Accounting professors: a valuable resource.

Establishing working relationships with academic faculty members at nearby universities and colleges can be a profitable step for a local practitioner because it provides access to specialized knowledge, training, skills and experience at a relatively low cost. Academics are particularly effective at improving staff training and strengthening quality controls because of their external perspectives. They also can contribute to recruiting and marketing programs and enhance the firm's stature in the community.

CONTINUING

PROFESSIONAL EDUCATION

While large CPA firms can develop in-house training materials and programs, smaller firms must look to outside sources for CPE. Not only will there be out-of-pocket costs, but also the smaller firm may have difficulty finding courses that satisfy its needs in terms of content, location or quantity.

Accounting academicians can devise and teach in-house CPE programs offering convenient times and location at reduced costs. This is particularly true of "building block" courses that correspond to the experience level of diverse staff members.

Another approach is "coteaching," in which practitioners and academics share responsibility for CPE courses. This reduces the practitioner's preparation time and brings to the course a blend of theoretical perspective and practical experience.

STANDARDS REVIEW

AND QUALITY CONTROL

The academic also can serve as a technical adviser and consultant in these ways:

* Perform reviews of financial statements, auditor's reports and working papers for selected engagements.

* Implement new auditing and accounting standards or procedures.

* Develop in-house monitoring procedures that improve quality controls.

When academics are used for standards review and quality control, their independence, knowledge and experience are a real asset. Additionally, they apply contemporary accounting and auditing theories to engagements, which helps keep practitioners current.

EXAMINATIONS AND

INSPECTIONS

Some firms have academics perform internal examinations and served as team captains during inspections. The academic generally can complete the review in less time than the firm's managers and partners because he or she has no client responsibilities. The academics also can help firm members adapt to the profession's changing circumstances, methods and pronouncements. This arrangement is not only cost-efficient, but also is helpful when the firm undergoes a formal external peer review. Outside peer review teams often look favorably on the use of an independent academician in the firm's monitoring programs.

SPECIALIZED SERVICES

AND CONSULTING

While many practitioners, especially those in smaller firms, are generalists, academics tend to specialize in one area, such as financial, cost, tax or auditing. As a result, they can advise practitioners on highly technical questions or on unfamiliar areas. They are neither competitors nor closely associated with the client, which gives them objectivity and a different perspective. Academics also provide referrals to faculty members outside the accounting department who may be able to help practitioners with projects, such as developing marketing surveys, updating organizational structures or performing computer systems reviews.

RESEARCH AND SPECIAL

PROBLEMS

Academic consultants can help CPAs deal with the extraordinarily large number of accounting, disclosure and auditing pronouncements issued in recent years. Their expertise can be tapped in implementing new standards, sample plans and procedures or for researching new accounting and disclosure issues. Academics usually are well-versed in authoritative literature and standards and therefore can assist practitioners in researching unique client situations.

NEWSLETTER ASSISTANCE

There are many external newsletter services a firm could use to produce a client publication, but one prepared by the firm's staff provides a more direct association between the firm and its clients. When academics provide editorial services, it saves staff members time yet still gives cients a personal and firm-specific newsletter. The academic's involvement with the newsletter can range from providing writing and editing to preparing layout and shepherding it through the printing process.

Academics can contribute authoritative articles under their own names or ghostwrite under staff by-lines on topics such as new accounting software, recent tax law changes or other topics of interest to clients.

RECRUITING AND

REFERRALS

Associations with current and former students make academics an important asset in recruiting, for they can inform the firm of promising seniors, provide appropriate information about applicants under consideration and recommend graduates who are in the job market. The firm's on-campus presence is enhanced as well by its association with the accounting faculty.

RECRUITING ACADEMICS

State CPA societies are excellent referrald sources for practitioners seeking to work with academics, who often are active in technical and educational activities at these societies. The heads of accounting department at schools in the firm's geographical area are another good source, as are former professors of firm members. When academics are contacted, they should be given details on the firm's needs, the timing and duration of the project, compensation, reimbursement of expenses and liability protection.

Firms should use an engagement letter when they retain academics. Before entering into a long-term relationship, practitioners should experiment with shorter projects to ensure comparability of style, methodology and compatibility.

The first step is to contact local academics and talk about the benefits of a working relationship. It may well be one of the most important steps a practitioner takes to improve the quality and profitability of the firm's practice.