1. Accounting Doctoral Scholars Program An Overview American Accounting Association Annual Meeting August 5, 2008 Doyle Z. Williams Executive Director, ADS Program

2. Program Origins The Issue: Shortage of Accounting Doctoral Faculty (see Leslie, Hasselback, and others) The Issue: Shortage of Accounting Doctoral Faculty (see Leslie, Hasselback, and others) Reduction in Production of Ph.Ds. in Accounting Acute in Auditing and Tax Reduction in Production of Ph.Ds. in Accounting Acute in Auditing and Tax Accounting Enrollments Growing Accounting Enrollments Growing

3. Solutions There are many things academics can do, but what can the profession do? l. Increase financial resources to schools for doctoral students increasing enrollment capacity 2.Increase pipeline of qualified doctoral student applicants through encouragement and investment of personnel from firms

4. Accounting Doctoral Scholars Program Administered by AICPA Foundation founded 1923; 501(c)(3) entity Administered by AICPA Foundation founded 1923; 501(c)(3) entity Directed by Advisory Council: Directed by Advisory Council: Five representatives of sponsoring firms Five representatives of sponsoring firms AICPA Director of Academic and Career Development AICPA Director of Academic and Career Development Executive Director, ADS program ex-officio Executive Director, ADS program ex-officio

5. Accounting Doctoral Scholars Program FundingSponsoring Organizations FundingSponsoring Organizations To date, 70 of the largest public accounting firms and several state societies To date, 70 of the largest public accounting firms and several state societies Four-year ramp up with a total eight-year life cycle Four-year ramp up with a total eight-year life cycle

6. Mission The mission of the ADS Program and its sponsoring organizations is to increase the pool of academically qualified accounting faculty in auditing and tax, with experience in public accounting, at U.S. universities that provide talent to the public accounting profession. The mission of the ADS Program and its sponsoring organizations is to increase the pool of academically qualified accounting faculty in auditing and tax, with experience in public accounting, at U.S. universities that provide talent to the public accounting profession.

7. Objectives Encourage experienced practitioners with public accounting to obtain their doctorate, with an emphasis in auditing or tax and transition to being a full-time a faculty member; Encourage experienced practitioners with public accounting to obtain their doctorate, with an emphasis in auditing or tax and transition to being a full-time a faculty member; Provide financial support to enable selected qualified candidates to pursue a doctorate in accounting; Provide financial support to enable selected qualified candidates to pursue a doctorate in accounting; Create incremental doctoral slots at universities who agree to become participating universities to increase doctoral enrollments in auditing and tax Create incremental doctoral slots at universities who agree to become participating universities to increase doctoral enrollments in auditing and tax

8. Objectives Provide a peer support network for those seeking to make a career transition; and Provide a peer support network for those seeking to make a career transition; and To improve the educational preparation of students derived from the rich professional experiences of the infusion of talent from the profession into the classroom. To improve the educational preparation of students derived from the rich professional experiences of the infusion of talent from the profession into the classroom.

9. Program Overview Candidates recruited through marketing by the sponsoring organizations Candidates recruited through marketing by the sponsoring organizations Candidates apply directly to ADS program (independent of the sponsoring organizations) Candidates apply directly to ADS program (independent of the sponsoring organizations) Invitations extended to fall Orientation Conference Invitations extended to fall Orientation Conference Applicants confirm continued interest in doctoral study and making a career change Applicants confirm continued interest in doctoral study and making a career change Selection of ADS Scholars Selection of ADS Scholars ADS Scholars apply to participating universities of their choice ADS Scholars apply to participating universities of their choice Upon registration at a participating university, a stipend of $30,000 is provided each year to the university for a maximum of four years Upon registration at a participating university, a stipend of $30,000 is provided each year to the university for a maximum of four years

10. Student Eligibility Requirements Recent work experience in public accounting in auditing or tax Recent work experience in public accounting in auditing or tax Commit, if selected as an ADS Scholar, to applying for admission to one or more doctoral programs in accounting at an ADS program participating university to pursue auditing or tax as a teaching and research focus Commit, if selected as an ADS Scholar, to applying for admission to one or more doctoral programs in accounting at an ADS program participating university to pursue auditing or tax as a teaching and research focus Statement of commitment to teaching and research in tax or auditing at an AACSB International Business accredited university upon completion of doctorate with an emphasis in auditing or tax Statement of commitment to teaching and research in tax or auditing at an AACSB International Business accredited university upon completion of doctorate with an emphasis in auditing or tax U.S. citizen or permanent resident U.S. citizen or permanent resident

11. Selection of ADS Scholars Selection committee: Selection committee: Three doctoral directors from participating universities Three doctoral directors from participating universities A representative of the sponsoring firms and organizations A representative of the sponsoring firms and organizations Chaired by Executive Director of ADS program Chaired by Executive Director of ADS program Two step selection process Two step selection process

12. Selection Process – Step 1 Determine those who should be invited to the Orientation Conference Overarching criteria: Assessment of potential to gain admittance to an accounting doctoral program at a participating university Overarching criteria: Assessment of potential to gain admittance to an accounting doctoral program at a participating university Following Orientation: Must affirm continuing interest in a career change and pursing a doctorate with a focus on auditing or tax Following Orientation: Must affirm continuing interest in a career change and pursing a doctorate with a focus on auditing or tax

13. Selection Process – Step 2 Selection of ADS program Scholars Criteria: Usual evidence of potential for admission to and success in doctoral programs Criteria: Usual evidence of potential for admission to and success in doctoral programs Number constrained only by quality of applicant pool and funding available Number constrained only by quality of applicant pool and funding available Those not selected as ADS Scholars are encouraged to and assisted in applying to doctoral accounting programs, competing for existing slots Those not selected as ADS Scholars are encouraged to and assisted in applying to doctoral accounting programs, competing for existing slots

14. Participating Universities Establish a partnership relationship. The ADS program and the participating universities must work together in good faith to accomplish a common goal. Principal criteria: Statement of available capacity to support additional doctoral students with a focus in auditing or tax; (incremental slot must be an increase in auditing or tax) Statement of available capacity to support additional doctoral students with a focus in auditing or tax; (incremental slot must be an increase in auditing or tax) Strong placement potential at universities that produce substantial numbers of accounting graduates for the public accounting profession; Strong placement potential at universities that produce substantial numbers of accounting graduates for the public accounting profession; Full-time residential program; and Full-time residential program; and Business school is AACSB International accredited. Accounting accreditation not required. Business school is AACSB International accredited. Accounting accreditation not required.

15. Participating Universities Other factors: Number of doctoral accounting graduates produced over most recent four years (2004- 2008), with special attention to audit and tax; Number of doctoral accounting graduates produced over most recent four years (2004- 2008), with special attention to audit and tax; Record of interaction of program and faculty with the accounting profession; and Record of interaction of program and faculty with the accounting profession; and Newness of program or recent major program changes. Newness of program or recent major program changes.

16. Selection of Participating Universities Selected by Advisory Council Step 1: Data were collected from schools with accounting doctoral programs; for those that are deemed to meet the criteria, letters of invitation will be mailed August 11 Step 1: Data were collected from schools with accounting doctoral programs; for those that are deemed to meet the criteria, letters of invitation will be mailed August 11 Step 2: If a school does not receive a letter of invitation by August 18, it may submit a self nomination that makes the case for consideration, based upon the established criteria. Contact ADS program office for application. Step 2: If a school does not receive a letter of invitation by August 18, it may submit a self nomination that makes the case for consideration, based upon the established criteria. Contact ADS program office for application.

17. Expectations from Participating Universities Affirm capacity in auditing and/or tax to admit one or more ADS Scholars as INCREMENTAL enrollee to its historical levels specific to audit and tax; Affirm capacity in auditing and/or tax to admit one or more ADS Scholars as INCREMENTAL enrollee to its historical levels specific to audit and tax; Must document ADS Scholar is an additional slot; Must document ADS Scholar is an additional slot; Apply same admission criteria to ADS Scholar applicants as to other applicants; Apply same admission criteria to ADS Scholar applicants as to other applicants; Waive the tuition and fees or provide equivalent support for enrolled ADS Scholars for the duration of the program of study; Waive the tuition and fees or provide equivalent support for enrolled ADS Scholars for the duration of the program of study; May supplement the ADS Scholarship if another slot is not jeopardized with such funding; May supplement the ADS Scholarship if another slot is not jeopardized with such funding;

18. Expectations from Participating Universities Provide other support that is available to non-ADS Scholars; Provide other support that is available to non-ADS Scholars; Provide a doctoral assistantship stipend if required program extends to all or part of a fifth year; Provide a doctoral assistantship stipend if required program extends to all or part of a fifth year; ADS Scholar would serve primarily as a graduate research assistant, but teach at least one course (but no more than two) for two semesters during the duration of the students program; and ADS Scholar would serve primarily as a graduate research assistant, but teach at least one course (but no more than two) for two semesters during the duration of the students program; and Provide baseline data and annual data to help measure impact of program. Provide baseline data and annual data to help measure impact of program.

19. Other Matters Expect to fund a maximum of 30 students entering doctoral programs each year for four years. Expect to fund a maximum of 30 students entering doctoral programs each year for four years. Will strongly encourage qualified applicants not chosen as ADS Scholars to apply for admission to doctoral accounting programs, helping to increase the applicant pipeline. Will strongly encourage qualified applicants not chosen as ADS Scholars to apply for admission to doctoral accounting programs, helping to increase the applicant pipeline. Plan to develop a networking organization of ADS Scholars. Plan to develop a networking organization of ADS Scholars. You can help by encouraging qualified candidates in public practice in auditing and tax to consider applying to the ADS program. You can help by encouraging qualified candidates in public practice in auditing and tax to consider applying to the ADS program.

20. Time Table (Subject to change) Aug. 1 Sponsoring organizations begin recruiting Aug. 1 Sponsoring organizations begin recruiting Aug. 11 Invitations mailed to participating universities Aug. 11 Invitations mailed to participating universities Aug. 18 Begin receiving self nominations to serve as participating universities Aug. 18 Begin receiving self nominations to serve as participating universities Sept. 4 Deadline for receiving self nominations Sept. 4 Deadline for receiving self nominations Sept. 9 Web site, with application, goes on-line Sept. 9 Web site, with application, goes on-line Nov. 3 Student application deadline Nov. 3 Student application deadline Dec. 4 Hold Orientation Conference Dec. 4 Hold Orientation Conference Dec. 17 Selection of ADS Scholars Dec. 17 Selection of ADS Scholars Jan. 2, 2009 ADS Scholars apply to accounting doctoral programs at participating universities Jan. 2, 2009 ADS Scholars apply to accounting doctoral programs at participating universities

21. Questions & Answers