Cognitive complexity and performance in professional accounting examinations

Abstract

The Accounting Education Change Commision states that accounting graduates should have the ability to solve unstructured problems in unfamiliar settings as an intellectual skill. According to cognitive theory, people with relatively high levels of cognitive complexity, are not significantly better at solving better at solving problems in unstructured situations than people with low levels of cognitive complexity, but are not significantly better in structured situations. This study replicates the findings of previous studies in the accounting area that tested this theory. Two extensions are made in the current study: first, cognitive complexity is measured by an instrument designed specifically for accountants; second, the examination considered is intended to asses both candidates' accounting knowledge and their ability to solve unstructured questions. In Canada, the Uniform Final Examination (UFE), the final examination that must be passed for candidates to become Chartered Accountants (CA), includes both structured and unstructured questions. Findings are consistent with those of the previous studies: marks received on unstructured questions are related to candidates' level of cognitive complexity as measured by the ACCT instrument but marks received on structured questions are not significantly related to candidates' level of cognitive complexity.

Keywords:

• Cognitive complexity
• ACCT
• UFE
• professional examinations