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Gnerally, partners at firms recruit from schools in their state. The reason is two fold:
1. accounting programs are essentially equal from school to school
2. Although there is a Uniform CPA, each state has their own educational requirements for the CPA. Attending a schiool in the areas that the student wants to practice will give them the advantage of meeting the state educational reqluirements. In addition, schools located in the state,whether it be public or private, can provide better advisors who understand that state's requirements for the CPA.
As for a undergrad vs. grad, I honestly don't think it makes a difference to the BIG 4 or other accounting firms as long as the student meets the educational requirements for taking the CPA in that state and has a good GPA.
My older son majored in business admininstration and then got a masters in accounting. All the national CPA firms interviewed him and so did the major local firms.
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