAPTER 7 278
TABLE 7.22b: Descriptive analysis: Item V14 (Section B2)
RESPONSE f %
Strongly agree (1) 179 36.8
Agree (2) 280 57.5
Disagree (3) 28 5.7
Strongly disagree (4) 0 0.0
CPD should be seen as an extension of
the education process that led to the
initial qualification as a CA.
TOTAL 487 100.0
SOURCE: TABLE E2
As was pointed out in section 7.4.1, this set of items in Section B consists of 14
different categorical items. In order to reduce the large number of items to a smaller
number that may give meaning to the analysis, one employs factor analysis to
determine the underlying dimensions of the various attitudes emerging in the data.
7.4.3 Factor analysis of the items measuring the need for
continuous professional development of chartered
accountants
Exploratory factor analysis was performed on the statements in Section B2 for the
complete sample (n = 491) using SPSS with orthogonal varimax rotation and Kaizer
normalisation to identify the various dimensions of CPD of CAs by way of Principal Axis
Factoring as an extraction method.
TABLE 7.23: KMO and Bartlett's Test (Section B2)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .880
Bartlett's Test of Sphericity Approximate Chi-Square 1773.595
Degrees of freedom 91
Significance .000
SOURCE: SPSS Output
The KMO value was 0.880 and Bartlett’s Test reached statistical significance (p < 0.05),
supporting the factorability of the correlation matrix (see TABLE 7.23 above).
Principal Axis Factoring revealed the presence of three components with initial
Empirical analysis
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Eigenvalues exceeding 1 and cumulatively explaining 33.88%, 42.87% and 51.04% of
the variances respectively.
TABLE 7.24: Rotated Factor Matrix(a) (Section B2)
Factor Item
1 2 3
V10: The emphasis of CPD means a foundation for LLL. .641 .313 .231
V14: CPD should be seen as an extension of the education process that
leads to the initial qualification as a CA. .598 .228 .113
V9: CPD refers to learning activities following qualification. .531 .346 .149
V12: CPD is aimed at the post-qualification maintenance of professional
competence. .502 .288
V11: CPD implies further training in professional values, ethics and
attitudes. .490 .185 .370
V5: The benefits derived from CPD programmes depend on the attitude
of the CA. .403 .197 .146
V13: A training programme for CAs should provide students with the
necessary skills to learn by themselves and at their own pace. .387 .112
V8: CPD should be a condition of a CA’s continued membership of a
professional body. .198 .745 .146
V7: CPD must be a requirement for all CAs in order to maintain the
public’s confidence in the profession. .275 .693 .166
V1: The CPD of CAs is critical. .291 .413 .185
V3: CPD provides an assurance of professional service. .217 .328 .312
V4: The CPD of CAs will avert corporate collapses. .305 .636
V6: CPD means realigning one’s professional values and attitudes. .346 .200 .505
V2: Recent corporate collapses (e.g. Enron) can be attributed to the
unethical behaviour of CAs. .412
SOURCE: SPSS Output
Extraction Method: Principal Axis Factoring
Rotation Method: Varimax with Kaiser Normalization (a) Rotation converged in 6 iterations
Even though the individual percentage variance explained by factors 2 and 3 were very
low (i.e. 8.997% and 8.170%), it was decided that further tests would still be
Empirical analysis
CHAPTER 7 280
undertaken on these irrespective of the low percentages so as to include as many
individual items as possible. In TABLE 7.24 (on the previous page), the three
components (or factors) that were retained for further analysis are indicated.
7.4.4 Item analysis
7.4.4.1 Factor 1: LrnCPD
Factor 1 can be described as education and pursuance of continuous
professional development of chartered accountants (hereafter LrnCPD). The
following statements were found to have the highest loading on LrnCPD in the order of
loading:
V10 The emphasis of CPD means a foundation for LLL.
V14 CPD should be seen as an extension of the education process that leads
to the initial qualification as a CA.
V9 CPD refers to learning activities following qualification.
V12 CPD is aimed at the post-qualification maintenance of professional
competence.
V11 CPD implies further training in professional values, ethics and attitudes.
V5 The benefits derived from CPD programmes depend on the attitude of the
CA.
V13 A training programme for CAs should provide students with the necessary
skills to learn by themselves and at their own pace.
A standardised Cronbach’s alpha (α) of 0.760 was generated, indicating a good level of
internal consistency of the data, since 0.760 > 0.7.
TABLE 7.25 (on the following page) provides an overview of the item statistics and
indicates the mean score, standard deviation and number of respondents for each of
the items included in the scale in ascending mean order.
Empirical analysis
CHAPTER 7 281
TABLE 7.25: Item statistics – Factor 1 (LrnCPD)
Items Mean Standard deviation N
V5: The benefits derived from CPD programmes depend
on the attitude of the CA. 1.57 .594 484
V12: CPD is aimed at the post-qualification maintenance of
professional competence. 1.63 .581 484
V14: CPD should be seen as an extension of the education
process that leads to the initial qualification as a CA. 1.69 .572 484
V10: The emphasis of CPD means a foundation for LLL. 1.72 .557 484
V9: CPD refers to learning activities following qualification. 1.76 .580 484
V11: CPD implies further training in professional values,
ethics and attitudes. 1.83 .655 484
V13: A training programme for CAs should provide students
with the necessary skills to learn by themselves and at
their own pace.
1.87 .763 484
SOURCE: SPSS Output
Based on the analysis of the item total statistics (see TABLE 7.26 below), none of
these items need to be deleted as they will not increase the value of Cronbach’s alpha
significantly.
TABLE 7.26: Item-total statistics – Factor 1 (LrnCPD)
Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
V5: The benefits derived from CPD
programmes depend on the
attitude of the CA.
10.50 6.155 .397 .747
V9: CPD refers to learning activities
following qualification. 10.31 5.801 .550 .716
V10: The emphasis of CPD means a
foundation for LLL. 10.35 5.686 .633 .701
Empirical analysis
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Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
V11: CPD implies further training in
professional values, ethics and
attitudes.
10.24 5.709 .491 .728
V12: CPD is aimed at the post-
qualification maintenance of
professional competence.
10.44 5.982 .478 .731
V13: A training programme for CAs
should provide students with the
necessary skills to learn by
themselves and at their own pace.
10.20 5.897 .323 .774
V14: CPD should be seen as an
extension of the education process
that leads to the initial qualification
as a CA.
10.38 5.827 .552 .716
SOURCE: SPSS Output
7.4.4.2 Factor 2: CrtCPD
Factor 2 can be described as critical importance of continuous professional
development for chartered accountants (hereafter CrtCPD). The following
statements were found to have the highest loading on CrtCPD in the order of loading:
V8 CPD should be a condition of a CA’s continued membership of a
professional body.
V7 CPD must be a requirement for all CAs in order to maintain the public’s
confidence in the profession.
V1 The CPD of CAs is critical.
V3 CPD provides an assurance of professional service.
A standardised Cronbach’s alpha (α) of 0.710 was generated, indicating a good level of
internal consistency of the data, since 0.710 > 0.7.
Empirical analysis
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TABLE 7.27 provides an overview of the item statistics and indicates the mean score,
standard deviation and number of respondents for each of the items included in the
scale in ascending mean order.
TABLE 7.27: Item statistics – Factor 2 (CrtCPD)
Items Mean Standard deviation N
V1: The CPD of CAs is critical. 1.41 .513 487
V7: CPD must be a requirement for all CAs in order to
maintain the public’s confidence in the profession. 1.57 .554 487
V8: CPD should be a condition of a CA’s continued
membership of a professional body. 1.70 .671 487
V3: CPD provides an assurance of professional service. 1.71 .620 487
SOURCE: SPSS Output
As is pointed out in TABLE 7.28 below, an analysis indicated that by deleting item V3 it
would be possible to increase Cronbach’s alpha to 0.726. For the purposes of this
analysis it was decided against it, as it dealt with the professional services of a CA and
as much information needed to be extracted as this is seen as exploratory research.
TABLE 7.28: Item-total statistics – Factor 2 (CrtCPD)
Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
V1: The CPD of CAs is critical. 4.98 2.078 .451 .676
V3: CPD provides an assurance of
professional service. 4.68 1.976 .370 .726
V7: CPD must be a requirement for all
CAs in order to maintain the
public’s confidence in the
profession.
4.81 1.798 .606 .585
V8: CPD should be a condition of a CA’s
continued membership of a
professional body.
4.69 1.566 .590 .585
SOURCE: SPSS Output
Empirical analysis
CHAPTER 7 284
7.4.4.3 Factor 3: ValCPD
Factor 3 can be described as professional values and attitudes pertaining to
continuous professional development for chartered accountants (hereafter
ValCPD). The following statements were found to have the highest loading on
ValCPD in the order of loading:
V4 The CPD of CAs will avert corporate collapses.
V6 CPD means realigning one’s professional values and attitudes.
V2 Recent corporate collapses (e.g. Enron) can be attributed to the unethical
behaviour of CAs.
A standardised Cronbach’s alpha (α) of 0.546 was generated, indicating a low level of
internal consistency (0.546 < 0.7) and no further analysis was therefore warranted.
7.4.5 Factor scores
7.4.5.1 Calculation
The mean response of education and pursuance of continuous professional
development of chartered accountants is calculated using the formula:
7135111291410 VVVVVVVLrnCPD ++++++
=
The mean response of critical importance of continuous professional
development for chartered accountants is calculated using the formula:
43178 VVVVCrtCPD +++
=
7.4.5.2 Interpreting factor scores
TABLE 7.29 (on the following page) indicates the calculated descriptive statistics of the
various factor scores.
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CHAPTER 7 285
TABLE 7.29: Descriptive statistics summary (Factor scores: Section B2)
N Minimum Maximum Mean Standard deviation
Factor 1: LrnCPD 490 1.00 3.29 1.7257 .39642
Factor 2: CrtCPD 491 1.00 3.00 1.5959 .43244
SOURCE: TABLE E3
Students had to respond to the questionnaire using a 4-point Likert scale. Based on the
above analysis, the minimums score in all factors were 1 (strongly agree).
In terms of the maximum scores respondents disagreed (i.e. a maximum mean
response of 3) with statements relating to the factor CrtCPD but tended to strongly
disagree (i.e. mean responses higher than 3) with statements included in the factor
LrnCPD.
a) Factor 1: LrnCPD
In terms of LrnCPD, respondents on average (mean = 1.7257; SD = 0.39642) only
agreed (i.e. Likert scale response below 2) with statements dealing with CPD but linked
with LLL.
Three statements were not specifically related to educating for and learning of CPD for
CAs but rather applicable to CPD, per se. They were still included, however:
CPD implies further training in professional values, ethics and attitudes;
the benefits derived from CPD programmes depend on the attitude of the CA;
and
a training programme for CAs should provide students with the necessary skills
to learn by themselves and at their own pace.
What is interesting from FIGURE 7.9 (on the following page) is that only 103 or 21%
of the respondents specifically chose a Likert-scale response of 2 (i.e. ‘agree’).
Empirical analysis
CHAPTER 7 286
0
20
40
60
80
100
120
1.1 1.2 1.4 1.5 1.7 1.8 2.0 2.1 2.3 2.5 2.6 2.8 2.9 3.1 3.2
Freq
uenc
y
FIGURE 7.9: Histogram and distribution of Factor 1 (LrnCPD)
SOURCE: SPSS Output
b) Factor 2: CrtCPD
The second factor (CrtCPD) scored an average response of 1.5959 (SD = 0.43244),
which is lower than the previous factor and also tended to go more towards a Likert
response of 1 (i.e. ‘strongly agree’).
Statements accrued within the factor CrtCPD referred to the critical importance of CPD
and linked with assurance and confidence. These included:
CPD for CAs are critical as it may provide an assurance of professional service;
and
CPD should be a condition of a CA’s continued membership of a professional
body but also to ensure a maintained public confidence in the profession.
There was greater consensus in the responses to these statements, as can be seen
from FIGURE 7.10 (on the following page) with a smaller distribution and lower
standard deviation.
Empirical analysis
CHAPTER 7 287
0
20
40
60
80
100
120
1.1 1.2 1.3 1.5 1.6 1.7 1.9 2.0 2.1 2.3 2.4 2.5 2.7 2.8 2.9
Freq
uenc
y
FIGURE 7.10: Histogram and distribution of Factor 2 (CrtCPD)
SOURCE: SPSS Output
7.4.6 Hypothesis testing
Once again the means calculated for each factor need to be tested on a gender basis
for which the t-test for independent samples will be used. The null and alternative
hypotheses developed are:
Hypothesis 4:
H0: There is no difference between prospective male and female CAs in the
perception of education and pursuance of CPD.
H1: There is a difference between prospective male and female CAs in the
perception of education and pursuance of CPD.
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Hypothesis 5:
H0: There is no difference between prospective male and female CAs in the
perception of the critical importance of CPD.
H1: There is a difference between prospective male and female CAs in the
perception of the critical importance of CPD.
Using an independent t-test, the following results are presented in TABLE 7.30 and
TABLE 7.31 (below).
TABLE 7.30: Independent Samples t-Test (Factors: Section B2)
Levene's Test for Equality of Variances
t-test for Equality of Means
95% confidence interval of the
difference
Factors
F Sig. t df Sig. (2-tailed)
Lower Upper
LrnCPD Equal variances
assumed .236 .627 .382 488 .703 -.05676 .08414
CrtCPD Equal variances
assumed .712 .399 2.214 489 .034* .00620 .15906
SOURCE: SPSS Output
* p < 05
TABLE 7.31: Group statistics (Factors: Section B2)
Factor Gender N Mean Standard deviation
Standard error of mean
Male 240 1.7326 .39839 .02572 Factor 1:
LrnCPD Female 250 1.7190 .39521 .02500
Male 241 1.6380 .44326 .02855 Factor 2:
CrtCPD Female 250 1.5553 .41863 .02648
SOURCE: SPSS Output
Empirical analysis
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7.4.6.1 Factor 1: LrnCPD
For factor 1 LrnCPD, a t-value of 0.382 was calculated with p = 0.703 (see TABLE
7.30 on the previous page). Because p > 0.05 (0.703 > 0.05), it means the null
hypothesis will not be rejected as that there is no statistically significant difference in
the perception of learning and training of CPD between prospective male and female
CAs.
This can be confirmed in the comparison of male respondents (1.7326; SD = 0.39839)
to female respondents (1.7190; SD = 0.39521) in TABLE 7.31 on the previous page.
7.4.6.2 Factor 2: CrtCPD
According to TABLE 7.30, a t-value of 2.214 and p = 0.034 was calculated for factor 2
CrtCPD. Because p < 0.05 (0.034 < 0.05), there is a statistically significant difference
and it means one would reject the null hypothesis as there is a difference between
prospective male and female CAs in the perception of the critical importance of CPD.
This can also be confirmed when the data in TABLE 7.31 (on the previous page) is
compared: the mean score for male respondents was 1.6380 (SD = 0.44326) compared
to the female respondents’ mean score of 1.5553 (SD = 0.41863).
7.5 LIFELONG LEARNING OF CHARTERED ACCOUNTANTS
7.5.1 Descriptive analysis
Section B3 consisted of 9 items (W1 – W9) testing aspects about the lifelong learning
of CAs. All the data collected from the questionnaires with regard to this section has
been analysed and is described in detail in TABLE F1 (APPENDIX F) of this study.
TABLE F1 provides basic descriptive information about the data. TABLE F2 (in
APPENDIX F) provides a single, collated frequency tabulation of all the responses in
this data set. The mean response (in ascending order) and standard deviation to the
Empirical analysis
CHAPTER 7 290
items are provided in TABLE 7.32 below:
TABLE 7.32: Lifelong learning of chartered accountants
Items Mean Standard deviation
W5: LLL implies a desire to go beyond the minimum. 1.52 0.627
W2: LLL implies a continuous refinement of professional knowledge, skills,
values, ethics and attitudes. 1.53 0.539
W7: LLL implies a desire to incorporate better professional judgement. 1.53 0.561
W3: LLL implies a desire and ability to adapt and develop skills. 1.54 0.557
W1: LLL implies a desire and ability to continue to learn. 1.63 0.653
W8: LLL implies a desire to incorporate professional ethical values in
performance. 1.64 0.624
W9: LLL implies a continuous acquisition of ethics as one works in practice
after qualification. 1.65 0.641
W4: LLL implies a thorough foundation of professional values, ethics and
attitudes associated with CPD. 1.66 0.567
W6: LLL implies a thorough foundation of professional values, ethics and
attitudes in an undergraduate environment. 1.79 0.651
SOURCE: SPSS Output
The mean responses to the nine items were all above a 1 (i.e. ‘strongly agree’) and
below a 2 (i.e. ‘agree’). It is interesting to note from TABLE 7.32 that items W2 and
W7 scored exactly the same mean response (1.63) but with varying standard deviations
indicating the larger variance in responses. The four items W2, W3, W5 and W7 were
all in the mean range of 1.52 and 1.54 (i.e. leaning towards ‘agree’).
Item W6 scored the highest mean response (1.79 from TABLE 7.32), indicating a
leaning towards ‘agree’ only. From the frequency distribution in TABLE F2 one will
also notice that 53 respondents or 10.8% disagreed with this statement.
As was the case with Section B2, this section of the questionnaire produced mean
responses all lower than median responses, with the exception of item W5. As can be
seen from FIGURE 7.11 this item, which also had the highest mean response (1.52) of
Empirical analysis
CHAPTER 7 291
all the items, had a median response of 1. It is also interesting to note that for all the
items in this section, neither the mean nor the median responses were over a score of 2
(i.e. ‘agree’).
0
0.5
1
1.5
2
2.5
3
3.5
4
W1 W2 W3 W4 W5 W6 W7 W8 W9
Res
pons
es (L
iker
t-sca
le)
Median Mean FIGURE 7.11: Mean and median distribution for the lifelong learning of chartered
accountants (n = 491)
SOURCE: TABLE F1
FIGURE 7.12a and FIGURE 7.12b provide a breakdown of the frequencies attained
for the lifelong learning of chartered accountants based on a gender split.
In FIGURE 7.12a (on the following page), male students tend to disagree (3) more
with the various items than the female students did. Of the four items with a mean
score smaller than 1.60, females only strongly disagreed with one item (W5). For the
other three items, only males chose the strongly disagree response; interestingly, all
three of these statements dealt with professional values, skills, ethics and judgement.
Empirical analysis
CHAPTER 7 292
0
20
40
60
80
100
120
140
Num
ber o
f res
pond
ents
SA A D SD SA A D SD SA A D SD SA A D SD
W5 W2 W7 W3
Male Female FIGURE 7.12a: Gender split of frequencies for the lifelong learning of chartered
accountants (n = 491; x < 1.60)
SOURCE: SPSS Output
0
20
40
60
80
100
120
140
160
Num
ber o
f res
pond
ents
SA A D SD SA A D SD SA A D SD SA A D SD SA A D SD
W1 W8 W9 W4 W6
Male Female FIGURE 7.12b: Gender split of frequencies for the lifelong learning of chartered
accountants (n = 491; x > 1.60)
SOURCE: SPSS Output
Empirical analysis
CHAPTER 7 293
In FIGURE 7.12b (on the previous page) the five items with a mean score greater
than 1.60 are indicated. Only male respondents strongly disagreed with items W8 and
W9. However, for item W6 (Lifelong learning implies a thorough foundation of
professional values, ethics and attitudes in an undergraduate environment), female
respondents tended to strongly disagree more than male respondents.
7.5.2 Factor analysis of the items measuring the need for lifelong
learning of chartered accountants
Following the performance of exploratory factor analysis, the following information is
provided in TABLE 7.33 below:
TABLE 7.33: KMO and Bartlett's Test (Section B3)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .904
Bartlett's Test of Sphericity Approximate Chi-Square 1953.016
Degrees of freedom 36
Significance .000
SOURCE: SPSS Output
Even though a KMO value of 0.904 was generated supporting the factorability of the
correlation matrix, factor analysis could not be performed as only one factor was
extracted and it was therefore impossible to rotate the solution.
7.5.3 Hypothesis testing
Even though a factor analysis could not be done for Section B3 of the questionnaire,
other statistical alternatives do exist to measure differences in ordinal data items (as
were used in the questionnaire). Such a test is the Mann-Whitney U Test used to test
differences between two independent groups on a continuous measure (see section
6.5.6.2) by comparing the means of two groups.
The hypothesis being tested in this section is:
Empirical analysis
CHAPTER 7 294
Hypothesis 6:
H0: There is no difference between prospective male and female CAs in the
perception of LLL.
H1: There is a difference between prospective male and female CAs in the
perception of LLL.
To test the validity of this hypothesis, the Mann-Whitney U Test was chosen at a 95%
confidence level. TABLE 7.34 (below) indicates the test statistics.
Only one item (W3) came close to the probability level of p < .05 with a value of
p = .011. In the case of W9, the p-value was statistically significant at a 90%
significance level with and p = 0.85.
TABLE 7.34: Non-parametric test (Section B3)
LLL implies a ...
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W1 W2 W3 W4 W5 W6 W7 W8 W9
Mann-
Whitney U 28910.5 28819.5 26612.0 29221.0 29750.5 29567.5 27831.0 27935.5 27702.0
Wilcoxon W 60035.5 59944.5 57987.0 60596.0 58911.5 60443.5 59206.0 59310.5 59077.0
Z -.780 -.778 -2.548 -.298 -.271 -.049 -1.577 -1.476 -1.725
Asymp. Sig.
(2-tailed) .436 .437 .011* .766 .787 .961 .115 .140 .085**
SOURCE: SPSS Output
* p < 0.05
** p < 0.10
As there was not a general trend of p < 0.05 throughout, the results are therefore not
statistically significant and the null hypothesis is therefore not rejected. This therefore
Empirical analysis
CHAPTER 7 295
means that there is no difference between prospective male and female CAs in the
perception of LLL.
7.6 ASPECTS OF ETHICS EDUCATION RELATED TO CHARTERED ACCOUNTANTS
7.6.1 Descriptive analysis
In Section B4 of the questionnaire, respondents were provided with 11 items (X1 –
X11) about aspects of ethics education related to chartered accountants.
All the data collected from the questionnaires with regard to this section has been
analysed and is described in detail in APPENDIX G of this study where TABLE G1
provides basic descriptive information, whilst TABLE G2 provides a single, collated
frequency tabulation of all the responses in this data set. The mean response (in
ascending order) and standard deviation to the items are provided in TABLE 7.35:
TABLE 7.35: Aspects of ethics related to chartered accountants
Items Mean Standard deviation
X1: Ethics education heightens a student’s awareness of ethical issues in
professional practice. 1.55 0.589
X4: Ethics education provides a basic understanding of the morals of the
profession. 1.69 0.564
X5: Ethics education enhances a student’s ability to judge a situation. 1.69 0.621
X3: Ethics education strengthens a student’s moral reasoning skills. 1.74 0.64
X6: Ethics education provides students with the necessary skills required in
practice. 1.97 0.753
X8: Ethics education provides a competitive advantage for CAs. 1.98 0.757
X7: Ethics education is a “moral conversion process”. 2.07 0.737
X2: Ethics is a gut feel that everybody is born with. 2.40 0.905
X9: Ethics education is the responsibility of the tertiary institution, not the
company and its management. 2.82 0.877
X10: Professional ethics is a contradiction. 2.99 0.795
Empirical analysis
CHAPTER 7 296
Items Mean Standard deviation
X11: There is no need for ethics education in the undergraduate training of
CAs. 3.30 0.774
SOURCE: SPSS Output
Just over half of the responses (54.5%) scored a mean of less than 2 (i.e. ‘agree’).
Two of the items (i.e. X9 & X10) scored a mean close to 3 (i.e. ‘disagree’) and X11
scored a mean over 3 (i.e. ‘disagree’) (see FIGURE 7.13 below). In respect of the
latter, respondents were strongly of the opinion that there is a need for ethics
education in the undergraduate training of CAs. As item X11 was only included in the
questionnaire as a control factor, it would not be used in any further statistical analysis
as its composition does not add to the reliability of the statistical analysis. (Also see
section 7.6.2.3.)
It is also interesting to note that this section had the highest number of items that were
not responded to. Items X7 and X10 had five and nine non-responses respectively.
0
0.5
1
1.5
2
2.5
3
3.5
4
X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11
Res
pons
e (L
iker
t-sca
le)
Median Mean FIGURE 7.13: Mean and median distribution for aspects of ethics related to the
chartered accountant (n = 491)
SOURCE: TABLE G1
Empirical analysis
CHAPTER 7 297
7.6.2 Some important aspects of the data found in the descriptive
analysis
7.6.2.1 Ethics is a gut feel
In TABLE 7.35 (on page 294) one can see that item X2 had a mean value above the
median. Analysing the responses of this item (see TABLE 7.36 below), respondents
were nearly equally split in their view that ethics is a gut feel everyone is born with.
TABLE 7.36: Descriptive analysis: Item X2 (Section B4)
RESPONSE f %
Strongly agree (1) 83 17.0
Agree (2) 183 37.4
Disagree (3) 165 33.7
Strongly disagree (4) 58 11.9
Ethics is a gut feel that everybody is born
with.
TOTAL 489 100.0
SOURCE: TABLE G2
Of the respondents, 54.4% agreed (i.e. ‘strongly agree’ or ‘agree’) with the statement
and 45.6% disagreed (i.e. ‘disagree’ or ‘strongly disagree’) with the statement. As was
stated in section 4.3.4, values are concerned with the way a person will behave in
certain situations, whereas ethics is concerned with the way a moral person should
behave.
Values are therefore basic and fundamental beliefs that guide or motivate attitudes or
actions. Even though section 4.2.2 stated that ethics (as a subject) is as old as
humanity itself, it involves itself with the character (i.e. values) of how people act
towards each other. To therefore state that one is born with a gut feel of ethics may
not be one hundred percent correct but there may be some truth in it in that people
have inherently fundamental beliefs about certain actions and attitudes.
7.6.2.2 Ethics education
A rather large number of respondents did not feel that ethics education provides
Empirical analysis
CHAPTER 7 298
students with the necessary skills required in practice (item X6). From TABLE 7.37
one notices that 104 respondents disagreed (i.e. ‘disagree’ or ‘strongly disagree’) with
this statement.
TABLE 7.37: Descriptive analysis: Item X6 (Section B4)
RESPONSE f %
Strongly agree (1) 131 26.8
Agree (2) 254 51.9
Disagree (3) 90 18.4
Strongly disagree (4) 14 2.9
Ethics education provides students with
the necessary skills required in practice.
TOTAL 489 100.0
SOURCE: TABLE G2
This is again contrary to what respondents indicated in the previous three statements
that stated that ethics education:
strengthens a student’s moral reasoning skills (item X3);
provides a basic understanding of the morals of the profession (item X4); and
enhances a student’s ability to judge a situation (item X5).
In these three statements more than 90% of the respondents agreed each time (i.e.
‘strongly agree’ or ‘agree’) with each statement. Is it perhaps possible that respondents
do not see the connection between ethics education providing necessary practice skills
and what is necessary to judge a situation in practice?
7.6.2.3 Ethics education: a moral conversion process
In their response to item X7 (see TABLE 7.38 on the following page), only 25.7% of
the respondents disagreed (i.e. ‘disagree’ or ‘strongly disagree’) with the statement that
ethics education is a moral conversion process.
Empirical analysis
CHAPTER 7 299
TABLE 7.38: Descriptive analysis: Item X7 (Section B4)
RESPONSE f %
Strongly agree (1) 102 21.0
Agree (2) 259 53.3
Disagree (3) 112 23.0
Strongly disagree (4) 13 2.7
Ethics education is a “moral conversion
process”.
TOTAL 486 100.0
SOURCE: TABLE G2
It was emphatically proven in section 5.2.5 of the study that a course in ethics at a
higher education institution cannot and should not be seen as a moral conversion
process but that the educational component should merely be seen as an enhancement
of the moral educational and developmental process.
7.6.2.4 Ethics education at higher education institutions
Both Items X9 and X11 dealt with issues of ethics education at a higher education
institution. In the responses to item X9 (TABLE 7.39a), only 31.1% of the
respondents agreed (i.e. ‘strongly agree’ or ‘agree’) with the statement.
TABLE 7.39a: Descriptive analysis: Item X9 (Section B4)
RESPONSE f %
Strongly agree (1) 44 9.0
Agree (2) 109 22.3
Disagree (3) 229 46.8
Strongly disagree (4) 107 21.9
Ethics education is the responsibility of the
tertiary institution, not the company and
its management.
TOTAL 489 100.0
SOURCE: TABLE G2
This stands in sharp contrast to the responses for item X11 (see TABLE 7.39b on the
following page), where only 13.3% of the respondents agreed (i.e. ‘strongly agree’ or
‘agree’) with the statement that there is no need for ethics education in the
undergraduate training of CAs.
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TABLE 7.39b: Descriptive analysis: Item X11 (Section B4)
RESPONSE f %
Strongly agree (1) 15 3.1
Agree (2) 50 10.2
Disagree (3) 198 40.5
Strongly disagree (4) 226 46.2
There is no need for ethics education in
the undergraduate training of CAs.
TOTAL 489 100.0
SOURCE: TABLE G2
The responses to these two items totally contradict each other. It was shown from the
literature in section 5.2 that the question of whether ethics should be taught at an
undergraduate level has not been surpassed by the question of methodology to be used
in the teaching of ethics.
7.6.2.5 Professional ethics: a contradiction?
In section 4.4.3 the issue of professional ethics was explained as ‘codes of behaviour’.
It is to therefore gratifying to note that nearly 78% of the respondents to item X10
(TABLE 7.40) disagreed and stated that professional ethics is not a contradiction. May
one now assume that these respondents (future CAs) will all ascribe and adhere to
SAICA’s prescribed code of ethics for CAs?
TABLE 7.40: Descriptive analysis: Item X10 (Section B4)
RESPONSE f %
Strongly agree (1) 24 5.0
Agree (2) 83 17.2
Disagree (3) 250 51.9
Strongly disagree (4) 125 25.9
Professional ethics is a contradiction.
TOTAL 482 100.0
SOURCE: TABLE G2
As with previous sections of the questionnaire, the items in Section B4, consisting of
11 different categorical or nominal items, were subjected to factor analysis to determine
the underlying dimensions of the various attitudes emerging in the data.
Empirical analysis
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7.6.3 Factor analysis of the items measuring aspects of ethics
related to chartered accountants
Exploratory factor analysis was performed on the statements in Section B4 for the
complete sample (n = 491) using SPSS with orthogonal varimax rotation and Kaizer
normalisation to identify the various dimensions of continued professional development
of CAs by way of Principal Axis Factoring as an extraction method.
TABLE 7.41: KMO and Bartlett's Test (First factor analysis: Section B4)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .841
Bartlett's Test of Sphericity Approximate Chi-Square 1322.785
Degrees of freedom 45
Significance .000
SOURCE: SPSS Output
The KMO value was 0.841 and Bartlett’s Test reached statistical significance (p < 0.05),
supporting the factorability of the correlation matrix (see TABLE 7.41 above).
Principal Axis Factoring revealed the presence of three components with initial
Eigenvalues exceeding 1 and cumulatively explaining 62.19% of the variance.
The various items loaded in factors 2 and 3 (i.e. items X9; X10 and X2) explained
14.75% and 10.35% of the variance respectively. The MSAs (i.e. indication of the
extent to which a particular item is correlated with other items) on these three items
were all however less than the cut-off of 0.7 (see TABLE G3 in APPENDIX G). In the
case of item X2 the MSA was 0.496, which means that this item must be removed as it
does not have sufficient correlation with at least one other item to be retained in the
factor analysis. Items X9 and X10 had MSA values lower than 0.7, but they were
retained for the purposes of the analysis.
A second round of factor analysis was performed with the exclusion of item X2 from the
data. The KMO (see TABLE 7.42 on the following page) was recalculated at a level of
0.850 > 0.7 and p < 0.05 (p = 0.000) and a factor analysis was warranted. The MSAs
for the second round of factor analysis were once again all greater than or equal to 0.7
Empirical analysis
CHAPTER 7 302
with the exception of items X9 and X10, which had MSA values lower than 0.7 but they
were retained for the purposes of the analysis.
TABLE 7.42: KMO and Bartlett's Test (Second factor analysis: Section B4)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .850
Bartlett's Test of Sphericity Approximate Chi-Square 1287.521
Degrees of freedom 36
Significance .000
SOURCE: SPSS Output
Principal Axis Factoring revealed the presence of two components with an initial
Eigenvalue exceeding 1 and explaining 57.073% of the variance. TABLE 7.43
indicates the two factors that were retained for further analysis.
TABLE 7.43: Rotated Factor Matrix(a) (Section B4)
Factor Item
1 2
X5: Ethics education enhances a student’s ability to judge a situation. .757
X3: Ethics education strengthens a student’s moral reasoning skills. .755
X4: Ethics education provides a basic understanding of the morals of the
profession. .722
X6: Ethics education provides students with the necessary skills required in
practice. .669 .347
X1: Ethics education heightens a student’s awareness of ethical issues in
professional practice. .625
X8: Ethics education provides a competitive advantage for CAs. .477 .339
X7: Ethics education is a “moral conversion process”. .452 .329
X9: Ethics education is the responsibility of the tertiary institution, not the
company and its management. .647
X10: Professional ethics is a contradiction. .546
SOURCE: SPSS Output
Extraction Method: Principal Axis Factoring
Rotation Method: Varimax with Kaiser Normalization (a) Rotation converged in 3 iterations
Empirical analysis
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As only two items (X9 & X10) loaded on factor 2, no further analysis could be done.
7.6.4 Item analysis
7.6.4.1 Factor 1: EthcEduc
Factor 1 can be described as the advantages attained by prospective chartered
accountants through ethics education (hereafter EthcEduc). The following
statements were found to have the highest loading on EthcEduc in the order of
loading:
X5 Ethics education enhances a student’s ability to judge a situation.
X3 Ethics education strengthens a student’s moral reasoning skills.
X4 Ethics education provides a basic understanding of the morals of the
profession.
X6: Ethics education provides students with the necessary skills required in
practice.
X1 Ethics education heightens a student’s awareness of ethical issues in
professional practice.
X8 Ethics education provides a competitive advantage for CAs.
X7 Ethics education is a “moral conversion process”.
A standardised Cronbach’s alpha (α) of 0.835 was generated, indicating a very good
level of internal consistency of the data, since 0.835 > 0.7.
TABLE 7.44 (on the following page) provides an overview of the item statistics and
indicates the mean, standard deviation and number of respondents for each of the
items included in the scale in ascending mean order.
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TABLE 7.44: Item statistics – Factor 1 (EthcEduc)
Items Mean Standard deviation N
X1: Ethics education heightens a student’s awareness of
ethical issues in professional practice. 1.55 .589 484
X4: Ethics education provides a basic understanding of the
morals of the profession. 1.69 .564 484
X5: Ethics education enhances a student’s ability to judge
a situation. 1.69 .622 484
X3: Ethics education strengthens a student’s moral
reasoning skills. 1.74 .640 484
X6: Ethics education provides students with the necessary
skills required in practice. 1.98 .753 484
X8: Ethics education provides a competitive advantage for
CAs. 1.98 .757 484
X7: Ethics education is a “moral conversion process”. 2.08 .735 484
SOURCE: SPSS Output
In the calculations, SPSS indicated that even deleting any of the items would not make
it possible to increase the value of Cronbach’s alpha significantly (see TABLE 7.45
below).
TABLE 7.45: Item-total statistics – Factor 1 (EthcEduc)
Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
X1: Ethics education heightens a
student’s awareness of ethical
issues in professional practice.
11.15 8.781 .549 .818
X3: Ethics education strengthens a
student’s moral reasoning skills. 10.97 8.183 .670 .799
X4: Ethics education provides a basic
understanding of the morals of the
profession.
11.02 8.722 .601 .812
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Item Scale Mean
if Item Deleted
Scale Variance if
Item Deleted
Corrected Item-Total Correlation
Cronbach's Alpha if
Item Deleted
X5: Ethics education enhances a
student’s ability to judge a
situation.
11.01 8.261 .671 .800
X6: Ethics education provides students
with the necessary skills required in
practice.
10.73 7.685 .669 .798
X7: Ethics education is a “moral
conversion process”. 10.63 8.441 .483 .830
X8: Ethics education provides a
competitive advantage for CAs. 10.73 8.289 .501 .828
SOURCE: SPSS Output
7.6.5 Factor scores
7.6.5.1 Calculation
The mean response of advantages attained by prospective chartered
accountants through ethics education is calculated using the formula:
77816435 XXXXXXXEthcEduc ++++++
=
7.6.5.2 Interpreting factor scores
TABLE 7.46 below indicates the calculated descriptive statistics of the factor scores.
TABLE 7.46: Descriptive Statistics (Factor scores: Section B4)
N Minimum Maximum Mean Standard deviation
Factor 1: EthcEduc 489 1.00 4.00 1.8134 .47452
SOURCE: TABLE G4
Students had to respond to the questionnaire using a 4-point Likert scale. Based on the
above analysis, the range of responses was 3.00, with minimum scores for all factors
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indicated as a 1.00 (i.e. ‘strongly agree’) and maximum scores indicated as a 4.00 (i.e.
‘strongly disagree’). The mean response, however, is close to a response of 2 (i.e.
‘agree’).
In terms of the factor EthcEduc, respondents were split in a ratio of nearly 60:40
between strongly agree and agree on items describing the advantages of ethics
education for prospective CAs. 57.68% of the respondents strongly agreed (i.e. 1) with
the statement, whereas 42.32% only agreed (i.e. 2) with the items.
The largest number of respondents (77 or 15.7%) gave a mean response of 2 (i.e.
‘agree’), which was also the modal response. These are all included within the mean
class interval of 2.0 ≤ x < 2.3 that depicts 135 respondents, or 27.61% of the sample.
Seven respondents (1.4%) felt that ethics education for prospective CAs does not have
any advantage by indicating a response of either a 3 (i.e. ‘disagree’) or a 4 (i.e.
‘strongly disagree’).
The descriptive statistics of item X7 Ethics education is a ‘moral conversion process’ in
TABLE 7.35 reveal that the mean response was 2.08 (SD = 0.735), which is much
higher than the factor mean of 1.8134. This is also contrary to what was discussed in
Chapter 5 of the study, where it was stated that ethics education at higher education
institutions should not be seen as a moral conversion process. (Also see section
7.6.2.2.)
Graphically represented in FIGURE 7.14 on the following page, the factor EthcEduc
has a fairly peaked or leptokurtic distribution (i.e. kurtosis = 0.590; kurtosis > 0) and is
positively skewed (skewness = 0.278).
As item X9 did not load in factor 1, some further aspects need to be brought to the
fore. Item X9 (Ethics education is the responsibility of the tertiary institution, not the
company and its management) showed a mean response of 2.82 (SD = 0.877), which
is close to a 3 (i.e. disagree).
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0
20
40
60
80
100
120
140
160
1.1 1.3 1.5 1.7 1.9 2.1 2.3 2.5 2.7 2.9 3.1 3.3 3.5 3.7 3.9
Freq
uenc
y
FIGURE 7.14: Histogram and distribution of Factor 1 (EthcEduc)
SOURCE: SPSS Output
This is very much in agreement with the whole proposition of the thesis that ethics
education is not merely the responsibility of a higher education institution or the
chartered accounting firm where the prospective CA is placed. It is also the CA’s own
responsibility to keep abreast of changes by way of CPD. This means that prospective
CAs need to be equipped to handle this very important aspect of their professional
growth.
7.6.6 Hypothesis testing
As with the previous sections of the chapter, where the average mean of the factor was
calculated, it is important to find out whether this mean differs on a gender basis.
Again a t-test for independent samples will be used.
The null and alternative hypothesis is:
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Hypothesis 7:
H0: There is no difference between prospective male and female CAs in the
perception of the advantages of ethics education.
H1: There is a difference between prospective male and female CAs in the
perception of the advantages of ethics education.
Using an independent t-test, the following results are presented in TABLE 7.47 and
TABLE 7.48.
TABLE 7.47: Independent Samples t-Test (Factors: Section B4)
Levene's Test for Equality of Variances
t-test for Equality of Means
95% confidence interval of the
difference
Factors
F Sig. t df Sig. (2-tailed)
Lower Upper
EthcEduc
Equal
variances
assumed
.209 .648 3.026 487 .003* .04518 .21247
SOURCE: SPSS Output
* p < 0.05
From TABLE 7.47 a t-value of 3.026 with p = 0.003 is evident. Because p < 0.05
(0.003 < 0.05), the null hypothesis is rejected, as there is a statistically significant
difference in the perception of the advantages of ethics education between prospective
male and female CAs.
TABLE 7.48: Group statistics (Factors: Section B4)
Factor Gender N Mean Standard deviation
Standard error of mean
Male 240 1.8790 .48671 .03142 Factor 1:
EthcEduc Female 249 1.7501 .45454 .02881
SOURCE: SPSS Output
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This is also shown in the comparison of the means of male respondents (1.8790; SD =
0.48671) to female respondents (1.7501; SD = 0.45454) in TABLE 7.48 on the
previous page.
7.7 PERCEIVED CORE VALUES WITHIN THE CHARTERED ACCOUNTANCY PROFESSION
7.7.1 Descriptive analysis
Section B5 of the questionnaire, consisting of 8 items (Y1 – Y8), tested aspects of the
perceived core values within the chartered accountancy profession. As with all the
other analyses, students had to respond to the items using a 4-point Likert scale, but
this time their responses had to indicate to which extent the perceived core values were
important or not. The scale used was:
1 = Not important
2 = Somewhat important
3 = Important
4 = Very important
The reasoning behind inverting the scale (‘very important’ is now a 4 and not a 1 as in
the other sections of the questionnaire), was to be certain that respondents did not just
choose a response of ‘1’ the whole time. For analysis and consistency purposes the
responses were transposed, however, so that the scale therefore reads:
1 = Very important
2 = Important
3 = Somewhat important
4 = Not important
All the data collected from the questionnaires with regard to the perceived core
values within the chartered accountancy profession has been analysed and is
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described in detail in TABLE H1 (APPENDIX H) of this study, which provides basic
information describing the data inter alia in terms of the number of valid and missing
responses; the central tendency of responses; as well as skewness and kurtosis of
responses.
TABLE H2 (in APPENDIX H) provides a single, collated frequency tabulation of all the
responses in this data set. The mean response (in ascending order) and standard
deviation to the items are provided in TABLE 7.49 below:
TABLE 7.49: Perceived core values within the CA profession
Items Mean Standard deviation
Y6: How important is it for a CA to be trustworthy? 1.35 0.779
Y7: How important is it for a CA to be reliable? 1.37 0.796
Y5: How important is it for a CA to show integrity? 1.38 0.803
Y8: How important is it for a CA to be objective? 1.39 0.802
Y3: How important is it for a CA to have professional competence? 1.44 0.794
Y4: How important is it for a CA to have high ethical standards? 1.44 0.822
Y1: How important is it for a CA to learn the skill of CPD? 1.66 0.798
Y2: How important is it for a CA to be a life-long learner? 1.82 0.827
SOURCE: SPSS Output
TABLE 7.49 shows that respondents felt that CAs need certain core values: one notes
that the mean values are all above 1.5 (i.e. ‘very important’), with the exception of
items Y1 and Y2. What is interesting is that the skills of ‘LLL’ and ‘CPD’ do not seem to
be that important in comparison with the other values mentioned. The value of
‘trustworthiness’ seems to be the most important value, with a mean value of 1.35
(SD = 0.779).
Acquiring the skill of CPD (item Y1) came in second-last with a mean of 1.66 (SD =
0.798) and that of LLL (item Y2) last with a mean of 1.82 (SD = 0.827). However, one
has to take cognisance of the fact that all these mean values are below a 2 (i.e.
‘important’). This is in sharp contrast with item U3 (see TABLE D2), where nearly 94%
Empirical analysis
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of the respondents were in agreement (i.e. ‘strongly agree’ and ‘agree’) that CAs will be
able to focus on continued learning throughout their career if they learnt how to do this
as part of their training.
As can be seen from FIGURE 7.15 below, all the items had a mean response greater
than a median response except for item Y2 (How important is it for a chartered
accountant to be a life-long learner?), which indicates that respondents did not feel that
strongly about this item compared to the rest.
0
0.5
1
1.5
2
2.5
3
3.5
4
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
Res
pons
es (L
iker
t-sca
le)
Median Mean FIGURE 7.15: Mean and median distribution for the perceived core values within the
chartered accountancy profession (n = 491)
SOURCE: TABLE H1
FIGURE 7.16a and FIGURE 7.16b (on the following pages) provide a breakdown of
the frequencies attained for the perceived core values within the chartered
accountancy profession based on a gender split.
In FIGURE 7.16a (on the following page), the four items with a mean score less than
1.4 are indicated. Female respondents tended to agree to a much greater extent that
items Y6, Y7, Y5 and Y8 are all either very important or important. A response of
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somewhat important was also dominated by the female respondents, with the exception
of item Y5 where males were 2:1 in disagreement. An indication of not important was,
for all four items, dominated by male respondents.
0
50
100
150
200
250
Num
ber o
f res
pond
ents
VI I SI NI VI I SI NI VI I SI NI VI I SI NI
Y6 Y7 Y5 Y8
Male Female FIGURE 7.16a: Gender split of frequencies for the perceived core values within the
chartered accountancy profession (n = 491; x < 1.40)
SOURCE: SPSS Output
According to FIGURE 7.16b on the following page, males tended to respond to the
items with a somewhat important and not important more often than females did, with
the exception of item Y3 (How important is it for a chartered accountant to have
professional competence?), where there was an even split between the genders.
Empirical analysis
CHAPTER 7 313
0
20
40
60
80
100
120
140
160
180
200N
umbe
r of r
espo
nden
ts
VI I SI NI VI I SI NI VI I SI NI VI I SI NI
Y3 Y4 Y1 Y2
Male Female FIGURE 7.16b: Gender split of frequencies for the perceived core values within the
chartered accountancy profession (n = 491; x > 1.40)
SOURCE: SPSS Output
Another non-parametric test that can be used to explore the interrelationship amongst
variables is the Pearson Chi-square ( 2χ ) test for independence (Pallant, 2005: 104,
287).
TABLE 7.50 (on the following page) indicates the results attained from the various Chi-
square tests for each of the items Y1 – Y8 based on gender.
Empirical analysis
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TABLE 7.50: Pearson Chi-square test (Section B5)
Chi-Square Tests
Items Value df
Asymp. Sig. (2-sided)
N of Valid Cases
Y1 How important is it for a CA to learn the skill of
CPD? 18.325 3 .000* 491
Y2 How important is it for a CA to be a life-long
learner? 12.445 3 .006* 490
Y3 How important is it for a CA to have professional
competence? 9.094 3 .028* 491
Y4 How important is it for a CA to have high ethical
standards? 11.261 3 .010* 491
Y5 How important is it for a CA to show integrity? 8.974 3 .030* 491
Y6 How important is it for a CA to be trustworthy? 9.575 3 .023* 491
Y7 How important is it for a CA to be reliable? 10.232 3 .017* 491
Y8 How important is it for a CA to be objective? 12.411 3 .006* 491
SOURCE: SPSS Output
* p < 0.05
From TABLE 7.50 it is clear that there is a statistically significant difference in the
perceived core values within the CA profession based on gender, as all p-values are less
than 0.05.
7.7.2 Factor analysis of the items measuring the perceived core
values within the chartered accountancy profession
Exploratory factor analysis was performed on the statements in Section B5 for the
complete sample (n = 491) using SPSS with orthogonal varimax rotation and Kaizer
normalisation to identify the various dimensions of the need for LLL of CAs by way of
Principal Axis Factoring as an extraction method (see TABLE 7.51 on the following
page).
Empirical analysis
CHAPTER 7 315
TABLE 7.51: KMO and Bartlett's Test (Section B5)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .948
Bartlett's Test of Sphericity Approximate Chi-Square 5359.294
Degrees of freedom 28
Significance .000
SOURCE: SPSS Output
Even though a KMO value of 0.948 was generated supporting the factorability of the
correlation matrix, factor analysis could not be performed as only one factor was
extracted and it was therefore impossible to rotate the solution.
7.7.3 Hypothesis testing
As was the case with Section B3 of the questionnaire, the differences in ordinal data
items will be measured using the Mann-Whitney U non-parametric test to test
differences between two independent groups.
The hypothesis being tested in this section is:
Hypothesis 8:
H0: There is no difference between male and female respondents in the
perceived core values within the CA profession.
H1: There is a difference between males and females in the perceived core
values within the CA profession.
To test the validity of this hypothesis, the Mann-Whitney U Test was chosen at a 95%
confidence level and the results are indicated in TABLE 7.52 on the following page.
Empirical analysis
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TABLE 7.52: Non-parametric test (Section B5)
How important is it for a CA to ...
lear
n th
e sk
ill o
f CP
D?
be a
life
-long
le
arne
r?
have
pr
ofes
sion
al
com
pete
nce?
have
hig
h et
hica
l st
anda
rds?
show
inte
grity
?
be t
rust
wor
thy?
be r
elia
ble?
be o
bjec
tive?
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Mann-Whitney U 25487.
5
25954.
0
26559.
0
26667.
0
27013.
5
26878.
5
26788.
5
26423.
0
Wilcoxon W 56862.
5
57079.
0
57934.
0
58042.
0
58388.
5
58253.
5
58163.
5
57798.
0
Z -3.263 -2.804 -2.819 -2.779 -2.644 -2.889 -2.871 -3.118
Asymp. Sig.
(2-tailed) .001* .005* .005* .005* .008* .004* .004* .002*
SOURCE: SPSS Output
* p < 0.05
As can be seen from TABLE 7.52, all the items tested had probability levels of less
than 0.05 (p < .05). These results are therefore statistically significant and the null
hypothesis is rejected.
This means that there is a statistically significant difference between male and female
respondents in the perceived core values within the CA profession. This can also be
confirmed with the results of the Chi-square tests reported in TABLE 7.49.
7.8 ASPECTS OF THE EDUCATION AND TRAINING OF CHARTERED ACCOUNTANTS AT RAU
7.8.1 Descriptive analysis
The last section of the questionnaire (Section B6) dealt with aspects of the education
and training of prospective chartered accountants at RAU and consisted of 10 items (Z1
– Z10).
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All the data collected from the questionnaires with regard to this section has been
analysed and are described in detail in APPENDIX I of this study, with TABLE I1
providing basic descriptive information and TABLE I2 a single, collated frequency
tabulation of all the responses in this data set. The mean response (in ascending
order) and standard deviation to the items are provided in TABLE 7.53 below:
TABLE 7.53: Aspects of the education and training of prospective chartered
accountants at RAU
Items Mean Standard deviation
Z8: RAU uses educators who are skilled in the professional values, ethics
and attitudes pertaining to CAs. 1.55 0.575
Z10: RAU focuses on courses that enhance the value-added approach of CAs. 1.68 0.583
Z1: The professional values, ethics and attitudes highlighted by professional
bodies are apparent in the academic programmes at RAU. 1.72 0.584
Z2: RAU focuses on courses, which include aspects of professional ethics
and values applicable to CAs. 1.77 0.569
Z5: At RAU, emphasis is placed on the development of the necessary skills
for CPD of CAs. 1.81 0.611
Z7: At RAU, emphasis is placed on the professional values, ethics and
attitudes for CPD of CAs. 1.86 0.576
Z3: At RAU, emphasis is placed on the development of professional values,
ethics and attitudes in the training of CAs. 1.87 0.635
Z4: RAU focuses on discipline-specific courses, covering various applicable
international issues pertaining to the role of the CA. 1.91 0.665
Z9: A definite focus on recent professional ethical conundrums, corporate
collapses and mounting stakeholder pressure is evident in the courses
offered at RAU.
1.95 0.695
Z6: RAU offers courses that provide skills necessary in the application of
computer software. 1.98 0.730
SOURCE: SPSS Output
TABLE 7.53 provides a positive picture of the judgements made by respondents in
completing the questionnaire. All 10 items scored a mean response above 2 (i.e.
‘agree’) and none of the responses were below a mean value of 1.50. The only item
Empirical analysis
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coming close to a mean response of 2 is item Z6, but this item was only included for
control purposes and no further analysis was done on it.
As can be seen from FIGURE 7.17 below, all the items had a mean response less than
the median response of 2. Only item Z6 came close to the median response with a
mean response of 1.98 (SD = 0.730).
0
0.5
1
1.5
2
2.5
3
3.5
4
Z1 Z2 Z3 Z4 Z5 Z6 Z7 Z8 Z9 Z10
Res
pons
es (L
iker
t-sca
le)
Median Mean FIGURE 7.17: Mean and median distribution for the aspects of the education and
training of prospective chartered accountants at RAU (n = 491)
SOURCE: TABLE I1
FIGURE 7.18a and FIGURE 7.18b provide a breakdown of the frequencies attained
for the aspects of the education and training of prospective chartered
accountants at RAU based on a gender split.
FIGURE 7.18a (on the following page) provides a histogram of the five items in this
section of the questionnaire that had a mean response less than 1.85. In four of the
items (i.e. Z8, Z10, Z1 & Z5) only males responded with a 4 (i.e. ‘strongly disagree’),
whereas in one item (Z2) one female indicated a similar response. It is important to
note, however, that the strongly disagree response in items Z8, Z10 and Z5 was
indicated by two male respondents and three in item Z1. With the exception of
Empirical analysis
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responses in items Z8 and Z5, male and female responses to these items across the
range were fairly equally distributed.
0
20
40
60
80
100
120
140
160
Num
ber o
f res
pond
ents
SA A D SD SA A D SD SA A D SD SA A D SD SA A D SD
Z8 Z10 Z1 Z2 Z5
Male Female FIGURE 7.18a: Gender split of frequencies for the aspects of the education and
training of prospective chartered accountants at RAU (n = 491; x
< 1.85)
SOURCE: SPSS Output
As with items Z8 and Z10 in FIGURE 7.18a, items Z7 and Z3 in FIGURE 7.18b (on
the following page) indicated that only males strongly disagreed with these statements.
For the rest of the items (i.e. Z4 & Z9) it was again males who strongly disagreed with
these statements as well.
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0
20
40
60
80
100
120
140
160
180N
umbe
r of r
espo
nden
t
SA A D SD SA A D SD SA A D SD SA A D SD
Z7 Z3 Z4 Z9
Male Female FIGURE 7.18b: Gender split of frequencies for the aspects of the education and
training of prospective chartered accountants at RAU (n = 491; x
> 1.85)
SOURCE: SPSS Output
7.8.2 Some important aspects of the data found in the descriptive
analysis
7.8.2.1 Skilled educators
In only one (item Z8) out of the ten statements posed as part of Section B6 (see
TABLE 7.54a on the following page) the majority of respondents (48.8%) strongly
agreed that RAU uses educators who are skilled in the professional values, ethics and
attitudes pertaining to CAs.
In the other nine statements, more than half of the responses were only ‘agree’, with a
negligible number of respondents disagreeing (either ‘disagree’ or ‘strongly disagree’).
This should not be construed as a vote of no confidence in the education and training
Empirical analysis
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of CAs at RAU. This may merely be interpreted that respondents did not strongly agree
with these statements.
TABLE 7.54a: Descriptive analysis: Item Z8 (Section B6)
RESPONSE f %
Strongly agree (1) 238 48.8
Agree (2) 234 48.0
Disagree (3) 14 2.9
Strongly disagree (4) 2 0.4
RAU uses educators who are skilled in the
professional values, ethics and attitudes
pertaining to CAs.
TOTAL 488 100.0
SOURCE: TABLE I2
If one however aggregates the responses for ‘strongly agree’ and ‘agree’ and does the
same for the responses ‘disagree’ and ‘strongly disagree’ of the rest of the statements,
one sees a different picture.
Looking at the aggregated responses to item Z10 (TABLE 7.54b) which links very
nicely with the responses to item Z8 above in TABLE 7.54a, one notices that in this
case close to 95% of the respondents felt that RAU also provides courses that enhance
the value-added approach of CAs and does not just use skilled educators.
TABLE 7.54b: Descriptive analysis: Item Z10 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 462 94.7
Disagree (3)
Strongly disagree (4) 26 5.3
RAU focuses on courses that enhance the
value-added approach of CAs.
TOTAL 488 100.0
SOURCE: TABLE I2
7.8.2.2 A focus on computer skills
The statement where the highest number of the respondents (94 or 19.2%) disagreed
(i.e. ‘disagree’ and ‘strongly disagree’) with a statement can be found in item Z6 (see
TABLE 7.54c below).
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TABLE 7.54c: Descriptive analysis: Item Z6 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 395 80.8
Disagree (3)
Strongly disagree (4) 94 19.2
RAU offers courses that provide skills
necessary in the application of computer
software.
TOTAL 489 100.0
SOURCE: TABLE I2
Although this may be taken as important within the holistic education of CAs, one may
ignore this statement for the purposes of this study as its focus was not on computer
skills but rather on the skills associated with ethics and CPD.
7.8.2.3 A focus on professional ethics
What is bothersome is the response for item Z9 (TABLE 7.54d). Nearly 19% of the
respondents felt that there is not a definite focus on recent professional ethical
conundrums, corporate collapses and mounting stakeholder pressure in the courses
offered at RAU.
TABLE 7.54d: Descriptive analysis: Item Z9 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 397 81.4
Disagree (3)
Strongly disagree (4) 91 18.6
A definite focus on recent professional
ethical conundrums, corporate collapses
and mounting stakeholder pressure is
evident in the courses offered at RAU.
TOTAL 488 100.0
SOURCE: TABLE I2
If one now compares this to the responses for items Z1 and Z2 (see TABLE 7.54e and
TABLE 7.54f on the following page), it shows that respondents agreed much more
that RAU focuses on courses which include aspects of professional ethics and values
applicable to CAs and which are highlighted by professional bodies (e.g. SAICA and
IFAC).
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TABLE 7.54e: Descriptive analysis: Item Z1 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 463 94.3
Disagree (3)
Strongly disagree (4) 28 5.7
The professional values, ethics and
attitudes highlighted by professional
bodies are apparent in the academic
programmes at RAU.
TOTAL 491 100.0
SOURCE: TABLE I2
TABLE 7.54f: Descriptive analysis: Item Z2 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 454 93.2
Disagree (3)
Strongly disagree (4) 33 6.8
RAU focuses on courses, which include
aspects of professional ethics and values
applicable to CAs.
TOTAL 487 100.0
SOURCE: TABLE I2
What may be taken from these ‘contrary’ responses is that although the courses
presented at RAU focuses on professional values, ethics and attitudes applicable to CAs,
these should also include a larger ‘practical’ component in order to bring the theory
closer to the practice found in the professional world, not just nationally but also
internationally.
This is clear from the responses to item Z4 (see TABLE 7.54g on the following page)
with nearly 17% of the respondents feeling that RAU does not focus on discipline-
specific courses, covering various applicable international issues pertaining to the role of
the CA.
Empirical analysis
CHAPTER 7 324
TABLE 7.54g: Descriptive analysis: Item Z4 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 406 83.4
Disagree (3)
Strongly disagree (4) 81 16.6
RAU focuses on discipline-specific courses,
covering various applicable international
issues pertaining to the role of the CA.
TOTAL 487 100.0
SOURCE: TABLE I2
Comparing the results from item Z2 (TABLE 7.54f on the previous page) with that of
item Z3 (TABLE 7.54h) another important aspect is highlighted.
TABLE 7.54h: Descriptive analysis: Item Z3 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 422 86.3
Disagree (3)
Strongly disagree (4) 67 13.7
At RAU, emphasis is placed on the
development of professional values, ethics
and attitudes in the training of CAs.
TOTAL 489 100.0
SOURCE: TABLE I2
Although 93.2% of the respondents agreed (i.e. ‘strongly agree’ or ‘agree’) with the
statement that courses presented at RAU focus on aspects of professional ethics and
values applicable to CAs (item Z2), nearly 14% of the respondents felt it is not
emphasised enough as to ensure that the various professional values, ethics and
attitudes in the training of CAs are sufficiently developed.
What is also interesting is that just over 10% of the respondents in item Z5 (see TABLE
7.54i on the following page) felt that during their undergraduate studies at RAU, not
enough emphasis is placed on the development of the necessary skills for CPD of CAs.
Empirical analysis
CHAPTER 7 325
TABLE 7.54i: Descriptive analysis: Item Z5 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 438 89.8
Disagree (3)
Strongly disagree (4) 50 10.2
At RAU, emphasis is placed on the
development of the necessary skills for
CPD of CAs.
TOTAL 488 100.0
SOURCE: TABLE I2
If one now compares this to the responses in item Z7 (TABLE 7.54j), just over 91% of
the respondents agreed (i.e. ‘strongly agree’ or ‘agree’) that professional values, ethics
and attitudes associated with the CPD of CAs are emphasised in the undergraduate
education of CAs at RAU.
TABLE 7.54j: Descriptive analysis: Item Z7 (Section B6)
RESPONSE f %
Strongly agree (1)
Agree (2) 446 91.2
Disagree (3)
Strongly disagree (4) 43 8.8
At RAU, emphasis is placed on the
professional values, ethics and attitudes
for CPD of CAs.
TOTAL 489 100.0
SOURCE: TABLE I2
Some proposals on the improvement of student perceptions will be discussed in Chapter
9 of this study.
7.8.3 Factor analysis of the items measuring aspects of the
education and training of chartered accountants at RAU
Exploratory factor analysis was performed on the statements in Section B6 using SPSS
with orthogonal varimax rotation and Kaizer normalisation to identify the various
dimensions of the items.
Empirical analysis
CHAPTER 7 326
Even though a KMO value of 0.893 was generated (TABLE 7.55), supporting the
factorability of the correlation matrix, factor analysis could not be performed as only
one factor was extracted and it was therefore impossible to rotate the solution.
TABLE 7.55: KMO and Bartlett's Test (Section B6)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .893
Bartlett's Test of Sphericity Approximate Chi-Square 1862.862
Degrees of freedom 45
Significance .000
SOURCE: SPSS Output
7.8.4 Hypothesis testing
The hypothesis being tested in this section is:
Hypothesis 9:
H0: There is no difference between male and female respondents in the
perception of aspects of the education and training of prospective CAs
at RAU.
H1: There is a difference between male and female respondents in the
perception of aspects of the education and training of prospective CAs
at RAU.
To test the validity of this hypothesis, the Mann-Whitney U Test was chosen at a 95%
confidence level to test differences between two independent groups (i.e. males and
females) and the results are indicated in TABLE 7.56 on the following page.
Empirical analysis
CHAPTER 7 327
TABLE 7.56: Non-parametric test (Section B6)
Z1 Z2 Z3 Z4 Z5 Z7 Z8 Z9 Z10
Mann-Whitney
U 27671.5 28171.0 28705.0 29431.5 29735.0 28618.0 26756.0 29403.5 28837.5
Wilcoxon W 59046.5 59296.0 59830.0 60307.5 60611.0 59743.0 57632.0 58323.5 57517.5
Z -1.809 -1.106 -.858 -.148 -.018 -.979 -2.193 -.256 -.677
Asymp. Sig.
(2-tailed) .070 .269 .391 .882 .985 .328 .028* .798 .499
SOURCE: SPSS Output
* p < 0.05
Only one item was statistically significant (i.e. p < 0.05) and the results are therefore
not conclusive for the null hypothesis to be rejected. One may therefore conclude that
there is no difference between male and female respondents in the perception of
aspects of the education and training of prospective CAs at RAU.
7.9 SUMMARY
In previous chapters of this study the importance of the utilisation of CPD of ethics
amongst prospective CAs was shown, using a detailed literature research. It is
important to realise, however, that before any ‘utilisation’ can take place, one should
test the prospective CAs’ (i.e. students’) perceptions of CPD and ethics within the
framework of the profession.
An empirical analysis was then conducted by way of a questionnaire based on the
objectives of the study set out in Chapter 1. The various independent variables
addressed within the questionnaire relate to:
the CA and his/her profession;
the CPD of CAs;
aspects of LLL of CAs;
aspects of ethics education related to CAs;
the core values CAs should demonstrate within their profession; and
Empirical analysis
CHAPTER 7 328
the education of CAs at RAU.
Closer inspection of these, however, brings to the fore a specific logical flow, which can
be expressed by way of the following diagram (FIGURE 7.19):
CPD of ethicsamongst
prospective CAs
The CAprofession*
U1 – U25
The CAprofession*
U1 – U25
CPD and CAs*V1 – V14
CPD and CAs*V1 – V14
LLL and CAsW1 – W9
LLL and CAsW1 – W9
Ethics and CAs*X1 – X11
Ethics and CAs*X1 – X11
Core valuesof CAsY1 – Y8
Core valuesof CAsY1 – Y8
Educationof CAs
Z1 – Z10
Educationof CAs
Z1 – Z10
4
6
2
5
3
1
* Factor analysis
FIGURE 7.19: CPD of ethics amongst prospective CAs
SOURCE: Empirical analysis, own deductions
This study investigates the utilisation of CPD of ethics amongst prospective CAs. From
FIGURE 7.19 it is proposed that three of the groups of variables analysed in the
empirical study (i.e. variables V, W and X) form the core of CPD of ethics amongst
prospective CAs. However, before that can be attempted one has to take cognisance of
the perceived core values amongst CAs (i.e. variable Y) and how this impacts on the CA
profession as a whole (i.e. variable U) in a time of change and uncertainty.
Empirical analysis
CHAPTER 7 329
Once a sense for ethics, CPD and LLL has been determined amongst prospective CAs,
one may continue and test this in relation to the perception of the education of CAs at
RAU (i.e. variable Z).
Although validity and reliability were not measured through repeated testing of the
instrument, the following issues were observed in the study:
in all tests (where applicable), the Cronbach-alpha coefficient of reliability was
taken into consideration and had to be at least 0,7 or higher (α ≥ 0.7) to be
reliable;
in order to test for content validity, experts and specialists in the study field were
used to validate the tool;
to check for criterion-related validity, various correlation techniques were used in
the analysis of the data; and
as construct validity was of crucial importance in this study, factor analysis was
utilised to determine construct validity.
Section A of the questionnaire, detailing information about the students’ (i.e.
respondents) profile, was analysed in a descriptive manner providing feedback related
to (i) gender; (ii) year the respondent matriculated; and (iii) the respondent’s highest
educational qualification.
All data extracted from Section B of the questionnaire was analysed firstly by way of
an exploratory statistical analysis. This analysis detailed issues such as the presentation
of frequencies, and the measuring of the distribution of data, which includes aspects
such as location (i.e. central tendency), dispersion (i.e. spread) and shape (i.e.
skewness and kurtosis).
This was then followed up by a factor analysis of the various items in each of the sub-
sections in Section B of the questionnaire. Wherever the factor analysis indicated that
various statically significant factors could be extracted, an item analysis on each item
was then performed and appropriate factor scores were calculated and interpreted.
Empirical analysis
CHAPTER 7 330
The appropriate factor scores that were calculated and interpreted were then used to
perform hypothesis testing using the t-test for independent samples. In cases where
factor analysis could not provide adequate information to continue with the calculation
of factor scores and the interpretation of factor items, the Mann-Whitney U Test was
used to test differences between two independent groups as part of the hypothesis
testing.
The various hypotheses developed and tested are summarised in TABLE 7.57 below:
TABLE 7.57: Summary of hypotheses developed and tested
HYPOTHESIS DESCRIPTION OF HYPOTHESIS
Hypothesis 1 There is no difference between prospective male and female CAs in the
perceptual need for competency and professional skills in a period of change.
Hypothesis 2 There is no difference in the perceptions of values, ethics and attitudes for
prospective male and female CAs.
Hypothesis 3 There is no difference in the perceptions of training, education and LLL for
prospective male and female CAs.
Hypothesis 4 There is no difference between prospective male and female CAs in the
perception of education and pursuance of CPD.
Hypothesis 5 There is no difference between prospective male and female CAs in the
perception of the critical importance of CPD.
Hypothesis 6 There is no difference between male and female CAs in the perception of LLL.
Hypothesis 7 There is no difference between prospective male and female CAs in the
perception of the advantages of ethics education.
Hypothesis 8 There is no difference between male and female respondents in the perceived
core values within the CA profession.
Hypothesis 9 There is no difference between male and female respondents in the perception of
aspects of the education and training of prospective CAs at RAU.
SOURCE: Empirical analysis
Additional aspects of the results that need highlighting are:
Empirical analysis
CHAPTER 7 331
in addition to acquiring the required theoretical knowledge and skills in order to
be regarded as competent, today's CAs need other skills;
competency also includes various professional values, ethics and attitudes;
the education and training of CAs should:
o provide a foundation of various professional skills and ethical values;
o cultivate a culture of LLL;
o be seen as a process rather than a course;
prospective CAs also need to be skilled in the use of CPD by way of a SDL or PBL
approach;
CAs will be able to focus on continued learning throughout their career if they
have learnt how to engage in SDL as part of their basic undergraduate education
and training; and
these basic education and training programmes should follow an integrated
approach with regard to professional ethics, values and attitudes involving more
than a mere transfer of knowledge.
CAs will be able to focus on continued learning throughout their careers if they have
learnt how to do this as part of their undergraduate education programme. This part of
the education of CAs should cultivate a culture of LLL.
---o0o---
332
CHAPTER 8 Attitudes of undergraduate students
toward continuous professional development of ethics: an analysis
8.1 INTRODUCTION
n Chapter 7, the various groups of variables (or items) included as part of the
empirical analysis of this thesis were statistically analysed, based on the objectives
provided in Chapter 1 of this study. It was also stated that this has to be done to
ensure that one understands how to utilise CPD of ethics amongst prospective CAs. A
further reason for the empirical study was to be certain that students grasp the issues
of CPD and ethics within a holistic context. This chapter now forms the culmination of
the whole study: an analysis of the attitudes of undergraduate accounting students to
the utilisation of CPD of ethics.
The chapter commences with an analysis of the attitudes and perceptions of
undergraduate students toward CPD of ethics by focusing on the six groups of variables
specifically analysed in Chapter 7 of this study. At the end of each of the six analyses,
some summary comments are given. This chapter then continues by way of providing
some thoughts on utilising CPD of ethics amongst prospective CAs.
The chapter concludes with some summary comments.
I
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 333
8.2 ATTITUDES OF UNDERGRADUATE STUDENTS TO CONTINUOUS PROFESSIONAL DEVELOPMENT OF ETHICS
As outlined in Chapter 1, the objectives of this study were to:
(i) demarcate the CA and the profession by way of undergraduate students’
perceptions;
(ii) determine undergraduate students’ perceptions of CPD, LLL and ethics within the
framework of a CA and his/her undergraduate education;
(iii) investigate the perceived core values within the CA profession; and
(iv) analyse certain aspects of the education and training of CAs at RAU.
Within the empirical analysis conducted in Chapter 7, six different groups of variables,
listed below, were identified and used to test students’ attitudes to and perceptions of
these. These variables were:
the CA and his/her profession (Section B1 – 25 items labelled as U1 – U25);
the CPD of CAs (Section B2 – 14 items labelled as V1 – V14);
aspects of LLL of CAs (Section B3 – 9 items labelled as W1 – W9);
aspects of ethics education related to CAs (Section B4 – 11 items labelled as X1
– X11);
the core values CAs should demonstrate within their profession (Section B5 – 8
items labelled as Y1 – Y8); and
the education of CAs at RAU (Section B6 – 10 items labelled as Z1 – Z10).
Flowing from this was the development and testing of various hypotheses, which were:
H1: There is no difference between prospective male and female CAs in a
period of change in the perceived need for competency and professional
skills.
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 334
H2: There is no difference in the perceptions of values, ethics and attitudes
for prospective male and female CAs.
H3: There is no difference in the perceptions of training, education and LLL
for prospective male and female CAs.
H4: There is no difference between prospective male and female CAs in the
perception of the education and pursuance of CPD.
H5: There is no difference between prospective male and female CAs in the
perception of the critical importance of CPD.
H6: There is no difference between prospective male and female CAs in the
perception of LLL.
H7: There is no difference between prospective male and female CAs in the
perception of the advantages of ethics education.
H8: There is no difference between male and female respondents in the
perceived core values within the CA profession.
H9: There is no difference between male and female respondents in the
perception of aspects of the education and training of prospective CAs at
RAU.
In FIGURE 8.1 (on the following page), the information contained in FIGURE 7.19 (in
Chapter 7) was taken and further adapted to include more specific information about
each of the variables. The information highlighted in FIGURE 8.1 includes inter alia
the various factors extracted as well as the hypotheses applicable to each of the
variables.
In TABLES 8.1 – 8.6 (which follow) a summary of the various items from the analysis
of all the variables in Section B of the questionnaire is provided. This includes the
various factors as well as the results of the hypotheses developed and tested,
highlighted by the specific variable taken from FIGURE 8.1.
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 335
The CAprofession*
U1 – U25
The CAprofession*
U1 – U25
CPD and CAs*V1 – V14
CPD and CAs*V1 – V14
LLL and CAsW1 – W9
LLL and CAsW1 – W9
Ethics and CAs*X1 – X11
Ethics and CAs*X1 – X11
4
2
5
3
* Factor analysis
Core valuesof CAsY1 – Y8
Core valuesof CAsY1 – Y8
1
Y6 Y7 Y5
Y8
Y3Y4Y1
Y2U9
F2: Ethcs
U4 U7
U6U20
U12
F3: EdcTrn
U1 U3
U2U10 U13
V10
F1: LrnCPD
V14 V9
V12V5 V11
V13
V8
F2: CrtCPD
V7
V1V3W5 W2 W7
W1
W3
W8W9
W4
W6
X5
F1: EthcEduc
X3 X4
X6X8 X1
X7
U22
F1: CmpSkll
U21 U23
U5U25 U17
Educationof CAs
Z1 – Z10
Educationof CAs
Z1 – Z106
Z8 Z10 Z1
Z2
Z5Z7Z3
Z9
Z4
CPD of ethicsamongst
prospective CAs
H8
H1H2
H3
H4 H5
H6
H7
H9
FIGURE 8.1: Utilising CPD of ethics amongst prospective CAs
SOURCE: FIGURE 7.19
The following interpretation of the empirical analysis done in Chapter 7 is grouped
according to the four objectives of the study and will be discussed as such.
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 336
8.3 DEMARCATE THE CA AND THE PROFESSION BY WAY OF UNDERGRADUATE STUDENTS’ PERCEPTIONS
8.3.1 The chartered accountant and his/her profession
8.3.1.1 Introduction
TABLE 8.1 provides a summary of the
results from the hypotheses (H1 – H3)
developed and tested for Section B1 of
the questionnaire.
In this section of the analysis, it was
possible to extract three specific factors
dealing with the CA and its profession,
namely general competency and skills (CmpSkll); values, ethics and attitudes (Ethcs);
and training, education and LLL (EdcTrn).
8.3.1.2 General competency and skills
In terms of respondents’ perceptions of and attitudes to the need for competency and
professional skills for CAs in a period of change, there seems to be agreement between
males and females on its importance.
At the top of the list was the fact that, in addition to acquiring the relevant theoretical
knowledge and skills, today’s CA needs other professional skills and that the general
education and training of CAs should provide a foundation for these various skills.
8.3.1.3 Values, ethics and attitudes
Unlike general competency and skills (in section 8.3.1.2) for CAs, male and female
respondents differed significantly when it came to the perceptions of values, ethics and
attitudes for CAs.
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 337
TABLE 8.1: Summary results: Section B1 – The chartered accountant and his/her profession ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
U5 CAs should continually adapt to change.
U17 Competency is a critical issue in the CA’s profession.
U21 In addition to acquiring theoretical knowledge and skills, today's CAs need other skills.
U22 The education of CAs should enable them to adapt to change.
U23 The education of CAs should provide a foundation of various professional skills.
U25 CAs are continuously challenged to maintain competence.
Factor 1:
CmpSkll
Competency and
professional skills of
CAs are necessary in a
period of change
n 491
α 0.779
KMO 0.895
p (< 0.05) 0.000
% variance 28.075
H0:
There is no difference between prospective male and female CAs in a period of change in the perceived need for competency and professional skills.
H1:
There is a difference between prospective male and female CAs in a period of change in the perceived need for competency and professional skills.
H1*
Accept H0
p > 0.05
(p = 0.999)
U4 CAs should have high ethical standards.
U6 The education of CAs should provide a foundation of ethical values.
U7 CAs have an ethical obligation to their clients, employers and stakeholders.
U9 CAs should act in accordance with applicable professional ethical standards.
U20 The competency of CAs also includes their professional values, ethics and attitudes.
Factor 2:
Ethcs
Professional values,
ethics and attitudes
linked to CAs
n 491
α 0.727
KMO 0.895
p (< 0.05) 0.000
% variance 6.749
H0:
There is no difference in the perceptions of values, ethics and attitudes for prospective male and female CAs.
H1:
There is a difference in the perceptions of values, ethics and attitudes for prospective male and female CAs.
H2*
Do not accept H0
p < 0.05
(p = 0.022)
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 338
TABLE 8.1: Summary results: Section B1 – The chartered accountant and his/her profession ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
U1 CAs should learn continuously.
U2 Training programmes for CAs should follow an integrated approach with regard to professional ethics, values and attitudes.
U3 A CA will be able to focus on continued learning throughout his/her career if he/she has learnt how to do this as part of his/her basic training.
U10 A training programme for CAs should be more than a mere transfer of knowledge.
U12 The education of CAs should cultivate a culture of LLL.
U13 The credibility of a CA depends on his/her ethical approach to the work he/she does.
Factor 3:
EdcTrn
Training, education
and LLL of CAs
n 491
α 0.738
KMO 0.895
p (< 0.05) 0.000
% variance 5.535
H0:
There is no difference in the perceptions of training, education and LLL for prospective male and female CAs.
H1:
There is a difference in the perceptions of training, education and LLL for prospective male and female CAs.
H3*
Do not accept H0
p < 0.05
(p = 0.021)
SOURCE: Chapter 7; FIGURE 8.1
* = t-test
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 339
On the whole, female respondents felt more strongly about all ethical issues regarding
CAs, including CAs’ ethical standards and obligations. This culminated in the view that
the undergraduate education of CAs should provide a foundation of holistic ethical
values.
8.3.1.4 Training, education and lifelong learning
When taking the aspects of values, ethics and attitudes (discussed in section 8.3.1.3
above) further, statistical outcomes are again reaffirmed when the training, education
and LLL of CAs were focused on. Again, female respondents felt more strongly about
these issues and for this reason there was a statistically significant difference in the
perceptions of males and females when it came to training, education and LLL for CAs.
Aspects that respondents highlighted were that an education programme for CAs should
be more than a mere transfer of knowledge: these programmes should follow an
integrated approach with regard to professional ethics, values and attitudes.
8.3.1.5 Some summarising remarks
If today’s CAs need skills other than mere theoretical knowledge, the general education
of CAs should provide a foundation for these, including a foundation of ethical values
provided in such a manner that it cultivates a culture of LLL coupled with CPD. This
foundation should focus more on the exact requirements for being an ethical CA. As
pointed out in Chapter 4, a discussion of ethics should focus on the theories on which
ethics are built, with an emphasis on descriptive ethics, perspective ethics and meta-
ethics. It should also allow the learner to investigate the individual and combined
concepts of morals, ethics and values in an integrated approach. This may then be
highlighted in the view of general and professional ethics by also looking at the issue of
the CA profession itself.
By integrating knowledge and skills across topics and disciplines, it may be possible to
address multifaceted and complex situations typical of professional life, but at the same
time also stimulate undergraduate learners to value learning more when learning is
integrated with the demands of their everyday life, as was pointed out in Chapter 3 of
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 340
the study. These demands may include the importance of already being skilled in CPD
and LLL at an undergraduate level through the use of SDL and PBL.
8.4 DETERMINE UNDERGRADUATE STUDENTS’ PERCEPTIONS OF CPD, LLL AND ETHICS WITHIN THE FRAMEWORK OF A CA AND HIS/HER UNDERGRADUATE EDUCATION
8.4.1 The continuous professional development of chartered
accountants
8.4.1.1 Introduction
TABLE 8.2 provides a summary of the results
from the hypotheses (H4 & H5) developed and
tested for Section B2 of the questionnaire.
In this section of the analysis it was possible to
extract two specific factors dealing with the CPD
of a CA, which included education and
pursuance of CPD (LrnCPD); and the importance of CPD (CrtCPD).
8.4.1.2 Education and pursuance of CPD
On the whole, male and female respondents felt equally strongly about the perceptions
of the education and pursuance of CPD skills for CAs.
Although CPD is aimed at the post-qualification maintenance of professional
competence, CPD should be seen as an extension of the education and learning process
that led to the initial CA qualification. Emphasising the skills surrounding CPD at an
undergraduate level may mean providing a solid foundation for ultimate LLL (as was
pointed out in section 8.3.1.5).
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 341
TABLE 8.2: Summary results: Section B2 – The continuous professional development of chartered accountants ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
V5 The benefits derived from CPD programmes depend on the attitude of the CA.
V9 CPD refers to learning activities following qualification.
V10 The emphasis of CPD means a foundation for LLL.
V11 CPD implies further training in professional values, ethics and attitudes.
V12 CPD is aimed at the post-qualification maintenance of professional competence.
V13 A training programme for CAs should provide students with the necessary skills to learn by themselves and at their own pace.
V14 CPD should be seen as an extension of the education process that leads to the initial qualification as a CA.
Factor 1:
LrnCPD
Educating for and
learning of the CPD of
CAs
n 491
α 0.760
KMO 0.880
p (< 0.05) 0.000
% variance 33.880
H0:
There is no difference between prospective male and female CAs in the perception of the education and pursuance of CPD.
H1:
There is a difference between prospective male and female CAs in the perception of the education and pursuance of CPD.
H4*
Accept H0
p > 0.05
(p = 0.703)
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 342
TABLE 8.2: Summary results: Section B2 – The continuous professional development of chartered accountants ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
V1 The CPD of CAs is critical.
V3 CPD provides an assurance of professional service.
V7 CPD must be a requirement for all CAs in order to maintain the public’s confidence in the profession.
V8 CPD should be a condition of a CA’s continued membership of a professional body.
Factor 2:
CrtCPD
Critical importance of
CPD for CAs
n 491
α 0.710
KMO 0.880
p (< 0.05) 0.000
% variance 8.990
H0:
There is no difference between prospective male and female CAs in the perception of the critical importance of CPD.
H1:
There is a difference between prospective male and female CAs in the perception of the critical importance of CPD.
H5*
Do not accept H0
p < 0.05
(p = 0.034)
SOURCE: Chapter 7; FIGURE 8.1
* = t-test
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 343
Respondents also emphasised that for them CPD implies training in professional values,
ethics and attitudes that are unique to the life and work of a CA (also see section
8.4.1.3 below).
It is important to note, however, that respondents agreed very strongly that the
benefits derived from CPD programmes depend on the attitude of the CA. This may
therefore strengthen the notion that an integrated knowledge and skills programme
across topics and disciplines may stimulate undergraduate learners to value LLL and
CPD more when learning is integrated with the typical (ethical) demands of a CA.
8.4.1.3 Importance of continuous professional development
Unlike the learning and teaching of CPD skills mentioned in section 8.4.1.2, male and
female respondents did not perceive the critical importance of CPD equally: female
respondents felt stronger about it.
Amongst other things, CPD (of ethics) for CAs is critical and is a requirement for all CAs
in order to maintain public confidence in the profession. As pointed out in Chapter 3,
all CAs have an ethical obligation of due care to their clients, employers and relevant
stakeholders and need to demonstrate their ability to discharge this responsibility in a
competent manner.
8.4.1.4 Some summarising remarks
Respondents are not against the use of CPD and feel that it should be a condition of a
CA’s continued membership of a professional body such as SAICA. By inference they
therefore agree that SAICA may refer a member to its Professional Conduct Committee
if a member fails to comply with its CPD requirement.
It is bothersome, however, that some respondents perceived that CPD may provide an
assurance of professional service, which is not the case. As was stated in Chapter 3
(see section 3.2.2.1), SAICA explicitly states that it cannot provide the assurance that
all members will provide high quality professional service all the time if they have
engaged in CPD and that CPD per se cannot and will not avert corporate collapses. As
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 344
the CA operates in a rapidly changing environment, there is a consequent important
need to adapt the strategic plans for organisations relying on the CA’s professional
competence, highlighting the need for CPD.
8.4.2 Lifelong learning of chartered accountants
8.4.2.1 Introduction
TABLE 8.3 provides a summary of the results from
the hypothesis (H6) developed and tested for
Section B3 of the questionnaire.
Due to the non-factorability of the various items in
Section B3 of the questionnaire, individual items were tested for statistical difference
between male and female responses. As there was no general trend of p < 0.05
throughout, the results meant that male and female respondents did not feel different
about issues of LLL and the CA to a statistically significant degree.
8.4.2.2 Perceived core aspects of lifelong learning
Obvious and expected perceptions indicated by respondents were that LLL implies a
desire to go beyond the minimum as well as a continuous refinement of professional
knowledge, skills, values, ethics and attitudes, as was pointed out in section 7.5.1.
The analysis of the various items pertaining to LLL pointed to the aspirations expressed
by respondents in terms of LLL. These holistic aspirations included issues such as the
incorporation of better professional judgement; the desire and ability to adapt and
develop skills that included the professional values, ethics and attitudes associated with
CPD; the desire and ability to continue to learn; and an incorporation of professional
ethical values in one’s ultimate performance as a CA.
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
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TABLE 8.3: Summary results: Section B3 – Lifelong learning of chartered accountants ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
W1 LLL implies a desire and ability to continue to learn.
W2 LLL implies a continuous refinement of professional knowledge, skills, values, ethics and attitudes.
W3 LLL implies a desire and ability to adapt and develop skills.
W4 LLL implies a thorough foundation of professional values, ethics and attitudes associated with CPD.
W5 LLL implies a desire to go beyond the minimum.
W6 LLL implies a thorough foundation of professional values, ethics and attitudes in an undergraduate environment.
W7 LLL implies a desire to incorporate better professional judgement.
W8 LLL implies a desire to incorporate professional ethical values in performance.
W9 LLL implies a continuous acquisition of ethics as one works in practice after qualification.
No factors were
extracted
Not applicable H0:
There is no difference between prospective male and female CAs in the perception of LLL.
H1:
There is a difference between prospective male and female CAs in the perception of LLL. H6*
Accept H0
p > 0.05**
SOURCE: Chapter 7; FIGURE 8.1
* = Mann-Whitney U test, 95% confidence level; ** = only one individual item had a p-value < 0.05
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
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8.4.2.3 Some summarising remarks
If, as was perceived by the respondents, LLL implies a thorough foundation of
professional values, ethics and attitudes in an undergraduate environment, it implies
that these values and attitudes should be a crucial and measurable component of the
undergraduate education of a CA. It is important to note that the teaching of
professional values and ethics at an undergraduate level should be seen as a process
rather than a course (to be discussed in section 8.6.1).
The importance of providing prospective CAs with the necessary skills in CPD at an
undergraduate level is therefore again highlighted. LLL may imply a continuous
acquisition of ethics following qualification, during a CA’s time of practice.
8.4.3 Aspects of ethics education related to chartered
accountants
8.4.3.1 Introduction
TABLE 8.4 provides a summary of the results from the
hypothesis (H7) developed and tested for Section B4 of
the questionnaire.
In this section of the study it was possible to extract one
specific factor by way of factor analysis dealing with
aspects of ethics education pertaining to a CA
(EthcEduc).
8.4.3.2 Aspects of ethics education
The empirical analysis revealed that there was a statistically significant difference
between male and female respondents in the perception of the advantages of ethics
education. As was the case in all the previous variables, female respondents once
again felt more strongly about it than male respondents.
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professional development of ethics: an analysis
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TABLE 8.4: Summary results: Section B4 – Aspects of ethics education related to chartered accountants ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
X1 Ethics education heightens a student’s awareness of ethical issues in professional practice.
X3 Ethics education strengthens a student’s moral reasoning skills.
X4 Ethics education provides a basic understanding of the morals of the profession.
X5 Ethics education enhances a student’s ability to judge a situation.
X6 Ethics education provides students with the necessary skills required in practice.
X7 Ethics education is a “moral conversion process”.
X8 Ethics education provides a competitive advantage for CAs.
Factor 1:
EthcEduc
The advantages
attained by
prospective CAs
through ethics
education
n 491
α 0.835
KMO 0.841
p (< 0.05) 0.000
% variance 57.073
H0:
There is no difference between prospective male and female CAs in the perception of the advantages of ethics education.
H1:
There is a difference between prospective male and female CAs in the perception of the advantages of ethics education.
H7*
Do not accept H0
p < 0.05
(p = 0.003)
SOURCE: Chapter 7; FIGURE 8.1
* = t-test
Attitudes of undergraduate students toward continuous
professional development of ethics: an analysis
CHAPTER 8 348
Respondents felt that ethics education heightens a student’s awareness of ethical issues
in professional practice, strengthens a student’s moral reasoning skills, and enhances a
student’s ability to judge a situation.
8.4.3.3 Some summarising remarks
Ethics education provides students with the necessary skills required in practice. These
skills may refer to the skills mentioned in section 8.4.2.2, namely professional values,
ethics and attitudes associated with CPD and LLL.
An item that was not included in the analysis was one stating that Ethics education is
the responsibility of the tertiary institution, not the company and its management. (For
more information refer back to sections 7.6.1 and 7.6.2.4.) There was great
consistency in this response from all respondents. They all felt that ethics education is
not merely the responsibility of a higher education institution or the CA firm where the
prospective CA is placed: it is also the CA’s own responsibility to keep abreast of
changes in professional values, ethics and attitudes by way of CPD.
8.5 INVESTIGATE THE PERCEIVED CORE VALUES WITHIN THE CA PROFESSION
8.5.1 Perceived core values within the chartered accountant
profession
8.5.1.1 Introduction
TABLE 8.5 provides a summary of the results from
the hypothesis (H8) developed and tested for Section
B5 of the questionnaire. Due to the non-factorability
of the various items in Section B5 of the
questionnaire, individual items were tested for
statistical difference between male and female responses.
Attitudes of undergraduate students toward continuous
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TABLE 8.5: Summary results: Section B5 – Perceived core values within the chartered accountant profession ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
H8* Do not accept H0
p < 0.05***
Y1 How important is it for a CA to learn the skill of CPD?
Y2 How important is it for a CA to be a life-long learner?
Y3 How important is it for a CA to have professional competence?
Y4 How important is it for a CA to have high ethical standards?
Y5 How important is it for a CA to show integrity?
Y6 How important is it for a CA to be trustworthy?
Y7 How important is it for a CA to be reliable? Y8 How important is it for a CA to be objective?
No factors were
extracted
Not applicable H0:
There is no difference between male and female respondents in the perceived core values within the CA profession.
H1:
There is a difference between male and female respondents in the perceived core values within the CA profession. H8**
Do not accept H0
p < 0.05***
SOURCE: Chapter 7; FIGURE 8.1
* = t-test; ** = Mann-Whitney U test, 95% confidence level
*** = all the individual items had p-values < 0.05
Attitudes of undergraduate students toward continuous
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As there was no general trend of p < 0.05 throughout, the results meant that male and
female respondents did not feel different about certain perceived core values within the
CA profession to a statistically significant degree.
8.5.1.2 Some summarising remarks
As respondents differed in their perceptions about aspects of CPD and LLL, one is led to
speculate that the important fundamental aspects of CPD and LLL, as highlighted by
SAICA in Chapter 3, need to be inculcated at a very early stage of education and
training. If education programmes of prospective CAs start this process during the pre-
qualification education phase (i.e. at the undergraduate level) and continue after
qualification, prospective CAs may understand the importance of, and know how to
utilise, the skill of CPD before entering public practice, where there will be an obligatory
engagement with these skills.
8.6 ANALYSE CERTAIN ASPECTS OF THE EDUCATION AND TRAINING OF CAs AT RAU
8.6.1 Aspects of the education and training of chartered
accountants at RAU
8.6.1.1 Introduction
TABLE 8.6 provides a summary of the results from the
hypotheses developed and tested for Section B6 of
the questionnaire.
Due to the non-factorability of the various items in
Section B6 of the questionnaire, individual items were tested for statistical difference
between male and female responses. As there was no general trend of p < 0.05
throughout, the results meant that male and female respondents did not feel different
about aspects of the education and training of prospective CAs at RAU to a statistically
significant degree.
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TABLE 8.6: Summary results: Section B6 – Aspects of the education and training of chartered accountants at RAU ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
Z1 The professional values, ethics and attitudes highlighted by professional bodies are apparent in the academic programmes at RAU.
Z2 RAU focuses on courses, which include aspects of professional ethics and values applicable to CAs.
Z3 At RAU, emphasis is placed on the development of professional values, ethics and attitudes in the training of CAs.
Z4 RAU focuses on discipline-specific courses, covering various applicable international issues pertaining to the role of the CA.
Z5 At RAU, emphasis is placed on the development of the necessary skills for CPD of CAs.
Z7 At RAU, emphasis is placed on the professional values, ethics and attitudes for CPD of CAs.
Z8 RAU uses educators who are skilled in the professional values, ethics and attitudes pertaining to CAs.
No factors were
extracted
Not applicable H0:
There is no difference between male and female respondents in the perception of aspects of the education and training of prospective CAs at RAU.
H1:
There is a difference between male and female respondents in the perception of aspects of the education and training of prospective CAs at RAU.
H9* Accept H0
p > 0.05**
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professional development of ethics: an analysis
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TABLE 8.6: Summary results: Section B6 – Aspects of the education and training of chartered accountants at RAU ( )
ITEMS INCLUDED IN STATISTICAL ANALYSIS
FACTORS EXTRACTED
STATISTICAL RESULTS OF
FACTOR ANALYSIS
HYPOTHESES DEVELOPED
STATISTICAL RESULTS OF HYPOTHESES
TESTS
Z9 A definite focus on recent professional ethical conundrums, corporate collapses and mounting stakeholder pressure is evident in the courses offered at RAU.
Z10 RAU focuses on courses that enhance the value-added approach of CAs.
SOURCE: Chapter 7; FIGURE 8.1
* = Mann-Whitney U test, 95% confidence level; ** = only one individual item had a p-value < 0.05
Attitudes of undergraduate students toward continuous
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8.6.1.2 Aspects of education of chartered accountants at RAU
Based on the empirical analysis, there was no statistically significantly difference
between males and females in their perceptions of aspects of the education and
training of prospective CAs at RAU.
It was however clear from the descriptive analysis of the individual items (see section
7.8.2) that respondents agreed that professional values, ethics and attitudes pertaining
to CAs are evident from the courses and academic programmes offered at RAU and that
these are presented by educators skilled in the professional values, ethics and attitudes
pertaining to CAs (see section 7.8.2.1).
In section 7.8.2.3 one noticed that respondents clearly stated that there is not a
definite focus in the courses on recent professional ethical conundrums, corporate
collapses and mounting stakeholder pressure as well as applicable international issues
pertaining to CAs.
Even though respondents felt that enough emphasis is placed on the professional
values, ethics and attitudes for CPD of CAs, they pointed out that more emphasis
should be placed on the development of these professional values, ethics and attitudes
for CPD of CAs.
8.6.1.3 Some summarising remarks
The analysis shows that respondents agreed that RAU focuses on courses that enhance
the value-added approach of CAs. This confirms the notion expressed in section 8.4.1.2
that an integrated knowledge and skills programme across topics and disciplines may
stimulate undergraduate learners to value LLL and CPD more when learning is
integrated with the demands of a CA. One does however have to qualify this statement
by pointing out that the transfer of knowledge and skills associated with LLL and CPD is
not enough if students are not encouraged to develop these during their undergraduate
studies.
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8.7 SUMMARY
In previous chapters of this study, the importance of the utilisation of CPD of ethics
amongst prospective CAs was shown, based on detailed literature research. It is
important to realise, however, that before any ‘utilisation’ can take place, one should
test the prospective CAs’ (i.e. students’) perceptions and attitude of CPD and ethics
within the education framework of a CA.
An empirical analysis was then done by way of a questionnaire based on the objectives
of the study set out in Chapter 1. The various independent variables addressed within
the questionnaire related to:
the CA and his/her profession;
the CPD of CAs;
aspects of LLL of CAs;
aspects of ethics education related to CAs;
the core values CAs should demonstrate within their profession; and
the education of CAs at RAU.
Although validity and reliability were not measured through repeated testing of the
instrument, the following issues were observed in the study:
in all tests (where applicable), the Cronbach-alpha coefficient of reliability was
taken into consideration and had to be at least 0,7 or higher (α ≥ 0.7) to be
reliable;
in order to test for content validity, experts and specialists in the fields of study
and statistics were used to validate the tool;
to check for criterion-related validity, various correlation techniques were used in
the analysis of the data; and
as construct validity was of crucial importance in this study, factor analysis was
utilised to determine construct validity.
---o0o---
355
CHAPTER 9 Summary, conclusion and recommendations
9.1 INTRODUCTION
he focus of this study was to determine whether it is possible to utilise CPD of
ethics amongst prospective CAs by assessing their various perspectives.
As accounting educators at higher education institutions have an obligation to respond
to the various changes faced by the accounting profession worldwide, their teaching
should provide learners with a variety of strategies to learn more effectively.
In the education of prospective CAs (i.e. at the undergraduate level), teaching methods
should provide students not only with a basic grounding in the knowledge, skills,
professional values and ethics essential for professional competency but also with the
tools for learning and development after qualification (e.g. CPD and LLL). This means
providing a foundation for LLL, which implies that learners should have the desire and
ability to continue to learn, to adapt and develop new knowledge, skills and
technologies, to move flexibly between occupations, and to take responsibility for
personal performance.
Even though CPD and LLL are seen as a post-qualification aspect, the initial CPD and
LLL of ethics will be strengthened if the process of LLL and CPD for CAs commences
early in their higher education.
T
Summary, conclusion and recommendations
CHAPTER 9 356
9.2 SUMMARY OF THE THESIS
9.2.1 Chapter 1 – Objectives of this study
This study aimed to investigate the utilisation of the CPD of ethics amongst prospective
CAs. The objectives of this study were, by way of an empirical survey, to:
(i) demarcate the CA and the profession by way of undergraduate students’
perceptions;
(ii) determine undergraduate students’ perceptions of CPD, LLL and ethics within the
framework of a CA and his/her undergraduate education;
(iii) investigate the perceived core values within the CA profession; and
(iv) analyse certain aspects of the education and training of CAs at RAU.
All of the above were researched within the:
international framework of education and training of CAs set by IFAC;
education and training legal framework of the country;
vision and standards of SAQA and the NQF; and
framework for training of CAs set by SAICA and the PAAB.
9.2.2 Chapter 2 – Demarcating an educational framework for the
training of chartered accountants nationally and
internationally
Chapter 2 provided a demarcation of an educational framework for the training of CAs
nationally and internationally. It commenced with an overview of the South African
educational landscape, and ultimately focused on issues pertaining to higher education
and the training and education of CAs in South Africa in terms of the NQF.
This was followed by a historical overview of the CA profession in South Africa,
including a view into the future with the proposed changes prescribed by the newly
Summary, conclusion and recommendations
CHAPTER 9 357
enacted Auditing Profession Act and the restructuring of the accounting profession in
South Africa.
In an assessment of the state of accounting education, a focus on the dynamic nature
of the accounting profession and the link to the education and training of accountants
worldwide were provided. This included the education and practical experience needs
of prospective CAs; their dynamic profession; the importance of LLL and CPD; and the
importance of competence assessment throughout their education and training phase.
The goal of accounting education (and training) must be to produce competent
professional accountants who, over their lifetimes, make a positive contribution to the
profession and to the society in which they work.
As regards the education and training of CAs, an overview of the international
Education Standards as prescribed by IFAC and SAICA were discussed with specific
reference to the role of the PAAB and the interaction with IFAC. CPD refers to learning
activities that develop and maintain capabilities to enable CAs to perform competently
within their professional environments. It does not stand alone as just another one of
the IFAC Standards but is an integrated approach within the education and training of
CAs. CPD must be seen as an extension of the education process that leads to
qualification as a CA.
9.2.3 Chapter 3 – Continuous professional development through
self-directed learning
Even though CPD is something that CAs will only engage in once they have qualified
(i.e. after the ‘education’ phase), it is important that prospective CAs become au fait
with the skills involved in practising CPD. As was pointed out in Chapter 2, the goal of
accounting education is to produce competent CAs capable of making a positive
contribution over their lifetimes to the profession and society in which they work.
Professional undergraduate education programmes share the goal of preparing
competent graduates who will successfully make the transition to the world of
Chartered Accountancy.
Summary, conclusion and recommendations
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Undergraduate accounting education programmes should perhaps be designed to
expose prospective CAs to the strategies that can assist them to develop the abilities to
become self-directed in continuing to learn after qualification, as society demands
continued professional accountability for competence in an era of exponential
knowledge proliferation and technological change. Maintaining this professional
competence in the face of the ever-increasing changes accountants encounter on a
daily basis makes it essential that they develop and maintain an attitude of learning to
learn using CPD.
Supporting LLL requires a suite of complementary approaches including intelligent
teaching systems, design environments, performance support systems, on-demand
learning, coached simulation systems, intelligent help and advisory systems, and
collaborative systems. This chapter focused on the most important approach in support
of LLL, namely supported SDL.
As an introduction the chapter provided a holistic overview of CPD. It also linked CPD
for a (prospective) CA by looking at the links between competence, LLL and SDL. This
chapter provided more than an overview as it also investigated current theories of
learning and provided a historical perspective on SDL. As a conclusion, a South African
perspective on all of this was provided, linking them back to an approach that can be
utilised by prospective CAs at an undergraduate level.
9.2.4 Chapter 4 – A holistic critique of ethics
Ethics and ethical behaviour is receiving greater attention these days as it points to the
importance of maintaining a civil society. Ethical behaviour, however, requires a
consideration of more than a few rules of conduct and some regulatory activities. No
professional code of ethics or regulatory framework can anticipate all the situations that
may arise which require personal judgements about ethical behaviour.
Accordingly, this chapter commenced with a detailed discussion of ethics, focusing on
the theories on which ethics is built. It then went on to investigate the individual and
combined concepts of morals, ethics and values, which included an examination of the
Summary, conclusion and recommendations
CHAPTER 9 359
integration of these. This was followed by a detailed discussion of the concepts of
general and professional ethics in which the issue of a profession was also looked at.
The chapter then culminated in an investigation of the narrower concept known as
‘business ethics’ (which was discussed in greater detail in Chapter 5) and professional
ethics applicable to CAs.
9.2.5 Chapter 5 – Ethics education
Ethics education has been at the forefront for many years now. But has it made a
difference? Chapter 5 began by asking whether ethics can be taught. It also stated
that the teaching of ethics and business ethics should be seen as the same concept in
terms of this study. The chapter then went on to investigate the various perspectives
of teaching business ethics nationally and abroad, and discussed the teaching of ethics
where the focus is placed on the teaching of business ethics at an undergraduate level.
Various approaches were investigated, and the definition of ethics and the various
theories surrounding it were always taken into account.
The chapter concluded by discussing the criticism of the teaching of business ethics
from a South African perspective as the approaches that were given may not
necessarily work within a South African context.
9.2.6 Chapter 6 – Research methodology
Chapter 6 provided the background to the research methodology that was used in this
study.
This chapter initially provided the reader with some thoughts on research design,
incorporating issues such as qualitative and quantitative research. The quality of
measurement was also discussed, and the issues of reliability and validity specific to this
study were also looked at. The chapter furthermore provided an overview of the design
of the survey instrument, which was then also investigated within the ambit of the
empirical study in Chapter 7.
Summary, conclusion and recommendations
CHAPTER 9 360
Discussions surrounding issues such as the questionnaire layout, the issue of pre-
testing, sampling approach, administration, data analysis, research ethics and
confidentiality were also provided.
9.2.7 Chapter 7 – Empirical analysis
Chapter 7 continued with a detailed and logical analysis of all the sections of the
questionnaire used in the empirical study.
9.2.8 Chapter 8 – Attitudes of undergraduate students toward
continuous professional development of ethics
Chapter 8 took the findings of the empirical study done in Chapter 7 and interpreted
these in order to determine the attitudes and perceptions of prospective CAs toward
CPD of ethics at an undergraduate level.
9.3 FINDINGS OF THE STUDY
The following is a summary of these findings based on the objectives set for the study
in Chapter 1. These findings are merely summarised here as part of the documentation
of the summary of the study. These have been discussed in great detail in Chapter 8 of
this study.
9.3.1 Demarcate the CA and the profession by way of
undergraduate students’ perceptions
In terms of the CA and his/her profession, it was noted that CAs:
should be regarded as professionals once they have completed the required
basic training;
are continuously challenged to maintain competence;
should act in accordance with applicable professional ethical standards;
should have an ethical obligation to their clients, employers and stakeholders;
should strive to have high ethical standards;
should learn continuously, and their education should encourage a culture of
Summary, conclusion and recommendations
CHAPTER 9 361
LLL;
will be able to focus on continuous learning throughout their career if they have
learnt how to do this as part of their basic training; and
need more than just a mere transfer of knowledge in a basic education
programme.
9.3.2 Determine undergraduate students’ perceptions of CPD, LLL
and ethics within the framework of a CA and his/her
undergraduate education
In terms of the CPD for CAs it was noted that:
CPD implies further training in professional values, ethics and attitudes;
the benefits derived from CPD programmes depend on the personal attitude of
the CA;
a training programme for CAs should provide students with the necessary skills
to learn by themselves and at their own pace;
CPD for CAs is critical, as it may provide an assurance of professional service;
and
CPD should be a condition of a CA’s continued membership of a professional
body but also to ensure a maintained public confidence in the profession.
In terms of the LLL of CAs it was noted that LLL implies a desire to:
go beyond the minimum by continuing to learn and develop additional skills;
incorporate better professional judgement but also continuously refine
professional knowledge, skills, values, ethics and attitudes; and
incorporate professional ethical values in performance and also a continuous
acquisition of ethics as one works in practice after qualification.
In terms of the ethics education of CAs it was noted that ethics education:
enhances a student’s ability to judge a situation and strengthens a student’s
Summary, conclusion and recommendations
CHAPTER 9 362
moral reasoning skills;
provides students with the necessary skills required in practice as well as a basic
understanding of the morals of the profession; and
provides a competitive advantage for CAs, as it heightens a student’s awareness
of ethical issues in professional practice.
9.3.3 Investigate the perceived core values within the CA
profession
Based on the perceptions from respondents, it became clear that there are certain core
values that a CA needs within the profession. He/she needs to:
be trustworthy;
be reliable;
show integrity;
be objective;
have professional competence; and
have high ethical standards.
9.3.4 Analyse certain aspects of the education and training of CAs
at RAU
In section 7.8.2 it was mentioned that in only one out of the ten statements posed as
part of the section aspects of the education and training of chartered
accountants at RAU did the majority of respondents indicate a response of ‘strongly
agree’. In the others, more than half of the responses only ‘agreed’.
In section 9.5 some specific recommendations on this issue will be given.
Nonetheless, based on the perceptions from respondents, it is clear that in terms of the
education and training of CAs at RAU, emphasis is placed on the:
development of the necessary skills for CPD of CAs;
professional values, ethics and attitudes for CPD of CAs; and
Summary, conclusion and recommendations
CHAPTER 9 363
development of professional values, ethics and attitudes in the training of CAs.
9.4 CONCLUSIONS
As was initially shown in this study, the goal of accounting education is to produce
competent CAs capable of making a positive contribution over their lifetimes to the
profession and society in which they work. Professional undergraduate education
programmes share the responsibility of preparing competent graduates who will
successfully make the transition to the world of Chartered Accountancy. To maintain
this professional competence, however, it is essential that CAs develop and maintain an
attitude of ‘learning to learn’ using CPD in striving towards an attitude of LLL.
The empirical study in Chapter 7 clearly showed that undergraduate students’
perceptions of CPD, LLL and ethics tend to be commensurate with the developmental
outcomes mentioned in Chapter 1. They agreed that they should be able to:
reflect on and explore a variety of strategies to learn more effectively in their
undergraduate education phase to become a CA;
participate as responsible citizens in the life of local, national and global
communities by having an in-depth understanding and applicative knowledge of
the professional values, ethics and attitudes pertaining to a CA; and
be culturally and aesthetically sensitive across a range of social contexts,
including within the education they receive as prospective CAs.
Additional aspects of the results from this study that need highlighting are:
in addition to acquiring the required theoretical knowledge and skills in order to
be regarded as competent, today's CAs need other skills;
competency includes various professional values, ethics and attitudes;
the education and training of CAs should:
o provide a foundation of various professional skills and ethical values;
o encourage a culture of LLL;
Summary, conclusion and recommendations
CHAPTER 9 364
o be seen as a process rather than a course;
education and training should:
o entail prospective CAs being skilled in the use of CPD by way of a SDL or
PBL approach;
o enable CAs to focus on continued learning throughout their career if they
have learnt how to engage in SDL as part of their basic undergraduate
education; and
o follow an integrated approach with regard to professional ethics, values
and attitudes involving more than a mere transfer of knowledge.
9.5 RECOMMENDATIONS
As was discussed in Chapter 3, learning is often defined and measured in terms of
knowledge of facts, concepts or principles. This ‘transfer of knowledge’ should
therefore focus on a process where students are provided with the capacity to continue
to learn outside the formal education environment by way of SDL.
In the descriptive analysis of data taken from Section B6 of the questionnaire,
students only ‘agreed’ that at RAU an emphasis is placed on the development of
professional values, ethics and attitudes in the training of CAs and furthermore an
emphasis on professional values, ethics and attitudes for CPD of CAs.
Educators involved in the undergraduate education of prospective CAs at the UJ can
play an ever more important role in assisting and supporting the eventual CPD process,
by way of:
allowing prospective CAs to be better self-directed learners by providing
opportunities for self-direction in group activities; and
providing assistance to individual self-directed learners in attempting the CPD of
ethics.
Summary, conclusion and recommendations
CHAPTER 9 365
As was pointed out in section 5.5.6 of this study, current realities at the UJ, which
include the current infrastructure and excessive student numbers, do not allow for the
effective use of group activities or providing individual assistance to students, for
example.
For the greatest lasting effect, teaching prospective CAs in the steps of SDL in
completing a CPD activity should be done as frequently as possible in the
undergraduate education programmes of CAs, but it could also be incorporated into
specific CPD events. Examples may include:
providing workshops on searching the literature effectively in order to gain the
required knowledge and skill;
explicitly demonstrating critical appraisal during CPD lectures; and
using problem-based assessment that requires CPD participants to apply the
acquired knowledge in practice. Some regularly used CPD formats may already
emphasise learner control (which was discussed in section 3.3.4) – for example,
case-based learning, traineeships, practice audit and review and the use of
learning portfolios.
All prospective CAs should incorporate some or all of the components of self-direction
with the preparation to participate in CPD. The SDL or PBL construct is primarily based
on the individual learner’s attitudes and values, while it must still be acknowledged that
the objectives of LLL are related to the individual learner’s responsibility and work-force
development, and also that individual learners’ differences have to be taken into
account (see sections 3.3.5.4 and 3.3.8).
As was shown in section 3.2.2.1, SAICA also feels that higher education institutions
should encourage the development of LLL by, inter alia, making learners take
responsibility for their own learning and become active participants in the learning
process.
Summary, conclusion and recommendations
CHAPTER 9 366
An encouragement to use SDL may be that CPD participation can reward and
encourage learners through accreditation of these learner-managed activities. Section
5.4.7.4 stated that an active learning experience may be perceived as interesting and
even exciting by students. An active learning approach may also encourage students to
be active participants in the whole learning process (section 3.2.1).
Educators can furthermore encourage CPD and LLL by creating a climate of inquiry and
reflection as part of the teaching and learning process. They can assist students to
clarify their questions, locate resources and evaluate the information acquired.
Educators can role-model their own SDL/LLL and can provide feedback that encourages
self-direction.
Allowing undergraduate students to engage in activities that promote CPD and LLL
through SDL may mean that the UJ will be able to focus more on courses that include
aspects of professional ethics and values applicable to CAs, thereby providing the
undergraduate student with an enhanced value-added approach to learning and
learning to learn.
CAs will be able to focus on the continued acquiring of aspects of ethics throughout
their career if they have learnt how to do this as part of their undergraduate education
programme. Section 5.5.2 accepted that the required ‘technical detail’ needs to be
taught to undergraduate students as part of the CA curriculum. Incorporating and
integrating business ethics into the CA curriculum is fundamental. However, as was
pointed out, this should not be viewed as an ‘add on’ to an already-crowded curriculum
whereby a superficial overview of aspects of professional values, ethics and attitudes
are merely ‘included’ but not ‘incorporated’ into the curriculum. This therefore also
means that the teaching of business ethics should, by default, be done by academics
within the Department of Accounting and not necessarily by someone with extensive
knowledge of ethics – the focus here should be on business ethics and not just ethics
per se.
Summary, conclusion and recommendations
CHAPTER 9 367
9.6 SCOPE FOR FURTHER RESEARCH
This study was exploratory in nature, and this therefore implies that many of the
findings have to be explored further. Very often the study found that undergraduate
students had very peculiar perceptions of CPD, LLL and ethics. It may be of interest for
these perceptions to be researched in terms of the underlying phenomena present.
The questionnaire that was developed for this study may also be taken forward and
used in a longitudinal study of perceptions amongst undergraduate students towards
CPD, LLL and ethics.
A further aspect that needs urgent attention is research amongst auditing lecturers at
higher education institutions and their understanding of the need to teach ethics and
the best way to do it.
---o0o---
368
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413
APPENDIX A
APPENDIX A 414
Please note that certain terms have been highlighted for cross-referencing purposes.
TABLE A1: Glossary of terms
Assessment All forms of tests of professional competence, whether in writing or
otherwise, including examinations, carried out at any time throughout the
learning process.
Candidate Any individual who is enrolled for assessment as part of a professional
accountancy education program.
A candidate is an individual who is undergoing, or about to undergo, a formal assessment
as part of accountancy education. The term refers to an individual who is still in the
process of demonstrating the capabilities or competences required for a particular purpose
(e.g. professional examination). The assessment may relate to either a programme for
qualifying as a professional (chartered) accountant or a post-qualifying education
programme. The term does not relate to an individual at the stage following completion
of an education programme (i.e., it excludes those who have completed the requirements
for membership of a professional body and are in the process of applying for
membership).
Capabilities The professional knowledge; professional skills; and professional values,
ethics, and attitudes required to demonstrate competence.
Capabilities are the attributes held by individuals that enable them to perform their roles,
whereas competence refers to the actual demonstration of performance. The possession
of capabilities gives an indication that an individual has the ability to perform competently
in the workplace. Capabilities include content knowledge; technical and functional skills;
behavioural skills; intellectual abilities (including professional judgement); and professional
values, ethics, and attitudes. They are sometimes referred to, in other literature, as
competencies, capacities, abilities, key skills, core skills, fundamental skills and values,
attitudes, distinguishing characteristics, pervasive qualities, and individual attributes.
Competence Being able to perform a work role to a defined standard, with reference
to real working environments.
Competence refers to the demonstrated ability to perform relevant roles or tasks to the
required standard. Whereas capability refers to the attributes held by individuals that give
them the potential to perform, competence refers to the actual demonstration of
performance. Competence may be assessed by a variety of means, including workplace
performance, workplace simulations, written and oral tests of various types, and self-
assessment.
APPENDIX A 415
Continuing
Professional
Development
(CPD)
Learning activities for developing and maintaining the capabilities of
professional accountants to perform competently within their
professional environments.
Continuing (or continuous) professional development is aimed at the post-qualification
development and maintenance of professional competence. It involves the development
of capabilities through either formal and verifiable learning programmes (sometimes
referred to as “continuing professional education”) – CPE or informal learning activity.
Development 1. The acquisition of capabilities, which contribute to competence.
2. The state at which capabilities have been acquired.
Development, as a process, refers to the growth of capabilities, which contribute to
competence, however achieved. Individuals may develop their abilities through a wide
range of processes such as learning, including education and training; experience;
reflection; observation or receipt of information; or through natural growth over time.
Development may also refer to the final stage of growth at which an individual is
considered to be fully developed, as a result of the development process. However, it is
recognised that, with the need for continual learning, the process of developing one’s
capabilities and the subsequent reaching of a targeted stage of development are not fixed
or permanent states.
Education A systematic process aimed at developing knowledge, skills, and other
capabilities within individuals. It includes “training.”
Education is a systematic learning process whereby individuals develop capabilities
considered desirable by society. Education is usually characterised by the growth of an
individual’s mental and practical abilities, as well as maturing in attitude, resulting in his or
her enhanced ability to function and contribute to society, in either specific or non-specific
contexts. While often conducted in academic environments, education also includes
systematic learning processes in other environments, such as on-the-job and off-the-job
training. Education is, by its nature, somewhat planned and structured and therefore
excludes casual, unsystematic learning and developmental processes.
Good practice Those elements considered essential to the education and development
of professional accountants and performed at a standard necessary to
the achievement of competence.
“Good practice” relates not only to the range of content and processes of education and
development programmes, but also to the level or standard at which they are performed
(i.e., the depth and quality of the programmes). The IFAC Education Committee is
conscious of the wide diversity of culture; language; and educational, legal, and social
APPENDIX A 416
systems in the countries of the member bodies and of the variety of functions performed
by accountants. Different factors within these environments may cause variation in the
ability of member bodies to adopt some aspects of “good practice.” Nevertheless, member
bodies should continuously aspire to “good practice” and achieve it wherever possible.
Higher
education
Education beyond secondary school level, usually at universities or
colleges.
Primary and secondary education refers to the mainly compulsory element of schooling
required by the governments of many countries. “Higher” education refers to a third
order of education, which succeeds secondary education and for which a secondary
education qualification (or equivalent) is often a prerequisite. It is at a higher level than
“higher secondary” or “upper secondary” education and is sometimes referred to as
“tertiary education.”
Information
technology
Hardware and software products, information system operations and
management processes, and the human resources and skills required to
apply those products and processes to the task of information production
and information system development, management and control.
Learning A broad range of processes whereby an individual acquires capabilities.
Learning can be achieved by systematic and relatively formal processes such as education
(including training) or processes such as day-to-day work experience, reading published
material, observation, and reflection, for which the process of acquiring capabilities tends
to be less systematic and relatively informal.
Post-
qualification
The period after qualification as an individual member of an IFAC
member body such as SAICA.
The term “post-qualification” is usually associated with activities and requirements relating
to the professional development of those who have already obtained a professional
qualification. It is often associated with activities relating to the maintenance or further
development of professional competence. While “post-qualification” refers to the period
after qualifying as a professional accountant, the term is not restricted to formal
qualifications obtained after qualifying as a professional accountant.
Practical
experience
Work experience undertaken by a trainee or a qualified professional
accountant that is relevant to the work of professional accountants.
The programme of experience enables the individual’s development of
professional competence (including professional behaviour) in the
workplace and provides a means whereby individuals can demonstrate
the achievement of professional competence in the workplace.
APPENDIX A 417
Pre-
qualification
The period before qualification as an individual member of an IFAC
member body.
The term “pre-qualification” is usually associated with activities and requirements relating
to the development of those who have not yet obtained a professional qualification.
Professional
accountant
A person who is a member of an IFAC member body. For the purposes
of this study, only chartered accountants will be used as an example.
Professional
accountancy
education
Education that builds on general education and imparts professional
knowledge, professional skills, and professional values, ethics, and
attitudes. It may or may not take place in an academic environment.
Professional
knowledge
Those topics that make up the subject of accountancy as well as other
business disciplines that together, constitutes the essential body of
knowledge for professional accountants.
Professional
skills
The various types of abilities required to apply professional knowledge,
and professional values, ethics, and attitudes appropriately and effectively
in a professional context.
Professional accountants are required to possess a range of skills, including technical and
functional skills, organisational and business management skills, personal skills,
interpersonal and communication skills, a variety of intellectual skills, and skills in forming
professional judgements.
Professional
values, ethics
and attitudes
The professional behaviour and characteristics that identify professional
accountants as members of a profession. They include the principles of
conduct (i.e., ethical principles) generally associated with, and considered
essential in defining the distinctive characteristics of, professional
behaviour.
Professional values, ethics, and attitudes include a commitment to technical competence,
ethical behaviour (e.g., independence, objectivity, confidentiality, and integrity),
professional manner (e.g., due care, timeliness, courteousness, respect, responsibility,
and reliability), pursuit of excellence (e.g., commitment to continual improvement and
lifelong learning), and social responsibility (e.g., awareness and consideration of the public
interest).
Qualification Qualification as a professional accountant means, at a given point in time,
an individual is considered to have met, and continues to meet, the
requirements for recognition as a professional accountant.
APPENDIX A 418
Qualification is the formal recognition of an individual as having attained a professional
designation, or having been admitted to a class of professional membership, that signifies
that the individual is a professional accountant. Qualification implies that the individual
has been assessed as competent in terms of meeting the requirements prescribed for
obtaining professional accountant status. While the term “qualification” can be applied to
various stages of professional development and classes of membership, its usage in IFAC
Education Committee documents (unless otherwise indicated) relates to the benchmark
for recognition as a professional accountant.
Student An individual following a course of study, including a trainee.
In the context of professional education, a student is an individual undertaking a course or
programme of study deemed necessary for the education of professional accountants,
whether general or professional in nature.
Trainee An individual undertaking pre-qualification work experience and training
within the workplace.
A trainee is an individual who is undertaking a practical experience or workplace training
programme for qualification as a professional accountant.
Training Pre- and post-qualification educational activities, within the context of the
workplace, aimed at bringing a student or professional accountant to an
agreed level of professional competence.
Training includes workplace-based education and experience activities for developing an
individual’s competence to perform tasks relevant to the role of the professional
accountant. Training may be undertaken while an individual performs actual tasks (on-
the-job training) or indirectly through instruction or workplace simulation (off-the-job
training). Training is conducted within the context of the workplace, with reference to the
specific roles or tasks performed by professional accountants. It can include any activity
purposefully designed to improve the ability of an individual to fulfil the practical
experience requirements for qualification as a professional accountant.
SOURCE: IFAC, 2003a: 14-24
* Terms are highlighted for cross-referencing purposes
---o0o---
419
APPENDIX B
APPENDIX B 420
DEPARTMENT OF ACCOUNTANCY
Project Ω
EMPIRICAL STUDY FOR RESEARCH PURPOSES
For many years RAU has been at the forefront in the training of chartered accountants and it is
committed to ensuring the continued high standards of education in the training and education of
chartered accountants. Much research is still needed to understand and improve the way potential
chartered accountants are educated and trained.
Over the past years learning has also not been confined to a classroom and textbooks. In order to
ensure that all chartered accounting students experience a practical approach to their course,
Project Omega has been incorporated into the course curriculum. Project Omega requires
students to “learn” in a way other than by studying for an examination or a test.
This questionnaire has been designed to elicit students’ opinions about certain aspects of learning
as well as ethics within the profession. As Project Omega can be classified as a form of
experiential learning, the questionnaire will also deals with some aspects of ethics and learning.
This questionnaire forms part of a research project being done by RAU in conjunction with the
South African Institute of Chartered Accountants (SAICA) and focuses on ethics, learning and
continuous professional development. The researcher is a senior lecturer in the Department of
Accountancy and the data collected with this questionnaire will be used for the completion of a
doctoral thesis on the issue of ethics and continuous professional development.
After the completion of Project Omega, you will be asked to complete a follow-up questionnaire.
Details of this part of the research will be given at a later stage.
APPENDIX B 421
INSTRUCTIONS
Please complete this questionnaire as honestly and truthfully as you can. We are
interested in your opinion and hence there is no correct or wrong answer to any
opinion-related question.
The personal information requested from respondents at the beginning of the
questionnaire is required for statistical and comparative purposes ONLY. No
information of any nature will be divulged to anybody other than the researcher.
Your input is very important to us!
All questions, where applicable, relate to the various courses (i.e. Accounting,
Auditing, Financial Management and Tax) included in the first semester of all
B.Com (Accounting) third-year students.
APPENDIX B 422
SECTION A 1. What is your student number?
(This information will only be used to facilitate comparisons. Your response will be treated confidentially.)
2. What is your gender? (Please mark with
an .) Male (M) Female (F)
3. In which year did you matriculate?
I took the subject at
4. For each of the following subjects, indicate (using an ) whether you took the subject at higher or standard grade or not at all. If you took the subject, indicate the final symbol you obtained in matric in the space provided.
I did not take the subject.
HG SG
Symbol obtained
Accounting 11 21 31 41
Mathematics 12 22 32 42
Afrikaans First Language 13 23 33 43
Afrikaans Second Language 14 24 34 44
English First Language 15 25 35 45
English Second Language 16
26 36
46
5. In which year did you commence with your
under-graduate studies?
Grade 12 1
Post-school diploma 2
Post-school certificate 3
Undergraduate degree 4
6. What is currently your highest educational qualification? (Please mark with an .)
Post-graduate degree 5
APPENDIX B 423
SECTION B
The following questions relate to some general statements regarding chartered
accountants and its profession. Consider each of the following statements and then
indicate the extent to which you agree / disagree with the statement. Judge each statement
using the following 4-point scale where Strongly agree = 1; Agree = 2; Disagree = 3; and
Strongly disagree = 4.
STATEMENT
Str
on
gly
ag
ree
Ag
ree
Dis
ag
ree
Str
on
gly
d
isag
ree
7. Chartered accountants should learn continuously. 1 2 3 4
8. Training programmes for chartered accountants should follow an
integrated approach with regard to professional ethics, values and
attitudes.
1 2 3 4
9. A chartered accountant will be able to focus on continued learning
throughout his/her career if he/she learnt how to do this as part of
his/her training.
1 2 3 4
10. Chartered accountants should have high ethical standards. 1 2 3 4
11. Chartered accountants should continually adapt to change. 1 2 3 4
12. The education of chartered accountants should provide a foundation of
ethical values.
1 2 3 4
13. Chartered accountants have an ethical obligation to their clients,
employers and stakeholders.
1 2 3 4
14. Chartered accountants are regarded as professionals once they have
completed the required basic training.
1 2 3 4
15. Chartered accountants should act in accordance with applicable
professional ethical standards.
1 2 3 4
16. A training programme for chartered accountants should be more than a
mere transfer of knowledge.
1 2 3 4
17. A professional chartered accountant is the same as an ethical chartered
accountant.
1 2 3 4
18. The education of chartered accountants should cultivate a culture of life-
long learning.
1 2 3 4
19. The credibility of chartered accountants depends on an ethical approach
to the work they do.
1 2 3 4
20. Chartered accountants only need sufficient theoretical knowledge for
qualification purposes.
1 2 3 4
21. The teaching of professional values and ethics at an under-graduate
level should be seen as a process rather than a course.
1 2 3 4
22. The education of chartered accountants should provide a basic
foundation of knowledge.
1 2 3 4
23. Competency is a critical issue in the chartered accountant’s profession. 1 2 3 4
24. Chartered accountants are trusted professionals. 1 2 3 4
APPENDIX B 424
STATEMENT
Str
on
gly
ag
ree
Ag
ree
Dis
ag
ree
Str
on
gly
d
isag
ree
25. The education of chartered accountants should only entail relevant
theoretical knowledge at a given point in time.
1 2 3 4
26. The competency of chartered accountants also includes their
professional values, ethics and attitudes.
1 2 3 4
27. In addition to acquiring theoretical knowledge and skills, today's
chartered accountants need other skills.
1 2 3 4
28. The education of chartered accountants should enable them to adapt to
change.
1 2 3 4
29. The education of chartered accountants should provide a foundation of
various professional skills.
1 2 3 4
30. Chartered accountants enable organisations to shape their financial
future.
1 2 3 4
31. Chartered accountants are continuously challenged to maintain
competence.
1 2 3 4
APPENDIX B 425
The following questions relate to aspects of continuous professional development of
chartered accountants. Consider each of the following statements and then indicate the
extent to which you agree / disagree with the statement. Judge each statement using the
following 4-point scale where Strongly agree = 1; Agree = 2; Disagree = 3; and Strongly
disagree = 4.
STATEMENT
Str
on
gly
ag
ree
Ag
ree
Dis
ag
ree
Str
on
gly
d
isag
ree
32. The continuous professional development of chartered accountants is
critical.
1 2 3 4
33. Recent corporate collapses (e.g. Enron) can be attributed to the
unethical behaviour of chartered accountants.
1 2 3 4
34. Continuous professional development provides an assurance of
professional service.
1 2 3 4
35. The continuous professional development of chartered accountants will
avert corporate collapses.
1 2 3 4
36. The benefits derived from continuous professional development
programmes depend on the attitude of the chartered accountant.
1 2 3 4
37. Continuous professional development means realigning one’s
professional values and attitudes.
1 2 3 4
38. Continuous professional development must be a requirement for all
chartered accountants in order to maintain the public’s confidence in
the profession.
1 2 3 4
39. Continuous professional development should be a condition of a
chartered accountant’s continued membership to a professional body.
1 2 3 4
40. Continuous professional development refers to learning activities
following qualification.
1 2 3 4
41. The emphasis of continuous professional development means a
foundation for lifelong learning.
1 2 3 4
42. Continuous professional development implies further training in
professional values, ethics and attitudes.
1 2 3 4
43. Continuous professional development is aimed at the post-qualification
maintenance of professional competence.
1 2 3 4
44. A training programme for chartered accountants should provide
students with the necessary skills to learn by themselves and at their
own pace.
1 2 3 4
45. Continuous professional development should be seen as an extension of
the education process that led to the initial qualification as a chartered
accountant.
1 2 3 4
APPENDIX B 426
The following questions relate to aspects of lifelong learning of chartered accountants.
Consider each of the following statements and then indicate the extent to which you agree /
disagree with the statement. Judge each statement using the following 4-point scale where
Strongly agree = 1; Agree = 2; Disagree = 3; and Strongly disagree = 4.
STATEMENT
Str
on
gly
ag
ree
Ag
ree
Dis
ag
ree
Str
on
gly
d
isag
ree
Lifelong learning implies a …
46. desire and ability to continue to learn. 1 2 3 4
47. continuous refinement of professional knowledge, skills, values, ethics
and attitudes.
1 2 3 4
48. desire and ability to adapt and develop skills. 1 2 3 4
49. thorough foundation of professional values, ethics and attitudes
associated with continuous professional development.
1 2 3 4
50. desire to go beyond the minimum. 1 2 3 4
51. thorough foundation of professional values, ethics and attitudes in an
under-graduate environment.
1 2 3 4
52. desire to incorporate better professional judgement. 1 2 3 4
53. desire to incorporate professional ethical values in performance. 1 2 3 4
54. continuous acquisition of ethics as one works in practice after
qualification.
1 2 3 4
APPENDIX B 427
The following questions concern aspects of ethics related to chartered accountants.
Consider each of the following statements and then indicate the extent to which you agree /
disagree with the statement. Judge each statement using the following 4-point scale where
Strongly agree = 1; Agree = 2; Disagree = 3; and Strongly disagree = 4.
STATEMENT
Str
on
gly
ag
ree
Ag
ree
Dis
ag
ree
Str
on
gly
d
isag
ree
55. Ethics education heightens a student’s awareness of ethical issues
in professional practice.
1 2 3 4
56. Ethics is a gut feel that everybody is born with. 1 2 3 4
57. Ethics education strengthens a student’s moral reasoning skills. 1 2 3 4
58. Ethics education provides a basic understanding of the morals of
the profession.
1 2 3 4
59. Ethics education enhances a student’s ability to judge a situation. 1 2 3 4
60. Ethics education provides students with the necessary skills
required in practice.
1 2 3 4
61. Ethics education is a “moral conversion process”. 1 2 3 4
62. Ethics education provides a competitive advantage for chartered
accountants.
1 2 3 4
63. Ethics education is the responsibility of the tertiary institution, not
the company and its management.
1 2 3 4
64. Professional ethics is a contradiction. 1 2 3 4
65. There is no need for ethics education in the under-graduate training
of chartered accountants.
1 2 3 4
APPENDIX B 428
Chartered accountants should demonstrate/have certain core values within their profession.
How important do you believe each of the following core values is? Indicate your answer
using the scale provided where Not important = 1; Somewhat important = 2; Important = 3;
and Very important = 4.
STATEMENT No
t im
po
rtan
t
So
mew
hat
imp
ort
an
t
Imp
ort
an
t
Very
im
po
rtan
t
How important is it for a chartered accountant to …
66. learn the skills of continuous professional development? 1 2 3 4
67. be a life-long learner? 1 2 3 4
68. have professional competence? 1 2 3 4
69. have ethical standards? 1 2 3 4
70. show integrity? 1 2 3 4
71. be trustworthy? 1 2 3 4
72. be reliable? 1 2 3 4
73. be objective? 1 2 3 4
APPENDIX B 429
The following questions relate to aspects of the education of chartered accountants at
the Rand Afrikaans University. Consider each of the following statements and then
indicate the extent to which you agree / disagree with the statement. Judge each statement
using the following 4-point scale where Strongly agree = 1; Agree = 2; Disagree = 3; and
Strongly disagree = 4.
STATEMENT
Str
on
gly
ag
ree
Ag
ree
Dis
ag
ree
Str
on
gly
d
isag
ree
74. The professional values, ethics and attitudes highlighted by
professional bodies are apparent in the academic programmes at RAU.
1 2 3 4
75. RAU focuses on courses, which include aspects of professional ethics
and values applicable to chartered accountants.
1 2 3 4
76. At RAU, emphasis is placed on the development of professional
values, ethics and attitudes in the training of chartered accountants.
1 2 3 4
77. RAU focuses on discipline-specific courses, covering various applicable
international issues pertaining to the role of the chartered accountant.
1 2 3 4
78. At RAU, emphasis is placed on the development of the necessary skills
for continuous professional development of chartered accountants.
1 2 3 4
79. RAU offers courses that provide skills necessary in the application
computer software.
1 2 3 4
80. At RAU, emphasis is placed on the professional values, ethics and
attitudes for continuous professional development of chartered
accountants.
1 2 3 4
81. RAU uses educators who are skilled in the professional values, ethics
and attitudes pertaining to chartered accountants.
1 2 3 4
82. A definite focus on recent professional ethical conundrums, corporate
collapses and mounting stakeholder pressure is evident in the courses
offered at RAU.
1 2 3 4
83. RAU focuses on courses to enhance the value-added approach of
chartered accountants.
1 2 3 4
THANK YOU FOR PARTICIPATING!
430
APPENDIX C
APPENDIX C 431
TABLE C1: Student profile distributed by gender
Frequency
( f )
Percent
(%)
Valid Percent
(%)
Cumulative
Percent (%)
Male 241 49.1 49.1 49.1
Female 250 50.9 50.9 100.0
Valid
TOTAL 491 100.0 100.0
SOURCE: SPSS Output
TABLE C2: Year of matriculation according to respondents
Frequency
( f )
Percent
(%)
Valid Percent
(%)
Cumulative
Percent (%)
Valid 1972 1 0.2 0.2 0.2
1986 1 0.2 0.2 0.4
1989 3 0.6 0.6 1.0
1991 1 0.2 0.2 1.2
1992 4 0.8 0.8 2.0
1994 2 0.4 0.4 2.5
1995 3 0.6 0.6 3.1
1996 7 1.4 1.4 4.5
1997 10 2.0 2.0 6.5
1998 12 2.4 2.5 9.0
1999 44 9.0 9.0 18.0
2000 100 20.4 20.4 38.4
2001 301 61.3 61.6 100.0
Total 489 99.6 100.0
Missing 2 0.4
TOTAL 491 100.0
SOURCE: SPSS Output
APPENDIX C 432
TABLE C3: Year matriculated * Gender Cross-tabulation
Gender
Male Female Total
1972 1 0 1
1986 1 0 1
1989 1 2 3
1991 1 0 1
1992 1 3 4
1994 1 1 2
1995 3 0 3
1996 3 4 7
1997 5 5 10
1998 6 6 12
1999 24 20 44
2000 51 49 100
Year matriculated
2001 142 159 301
Total 240 249 489
SOURCE: SPSS Output
(n = 489; two respondents did not provide this information)
TABLE C4: Educational qualification * Gender Cross-tabulation
Gender
Male Female Total
Grade 12 219 223 442
Post-school diploma 10 9 19
Post-school certificate 2 2 4
Under-graduate degree 9 16 25
Educational
qualification
Post-graduate degree 1 0 1
Total 241 250 491
SOURCE: SPSS Output
---o0o---
433
APPENDIX D
APPENDIX D 434
TABLE D1a: Descriptive statistics – Section B, Area 1
(Item 7 [U1] – Item 19 [U13])
U1 U2 U3 U4 U5 U6 U7 U8 U9 U10 U11 U12 U13
Valid 490 490 490 491 491 491 491 491 491 491 491 491 491 N
Missing 1 1 1 0 0 0 0 0 0 0 0 0 0
Range 3 2 3 2 3 3 2 3 1 3 3 3 2
Minimum 1 1 1 1 1 1 1 1 1 1 1 1 1
Maximum 4 3 4 3 4 4 3 4 2 4 4 4 3
Mean 1.42 1.49 1.60 1.17 1.39 1.46 1.19 1.62 1.24 1.38 2.12 1.70 1.51
Median 1.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00
Mode 1 1 1(a) 1 1 1 1 1 1 1 2 2 1
Standard deviation .557 .516 .629 .395 .517 .589 .406 .720 .430 .568 .931 .585 .597
Variance .310 .267 .395 .156 .268 .347 .165 .518 .185 .323 .868 .342 .356
Skewness 1.095 .236 .694 2.029 .837 .988 1.879 .847 1.193 1.298 .402 .301 .700
Standard error of
skewness .110 .110 .110 .110 .110 .110 .110 .110 .110 .110 .110 .110 .110
Kurtosis 1.414 -1.523 .232 3.009 .005 .620 2.334 -.118 -.579 1.429 -.753 .081 -.471
Standard error of
kurtosis .220 .220 .220 .220 .220 .220 .220 .220 .220 .220 .220 .220 .220
SOURCE: SPSS Output
* (a) Multiple modes exist; the smallest value is shown.
APPENDIX D 435
TABLE D1b: Descriptive statistics – Section B, Area 1
(Item 20 [U14] – Item 31 [U25])
U14 U15 U16 U17 U18 U19 U20 U21 U22 U23 U24 U25
Valid 490 491 488 490 491 490 491 491 491 489 490 490 N
Missing 1 0 3 1 0 1 0 0 0 2 1 1
Range 3 3 3 2 3 3 3 2 2 2 3 3
Minimum 1 1 1 1 1 1 1 1 1 1 1 1
Maximum 4 4 4 3 4 4 4 3 3 3 4 4
Mean 2.96 1.74 1.80 1.38 1.55 2.81 1.54 1.38 1.45 1.45 1.58 1.50
Median 3.00 2.00 2.00 1.00 1.00 3.00 2.00 1.00 1.00 1.00 2.00 1.00
Mode 3 2 2 1 1 3 1 1 1 1 2 1
Standard deviation .885 .642 .658 .530 .679 .774 .557 .519 .530 .519 .589 .573
Variance .784 .413 .434 .280 .461 .598 .310 .269 .281 .269 .346 .328
Skewness -.595 .482 .580 .958 1.052 -.449 .455 .842 .514 .406 .504 .745
Standard error of
skewness .110 .110 .111 .110 .110 .110 .110 .110 .110 .110 .110 .110
Kurtosis -.310 .188 .736 -.200 .666 .022 -.388 -.543 -1.036 -1.327 -.306 .307
Standard error of
kurtosis .220 .220 .221 .220 .220 .220 .220 .220 .220 .220 .220 .220
SOURCE: SPSS Output
APPENDIX D 436
TABLE D2: Frequency distribution – Section B, Area 1 [U]
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
U1 Chartered accountants should learn continuously. 296 60.3 60.4 60.4 184 37.5 37.6 98.0 7 1.4 1.4 99.4 3 .6 .6 100.0 1 491 100.0
U2 Training programmes for chartered accountants should follow an integrated approach with regard to professional ethics, values and attitudes.
256 52.1 52.2 52.2 230 46.8 46.9 99.2 4 .8 .8 100.0 1 491 100.0
U3 A chartered accountant will be able to focus on continued learning throughout his/her career if he/she learnt how to do this as part of his/her training.
229 46.6 46.7 46.7 229 46.6 46.7 93.5 29 5.9 5.9 99.4 3 .6 .6 100.0 1 491 100.0
U4 Chartered accountants should have high ethical standards.
409 83.3 83.3 83.3 79 16.1 16.1 99.4 3 .6 .6 100.0 491 100.0
U5 Chartered accountants should continually adapt to change.
304 61.9 61.9 61.9 182 37.1 37.1 99.0 4 .8 .8 99.8 1 .2 .2 100.0 491 100.0
U6 The education of chartered accountants should provide a foundation of ethical values.
286 58.2 58.2 58.2 185 37.7 37.7 95.9 18 3.7 3.7 99.6 2 .4 .4 100.0 491 100.0
APPENDIX D 437
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
U7 Chartered accountants have an ethical obligation to their clients, employers and stakeholders.
402 81.9 81.9 81.9 86 17.5 17.5 99.4 3 .6 .6 100.0 491 100.0
U8 Chartered accountants are regarded as professionals once they have completed the required basic training.
252 51.3 51.3 51.3 178 36.3 36.3 87.6 57 11.6 11.6 99.2 4 .8 .8 100.0 491 100.0
U9 Chartered accountants should act in accordance with applicable professional ethical standards.
371 75.6 75.6 75.6 120 24.4 24.4 100.0 491 100.0
U10 A training programme for chartered accountants should be more than a mere transfer of knowledge.
321 65.4 65.4 65.4 153 31.2 31.2 96.5 15 3.1 3.1 99.6 2 .4 .4 100.0 491 100.0
U11 A professional chartered accountant is the same as an ethical chartered accountant.
145 29.5 29.5 29.5 185 37.7 37.7 67.2 119 24.2 24.2 91.4 42 8.6 8.6 100.0 491 100.0
U12 The education of chartered accountants should cultivate a culture of life-long learning.
179 36.5 36.5 36.5 284 57.8 57.8 94.3 26 5.3 5.3 99.6 2 .4 .4 100.0 491 100.0
APPENDIX D 438
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
U13 The credibility of chartered accountants depends on an ethical approach to the work they do.
265 54.0 54.0 54.0 200 40.7 40.7 94.7 26 5.3 5.3 100.0 491 100.0
U14 Chartered accountants only need sufficient theoretical knowledge for qualification purposes.
38 7.7 7.8 7.8 88 17.9 18.0 25.7 220 44.8 44.9 70.6 144 29.3 29.4 100.0 1 491 100.0
U15 The teaching of professional values and ethics at an under-graduate level should be seen as a process rather than a course.
177 36.0 36.0 36.0 268 54.6 54.6 90.6 42 8.6 8.6 99.2 4 .8 .8 100.0 491 100.0
U16 The education of chartered accountants should provide a basic foundation of knowledge.
155 31.6 31.8 31.8 282 57.4 57.8 89.5 44 8.8 8.8 98.4 8 1.6 1.6 100.0 3 491 100.0
U17 Competency is a critical issue in the chartered accountants’ profession.
316 64.4 64.5 64.5 163 33.2 33.3 97.8 11 2.2 2.2 100.0 1 491 100.0
U18 Chartered accountants are trusted professionals. 270 55.0 55.0 55.0 179 36.5 36.5 91.4 37 7.5 7.5 99.0 5 1.0 1.0 100.0 491 100.0
U19 The education of chartered accountants should only entail relevant theoretical knowledge at a given point in time.
30 6.1 6.1 6.1 113 23.0 23.1 29.2 269 54.8 54.9 84.1 78 15.9 15.9 100.0 1 491 100.0
APPENDIX D 439
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
U20 The competency of chartered accountants also includes their professional values, ethics and attitudes.
241 49.1 49.1 49.1 237 48.3 48.3 97.4 12 2.4 2.4 99.8 1 .2 .2 100.0 491 100.0
U21 In addition to acquiring theoretical knowledge and skills, today's chartered accountants need other skills.
312 63.5 63.5 63.5 171 34.8 34.8 98.4 8 1.6 1.6 100.0 491 100.0
U22 The education of chartered accountants should enable them to adapt to change.
276 56.2 56.2 56.2 207 42.2 42.2 98.4 8 1.6 1.6 100.0 491 100.0
U23 The education of chartered accountants should provide a foundation of various professional skills.
272 55.4 55.6 55.6 212 43.2 43.4 99.0 5 1.0 1.0 100.0 2 491 100.0
U24 Chartered accountants enable organisations to shape their financial future.
230 46.8 46.9 46.9 237 48.3 48.4 95.3 22 4.5 4.5 99.8 1 .2 .2 100.0 1 491 100.0
U25 Chartered accountants are continuously challenged to maintain competence.
261 53.2 53.3 53.3 214 43.6 43.7 96.9 13 2.6 2.7 99.6 2 .4 .4 100.0 1 491 100.0
SOURCE: SPSS Output
* f = frequency % = Percentage
V % = Valid percentage C % - Cumulative percentage
APPENDIX D 440
TABLE D3: Anti-Image Matrices (Anti-Image Correlation – Factor Analysis 2)
Items U1 U2 U3 U4 U5 U6 U7 U8 U9 U10 U11 U12 U13 U15 U16 U17 U18 U20 U21 U22 U23 U24 U25
U1 .859(a) -.231 -.145 .032 -.141 .087 -.053 .011 -.023 .008 -.005 -.267 .035 -.049 .090 -.047 .047 .035 -.006 -.018 .015 .055 -.012
U2 -.231 .914(a) -.115 -.035 .026 -.200 .036 .001 -.136 .000 -.085 -.010 -.072 -.047 -.028 .024 -.029 -.154 -.028 .078 -.094 -.011 -.104
U3 -.145 -.115 .898(a) -.143 .029 -.151 .021 -.069 .106 -.034 -.038 -.101 -.168 -.010 -.050 -.025 .083 .136 -.027 -.024 -.139 -.122 .009
U4 .032 -.035 -.143 .860(a) -.129 -.120 -.237 .040 -.218 -.051 .002 -.024 -.026 .003 .105 .043 -.163 -.101 -.068 .072 .085 -.028 .079
U5 -.141 .026 .029 -.129 .925(a) -.056 -.042 .037 .048 -.070 .016 -.076 -.056 -.028 .038 -.117 -.103 -.049 .087 -.216 -.082 -.019 -.057
U6 .087 -.200 -.151 -.120 -.056 .912(a) -.091 -.001 -.093 -.072 .052 -.037 -.034 .006 -.063 .026 -.040 -.094 .041 -.067 -.055 .136 .019
U7 -.053 .036 .021 -.237 -.042 -.091 .906(a) -.016 -.257 -.046 .068 -.033 .003 .040 -.059 -.067 .002 -.073 -.082 .009 -.048 .001 -.004
U8 .011 .001 -.069 .040 .037 -.001 -.016 .856(a) -.194 .015 -.133 -.041 .043 -.032 -.033 -.009 -.072 -.033 .018 .043 -.002 -.115 -.027
U9 -.023 -.136 .106 -.218 .048 -.093 -.257 -.194 .861(a) -.045 .014 .088 -.150 -.031 -.035 -.101 .039 .011 .093 -.063 -.046 .017 -.023
U10 .008 .000 -.034 -.051 -.070 -.072 -.046 .015 -.045 .930(a) -.062 -.114 .024 -.027 -.023 .031 .043 -.001 -.060 .004 -.006 .048 -.138
U11 -.005 -.085 -.038 .002 .016 .052 .068 -.133 .014 -.062 .818(a) -.127 -.096 .118 -.056 .079 -.141 -.047 .042 -.045 -.002 -.001 -.029
U12 -.267 -.010 -.101 -.024 -.076 -.037 -.033 -.041 .088 -.114 -.127 .916(a) -.180 -.039 -.058 -.004 .004 -.067 -.033 -.106 .000 .007 .012
U13 .035 -.072 -.168 -.026 -.056 -.034 .003 .043 -.150 .024 -.096 -.180 .912(a) -.155 .017 -.111 .004 -.063 .050 .048 .037 -.055 -.029
U15 -.049 -.047 -.010 .003 -.028 .006 .040 -.032 -.031 -.027 .118 -.039 -.155 .880(a) -.221 -.016 .053 -.117 -.128 .001 .045 .006 -.065
U16 .090 -.028 -.050 .105 .038 -.063 -.059 -.033 -.035 -.023 -.056 -.058 .017 -.221 .879(a) -.037 -.079 .016 .020 -.078 -.069 -.031 .027
U17 -.047 .024 -.025 .043 -.117 .026 -.067 -.009 -.101 .031 .079 -.004 -.111 -.016 -.037 .896(a) -.149 -.023 -.132 -.139 .038 .127 -.162
U18 .047 -.029 .083 -.163 -.103 -.040 .002 -.072 .039 .043 -.141 .004 .004 .053 -.079 -.149 .857(a) .023 -.007 .000 -.014 -.169 -.036
U20 .035 -.154 .136 -.101 -.049 -.094 -.073 -.033 .011 -.001 -.047 -.067 -.063 -.117 .016 -.023 .023 .934(a) -.054 -.046 -.052 -.047 -.052
U21 -.006 -.028 -.027 -.068 .087 .041 -.082 .018 .093 -.060 .042 -.033 .050 -.128 .020 -.132 -.007 -.054 .901(a) -.230 -.150 -.101 .002
U22 -.018 .078 -.024 .072 -.216 -.067 .009 .043 -.063 .004 -.045 -.106 .048 .001 -.078 -.139 .000 -.046 -.230 .886(a) -.351 -.140 .021
U23 .015 -.094 -.139 .085 -.082 -.055 -.048 -.002 -.046 -.006 -.002 .000 .037 .045 -.069 .038 -.014 -.052 -.150 -.351 .910(a) -.095 -.095
U24 .055 -.011 -.122 -.028 -.019 .136 .001 -.115 .017 .048 -.001 .007 -.055 .006 -.031 .127 -.169 -.047 -.101 -.140 -.095 .860(a) -.267
U25 -.012 -.104 .009 .079 -.057 .019 -.004 -.027 -.023 -.138 -.029 .012 -.029 -.065 .027 -.162 -.036 -.052 .002 .021 -.095 -.267 .902(a)
SOURCE: SPSS Output
* (a) Measures of Sampling Adequacy (MSA)
APPENDIX D 441
TABLE D4: Descriptive analysis of factor scores: Section B, Area 1 [U]
Factor 1: CmpSkll
Factor 2: Ethcs
Factor 3: EdcTrn
Valid 491 491 491 N
Missing 0 0 0
Mean 1.4268 1.3210 1.5173
Standard deviation .36502 .33336 .37944
Variance .133 .111 .144
Skewness .365 1.003 .401
Standard error of Skewness .110 .110 .110
Kurtosis -1.169 .306 -.344
Standard error of Kurtosis .220 .220 .220
SOURCE: SPSS Output
---o0o---
442
APPENDIX E
APPENDIX E 443
TABLE E1: Descriptive statistics – Section B, Area 2
(Item 32 [V1] – Item 45 [V14])
V1 V2 V3 V4 V5 V6 V7 V8 V9 V10 V11 V12 V13 V14
N Valid 491 490 489 489 490 491 490 490 489 489 487 488 489 487
Missing 0 1 2 2 1 0 1 1 2 2 4 3 2 4
Range 2 3 3 3 3 3 3 3 3 3 3 3 3 2
Minimum 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Maximum 3 4 4 4 4 4 4 4 4 4 4 4 4 3
Mean 1.41 1.79 1.71 2.16 1.58 1.90 1.57 1.70 1.76 1.72 1.83 1.63 1.88 1.69
Median 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Mode 1 2 2 2 2 2 2 2 2 2 2 2 2 2
Standard deviation .512 .773 .622 .731 .595 .668 .554 .670 .578 .557 .656 .580 .765 .574
Variance .262 .597 .387 .535 .355 .447 .307 .448 .334 .310 .430 .336 .586 .330
Skewness .606 .733 .397 .189 .653 .408 .339 .644 .263 .231 .500 .461 .401 .137
Standard error of
skewness .110 .110 .110 .110 .110 .110 .110 .110 .110 .110 .111 .111 .110 .111
Kurtosis -1.104 .059 -.122 -.265 .433 .279 -.439 .211 .571 .694 .554 .438 -.636 -.610
Standard error of
kurtosis .220 .220 .220 .220 .220 .220 .220 .220 .220 .220 .221 .221 .220 .221
SOURCE: SPSS Output
APPENDIX E 444
TABLE E2: Frequency distribution – Section B, Area 2 [V]
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
V1 The continuous professional development of chartered accountants is critical.
296 60.3 60.3 60.3 190 38.7 38.7 99.0 5 1.0 1.0 100.0 491 100.0
V2 Recent corporate collapses (e.g. Enron) can be attributed to the unethical behaviour of chartered accountants.
196 39.9 40.0 40.0 215 43.8 43.9 83.9 66 13.4 13.5 97.3 13 2.6 2.7 100.0 1 491 100.0
V3 Continuous professional development provides an assurance of professional service.
184 37.5 37.6 37.6 265 54.0 54.2 91.8 38 7.7 7.8 99.6 2 0.4 0.4 100.0 2 491 100.0
V4 The continuous professional development of chartered accountants will avert corporate collapses.
84 17.1 17.2 17.2 258 52.5 52.8 69.9 133 27.1 27.2 97.1 14 2.9 2.9 100.0 2 491 100.0
V5 The benefits derived from continuous professional development programmes depend on the attitude of the chartered accountant.
230 46.8 46.9 46.9 239 48.7 48.8 95.7 18 3.7 3.7 99.4 3 0.6 0.6 100.0 1 491 100.0
APPENDIX E 445
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
V6 Continuous professional development means realigning one’s professional values and attitudes.
130 26.5 26.5 26.5 288 58.7 58.7 85.1 66 13.4 13.4 98.6 7 1.4 1.4 100.0 491 100.0
V7 Continuous professional development must be a requirement for all chartered accountants in order to maintain the public’s confidence in the profession.
225 45.8 45.9 45.9 252 51.3 51.4 97.3 12 2.4 2.4 99.8 1 0.2 0.2 100.0 1 491 100.0
V8 Continuous professional development should be a condition of a chartered accountant’s continued membership of a professional body.
201 40.9 41.0 41.0 241 49.1 49.2 90.2 43 8.8 8.8 99.0 5 1.0 1.0 100.0 1 491 100.0
V9 Continuous professional development refers to learning activities following qualification.
151 30.8 30.9 30.9 307 62.5 62.8 93.7 28 5.7 5.7 99.4 3 0.6 0.6 100.0 2 491 100.0
V10 The emphasis of continuous professional development means a foundation for lifelong learning.
162 33.0 33.1 33.1 307 62.5 62.8 95.9 17 3.5 3.5 99.4 3 0.6 0.6 100.0 2 491 100.0
APPENDIX E 446
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
V11 Continuous professional development implies further training in professional values, ethics and attitudes.
146 29.7 30.0 30.0 285 58.0 58.5 88.5 49 10.0 10.1 98.6 7 1.4 1.4 100.0 4 491 100.0
V12 Continuous professional development is aimed at the post-qualification maintenance of professional competence.
202 41.1 41.4 41.4 267 54.4 54.7 96.1 16 3.3 3.3 99.4 3 0.6 0.6 100.0 3 491 100.0
V13 A training programme for chartered accountants should provide students with the necessary skills to learn by themselves and at their own pace.
169 34.4 34.6 34.6 217 44.2 44.4 78.9 96 19.6 19.6 98.6 7 1.4 1.4 100.0 2 491 100.0
V14 Continuous professional development should be seen as an extension of the education process that led to the initial qualification as a chartered accountant.
179 36.5 36.8 36.8 280 57.0 57.5 94.3 28 5.7 5.7 100.0 4 491 100.0
SOURCE: SPSS Output
* f = frequency
% = Percentage
V % = Valid percentage
C % - Cumulative percentage
APPENDIX E 447
TABLE E3: Descriptive analysis of factor scores: Section B, Area 2 [V]
Factor 1: LrnCPD
Factor 2: CrtCPD
Valid 490 491 N
Missing 1 0
Mean 1.7257 1.5959
Standard deviation .39642 .43244
Variance .157 .187
Skewness -.141 .239
Standard error of Skewness .110 .110
Kurtosis -.428 -.733
Standard error of Kurtosis .220 .220
SOURCE: SPSS Output
---o0o---
448
APPENDIX F
APPENDIX F 449
TABLE F1: Descriptive statistics – Section B, Area 3
(Item 46 [W1] – Item 54 [W9])
W1 W2 W3 W4 W5 W6 W7 W8 W9
N Valid 490 489 491 487 491 487 490 490 491
Missing 1 2 0 4 0 4 1 1 0
Range 3 3 3 2 3 3 3 3 3
Minimum 1 1 1 1 1 1 1 1 1
Maximum 4 4 4 3 4 4 4 4 4
Mean 1.63 1.53 1.54 1.66 1.52 1.79 1.53 1.64 1.65
Median 2.00 2.00 2.00 2.00 1.00 2.00 2.00 2.00 2.00
Mode 2 2 1(a) 2 1 2 1 2 2
Standard deviation .653 .539 .557 .567 .627 .651 .561 .624 .641
Variance .426 .290 .310 .321 .393 .423 .315 .390 .410
Skewness .777 .339 .440 .153 .957 .379 .499 .536 .649
Standard error of
skewness .110 .110 .110 .111 .110 .111 .110 .110 .110
Kurtosis .522 -.555 -.397 -.709 .583 -.115 -.345 -.101 .312
Standard error of
kurtosis .220 .220 .220 .221 .220 .221 .220 .220 .220
SOURCE: SPSS Output
* (a) Multiple modes exist; the smallest value is shown.
APPENDIX F 450
TABLE F2: Frequency distribution – Section B, Area 3 [W]
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
W1 Lifelong learning implies a desire and ability to continue to learn.
224 45.6 45.7 45.7 229 46.6 46.7 92.7 32 6.5 6.5 99.0 5 1.0 1.0 100.0 1 491 100.0
W2 Lifelong learning implies a continuous refinement of professional knowledge, skills, values, ethics and attitudes.
237 48.3 48.5 48.5 244 49.7 49.9 98.4 7 1.4 1.4 99.8 1 0.2 0.2 100.0 2 491 100.0
W3 Lifelong learning implies a desire and ability to adapt and develop skills.
239 48.7 48.7 48.7 239 48.7 48.7 97.4 12 2.4 2.4 99.8 1 0.2 0.2 100.0 1 491 100.0
W4 Lifelong learning implies a thorough foundation of professional values, ethics and attitudes associated with continuous professional development.
191 38.9 39.2 39.2 273 55.6 56.1 95.3 23 4.7 4.7 100.0 4 491 100.0
W5 Lifelong learning implies a desire to go beyond the minimum.
269 54.8 54.8 54.8 193 39.3 39.3 94.1 26 5.3 5.3 99.4 3 0.6 0.6 100.0 491 100.0
W6 Lifelong learning implies a thorough foundation of professional values, ethics and attitudes in an under-graduate environment.
163 33.2 33.5 33.5 268 54.6 55.0 88.5 53 10.8 10.9 99.4 3 0.6 0.6 100.0 4 491 100.0
APPENDIX F 451
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
W7 Lifelong learning implies a desire to incorporate better professional judgement.
244 49.7 49.8 49.8 232 47.3 47.3 97.1 13 2.6 2.7 99.8 1 0.2 0.2 100.0 1 491 100.0
W8 Lifelong learning implies a desire to incorporate professional ethical values in performance.
212 43.2 43.3 43.3 243 49.5 49.6 92.9 33 6.7 6.7 99.6 2 0.4 0.4 100.0 1 491 100.0
W9 Lifelong learning implies a continuous acquirement of ethics as one works in practice after qualification.
211 43.0 43.0 43.0 243 49.5 49.5 92.5 33 6.7 6.7 99.2 4 0.8 0.8 100.0 491 100.0
SOURCE: SPSS Output
* f = frequency
% = Percentage
V % = Valid percentage
C % - Cumulative percentage
---o0o---
452
APPENDIX G
APPENDIX G 453
TABLE G1: Descriptive statistics – Section B, Area 4
(Item 55 [X1] – Item 65 [X11])
X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 X11
N Valid 488 489 488 489 489 489 486 489 489 482 489
Missing 3 2 3 2 2 2 5 2 2 9 2
Range 3 3 3 3 3 3 3 3 3 3 3
Minimum 1 1 1 1 1 1 1 1 1 1 1
Maximum 4 4 4 4 4 4 4 4 4 4 4
Mean 1.55 2.40 1.74 1.69 1.69 1.97 2.07 1.98 2.82 2.99 3.30
Median 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00
Mode 1 2 2 2 2 2 2 2 3 3 4
Median .589 .905 .640 .564 .621 .753 .737 .757 .877 .795 .774
Mode .346 .819 .410 .318 .385 .567 .543 .573 .769 .632 .599
Standard
deviation .650 .077 .573 .363 .474 .449 .286 .468 -.438 -.576 -.971
Variance .111 .110 .111 .110 .110 .110 .111 .110 .110 .111 .110
Skewness .145 -.780 .666 .979 .157 -.090 -.208 -.059 -.434 .065 .548
Standard error
of skewness .221 .220 .221 .220 .220 .220 .221 .220 .220 .222 .220
Kurtosis .121 -.794 .685 .894 .520 -.119 -.179 -.077 -.461 .025 .465
Standard error
of kurtosis .219 .219 .219 .219 .219 .219 .220 .219 .219 .220 .219
SOURCE: SPSS Output
APPENDIX G 454
TABLE G2: Frequency distribution – Section B, Area 4 [X]
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
X1 Ethics education heightens a student’s awareness of ethical issues in professional practice.
241 49.1 49.4 49.4 227 46.2 46.5 95.9 18 3.7 3.7 99.6 2 0.4 0.4 100.0 3 491 100.0
X2 Ethics is a gut feel that everybody is born with. 83 16.9 17.0 17.0 183 37.3 37.4 54.4 165 33.6 33.7 88.1 58 11.8 11.9 100.0 2 491 100.0
X3 Ethics education strengthens a student’s moral reasoning skills.
173 35.2 35.5 35.5 274 55.8 56.1 91.6 35 7.1 7.2 98.8 6 1.2 1.2 100.0 3 491 100.0
X4 Ethics education provides a basic understanding of the morals of the profession.
174 35.4 35.6 35.6 298 60.7 60.9 96.5 13 2.6 2.7 99.2 4 0.8 0.8 100.0 2 491 100.0
X5 Ethics education enhances a student’s ability to judge a situation.
189 38.5 38.7 38.7 264 53.8 54.0 92.6 33 6.7 6.7 99.4 3 0.6 0.6 100.0 2 491 100.0
X6 Ethics education provides students with the necessary skills required in practice.
131 26.7 26.8 26.8 254 51.7 51.9 78.7 90 18.3 18.4 97.1 14 2.9 2.9 100.0 2 491 100.0
X7 Ethics education is a “moral conversion process”.
102 20.8 21.0 21.0 259 52.7 53.3 74.3 112 22.8 23.0 97.3 13 2.6 2.7 100.0 5 491 100.0
APPENDIX G 455
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
X8 Ethics education provides a competitive advantage for chartered accountants.
131 26.7 26.8 26.8 254 51.7 51.9 78.7 89 18.1 18.2 96.9 15 3.1 3.1 100. 2 491 100.0
X9 Ethics education is the responsibility of the tertiary institution, not the company and its management.
44 9.0 9.0 9.0 109 22.2 22.3 31.3 229 46.6 46.8 78.1 107 21.8 21.9 100.0 2 491 100.0
X10 Professional ethics is a contradiction. 24 4.9 5.0 5.0 83 16.9 17.2 22.2 250 50.9 51.9 74.1 125 25.5 25.9 100.0 9 491 100.0
X11 There is no need for ethics education in the under-graduate training of chartered accountants.
15 3.1 3.1 3.1 50 10.2 10.2 13.3 198 40.3 40.5 53.8 226 46.0 46.2 100.0 2 491 100.0
SOURCE: SPSS Output
* f = frequency
% = Percentage
V % = Valid percentage
C % - Cumulative percentage
APPENDIX G 456
TABLE G3: Anti-Image Matrices (Anti-Image Correlation – Factor
Analysis)
Items X1 X2 X3 X4 X5 X6 X7 X8 X9 X10
X1 .859(a) .141 -.187 -.283 .000 -.123 -.010 -.120 .053 -.002
X2 .141 .496(a) -.073 -.128 .017 -.002 .071 .010 -.163 -.025
X3 -.187 -.073 .889(a) -.221 -.203 -.170 -.081 -.115 .016 .035
X4 -.283 -.128 -.221 .821(a) -.337 -.011 -.086 .097 -.009 .036
X5 .000 .017 -.203 -.337 .846(a) -.283 -.004 -.160 .054 .028
X6 -.123 -.002 -.170 -.011 -.283 .871(a) -.219 -.133 -.156 -.053
X7 -.010 .071 -.081 -.086 -.004 -.219 .890(a) -.150 -.054 -.105
X8 -.120 .010 -.115 .097 -.160 -.133 -.150 .878(a) -.155 -.025
X9 .053 -.163 .016 -.009 .054 -.156 -.054 -.155 .687(a) -.327
X10 -.002 -.025 .035 .036 .028 -.053 -.105 -.025 -.327 .659(a)
SOURCE: SPSS Output
* (a) Measures of Sampling Adequacy(MSA)
APPENDIX G 457
TABLE G4: Descriptive analysis of factor scores: Section B, Area 4 [X]
Factor 1: EthcEduc
Valid 489 N
Missing 2
Mean 1.8134
Standard deviation .47452
Variance .225
Skewness .278
Standard error of Skewness .110
Kurtosis .590
Standard error of Kurtosis .220
SOURCE: SPSS Output
---o0o---
458
APPENDIX H
APPENDIX H 459
TABLE H1: Descriptive statistics – Section B, Area 5
(Item 66 [Y1] – Item 73 [Y8])
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
N Valid 491 490 491 491 491 491 491 491
Missing 0 1 0 0 0 0 0 0
Range 3 3 3 3 3 3 3 3
Minimum 1 1 1 1 1 1 1 1
Maximum 4 4 4 4 4 4 4 4
Mean 1.66 1.82 1.44 1.44 1.39 1.35 1.37 1.39
Median 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00
Mode 1 2 1 1 1 1 1 1
Standard deviation .798 .826 .794 .822 .803 .779 .796 .802
Variance .637 .685 .630 .675 .645 .606 .634 .643
Skewness 1.220 .915 2.056 2.058 2.276 2.460 2.345 2.232
Standard error of skewness .110 .110 .110 .110 .110 .110 .110 .110
Kurtosis 1.164 .424 3.715 3.487 4.374 5.263 4.709 4.203
Standard error of kurtosis .220 .220 .220 .220 .220 .220 .220 .220
SOURCE: SPSS Output
APPENDIX H 460
TABLE H2: Frequency distribution – Section B, Area 4 [Y]
VALID RESPONSES
Very important (1)
Important (2)
Somewhat important
(3)
Not important (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
Y1 How important is it for a chartered accountant to learn the skill of continuous professional development?
246 50.1 50.1 50.1 188 38.3 38.3 88.4 35 7.1 7.1 95.5 22 4.5 4.5 100.0 491 100.0
Y2 How important is it for a chartered accountant to be a life-long learner?
194 39.5 39.6 39.6 217 44.2 44.3 83.9 53 10.8 10.8 94.7 26 5.3 5.3 100.0 1 491 100.0
Y3 How important is it for a chartered accountant to have professional competence?
343 69.9 69.9 69.9 110 22.4 22.4 92.3 10 2.0 2.0 94.3 28 5.7 5.7 100.0 491 100.0
Y4 How important is it for a chartered accountant to have high ethical standards?
351 71.5 71.5 71.5 97 19.8 19.8 91.2 12 2.4 2.4 93.7 31 6.3 6.3 100.0 491 100.0
Y5 How important is it for a chartered accountant to show integrity?
372 75.8 75.8 75.8 79 16.1 16.1 91.9 10 2.0 2.0 93.9 30 6.1 6.1 100.0 491 100.0
Y6 How important is it for a chartered accountant to be trustworthy?
386 78.6 78.6 78.6 68 13.8 13.8 92.5 9 1.8 1.8 94.3 28 5.7 5.7 100.0 491 100
APPENDIX H 461
VALID RESPONSES
Very important (1)
Important (2)
Somewhat important
(3)
Not important (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
Y7 How important is it for a chartered accountant to be reliable?
376 76.6 76.6 76.6 77 15.7 15.7 92.3 8 1.6 1.6 93.9 30 6.1 6.1 100.0 491 100.0
Y8 How important is it for a chartered accountant to be objective?
369 75.2 75.2 75.2 81 16.5 16.5 91.6 12 2.4 2.4 94.1 29 5.9 5.9 100.0 491 100.0
SOURCE: SPSS Output
* f = frequency
% = Percentage
V % = Valid percentage
C % - Cumulative percentage
---o0o---
462
APPENDIX I
APPENDIX I 463
TABLE I1: Descriptive statistics – Section B, Area 6
(Item 74 [Z1] – Item 83 [Z10])
Z1 Z2 Z3 Z4 Z5 Z6 Z7 Z8 Z9 Z10
N Valid 491 487 489 487 488 489 489 488 488 488
Missing 0 4 2 4 3 2 2 3 3 3
Range 3 3 3 3 3 3 3 3 3 3
Minimum 1 1 1 1 1 1 1 1 1 1
Maximum 4 4 4 4 4 4 4 4 4 4
Mean 1.72 1.77 1.87 1.91 1.81 1.98 1.86 1.55 1.95 1.68
Median 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Mode 2 2 2 2 2 2 2 1 2 2
Standard
deviation .584 .569 .635 .665 .611 .730 .576 .575 .695 .583
Variance .341 .324 .403 .442 .374 .533 .332 .330 .483 .340
Skewness .328 .098 .210 .232 .235 .533 .269 .589 .356 .312
Standard
error of
skewness
.110 .111 .110 .111 .111 .110 .110 .111 .111 .111
Kurtosis .450 -.017 -.180 -.288 .014 .333 1.015 .136 .013 .083
Standard
error of
kurtosis
.220 .221 .220 .221 .221 .220 .220 .221 .221 .221
SOURCE: SPSS Output
APPENDIX I 464
TABLE I2: Frequency distribution – Section B, Area 6 [Z]
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
Z1 The professional values, ethics and attitudes highlighted by professional bodies are apparent in the academic programmes at RAU.
169 34.4 34.4 34.4 294 59.9 59.9 94.3 25 5.1 5.1 99.4 3 0.6 0.6 100.0 491 100.0
Z2 RAU focuses on courses, which include aspects of professional ethics and values applicable to chartered accountants.
148 30.1 30.4 30.4 306 62.3 62.8 93.2 32 6.5 6.6 99.8 1 0.2 0.2 100.0 4 491 100.0
Z3 At RAU, emphasis is placed on the development of professional values, ethics and attitudes in the training of chartered accountants.
132 26.9 27.0 27.0 290 59.1 59.3 86.3 65 13.2 13.3 99.6 2 0.4 0.4 100.0 2 491 100.0
Z4 RAU focuses on discipline-specific courses, covering various applicable international issues pertaining to the role of the chartered accountant.
129 26.3 26.5 26.5 277 56.4 56.9 83.4 78 15.9 16.0 99.4 3 0.6 0.6 100.0 4 491 100.0
APPENDIX I 465
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
Z5 At RAU, emphasis is placed on the development of the necessary skills for continuous professional development of chartered accountants.
143 29.1 29.3 29.3 295 60.1 60.5 89.8 48 9.8 9.8 99.6 2 0.4 0.4 100.0 3 491 100.0
Z6 RAU offers courses that provide skills necessary in the application of computer software.
118 24.0 24.1 24.1 277 56.4 56.6 80.8 78 15.9 16.0 96.7 16 3.3 3.3 100.0 2 491 100.0
Z7 At RAU, emphasis is placed on the professional values, ethics and attitudes for continuous professional development of chartered accountants.
117 23.8 23.9 23.9 329 67.0 67.3 91.2 39 7.9 8.0 99.2 4 0.8 0.8 100.0 2 491 100.0
Z8 RAU uses educators who are skilled in the professional values, ethics and attitudes pertaining to chartered accountants.
238 48.5 48.8 48.8 234 47.7 48.0 96.7 14 2.9 2.9 99.6 2 0.4 0.4 100.0 3 491 100.0
Z9 A definite focus on recent professional ethical conundrums, corporate collapses and mounting stakeholder pressure is evident in the courses offered at RAU.
121 24.6 24.8 24.8 276 56.2 56.6 81.4 83 16.9 17.0 98.4 8 1.6 1.6 100.0 3 491 100.0
APPENDIX I 466
VALID RESPONSES
Strongly agree (1)
Agree (2)
Disagree (3)
Strongly disagree (4) M
ISSI
NG
R
ESP
ON
SE
TOTAL STATEMENT
f % V % C % f % V % C % f % V % C % f % V % C % f f %
Z10 RAU focuses on courses that enhance the value-added approach of chartered accountants.
182 37.1 37.3 37.3 280 57.0 57.4 94.7 24 4.9 4.9 99.6 2 0.4 0.4 100.0 3 491 100.0
SOURCE: SPSS Output
* f = frequency
V % = Valid percentage
C % - Cumulative percentage
% = Percentage
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