Running Head: POSITION PAPER

POSITION PAPERThe adverse effects of limitations in accounting curriculum to Belize’s economic

development

1

Abstract

When a rigid accounting curriculum structure exists, extensive benefits would be

evident in all aspects of the government, especially as it relates to transparency and

accountability initiatives within the country (Tisdell, 2013). The government of Belize

under the Ministry of Education has made significant strides to improve the education

sector by addressing key areas in the curriculum. Unfortunately, such efforts were

directed primarily to the primary and secondary education levels. Due to such action, the

accounting curriculum at the tertiary level has not benefited from curriculum

restructuring. Hence, the accounting curriculum has fallen short on the basis of relevancy

to the economy.

In this analytical composition, I will demonstrate the need for relevancy in

accounting curriculum, illustrate that the economy is lacking essential components within

the accounting curriculum in order to initiate substantial growth, identify why the

government plays a key role in ensuring that the curriculum reflect the changes within the

country, and finally discuss various solutions to alleviate accounting curriculum

constraints that hinders the government from strengthening the country’s sector strategy

as it relates to the legal, revenue and public expenditure frameworks.

POSITION PAPER

The adverse effects of limitations in accounting curriculum to Belize’s economic

development

Belize has invested 25 percent of its government budget on educating the future

generation on a yearly basis. Nonetheless, the effect of such high investment is clearly

not evident due to the limited economic growth within the country. The Minister of

Education mentioned in his Education Sector Strategy speech that the only way

transformation will occur in the education sector is if the status quo is rectified. In the

fiscal budget for 2012-2013, the government highlighted that several measures will be

implemented to transform education. These measures will involve curriculum

development at the primary, secondary and alternative level, salaries and training

programs for teachers, and infrastructure plans to improve schools. In such plans, it is

clear that the accounting curriculum at the tertiary level will not embark on any changes

under the education sector strategy, which will not result in relevance of education

content in order to bridge the gap between accounting qualifications and accounting

vacancies within the country to stimulate economic growth. The government has failed to

rationalize that improvement in governance and accountability initiative can only come

from large investment in accounting curriculum at the tertiary level.

The master’s program in accounting has been recently introduced into the

education sector and it is evident that the course is demanding; therefore, it requires

substantial amount of investment of funds, time and expertise. Investments in the

accounting curriculum should surpass the traditional teachings of the discipline.

According to Cunningham (2000), traditionally, curriculum development has been seen

as planning for a sustained process of teaching and learning in a formal institutional

3

POSITION PAPER

setting. Currently, many consider curriculum development as the creation of a better

future that should focus on relevant issues, which will substantiate positive changes

within the society in order to facilitate the evolution of global growth. Accounting

curriculum evolution, in particular, has been occurring across nations due to many

fraudulent actions of the government, but desolately, Belize has yet to initiate such

revamping in order to form preventative measures that will yield significant economic

growth. Due to such actions, extensive limitations in Belize’s accounting curriculum have

adversely affected the country’s sector strategy to strengthen the legal, revenue and

public expenditure framework.

For one thing, the legal framework has proven to be a very necessary aspect of

any economy and has been controlled by legal bodies within a society including lawyers

and magistrates. Lawyers and magistrates have spent years studying such disciplines and

have branched off in specialized areas but not without understanding general frameworks

first. For this reason, the education system has seen the relevance to incorporate various

elements of social issues into a law degree but refuse to appreciate the same rationale for

other disciplines such as accounting. According to Curtis (2008), an economy can

strengthen the Judiciary System and develop holistic forensic auditors in order to

stimulate economic growth, if it is willing to implement the legal component into the

forensic accounting curriculum. As it is currently, not even lawyers are familiar with civil

or criminal law as it relates to financial fraud, which increases the need for accounting

students to be aware of the fundamental legal research method.

Additionally, when accounting students are ignorant of legal procedures, financial

evidence can be dismissed from civil, administrative and criminal proceedings and may

4

POSITION PAPER

not result in litigation. It was evident in the largest money laundering case in the history

of Belize when the Coye family was acquitted in 2010 for lack of evidence. The Financial

Intelligence Unit (FIU) currently managed by Marilyn Williams who holds a formal fraud

assessment and legal qualification managed to bring such criminals to justice. Even

though such case was brought to justice, the evidence was not compelling and did not

prove such laundering and was on the verge of being dismissed a final time. This case

outlines the need to include legal courses that will assist accountants in how to properly

compile evidence to demonstrate beyond reasonable doubt that fraud has been

committed.

Additionally, many fraudulent proceedings against government officials in Belize

have failed continuously because accountants are not versed in compiling fraud evidence

in a court and in turn make common mistakes that do not result in perpetrators being

brought to justice. In certain cases where it seems that the government can manipulate

lawyers and magistrates to act in their best interest even though harmful acts are

committed against the citizens, they will go to increasing lengths to achieve such

endeavor. Dada et al (2013) concluded that due to lack of proper procedure and

substantial evidence, fraud cases were dismissed in turn weakening the effectiveness of

forensic auditors capabilities. He highlighted that there is a pressing need to first develop

a forensic accounting curriculum that includes law in order to produce expert fraud

auditors that can properly assess fraudulent cases that hinder growth within any economy.

In order for fraud cases to be properly persecuted, accounting students must

display substantial amount of skepticism that is similar to expert who completed a

forensic accounting course that includes the law aspect such as Investigation Techniques

5

POSITION PAPER

and Criminal Procedures. Carpenter et al (2011) hypothesis pointed out that untrained

students, those enrolled in a typical two year audit course without substantial exposure to

law exhibited unfavorable levels of skepticism needed to improve risk assessment in

order to uncover fraud. The study brings awareness to standard setters, regulators and

firms that students’ inability to professionally evaluate risk does not state a level of

incompetence in them but rather in the education system for ignoring the importance of

forensic accounting courses within the curriculum. Carpenter et al (2011) revealed that

even after trained students completed the forensic accounting course that includes the law

component, their fraud judgment persist over-time; while students without such training

continuously under assess risk in various situations and are incapable of gathering

evidence needed for legal proceedings. Carpenter et al. noted that simply having

knowledge of fraud detectors or the use of typical decision aids have little to no bearing

on risk assessment, and that practical exposure to fraud is the only way to help build

cognitive fraud model, which improve students’ ability to detect fraud and present

compelling evidence to persecute criminals. In order for Belize’s accounting curriculum

to improve, relevant and substantial law courses must be present in the curriculum in

order to provide future auditors with the necessary skills to conduct proper fraud

investigation and bring criminals to justice within the country of Belize.

Furthermore, when accountants are exposed to general law courses, they are

better equipped to persecute wrong doers and in turn regulate the activities of the

government, which will stimulate growth as was evident in the MoneyGram case. The

mere fact that tertiary education is not a primary focus of the government, stipulates

compelling arguments that the government has no intention to strengthen the legal

6

POSITION PAPER

framework and improve accountability, which will create economic growth. When the

accounting curriculum includes a law course, it will be relevant to the economy and will

allow the government to implement its sector strategy. Barrett (2014) a lecture at The

University of Notre Dame found it relevant to include a course such as Accounting for

Lawyers in order for lawyers to understand the framework of accounting practices and be

able to address significant issues as it relates to accounting and law. Why is it then not as

important for accountants to be exposed to law in order to address issues as it relates to

law and accounting? If a society is to generate substantial levels of growth to sustain the

economy, the government has to make changes in the accounting curriculum. The Prime

Minister of Belize should understand better than any other individual the need for law

expertise due to his professional background knowledge in the discipline.

In order for Belize’s economy to progress, the revenue structure must be

systematically reformed through modernization measures keenly involving curriculum

improvement. Citizens that lack the necessary financial literacy skills, whether basic or

advanced, are unable to make sound investment decisions, which in turn exert more

detrimental effects than beneficial outcomes to an already fragile framework. Finlayson

(2009) expressed that if the education system settles for mediocre quality in curriculum,

how will citizens be fully prepared to handle the many challenges within key areas of the

country specifically the revenue framework. The revenue sector should not only be a tax

collecting body but also one that is equipped to make decisions that anticipate future

constraints in revenue earnings and collections in order to effectively address such

constraints currently.

7

POSITION PAPER

Thus, for the government to devise highly ambitious future revenue policies, they

must understand that presently due to limitations in the accounting curriculum, the

education system is not producing beings with such level of financial intellectual to

propel a system that has merely existed to collect and disburse tax dollars. If the revenue

system is to truly be reformed, then immediate actions rather than ambitious words must

be present. It starts with implementing basic to advance financial literacy programs

within all levels of the economy, which will definitely require an improvement in the

accounting curriculum.

When improvements in the accounting curriculum occur, it should complement

the extensive amount of time and finance spent on teacher training in Belize that targets

the quality of content delivered to students. Lester et al (2008) noted that in order to

successfully implement accounting courses that will make students marketable in order to

earn more income that will result in more individuals at the taxable bracket, it must be

done using the progressivism approach. Lester et al (2008) further outlined that the

progressivism approach requires an increase in (1) the ability of the lecture and his/her

capability to provide substantial amount of skills and resources to aid students in grasping

the various concepts; (2) case studies that provide practical experiences to students; (3)

communication through interaction and student presentations; (4) external guest speakers

to bring the reality of the course into the classroom; (5) internship opportunities to gain

work experience. Those measures if done properly, are the hallmark of an excellent

course.

As the relevance of the accounting curriculum is brought into question, other

factors that affect the advancement of the curriculum receive substantial amount of

8

POSITION PAPER

attention instead of the real reason why growth has become more strenuous. Regardless,

the accounting curriculum revamping is the only way out of this hostile situation.

Bruinede et al (2010) articulated a compelling argument that there exist other

demographic challenges that poses a greater impact on the country’s financial future as

oppose to the limitations in accounting curriculum. He pointed out that a major challenge

is the financial constraints that citizens experience in accessing the currently available

program. He argued that one could say that the accounting curriculum is not adequate if

citizens are not actually enrolled in order to evaluate if it is indeed the real cause of

stagnant economic growth.

However, Huston (2010) challenged the position of Bruinede et al by highlighting

the fact that if indeed financial constraint is the main reason for the inability of the

country to strengthen the revenue sector rather than limitations in accounting curriculum,

then why haven’t the government taken the steps to facilitate financial burden of higher

education accounting students? One might speculate that the government is prudent

enough to spend revenue dollars on productive areas of education such as qualified

lawyers, doctors and engineers but not accountants. If the accounting curriculum was

producing qualified accountants to manage a country’s must pressing issues then the

government would feel confident in investing large funds that will yield the pillars

necessary to strengthen the revenue sector. A government that suppresses an economy

accountability measures through limitations in accounting curriculum is without a doubt

displaying fraud symptoms that will not generate sustainable growth in Belize’s revenue

sector.

9

POSITION PAPER

Revenues collected from major activities within the country, finance the public

expenditure framework of any economy; therefore, such funds must be used to benefit the

human aspect in order to rebuild the country. Finlayson’s (2009) research presented

contractions to the need for education awareness. He concluded that education is a large

public expenditure and will not address the weakness in financial literacy. Furthermore,

he discussed that the more citizens acquire higher education opportunities, the higher

financial constraints would increase, which leads to more indebtedness that would reduce

public expenditure on other key areas of the economy. Finlayson was not a firm believer

in that sacrificing today’s battle for victory in tomorrow’s war is a more productive

approach to strengthen the country’s sector strategy.

In that light, for Belize to develop holistic improvement strategies, the

government must make the sacrifice and utilize current funds to revamp the accounting

curriculum in order to yield substantial benefits. Accounting curriculum must be able to

properly prepare students not to only be entry-level accountants but also to sit CPA

exams and work in influential positions within the FIU to initiate change and growth in

Belize. If the accounting curriculum is improved to reflect internationally recognized

education standards, then increasing levels of students would be induced to enroll,

minimizing the amount of expenditures paid out in the future. Fortin et al (2009) noted

that when international courses within the accounting curriculum of Latin American and

Caribbean countries were evaluated, there were only surface teaching content and it was

not sufficient to impact the global changes. Several countries such as Brazil, Mexico and

Panama took the initiative and restructured the accounting curriculum, which improved

passes in the CPA exams and fraud detection within their counties.

10

POSITION PAPER

Many fraud cases have gone undetected for years due to the inability of qualified

auditors to detect them and as a result the economy suffers billions of dollars in loss each

year. Pearson et al (2008) made reference to the major financial scandal of Enron to

emphasize their argument that general financial auditors are not qualified to handle major

financial crime and scandals. Furthermore, the research provided significant proof that

basic financial audit background is without a doubt unable to sustain the changing

financial environment. Substantially, the pressing need to adjust higher education

accounting programs must happen today regardless of the cost. In the longer run,

accounting students will be able to identify fraud within the economy without the need

for the government to outsource such service and in turn create the opportunity to

strengthen the expenditure framework, which is interrelated to the revenue and debt

management that have both been a government initiative for years.

For years, the economy has been employing a large percent of individuals who are

not providing a structural support for the economy but rather a liability in moving this

economy into the future. According to Gordon’s article (2014), the economy has fallen

off the talent cliff and it lacks knowledge technologists. The article points out that due to

the lack of knowledge technologists, many under skilled workers have existed in the

market creating a larger gap between revenue generation and expenditure reduction.

Without technical support from highly skilled individuals, the growth projected for Belize

will not attainable. The buck as fallen back into the lap of the education system simply

because they have failed to provide education updates that are relevant to the fast paced

changes happening in fields across accounting disciplines.

In order for the government to reduce education expenditure and develop other

11

POSITION PAPER

key areas of the country, they must listen to the appeals of accounting students and

businesses to revamp the accounting curriculum in order to tailor it to the needs within

the economy. Businesses are challenging the system by clearly outlining what skills they

need, and educators should work in equipping students with those skills in order to

effectively transition them into those ideal job vacancies, which will reduce redundancy

and increase productivity to stimulate growth within Belize.

An economy does not exist in a vacuum; therefore, the decisions that the

government makes benefit key players within the economy. Citizen’s essential role is to

contribute towards the economic growth regardless of the many demographic limitations

such as high levels of unemployed, low educated and single family individuals outlined

by Bruinede (2010). Koh et al (2009) argument is that accountability will lead to

improvements in government expenditure. Budget assessment will generate more

essential initiatives that will foster more visible results of growth in key aspects of the

economy.

Many researches express that a relationship between the state and the society will

result in accountability that exceeds the formal tool to control government; it will allow

for a collaborative relationship that will move the economy into a positive direction. It is

alarming that a high percent of Belize’s population lack the capability to challenge any

document produced from public and private entities; therefore the time to adjust the

accounting curriculum to foster growth in the legal, revenue and public expenditure

sector is at the crossroad point where the only way forward is restructuring the

accounting curriculum with courses that are vital to the development of Belize’s

economy.

12

POSITION PAPER

References

Barrett, M. J. (2014). Professor of Law: Notre dame Law School.

Bruinede Bruin, W., Vanderklaauw, W., Downs, J. S., Fischhoff, B., Topa, G., & Armantier, O. (2010). Expectations of Inflation: The Role of Demographic Variables, Expectation Formation, and Financial Literacy. Journal Of Consumer Affairs, 44(2), 381-402. doi:10.1111/j.1745-6606.2010.01174.x

Carpenter, T. D., Durtschi, C., & Gaynor, L. (2011). The Incremental Benefits of a Forensic Accounting Course on Skepticism and Fraud-Related Judgments. Issues In Accounting Education, 26(1), 1-21. doi:10.2308/iace.2011.26.1.1

Cunningham, C. A. (2000). Center for School Improvement: The role of philosophy in curriculum development.

Curtis, G. E. (2008). Legal and Regulatory Environments and Ethics: Essential Components of a Fraud and Forensic Accounting Curriculum. Issues In Accounting Education, 23(4), 535-543.

Dada, S. O., OwolabI Sunday, A., & Okwu, A. T. (2013). Forensic Accounting a Panacea to Alleviation of Fraudulent Practices in Nigeria. International Journal Of Business Management & Economic Research, 4(5), 787-792.

Finlayson, A. (2009). Financialisation, Financial Literacy and Asset-Based Welfare. British Journal Of Politics & International Relations, 11(3), 400- 421. doi:10.1111/j.1467-856X.2009.00378.x

Fortin, H., Barros, A., Cutler, K. (2009). Accounting for Growth in Latin America and the Caribbean. Improving Corporate Financial Reporting to Support Regional Economic Development, 65-76.

Gordon, E. E. (2014). Economic Growth Requires Expanding Career And Technical Education. Techniques: Connecting Education & Careers, 89(4), 42-45.

Lester E. Heitger and Dan L. Heitger (2008) Incorporating Forensic Accounting and Litigation Advisory Services Into the Classroom. Issues in Accounting Education: November 2008, Vol. 23, No. 4, pp. 561-572.

Huston, Sandra J. 2010. "Measuring Financial Literacy." Journal Of Consumer Affairs 44, no. 2: 296-316. Academic Search Premier, EBSCOhost (accessed September 16, 2014).

13

POSITION PAPER

Koh, A.N, Arokiasamy, L., & Ah Suat, C.L. ( ). Forensic Accounting: Public Acceptance towards Occurance of Fraud Detection. International Journal of Business and Management, Vol. 4, No.11A, pp. 145-149.

Pearson, T. A., & Singleton, T. W. (2008). Fraud and Forensic Accounting in the Digital Environment. Issues In Accounting Education, 23(4), 545-559.

Tisdell, E. J., Taylor, E. W., & Forteé, K. (2013). Community-Based Financial Literacy Education in a Cultural Context: A Study of Teacher Beliefs and Pedagogical Practice. Adult Education Quarterly, 63(4), 338-356. doi:10.1177/0741713613477186

14