CEO's Message

SUSAN SPEIRS, CPA

Over the past several years, we’ve heard the terms “CPA Evolution” and “CPA Pipeline” tossed around in discussions regarding the future of the profession. Plus, we continue to see technological changes that require substantial changes in competencies and skill sets.

In 2017, the AICPA and NASBA partnered to examine CPA licensure and determine whether there were opportunities to improve the certification process and address the challenges facing the profession. As technology continues to integrate into everything we do, many perspectives hold that technology needs to be integrated into the education process and the CPA Exam. There are other areas of transformation that need to be addressed, as well. While technology has the ability to do the “number crunching,” stakeholders have expressed concern that we should not lose sight of our core pillars of accounting, auditing and taxation. We must also keep in mind that the accounting and auditing standards and Internal Revenue Code continue to grow. Research from the AICPA and Wolters Kluwer indicate that since 1980, there are three times as many pages of the IRC, four times as many accounting standards and five times as many auditing standards. And, to boot, much of the work that would have been completed by newly hired CPAs is being outsourced, automated or completed by paraprofessionals.

Ultimately, the current licensure model is unsustainable as the future of our profession is changing dramatically. Licensure is moving towards three exams in core professions of auditing, tax and accounting with technology integrated and a fourth exam of either tax compliance, business reporting or information systems to be chosen by the candidate. Woven throughout CPA Evolution is the discussion of the CPA Pipeline. A 2016 Accounting Today article called the dearth of new CPAs one of the biggest issues facing the accounting profession. Simply said, not enough people want to become CPAs. We’ve heard from our own members that graduates are bypassing work experience at a public accounting firm and accepting offers in the industry sector instead. An August 2016 report from the Illinois CPA Society says, “companies don’t value the credential and advisory services at firms don’t require the CPA.” As we’ve asked about pipeline challenges from members, w’ve heard things like churn and burn, inability to have affordable housing, no managerial level people to be found, identity crisis of what our profession is and low starting pay. Interestingly, the 150hour requirement doesn’t come up in a negative way from a licensure standpoint. However, it is clear that we need to do some work as it relates to barriers to entry of some of our minority students and first-generation accounting graduates.

We have big challenges ahead of us. My ask for you is to give some thought to the challenges in your own place of employment and share with us some opportunities that we can pursue moving forward. CPA Evolution and CPA Pipeline issues will be with us for a while. n