Proceedings of Applied International Business Conference 2008
ACADEMIC VS THE “REAL” WORLD: A PROFILE OF
UNDERGRADUATE ACCOUNTING STUDENT CIRCUMSTANCES IN
AFFORDING SCHOLARSHIP
Kathy Rudkin ψ and Anura De Zoysa
University of Wollongong, Australia
Abstract
Australian universities have large numbers of international student enrolments in accounting courses.
They offer both domestic and international students the same professionally accredited accounting
curriculum, with additional literacy components added where a deficit is identified. However, still
industry need is not met. A survey of undergraduate accounting students from a regional Australian
university was done to ascertain the amount of paid work undertaken by undergraduate accounting
students, the reasons why they seek paid employment and their subsequent pattern of work hours.
Specifically differences in the financial needs and employment opportunities between domestic and
international undergraduate accounting students are examined. This study found that for the majority,
the sources of funding used to support students’ tertiary accounting studies differed between domestic
and international enrolments. While international students were most dependent upon their families
followed by savings and employment to finance their studies, domestic students were most reliant upon
employment followed by family and savings to fund their studies. Both international and domestic
students indicate their primary reason for undertaking paid work is to cover their educational expenses.
Keywords: Accounting education; Funding; Local student; International students.
JEL Classification Codes: M40; M41.
1. Introduction
The accounting profession in Australia seeks graduates who are strong communicators, technically
competent and “work ready” (Robert Half International 2005). Australian tertiary institutions are
complicit in this goal by seeking professional accreditation for their accounting graduates from the two
professional bodies of CPA Australia and the Institute of Chartered Accountants in Australia. In their
accredited courses, Australian universities offer both domestic and international students the same
curriculum, with additional literacy components added where a deficit is identified. However, still
industry need is not met (Birrell and Rapson 2005; Australian Government Department of Immigration
and Multicultural Affairs 2006). At the same time as studying, students must find paid work to
financially support their access to the education that is necessary for them to become members of the
accounting profession. Paradoxically while accounting practice lends itself to on the job work
experiences, and while there is a demand for workers skilled in accounting, a large number of
accounting students cannot find paid employment that is relevant to their career during their studies
(Rudkin and De Zoysa, 2007).
This paper identifies students’ most accessed sources of funding while undertaking studies to enter the
accounting profession. In doing so this paper surveys the reasons why students need paid employment
and their subsequent pattern of work hours. Further this paper asks the question, are there significant
differences in the financial needs and employment opportunities between domestic and international
undergraduate accounting students? This question is of interest because of the large number of
international students in accounting courses in Australian universities, given a global shortage of
qualified accounting staff. This study draws on an analysis of survey data of 170 enrolled students at
an Australian regional university in Autumn session 2006.
ψ
Corresponding author. Kathy Rudkin. School of Accounting and Finance, University of Wollongong,
NSW 2522 Australia. Email: [email protected]
Proceedings of Applied International Business Conference 2008
Section two following gives an overview of the limited prior studies examining the financing of tertiary
study and student paid employment. Section three describes the method used while section four is a
discussion of the results of the study. A conclusion is offered in section five of the paper.
2. Prior studies
There is a dearth of studies examining funding needs and employment patterns of undergraduate
accounting students, in particular studies examining differences in these aspects between domestic and
international student enrolments. Courtis and Zaid (2002) found that there were early employment
problems experienced by Australian accounting graduates. This was due in part to a gap between
educators and employers, fuelled by governments construing successful accounting programs as those
implicitly promoting graduate employability. This was viewed by accounting educators as denying the
tertiary role to develop a student’s intellectual capacity and generic skills to question, reason, problem
solve and articulate alternative viewpoints, in favour of technical proficiency. They note the reluctance
of the Australian professional accounting bodies to exert pressure on governments to fund a period of
practical training.
Similarly, Pattison and Rydel (2003) argue that poverty of Australian tertiary students is unexplored,
and that a romantic ideal is promoted normalising poverty in student life, leading to societal
complacency to the plight of tertiary students. They point out that income payments for Australian
students are under the poverty line, arguing that the requirement for students to remain financially
dependent upon their parents until the age of 25 is unrealistic and creates an unreasonable burden on
typical Australian families.
Manthei and Gilmore (2005) conducted a survey of undergraduate students from an arts faculty at a
New Zealand university. The scope of their study included student responses to questions on academic
workload, paid employment commitments while studying, and student earnings and expenditure. It
was found that 81% of students were engaged in paid employment while they studied to finance living
expenses and tertiary student debt. They observed that on average these students worked 14 hours per
week. Similarly, Madigan and Livingstone (2006) reported that “Australian university students are
expected to owe the nation nearly $19 billion by 2008 with an average HECS debt of $10,500 each”.
James et al. (2007) surveyed 18,954 public university undergraduate and postgraduate students in
Australia. They found that 70.6 per cent of full-time graduates worked on average 14.8 hours per
week, with one in every six full time undergraduate students working more than 20 hours per week,
and 41.8 per cent of part time students were working at least 38 hours per week. They found that such
employment was done to afford basic living necessities.
This research further examines undergraduate accounting student financial needs. Specifically, it
contributes to the limited literature on similarities and differences between international students
compared to domestic students.
3. Method
Survey responses were examined of third year accounting students in 2006 at the University of
Wollongong, Australia. Students who were enrolled in a Bachelor of Commerce with a major in
accounting were surveyed. The programme they study meets the professional entry requirements of
both CPA Australia and the Institute of Chartered Accountants in Australia. Access to this program is
achieved through a University Admissions Index (UAI), or its equivalent. While all domestic student
places are funded by an Australian Federal Government student loans scheme (Higher Education
Contribution Scheme, or HECS), international students make up full fee paying places. No domestic
students are full fee paying.
Students were surveyed about their academic experiences and socio-economic circumstances in the
session immediately prior. In order to obtain a complete sample, students who failed their prerequisite
subject in the prior session were also surveyed to obtain a representative population. The research was
conducted by paper surveys handed out in compulsory tutorial classes in the last week of session.
Participation in the survey was optional, with all classes being surveyed to ensure the participation of
both full time and part time students.
The student enrolment pattern was first determined. Of the 170 valid survey responses, 101 (59%) of
students indicated that they were domestic students, while the remaining 69 (41%) identified
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Proceedings of Applied International Business Conference 2008
themselves as international students. Of the domestic students, 45 (45%) were male and 56 (55%)
were female. Only 27 (39%) of the male students were enrolled in a full time load, compared to 42
(61%) of female students who were enrolled full time. This indicates that it is more likely for a male to
study accounting part time (18 students or 56%) than a female to study accounting part time (14
students or 44%).
Such a point of comparison is not directly applicable to the international cohort, as a requirement of
their student visa is that they must study a full time load. The data indicates a small exception to this,
with 2 male international students indicating that they were enrolled in a part time load. It is speculated
by the authors that these two students may only able to do a part time load because of course
progression restrictions, i.e. failing a prerequisite subject not offered in every session. It is noted
however, that the international student group is similar in gender makeup to that of the domestic group,
with there being 39 (57%) female students compared to 30 (43%) of male students. It is concluded that
there is no significant difference in the gender balances between each of the two groups (see Table 1
below).
Table 1: Student enrolment pattern
Domestic (59%)
International (41%)
Enrolled Part-time
Enrolled Full-Time
Total
Count
%
Count
%
Count
%
Male
18
56%
27
39%
45
45%
female
14
44%
42
61%
56
55%
32
100%
69
100%
101
100%
Male
2
100%
28
42%
30
43%
female
0
0%
39
58%
39
57%
2
100%
67
100%
69
100%
34
20%
136
80%
170
100%
4. Results and discussion
Four aspects of accounting student employment patterns will be discussed. First, section 4.1 discusses
the relationship between the number of hours worked and domestic and international students. Section
4.2 observes the perceptions of the two different groups as to whether their paid employment interfered
with their studies, while section 4.3 examines the reasons why students worked while undertaking
tertiary accounting studies. Section 4.4 identifies alternate funding sources accessed by the two groups.
Relationship between the number of hours worked and domestic and international students
The survey collected data on the employment patterns of the two groups in the sample. Out of 170
responses to the survey, 166 students answered the questions which asked whether or not they worked
in paid employment during the time period applicable to the survey. Of the 165 respondents to this
question, only 38 (23%) indicated that they were not in paid employment. Further dissection reveals 34
(49%) of 69 international students did not work at all, while only 4 (4%) domestic students out of 97
did not work. International students are permitted by Australian law to work up to 20 hours per week
on their student visa, but it is not known whether the comparatively large number of international
students not working is through choice or through their inability to obtain paid employment. For the
purpose of this study, 20 hours paid employment or less is regarded as part time work, consistent with
the Australian government working regulations for student visas of full time international students.
This threshold is also consistent with the benchmark used by Vickers et al. (2003) who found that
students who were employed greater than twenty hours per week were more likely to withdraw from
university study than those students who worked lesser hours per week.
Any comparison between the number of hours worked by domestic and international accounting
students is conflated by the restriction attached to a student visa of only being able to work 20 hours
per week. It is noted in the sample six international students identified themselves as working above
the twenty restricted hours. The authors conclude that these students are likely to be working illegally
above their permitted quota. Of these six, five are enrolled in a full time load, with the implication that
their combined employment and study load exceeds sixty hours per week.
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Proceedings of Applied International Business Conference 2008
Of the 93 domestic students working, 45 students (46%) are working between one and twenty hours per
week. All but five of these students are enrolled in a full time pattern, which is consistent with their
indicated study and employment loads. However, of the 48 (49%) of domestic students working more
than twenty hours a week, half of these (48 students or 49%) are enrolled both full time and working
more than twenty hours per week. This raises the question of their need to work such hours while
undertaking full time study. 24 (77%) of 31 domestic part time students work a pattern resembling full
time employment. These relationships are shown in Table 2 below.
Hours worked
Table 2: Hours worked
Enrolled Part-time
Enrolled Full-Time
Total
Count
%
Count
%
Count
%
Domestic (59%)
None
1-20hrs
>20hrs
2
5
24
31
6%
16%
77%
100%
2
40
24
66
3%
61%
36%
100%
4
45
48
97
4%
46%
49%
100%
International (41%)
None
1-20hrs
>20hrs
0
1
1
0%
50%
50%
34
27
5
51%
40%
7%
34
28
6
49%
41%
9%
2
33
100%
20%
67
133
100%
80%
69
166
100%
100%
Perceptions of domestic and international students of the impact of paid work on their studies.
Students were asked whether they thought their paid employment interfered with their university
studies. There were 126 valid responses to this question, with the majority of students (73 or 58%) of
the opinion that their paid employment did not interfere with their studies. This is shown in Table 3.1
below. This opinion did not differ between the domestic and international student groups. Of the 126
valid responses, only 41% of domestic students and 44% of international students indicated they felt
that their paid employment did interfere with their university studies. This is illustrated in Table 3.
Table 3: Domestic and iInternational student comparison: did work interfere with studies?
Domestic Students
%
International Students
%
Total
%
yes
No
38
54
92
41%
59%
100%
15
19
34
44%
56%
100%
53
73
126
42%
58%
100%
Reasons given by domestic and international students for working while undertaking tertiary
accounting studies.
Students were asked why they worked while undertaking tertiary accounting studies. 121 valid
responses were received for this question. There was consistency in the responses between the
international and domestic students, with both groups ranking first the reason why they worked in paid
employment while studying was to pay for their educational expenses. There were 65 of 90 (72%) of
domestic students and 28 of 31 (90%) of international students who either agreed or strongly agreed
with this statement. It is concluded that it is very important for international students to be able to
undertake some paid employment in order to meet the educational fees charged.
However, differences between the two groups are observed. International students ranked second their
reason why they work while studying as “to cover living expenses” with a mean of 4.19, whereas
domestic students ranked this consideration third with a mean of 3.28. Domestic students’ second
ranking was that they worked to gain experience of working, recording a mean of 3.36. It is concluded
that the immediate day to day financial pressures on international students are greater, having to meet
both fees and cost of living expenses. However, domestic students, perhaps with greater local support
networks are able to take a longer term, and more career focused decision as to their paid employment.
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Proceedings of Applied International Business Conference 2008
The fourth, fifth and sixth preferences of domestic and international students were the same, ranking
the reasons of to gain “extra cash for personal expenses”, to “obtain transferable skills” and to “meet
people and / or have a social life” respectively (refer to Tables 4 and 45).
Table 4: Reasons why students work while studying
Domestic (90 )
International (31)
Pay for educational expenses
Cover living expenses
Gain experience of working
Extra cash for personal expenses
Obtain transferable skills
Meet people and / or have a social life
Overall (121)
Mean
Rank
Mean
Rank
Mean
Rank
3.89
3.28
3.36
2.50
2.46
1.81
1
3
2
4
5
6
4.45
4.19
2.58
2.29
1.87
2.03
1
2
3
4
6
5
4.03
3.51
3.16
2.45
2.31
1.87
1
2
3
4
5
6
Table 5: Work to pay educational expenses and to cover living expenses
Pay educational expenses*
Domestic
% International
% Overall
Strongly disagree
3
3%
0
0%
3
Disagree
10
11%
1
3%
11
Neither agree nor disagree
12
13%
2
6%
14
Agree
34
38%
10
32%
44
Strongly Agree
31
34%
18
58%
49
90 100%
31 100%
121
Cover living expenses**
Strongly disagree
11
12%
0
0%
11
Disagree
13
14%
6
19%
19
Neither agree nor disagree
31
34%
3
10%
34
Agree
10
11%
1
3%
11
Strongly Agree
25
28%
21
68%
46
90 100%
31 100%
121
* Average =4.03, Rank 1
** Average =3.51, Rank 2
%
2%
9%
12%
36%
40%
100%
9%
16%
28%
9%
38%
100%
Alternate funding sources accessed by domestic and international students
Students were asked to indicate sources of funding they relied upon to finance their university studies.
There were 121 valid question responses were received, 90 domestic student responses and 31
international student responses. Differences were discernable between international and domestic
students’ sources of funds.
The primary source of funding for international students is family, this response achieving a mean of
4.87 compared to a mean of 3.85 for domestic students who ranked this response second. While
savings was ranked as the third source of funds overall, for the international student group this was
ranked second with a mean of 3.64, where as employment was ranked third for the domestic group with
a mean of 3.43. Government benefits, scholarships and sponsorships were not seen to be significant
forms of funding sources, with government benefits the last ranked source of funding for international
students (refer Table 6 below).
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Proceedings of Applied International Business Conference 2008
Table 6: Domestic and international student comparison: funding sources
Domestic (90 )
International (31) Overall (121)
Mean
Family
Employment
Savings
Govt benefits
Scholarship
Sponsorships
3.85
4.40
3.43
3.39
1.35
1.50
Rank
2
1
3
4
5
6
Mean
4.87
3.36
3.64
1.75
2.23
1.77
Rank
Mean
1
3
2
6
4
5
4.33
4.14
3.50
2.98
1.73
1.61
Rank
1
2
3
4
5
6
5. Conclusion
This study found that for the majority, the sources of funding used to support students’ tertiary
accounting studies differed between domestic and international enrolments. While international
students were most dependent upon their families followed by savings and employment to finance their
studies, domestic students were most reliant upon employment followed by family and savings to fund
their studies. Acknowledging that international students are capped to twenty hours paid employment,
it is not known whether the difference between the two groups in accessing paid employment is a
matter of choice or forced by structural circumstances. This is identified as an area for further research.
While the majority of both domestic and international students indicated that they felt paid employment
did not interfere with their ability to complete their studies, each group were consistent in their reasons
for participating in paid employment, namely to cover educational expenses. While domestic students
also indicated they participated to gain relevant work experience, international students indicated the
dominant second reason was to cover living expenses. It is not known whether the imperative of this
reason compelled international students to accept employment outside their area of study or not. This
is also identified as an area requiring further research.
A limitation of this study include that it was located in a regional area of higher than average
unemployment. The relationships should further be tested in other regional and metropolitan
economies before any generalisations of the results can be fully ascertained. The study is also limited in
that other financial obligations of students were not considered, for example, the cost of education for
any of their children. The study is further limited in that all responses are drawn from undergraduate
students who have a limited skill base from which to seek gainful employment, and that further studies
encompassing postgraduate students may yield different results.
This study finds that international students’ need for paid employment is great in order for them to
meet their educational and living expenses associated with their tertiary studies. It identifies a need to
further examine why these students when undertaking the same course, are less successful in obtaining
paid employment although their need for this appears greater. This paper identifies for future research
an explanation as to why international accounting students are not being employed by at the same rate
as domestic accounting students given that they are afforded the same accounting education
opportunities as domestic students, and enter the accredited programs on established equivalent skill
levels and are required to achieve equal academic standards. This study supports the findings of
Pattison and Rydel (2003) that tertiary students are largely dependent upon their parents financially.
This study also identifies that this situation is evident more so in international students.
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Proceedings of Applied International Business Conference 2008
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