This study describes the perceptions of accounting students and expectations of employers towards the skills and knowledge needed by accounting graduates. This research uses quantitative methods to get a representative picture of the issue. The results of this study showed that students perceived honesty, continuous learning, and work ethics as important skills; while employers stress the importance of work ethics, teamwork, and time management. Knowledge needed by accounting graduates in the perception of students are financial accounting, accounting, and financial reporting, and financial statement analysis; whereas employers perceived the importance of financial statement analysis, knowledge of Microsoft office program, and financial accounting. Further analysis showed that there is an expectation gap between the perceptions of students with the expectations of employers towards skills –not knowledge-- needed by accounting graduates. This study implies the importance of skills development in the university curriculum to meet the expectation of employers.

Keywords: skills, knowledge, students, employer, expectation gap