Response to: The Ongoing Debate about the Impact of the 150-Hour Education Requirement on the Supply of Certified Public Accountants

Abstract

ABSTRACT In an earlier paper in this journal, Allen and Woodland (2006; hereafter AW) provided evidence that the 150-hour education requirement for licensure significantly reduced the number of candidates taking and passing the CPA exam, but had little effect on pass rates. Gramling and Rosman (2009; hereafter GR) extended AW by examining the number of candidates based on whether the 150-hour requirement applies to the exam or for licensure, concluding that the 150-hour requirement does not reduce the number of candidates taking and passing the exam. In this paper, we reopen the discussion of whether the 150-hour education requirement affects entrants into the accounting profession by comparing the AW and GR research designs and conclusions. We conclude that the GR research design yields results about whether differences in 150-hour implementation methods affect the number of candidates taking and passing the exam, but does not directly provide evidence about whether the 150-hour education requirement itself affects the number of candidates.