01
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
2019
Trend s
in the supply of accounting
graduates and the demand
for public accounting recruits
02
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
By the Association of International Certifi ed Professional Accountants
ARC Research, an SVC Company
Copyright © 2019 Association of International Certifi ed Professional Accountants.
All rights reserved.
Requests for permission to make copies of any part of this work should be mailed to:
Permission Department, The Association, 220 Leigh Farm Road, Durham, NC 27707-8110
1234567890ACD920
01
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
02
06
08
18
27
31
34
Introduction
A letter from the AICPA’s Academic-in-Residence
Interpreting the data
Key insights
Summary
Trends in the supply of accounting graduates
Supply | Enrollment
Supply | Graduates
Trends in the demand for public accounting recruits
Demand | New hires
Demand | Future expectations
U.S. fi rm demographics
Uniform CPA Examination
®
Appendix
CPA pipeline programs
Methods
Endnotes
Table
of Contents
02
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
A message from
the AICPA’s
Academic-in-Residence
Thank you for your interest in the 2019 Trends in the Supply of
Accounting Graduates and the Demand for Public Accounting Recruits
report. This biennial report identifi es key trends in U.S. accounting
enrollments and graduations as well as hiring of new graduates in
the public accounting sector. Published since 1971, Trends provides
statistical projections and respondent expectations based upon
university responses for the 2017-2018 academic year and fi rm
responses for the 2018 calendar year.
The accounting profession is rapidly evolving. Technological innovations, especially in data science
and analytics, are becoming a more common part of the profession and are changing the way we do
business and whom we hire to do it. The fi ndings in this report refl ect those changes. The responses
received from participating U.S. universities and public accounting fi rms provide us with insights into
how these changes are impacting the profession from both a supply and a demand perspective.
This data, against the backdrop of the current macroeconomic environment – which impacts college
enrollment levels, choice of major, and hiring levels – provides us a snapshot of the profession in time
and allows us to forecast future trends.
Projected bachelor’s accounting enrollments are the second highest on record since the inception of our
Trends report. While there was a 4% decline from the 2016 number, they remain higher than 2014 levels.
Master’s and Ph.D. enrollments continue to decline (6% and 23%, respectively), with many opting to
enter or remain in the workforce in lieu of pursuing an advanced accounting degree or to pursue other
avenues for advanced education. As mentioned in the last Trends report, the previous infl ux of graduate
students we saw may have been infl uenced by the Great Recession of 2008. We could be seeing an
impact from both economic conditions and an expansion of the alternatives available to potential
graduate accounting students.
The more telling projections in this report about the profession come from the demand side in public
accounting. New hires assigned to audit-related services increased 4 percentage points. Across the
last two Trends reports, we have experienced an approximate 30% decline in hiring of new accounting
graduates. The marketplace continues to demand different competencies and, while accounting
graduates are still being hired, fi rms are seeking other skill sets to expand services. We are seeing that
the gap in skills required in the profession, especially as it relates to technology needs, is being met with
non-accounting graduates. There is also anecdotal evidence to suggest that some of this technology-
specifi c hiring is occurring at the experienced hire level.
After a signifi cant increase in the number of new CPA Exam candidates in 2016, largely attributed to the
new version of the exam launching in 2017, the number of candidates in 2018 dipped to its lowest level
in 10 years.
Yvonne Hinson, CPA, CGMA, Ph.D.
Academic in Residence, Academic &
Student Engagement
Association of International Certifi ed
Professional Accountants
03
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
The increase in non-accounting graduate hiring and the decline in new exam registrants present areas of
opportunity. The AICPA has been working with key stakeholders on a number of profession-wide initiatives that
attract, inspire, and engage the next generation of CPAs.
These initiatives include the CPA Evolution project in partnership with the National Association of State Boards
of Accountancy. The goal of this project is to ensure that CPAs continue to have the competencies needed to
support an accounting profession that plays a critical role in protecting the public interest.
We believe that for CPAs to continue to serve the marketplace, they must incorporate new and different skill sets
and that it is incumbent upon the profession to take steps to cultivate these rapidly changing skills in accounting
graduates and newly licensed CPAs.
On a parallel effort, we have been working with universities to deepen the connection between practice and
academia to better incorporate the skills of the future into current curricula and bring more CPAs into the
classroom. The Accounting Accreditation Practitioner Engagement Program, which places CPA practitioners on
Association to Advance Collegiate Schools of Business (AACSB) accounting accreditation committees and peer
review teams, and the Accounting Doctoral Scholars Program, which provides funding for CPAs to obtain their
doctorates and ultimately teach, are helping to bridge the gap between practice and academia.
To ensure a diverse and robust pipeline of talent enters the profession, we have expanded our awareness efforts
at the high school level. The AICPA Accounting Program for Building the Profession trains high school educators
to teach a higher order college-level accounting class and increases students’ knowledge about the accounting
profession. We are working in collaboration with the National Academy of Finance, Junior Achievement, and
organizations such as the National Association of Black Accountants and the Association of Latino Professionals
for America to increase the likelihood that students from a multitude of backgrounds consider accounting a viable
option early in their career decision-making process. AICPA scholarships and programs such as the Accounting
Scholars Leadership Workshop help ensure accounting students have a meaningful and successful educational
journey.
This report also fi nds that, while enrollment by gender is nearly even at both the bachelor’s and master’s levels,
racial/ethnic diversity has increased with the highest percentage of non-white enrollees to date. There are many
other stakeholder and AICPA initiatives, like the ones mentioned above, around diversity in our profession, and we
are seeing positive movement here.
I encourage you to look at Appendix A in the back of this report for more information on how the AICPA, along
with other stakeholders, is working to attract, inspire, and engage the next generationof CPAs.
While this Trends report focuses on public accounting hiring of new graduates (it does not include trends in hiring
of experienced accountants or in sectors outside public accounting), those seeking accounting careers are hired
into a multitude of positions out of college and have even more opportunities as they gain experience in the
profession. According to the Bureau of Labor Statistics, employment in the broader accounting and auditing fi eld
is expected to grow faster than the average for all occupations through 2026 (Accountants and Auditors, 2019).
Once again, we are very appreciative of the universities and fi rms that took the time to participate in this long-
standing research initiative as it provides essential insights to our many stakeholders and interested parties within
the accounting profession.
Thank you,
Yvonne Hinson, CPA, CGMA, Ph.D.
Sources: Accountants and Auditors: Occupational Outlook
Handbook: https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm#tab-6
04
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
The Trends report is broken down into three major reporting sections:
trends in supply, trends in demand, and fi rm demographics. There
is also a section that reports CPA Exam candidate data, as well as
an appendix that contains descriptions of AICPA programs that
are dedicated to growing the pipeline, survey methodologies, and
endnotes containing any changes or considerations for specifi c data.
The data presented for overall numbers of enrollments, graduates,
and hires are based on statistical projections. These projections are
calculated by creating a model that is meant to predict population
values based on data collected in the current survey cycle. This
data should be used to look at the overall trends in the reporting
areas, rather than taken as a statement of exact values.
Demographics and population breakdowns for enrollments, graduates,
new hires, and fi rm demographics are descriptive statistics. The data
received from respondents were weighted (based on variables such
as faculty size, number of employed CPAs, etc.) to represent the total
population. Demographic data by fi rm size are unavailable for this
period due to insuffi cient sample sizes in several fi rm size categories.
All trends data presented in the report includes only data that is
comparable. In some instances, data from previous reports was
recalculated for comparability purposes and is marked with endnotes.
Other changes or considerations are also endnoted within the report
and can be examined in the methods section of Appendix B.
The 2019 Trends in the Supply of Accounting Graduates
and the Demand for Public Accounting Recruits report
includes both statistical projections and descriptive statistics.
Please contact us at [email protected] with any questions or feedback as
we strive to make the information in these surveys relevant to your needs.
Interpreting
the data
04
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
05
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
Key
insights
Accounting Enrollments
Total projected accounting enrollments are down 4% from the highs of 2016, but are still
among the highest on record. Master’s enrollments are down 6% from 2016. Racial/ethnic
diversity has increased in the 2017-18 academic year. Universities have reported increases
in Hispanic or Latino enrollees of 3 and 8 percentage points at the bachelor’s and master’s
levels, respectively. Seventy-two percent of bachelor’s of accounting programs and 65% of
master’s of accounting programs expect to have the same or higher enrollment in 2019.
Accounting Graduates
Projected accounting graduates trended downward in the 2017-18 academic year, with decreases
of 4% at both the bachelor’s and master’s levels and overall. In 2018, female accounting graduates
outnumbered male graduates at the master’s level. Racial/ethnic diversity has increased in accounting
graduates, with a 7 percentage point increase in Hispanic or Latino accounting graduates.
Hiring
In 2018, new hires assigned to audit-related services increased by 4 percentage points, while
new graduates assigned to taxation declined by 4 percentage points. Hiring of new accounting
graduates slowed 11%. Across the last two Trends reports, we have experienced an approximate
30% decline in hiring of new accounting graduates. Non-accounting hires as a percentage of all
new graduate hires are up 11 percentage points to 31%. See footnote for more information.
Hiring Expectations
Of fi rms that hired one or more accounting graduates in 2018, 58% expect to hire the
same number or more in 2019. Ninety percent of all U.S. CPA fi rms expect to have the
same number or more CPAs on staff in 2019.
CPA Examination
The number of CPA Exam takers increased in 2015 and 2016 in preparation of the new CPA
Exam that launched in April 2017. CPA Examination candidates decreased 7% between
2017 and 2018. The number of CPA Exam candidates who passed their 4th section of the
exam decreased 6% between 2017 and 2018.
Footnote: New categories were collected for “non-accounting hires” in 2018, which may account for
some of the increase, but even without new categories there was still a significant increase.
06
2019
TRENDS REPORT
SECTION 02
SUMMARY
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002
-0
3
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-1
1
2011-12
2012-13
2013-14
2014-15
2015-16
2016-1
7
2017-18
Summary
1.1 Accounting enrollment by program | 1993-2018
Total projected accounting enrollments are down 4% from the highs of 2016, but are still among the highest on record.
(See notes a, b, and c on page 39)
Projected accounting graduates trended downward in the 2017-18 academic year with decreases of 4% at both levels and overall.
(See note a on page 39)
1.2 Bachelor’s and master’s of accounting degrees awarded | 1971-2018
Total graduates
Bachelor’s
Master’s
1993-94
1994-95
1995-96
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2006-07
2007-08
2009-10
2011-12
2014-15
2015-16
2017-18
207,806
216,482
207,071
201,570
187,534
181,075
173,299
142,735
141,175
133,435
134,775
127,960
134,050
174,010
192,870
189,863
27,482
29,428
39,641
29,648
29,464
24,065
21,253
18,795
17,540
12,565
10,375
9,455
8,620
9,430
10,010
10,114
2,645
3,177
2,068
2,840
2,822
2,305
3,239
3,595
3,550
3,555
2,395
3,130
2,600
4,760
6,510
5,942
3,208
3,014
3,107
5,132
5,100
4,166
4,482
4,030
5,270
4,065
4,000
2,445
3,770
3,360
3,510
3,398
732
946
1,195
1,189
1,188
1,224
1,095
955
1,085
890
800
680
770
770
870
1,002
253,047
253,082
240,379
226,108
212,835
203,368
170,110
168,620
154,510
152,345
143,670
149,810
192,330
213,770
210,319
Bachelor’s
Master’s in
Accounting
Master’s in
Taxation
MBA
Accounting
Ph.D. Total
241,873
76,542
54,947
21,595
07
2019
TRENDS REPORT
SECTION 02
SUMMARY
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Total graduates
Bachelor’s
Master’s
In 2018, hiring of new accounting graduates slowed 11% - a smaller shift than the decline between 2014 and 2016. (See note d on page 39)
1.3 New graduates hired into accounting/finance functions
of U.S. CPA firms | 1971-2018
1.4 Growing diversity in the CPA profession | 2018
This graph shows the 2017-18 race/ethnicity data at each major point in the CPA education and career path – from bachelor’s enrollees, to
bachelor’s and master’s graduates (the most likely to go into public accounting), all the way through partners. These numbers are derived
from both the survey of universities’ enrollments and graduates and the survey of fi rms’ hiring.
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
Total Non-White
Demand survey Supply survey
Enrollments
(BA)
Graduates
(BA+MA)
New Grad Hires
Professional
Staff
CPAs
Partners
9%
16%
29%
42%
44%
91%
84%
71%
58%
56%
0.4%
0.3%
0.4%
4%
6%
1%
1%
2%
2%
2%
2%
4%
6%
16%
15%
1%
2%
4%
6%
10%
4%
10%
17%
13%
11%
0.2%
0.2%
0.2%
0.3%
1%
0% 20% 40% 60% 80% 100%
30%
70%
0.2%
2%
10%
4%
14%
0.1%
30,903
19,498
11,405
8
2019
TRENDS REPORT
SECTION 03
SUPPLY | ENROLLMENT
Trends
in the supply
of accounting
graduates
Bachelor’s
Enrollment
Masters
Enrollment
Ph.D.
Enrollment
1993-94
1994-95
1995-96
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2006-07
2007-08
2009-10
2011-12
2014-15
2015-16
2017-18
189,863
192,870
174,010
134,050
127,960
134,775
133,435
141,175
142,735
173,299
181,075
187,534
201,570
207,071
216,482
207,806
19,454
20,030
17,550
14,990
15,030
16,770
20,185
26,360
26,420
28,974
30,535
37,386
37,620
44,816
35,619
33,335
1,002
870
770
770
680
800
890
1,085
955
1,095
1,224
1,188
1,189
1,195
946
732
210,319
213,770
192,330
149,810
143,670
152,345
154,510
168,620
170,110
203,368
212,834
226,108
240,379
253,082
253,047
241,873
Total
Enrollment
9
2019
TRENDS REPORT
SECTION 03
SUPPLY | ENROLLMENT
(See notes a, b, and c on page 39)
2.1 Trends in total enrollment in accounting programs | 1993-2018
Master’s
Enrollment
10
2019
TRENDS REPORT
SECTION 03
SUPPLY | ENROLLMENT
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
51%49%
Male
Female
2.2 Demographics of bachelor’s and master’s of accounting enrollees | 2017-18
0.5%
11%
9%
15%
2%
6%
56%
by
gender
by
race/ethnicity
international students
enrolled in U.S.
accounting programs
(See note e on page 39)
10%
dual-degree
seeking
5%
11
2019
TRENDS REPORT
SECTION 03
SUPPLY | ENROLLMENT
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
51%49% 50%50%
2.3 Accounting enrollees by gender | 2017-18
Male
Female
2.4 Accounting enrollees by race/ethnicity | 2017-18
2.5 Accounting enrollees – international students
in U.S. accounting programs | 2017-18
1%
11%
10%
15%
2%
6%
56%
0.3%
16%
7%
15%
2%
7%
53%
8% 19%
bachelor’s master’s
bachelor’s master’s
bachelor’s master’s
12
2019
TRENDS REPORT
SECTION 03
SUPPLY | ENROLLMENT
2.6 Trends in bachelor’s and master’s of accounting enrollees
by gender | 2006-18
Male
Female
2.7 Trends in bachelor’s and master’s of accounting enrollees
by race/ethnicity | 2006-18
2.8 Accounting program enrollment expectations | 2018-19
(See note c on page 39)
(See notes c and f on page 39) (Due to rounding, data may not equal 100%)
30%
36%
42%
29%
21%
22%
7%
13%
0%
20%
40%
60%
80%
100%
BA MACC
Higher
Same
Lower
Not Sure
0%
10%
20%
30%
40%
50%
60%
70%
80%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
2006-07 2007-08 2009-10 2011-12 2014-15 2015-16 2017-18
0.6%
0.6%
0.5%
0.4%
0.6%
0.4%
0.5%
8%
7%
7%
10
10 %
11
11 %
14
14 %
11
11 %
11%
11%
9%
7%
7%
9%
9%
6%
5%
6%
8%
7%
11%
15%
1%
1%
2%
1%
2%
13%
7%
7%
8%
17%
5%
6%
62%
69%
70%
66%
56%
59%
56%
0%
20%
40%
60%
80%
100%
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
51%
49%
13
2019
TRENDS REPORT
SECTION 03
SUPPLY | GRADUATES
(See note a on page 39)
2.9 Bachelor’s and master’s degrees in accounting awarded
by all universities | 1971-2018
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2006-07
2007-08
2009-10
2011-12
2013-14
2015-16
2017-18
Bachelor’s
Graduates
23,800
26,300
31,400
35,400
39,900
44,760
46,000
48,800
49,870
49,320
50,300
51,950
53,020
51,890
50,000
48,030
46,340
52,500
52,320
53,600
53,320
50,060
53,450
53,360
52,030
41,170
37,115
37,855
34,995
37,010
40,420
47,662
48,968
51,036
61,334
54,423
57,119
54,947
Master’s
Graduates
2,200
2,700
3,400
4,300
4,700
5,620
5,670
5,640
5,280
5,520
5,570
5,810
6,330
5,910
5,750
5,580
4,910
5,230
5,040
5,040
7,070
5,330
7,170
7,860
7,630
6,725
7,980
8,700
9,700
12,665
13,340
16,559
17,491
17,603
20,843
27,359
22,405
21,595
Bachelor’s + Master’s
Graduates
26,000
29,000
34,800
39,700
44,600
50,380
51,670
54,440
55,150
54,840
55,870
57,760
59,350
57,800
55,750
53,610
51,250
57,730
57,360
58,640
60,390
55,390
60,620
61,220
59,660
47,895
45,095
46,555
44,695
49,675
53,760
64,221
66,459
68,639
82,177
81,782
79,524
76,542
13
2019
TRENDS REPORT
SECTION 03
SUPPLY | GRADUATES
14
2019
TRENDS REPORT
SECTION 03
SUPPLY | GRADUATES
49%51%
0.3%
13%
6%
16%
2%
4%
58%
Male
Female
2.10 Demographics of new bachelor’s and master’s of accounting graduates | 2017-18
by
gender
international
students graduating from
U.S. accounting programs
12%
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
by
race/ethnicity
dual-degree
graduates
5%
15
2019
TRENDS REPORT
SECTION 03
SUPPLY | GRADUATES
47%53%
50%50%
0.3%
11%
6%
17%
2%
4%
59%
0.2%
19%
6%
14%
1%
5%
54%
2.11 New accounting graduates by gender | 2017-18
Male
Female
2.12 New accounting graduates by race/ethnicity | 2017-18
2.13 New accounting graduates – international students
from U.S. accounting programs | 2017-18
10%
bachelor’s master’s
bachelor’s master’s
bachelor’s
20%
master’s
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
16
2019
TRENDS REPORT
SECTION 03
SUPPLY | GRADUATES
0%
10%
20%
30%
40%
50%
60%
70%
80%
1%
0.3%
0.2%
0.3%
0.3%
0.2%
0.3%
8%
8%
7%
9%
11%
15%
13%
7%
7%
6%
6%
5%
7%
6%
5%
7%
5%
6%
6%
9%
16%
0%
0%
1%
1%
2%
1%
2%
11%
7%
6%
7%
14%
4%
4%
68%
70%
75%
70%
62%
63%
58%
0%
20%
40%
60%
80%
100%
2.14 Trends in new bachelor’s and master’s of accounting graduates
by gender | 2006-18
2.14 Trends in new bachelor’s and master’s of accounting graduates
by race/ethnicity | 2006-18
(See note f on page 39) (Due to rounding, data may not equal 100%)
Male
Female
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
2006-07 2007-08 2009-10 2011-12 2015-16 2017-18
51%
49%
2013-14
17
2019
TRENDS REPORT
SECTION 03
SUPPLY | GRADUATES
2.16 Trends in new accounting master’s graduates by program | 2006-18
Bachelor’s | Private
Bachelor’s | Public
Master’s | Private
Master’s | Public
2.17 Trends in new bachelor’s and master’s of accounting graduates
by sector | 2006-18
Master’s in Accounting
Master’s in Taxation
MBA in Accounting
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
0%
20%
40%
60%
80%
100%
7%
11%
83%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
35,245
19,702
15,964
5,630
18
2019
TRENDS REPORT
SECTION 04
DEMAND | NEW HIRES
Trends
in the demand
for public
accounting
recruits
19
2019
TRENDS REPORT
SECTION 04
DEMAND | NEW HIRES
(See note d on page 39)
3.1 Trends in new accounting graduates hired into
accounting/finance functions of U.S. CPA firms | 1971-2018
Bachelor’s
Graduates
Master’s
Graduates
Bachelor’s + Master’s
Graduates
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1999
2000
2001
2002
2003
2004
2007
2008
2010
2012
2014
2016
2018
6,800
8,900
10,000
9,500
9,200
10,010
11,660
12,770
13,500
14,100
14,200
11,970
14,490
15,640
16,510
16,110
16,720
16,740
25,240
21,340
18,840
19,870
19,320
18,500
18,560
17,820
16,960
17,265
13,335
12,630
13,270
14,985
28,025
19,110
19,870
23,793
24,931
21,167
19,498
2,000
2,400
2,600
2,600
2,800
3,350
3,310
2,890
2,900
2,460
2,210
2,210
2,180
2,180
2,250
2,030
2,050
2,220
2,600
2,500
1,760
2,650
2,670
2,970
3,375
2,650
3,250
3,686
3,035
3,295
3,555
4,720
8,087
6,378
13,451
16,557
18,321
13,722
11,405
8,800
11,300
12,600
12,100
12,000
13,360
14,970
15,660
16,400
16,560
16,410
14,180
16,670
17,820
18,760
18,140
18,770
18,960
27,840
23,840
20,600
22,520
21,990
21,470
21,935
20,470
20,210
20,951
16,370
15,925
16,825
19,705
36,112
25,488
33,321
40,350
43,252
34,889
30,903
20
2019
TRENDS REPORT
SECTION 04
DEMAND | NEW HIRES
0%
0.1%
14%
4%
10%
2%
0.2%
70%
49%51%
Male
Female
3.2 Demographics of new bachelor’s and master’s of accounting graduate hires hired into
accounting/finance functions of U.S. CPA firms | 2018
by
gender
Personal Financial Planning
Management Accounting
Business Valuation
Financial Forensics
Consulting
Other Areas
Transaction Services
Information Management and Technology Assurance
Internal Audit
Financial Accounting
Assurance Services
Taxation
Auditing (not including Internal Audit)
by
area of assignment
(See note g on page 39)
50%
5%
47%
4%
6%
32%
2%
1%
0.3%
0.2%
0.01%
2%
1%
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
by
race/ethnicity
10% 20% 30% 40%
0.1%
21
2019
TRENDS REPORT
SECTION 04
DEMAND | NEW HIRES
3.3 Trends in new bachelor’s and master’s of accounting graduates hired
into accounting/finance functions of U.S. CPA firms by gender | 2007-18
3.4 Trends in new bachelor’s and master’s of accounting graduates hired
into accounting/finance functions of U.S. CPA firms
by race/ethnicity | 2007-18
(See note h on page 39) (Due to rounding, data may not equal 100%)
Male
Female
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
0%
10%
20%
30%
40%
50%
60%
70%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
51%
49%
15%
1% 0%
0.1%
0.1% 0.2%
0%
20%
40%
60%
80%
100%
2007 2008 2010 2012 2014 2016
0.1%
72%
78%
73%
70%
70% 70% 70%
2%
2%
2%
1% 0.3% 0.2%
2%
0%
2%
2%
2%
4%
4%
7%
6%
8%
7%
10%
8%
4%
4%
4%
4%
4%
4%
13%
12%
12%
19%
16%
14%
3%
2%
2018
22
2019
TRENDS REPORT
SECTION 04
DEMAND | NEW HIRES
3.5 Trends in new bachelor’s and master’s of accounting graduates hired
into accounting/finance functions of U.S. CPA firms
as a percentage of total hires by degree | 2007-18
3.6 Trends in new master’s of accounting graduates hired
into accounting/finance functions of U.S. CPA firms
by type of degree | 2007-18
Bachelor’s
Master’s
Total Non-Accounting
Master’s in Accounting
Master’s in Taxation
MBA in Accounting
0%
10%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
43%
31%
25%
85%
10%
5%
Some of the increase in non-accounting hires is likely due to new categories added to the 2018 survey.
(See note i on page 39) (Due to rounding, data may not equal 100%)
23
2019
TRENDS REPORT
SECTION 04
DEMAND | NEW HIRES
3.7 Trends in new bachelor’s and master’s of accounting graduates hired
into accounting/finance functions of U.S. CPA firms
by area of assignment | 2007-18
Accounting/Auditing
Taxation
All other areas
See chart 3.2 for more specifi c 2018 assignments. (See note g on page 39)
0%
10%
20%
30%
40%
50%
60%
70%
80%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
56%
32%
12%
24
2019
TRENDS REPORT
SECTION 04
DEMAND | FUTURE EXPECTATIONS
5%
32%
24%
39%
15%
43%
16%
27%
3.8 Expected hiring of new bachelor’s and master’s of accounting graduates
into accounting/finance functions of U.S. CPA firms who hired
new accounting graduates in 2018 | 2019
3.9 Expected hiring of new non-accounting business graduates
into accounting/finance functions of U.S. CPA firms who hired
new non-accounting graduates in 2018 | 2019
(See note j on page 39) (Due to rounding, data may not equal 100%)
Higher
Same
Lower
Not Sure
Higher
Same
Lower
Not Sure
firms who
hired accounting
graduates
firms who hired
non-accounting
graduates
There were too few respondents to generalize this data to the entire population.
(See notes j and k on page 39) (Due to rounding, data may not equal 100%)
25
2019
TRENDS REPORT
SECTION 04
DEMAND | FUTURE EXPECTATIONS
12%
77%
2%
9%
18%
72%
3%
7%
3.10 Expected number of CPAs on staff
in accounting/finance functions of U.S. CPA firms | 2019
3.11 Expected number of non-CPA professional staff
in accounting/finance functions of U.S. CPA firms | 2019
Higher
Same
Lower
Not Sure
Higher
Same
Lower
Not Sure
all firms
all firms
(Due to rounding, data may not equal 100%)
(Due to rounding, data may not equal 100%)
26
2019
TRENDS REPORT
SECTION 04
DEMAND | FUTURE EXPECTATIONS
3%
89%
3%
4%
3.12 Expected number of partners
in accounting/finance functions of U.S. CPA firms | 2019
Higher
Same
Lower
Not Sure
all firms
(Due to rounding, data may not equal 100%)
27
2019
TRENDS REPORT
SECTION 04
DEMAND | FUTURE EXPECTATIONS
U.S. fi rm
demographics
28
2019
TRENDS REPORT
SECTION 05
U.S. FIRM DEMOGRAPHICS
Male
Female
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
53%
47%
4.1 Demographics of all professional staff
in accounting/finance functions of U.S. CPA firms | 2018
by
gender
0.2%
17%
4%
6%
2%
0.4%
71%
by
ethnicity
(See note I on page 39)
29
2019
TRENDS REPORT
SECTION 05
U.S. FIRM DEMOGRAPHICS
0.2%
10%
2%
4%
1%
0.3%
84%
58%
42%
Male
Female
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
4.2 Demographics of CPAs
in accounting/finance functions of U.S. CPA firms | 2018
by
gender
by
ethnicity
(See note I on page 39)
30
2019
TRENDS REPORT
SECTION 05
U.S. FIRM DEMOGRAPHICS
0.2%
4%
1%
2%
1%
0.4%
91%
77%
23%
Male
Female
American Indian/
Alaskan Native
Asian/Pacifi c Islander
Black/African American
Hispanic/Latino
Multiethnic
Other
White
4.3 Demographics of partners
in accounting/finance functions of U.S. CPA firms | 2018
by
gender
(See note l on page 39)
by
ethnicity
31
2019
TRENDS REPORT
SECTION 06
UNIFORM CPA EXAMINATION
®
Uniform CPA
Examination
®
32
2019
TRENDS REPORT
SECTION 06
UNIFORM CPA EXAMINATION
®
The 16-hour exam comprises four 4-hour sections, which a
CPA candidate must pass within 18 months.
Auditing and Attestation (AUD)
Business Environment and Concepts (BEC)
Financial Accounting and Reporting (FAR)
Regulation (REG)
The AICPA’s Examinations team, with oversight by its Board of Examiners
(BOE), works with volunteers from the profession, academia, and boards
of accountancy to ensure the exam remains fair, legally defensible, and
aligned with the work of newly licensed CPAs. The team’s continuous
monitoring and updating of content based on changes to standards,
regulations, and laws keep the exam current and relevant to the profession.
In 2019, the Examinations team began a Practice Analysis focusing on
the impact technology has on the work of newly licensed CPAs which
could result in additions or changes to the exam. The research also is
analyzing content that may no longer be critical for newly licensed CPAs.
This research project involves meetings with public accounting fi rms
of varying sizes as well as focus group discussions with supervisors of
newly licensed CPAs. The supervisors work in public accounting fi rms and
business and industry, with some also serving on boards of accountancy.
Upon completion of the Practice Analysis, the Examinations team will
publish a research paper. The document will include an Exposure Draft
outlining recommendations for planned exam updates and content to be
added, changed, or deleted. It will also include an Invitation to Comment
portion that presents potential future exam changes based on feedback
received during the Practice Analysis. These are changes that may require
additional research and/or more extensive structural changes to the exam.
The Uniform CPA Examination
®
(exam) is the gateway to
the profession. The exam provides reasonable assurance to
boards of accountancy that individuals who pass possess the
technical knowledge and skills necessary for initial licensure.
33
2019
TRENDS REPORT
SECTION 06
UNIFORM CPA EXAMINATION
®
5.1 Trends in number of new CPA candidates by year | 2006-18
5.2 Trends in number of CPA candidates who passed their 4th section
of the CPA Exam
by year | 2006-18
(See note m on page 39)
20172006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018
39,083
42,157
42,962
41,266
42,653
48,004
36,078
38,513
40,839
44,204
49,597
39,630
36,827
20172006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018
25,558
14,101
18,444
23,190
26,163
29,539
23,418
26,020
26,911
26,077
27,889
25,514
23,941
34
2019
TRENDS REPORT
SECTION 07
CPA PIPELINE PROGRAMS
Appendix A
Accounting Accreditation Practitioner Engagement Program
The Accounting Accreditation Practitioner Engagement program, in partnership with the
Association to Advance Collegiate Schools of Business (AACSB) business and accounting
accrediting body, is focused on increasing CPA practitioner involvement throughout the
university accounting program’s accreditation/affi rmation process. By doing so, this
program provides value to universities, as practitioners can provide insights into the
accounting profession and share the skills and knowledge students need when entering
the profession. Since the fi rst training in November 2018, the program has trained over
20 CPA practitioners to be a part of AACSB peer review teams and committees.
Academic Champions
The AICPA launched the Academic Champions program in 2016 to help encourage
a pro-CPA culture on college campuses. The program provides support to academic
faculty at select universities and community colleges to help them increase awareness
of the CPA profession by using AICPA-provided resources and holding campus events
each semester. This program currently has 42 Academic Champions who are fostering
a stronger connection between their students and the accounting profession.
AICPA CPA Evolution Project
Launched in 2018 by the AICPA and the National Association of State Boards of Accountancy
(NASBA), the CPA Evolution initiative is an effort to explore modifying the requirements for
initial CPA licensure in response to the rapid pace of change in the environment in which
CPAs operate. Technological innovations are changing both the services CPAs provide and
how they provide them. The CPA profession must embrace these changes to maintain its
strength and support evolving business needs while continuing to serve the public interest.
In 2019, the AICPA and NASBA put forth guiding principles and are seeking
input from the profession, academia, and the regulatory community. During the
AICPA Fall Council and the NASBA Annual Meeting in October 2019, both groups
will present the collected feedback and will recommend next steps.
Accounting Doctoral Scholars Program (ADS)
In 2008, the AICPA launched the ADS program to address the shortage of qualifi ed CPA-
accredited faculty. The ADS program recruits CPAs to enroll in Ph.D. programs and ultimately
join the faculty at universities and colleges throughout the United States. To date, the AICPA
has recruited and funded 132 candidates with relevant practical experience into the program.
Combined, these candidates have produced 138 publications focused on areas such as fi rm
quality control initiatives, tax fraud, and fi nancial reporting and have taught 828 courses ranging
from introductory accounting to auditing for Ph.D.-level students, reaching over 31,000 students.
AICPA PROGRAMS DEDICATED TO
GROWING THE CPA PIPELINE
35
2019
TRENDS REPORT
SECTION 07
CPA PIPELINE PROGRAMS
Academic Executive Committee (AEC)
The AICPA has engaged the accounting academic community for over 100 years.
A leading example is the AICPA’s AEC. The AEC includes accounting faculty, high
school accounting teachers, accounting practitioners, and state CPA societies from
across the United States and serves to assist the AICPA in achieving its academic
initiatives, programs, and partnerships to grow and involve a community of diverse,
well-prepared, highly qualifi ed CPAs. Recent work of the committee includes:
The approved and implemented recommendation to include practitioners
on peer review teams for AACSB accreditation visits;
The development of the Accounting Advisory Council Toolkit, which
provides departments of accounting guidance on enhancing or starting an
advisory board that includes members of the business community;
Updating the Core Competency Framework for pre-licensure education; and
Pioneering advisory support that led to the launch of the Extra Credit newsletter,
which has helped to advance AICPA engagement with accounting faculty.
Accounting Program for Building the Profession (APBP)
The APBP program, which was created in 2006 by Dr. Dan Deines and purchased in 2017
by the AICPA, exists to help promote the accounting profession as a viable career option for
high school students. To achieve this, the college-level program equips high school teachers
with the tools needed to teach more advanced, engaging content in the classroom. Since its
inception, this program has trained over 1,500 educators across 48 states and has exposed
thousands of students to the many opportunities the accounting profession has to offer.
AICPA Fellowship for Minority Doctoral Students
The AICPA started the Fellowship for Minority Doctoral Students in 1969 to ensure
that CPAs of diverse backgrounds are visible in college and university classrooms.
The program has increased the number of minority CPAs who serve as role
models and mentors to young people in the academic environment and university
classrooms. For the 2018–19 academic year, the AICPA awarded scholarships
to 25 full-time accounting doctoral-level students, totaling $300,000.
AICPA Legacy Scholars Program
For over 50 years, the AICPA has helped grow the number of qualifi ed high school
and college students entering the accounting profession through scholarship funding.
Scholarships are awarded to students who demonstrate the potential to become
leaders in the CPA profession, who are taking nontraditional paths to becoming CPAs,
or who help promote the growth of diverse, talented professionals in the accounting
fi eld. During the 2018–19 academic year, the AICPA awarded 148 scholarships, totaling
over $650,000 to AICPA student members who plan to receive a CPA designation.
SECTION 07
CPA PIPELINE PROGRAMS
2019
TRENDS REPORT
36
AICPA Student Affi liate Membership
Launched in 2010, this membership is designed to help students interested in accounting
from the earliest stages of their college careers through graduation. By joining the AICPA for
free as a Student Affi liate, students get access to tools, resources, and exclusive discounts
and scholarship opportunities. According to a 2019 AICPA survey, 75% of accounting students
believe that the AICPA Student Affi liate membership is helpful for their professional goals.
Bank On It
This online accounting game is designed to challenge high school and college
students on accounting fundamentals while providing real-world scenarios and
reinforcing what they learn in the classroom. Since its launch in 2015, Bank On It has
completed over 100,000 games and hosted over 350 tournaments on its site.
Diversity & Inclusion Initiatives
The accounting profession serves communities and clients across the globe with varying cultures
and perspectives. As the profession continues to become more globalized, a greater need exists for
diversity and inclusion. The AICPA has created programs and initiatives to help increase the quantity
and quality of under-represented minorities in the profession. These include but are not limited to:
AICPA and NAF Recognition Program Partnership
The National Academy Foundation (NAF), Academy of Finance (AOF), and the AICPA
have partnered to expand high school student exposure to the accounting profession
by hosting an annual Bank On It tournament and other programs each year.
Accounting Scholars Leadership Workshop (ASLW)
ASLW is an annual, invitation-only student leadership conference hosted by the
AICPA. The workshop helps students develop leadership skills and expand their
knowledge of various pathways to success in the accounting profession.
Annual Accounting Profession Diversity Symposium
The Annual Accounting Profession Diversity Symposium provides a platform for
fi rms, academics, and state societies to explore best practices and identify ways to
overcome obstacles in fi lling the accounting pipeline with diverse professionals.
Real CPA Pipeline Campaign
To encourage students with diverse backgrounds to pursue an accounting career,
the AICPA has created a national awareness campaign called Real CPAs. This
campaign features real CPAs with diverse backgrounds. Each year features
new real CPAs that debunk the stereotype of accounting professionals.
HBCU Toolkit
To increase the recruiting and retention of African Americans in the accounting profession,
AICPA developed a toolkit for historically black colleges and universities. These toolkits are
provided to campus career service centers to ensure that their students are well equipped pro-
fessionally, being seen by recruiters, and receiving internship and job placement opportunities.
37
2019
TRENDS REPORT
SECTION 07
CPA PIPELINE PROGRAMS
Start Here, Go Places (SHGP)
Created in 2002, SHGP provides accounting profession information to students
and high school teachers that inspires students to join the accounting profession.
The website provides over 90 unique classroom activities and over 35 professional
development articles that teachers can download for free and use in their classroom.
Additionally, SHGP also provides teachers with printed classroom resources.
State Societies Dual Recruitment
Starting in 2016, the AICPA has partnered with accounting state societies to jointly
recruit student members. The partnership — which includes unifi ed messaging and
co-branded materials — helps students enhance their connection to the profession and
demonstrates the value of lifelong professional membership. Additionally, this program
provides an avenue for the AICPA and state societies to share ideas, create effi ciencies,
and overcome pipeline challenges together. Currently the AICPA is partnered with 14
state societies, and the effort has jointly recruited thousands of students since its launch.
This Way to CPA (TWTCPA)
TWTCPA was designed for college students interested in pursuing a CPA. Launched
in 2010, this initiative helps provide the clarity and direction needed to obtain a
CPA accreditation. Visitors learn about the education, work experience, and exam
and licensure process. The TWTCPA website features countless resources and
34 CPA profi les and 19 Exam profi les spanning 14 industries, including public
accounting, forensics, corporate, and more, to give students and graduates a
better understanding of the profession and what it takes to become a CPA.
Uniform CPA Examination
®
The AICPA’s Examinations team, with oversight by its Board of Examiners, works
with volunteers from the profession, academia, and boards of accountancy
to ensure the CPA Exam remains fair, legally defensible, and aligned with the
work of newly licensed CPAs. The team’s continuous monitoring and updating
of content based on changes to standards, regulations, and laws keep the
Exam current and relevant to the profession. This involves updating the CPA
Exam Blueprints one or two times each year to refl ect the changes.
Following a comprehensive Practice Analysis with input from the profession, in April
2017 the Uniform Examination team began assessing critical thinking and other
higher-order skills to a greater extent. The following year, the AICPA introduced new,
intuitive CPA Exam software designed to enhance the user testing experience, which
included access to Microsoft Excel
®
. In 2019, the AICPA began a new Practice Analysis
specifi cally targeting the impact technology has on the work of newly licensed CPAs.
38
2019
TRENDS REPORT
SECTION 07
METHODS
Appendix B
Supply
methodology
Demand
methodology
A census of colleges
and universities granting
accounting degrees was
invited to participate (n=907)
The survey opened on
October 18, 2018
The survey closed on
January 25, 2019
Response rate was 12%
(n=112)
Survey results presented
in this report are weighted
by faculty size and
geographic region
A census of public
accounting
fi rms was invited to
participate (n=30,529)
The survey opened on
October 18, 2018
The survey closed on
January 25, 2019
Response rate was
2.3% (n=706)
Survey results
presented in this report
are weighted by fi rm
size (number of CPAs)
METHODS
39
2019
TRENDS REPORT
SECTION 07
ENDNOTES
a. The statistical vendor changed from CXACT to ARC Research between the 2015 and 2017 reports. ARC did their due diligence in researching
methods from previous years and creating a model that is as comparable as possible to previous years’ data. The 2016 and 2018 models are based
on a linear regression on weighted data, using faculty size as a predictor. For 2016 and 2018, weights were applied across the whole survey sample.
For 2014, the previous vendor noted that separate weights were calculated for Bachelor’s, Master’s, and Ph.D. respondents.
b. For 2016 and 2018, the weighted proportions of MA program types were applied to the projected MA total to derive breakdowns by program type.
For 2014, it appears that the unweighted proportions of MA program types were used. For 2012 and years prior, it is unclear how proportions of MA
program types were derived.
c. Enrollment data collected for the 2015 Tr ends report represents the 2014-15 academic year instead of the 2013-14 academic year due to the wording
of the supply survey questionnaire for this period.
d. The statistical vendor changed from CXACT to ARC Research between the 2015 and 2017 reports. ARC did their due diligence in researching
methods from previous years and creating a model that is as comparable as possible to previous years’ data. The 2016 and 2018 models are based
on a linear regression on weighted data, using number of CPAs to predict total new graduate hires with accounting degrees. For 2016 and 2018, the
weighted proportions of BA vs. MA were applied to the projected total to derive breakdowns by degree level. For 2014, it appears that the unweighted
proportions of BA/MA were used. For 2012 and years prior, it is unclear how proportions of BA/MA hires were derived.
e. To avoid double counting of dual degree students, respondents were instructed to classify students as follows:
01. Enrollments - Respondents were instructed to classify students in years 1 through 4 as Bachelor’s and students in year 5 as Master’s.
02. Graduates - Respondents were instructed to exclude dual degree graduates from the Bachelor’s totals, and include them in the Master’s totals.
f. Data collection for the multiethnic race/ethnicity category began in 2010.
g. In 2014 and previous years, areas of assignment were limited to Accounting/Auditing, Taxation, MIS/Computers, and Other. In 2016, we broadened
the areas for the snapshot data (3.2), but kept the condensed categories for the trends data (3.7) as follows:
Additionally, this year we added an “Internal Audit” category for further segmentation.
AREAS OF ASSIGNMENT CONDENSED CATEGORY
Financial Accounting Acc./Aud.
Auditing, not Including Internal Audit Acc./Aud.
Internal Audit Acc./Aud.
Assurance Services Other
Taxation Taxation
Information Management and Technology Assurance Other
Consulting Other
Financial Forensics Other
Business Valuation Other
Personal Financial Planning Other
Management Accounting Other
Transaction Services Other
Other Areas Other
ENDNOTES
h. For this chart, 2014 race/ethnicity fi gures have been recalculated to exclude “Unknown” for comparability with other years.
i. In previous years, data on the hiring of non-accounting degree holders only included “non-accounting business majors” and “non-business
majors.” In 2018, we changed the categories to “non-accounting business majors – e.g., fi nance, marketing, etc.,” “STEM majors, not
including accounting or business,” and “all other majors.” Because of the addition of more specifi c categories, the total of non-accounting
new hires is likely artifi cially infl ated in 2018 and isn’t directly comparable to previous years. These new categories are indicative of trends
in the public accounting industry and are crucial in tracking industry trends accurately in the future.
j. In iterations of the report prior to 2016, the data in this chart included all fi rms that responded to the survey, rather than only fi rms that hired
in the survey year. Thus, some percentage of those in previous years that noted that they would hire “the same” next year as in the survey
year did not hire in that year and did not plan to hire in the future year (these tend to be smaller fi rms). This representation of the data was
improved upon and the charts in 2017 and 2019 only include prospective hiring of fi rms that hire.
k. Due to small sample size, this data cannot be generalized to the entire fi rm universe. This data, instead, is simply a report of the fi rms that
actually responded.
l. Firm demographics are not broken down by fi rm size due to the insuffi cient samples in the 50-200 and 200+ CPA categories. The number
of respondents in those categories is too small (i.e., there are fewer than 40 total respondents in each of those categories) to draw valid
conclusions from despite relatively higher response rates in those categories.
m. CPA Exam data often show increases in candidates prior to changes to the Exam followed by signifi cant decreases in the fi rst few years
after the CPA Examination changes. With the changes in 2017, decreases were expected in 2018.
040
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
041
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
042
2019
TRENDS REPORT
SECTION 01
INTRODUCTION
