Amid talent shortage, Gen Z and Millennials drive major overhaul in CPA qualification

Newswise — With an alarming shortage of recruits, the US accounting profession is significantly transforming. Driven by the demands of Millennials and Gen Z, the American Institute of Certified Public Accountants (AICPA) has made substantial changes to the CPA exam. It is poised to streamline education requirements for becoming an accountant.

Christine Smith, a senior professor of accounting and faculty director of the master of accounting programs at Tulane University’s A. B. Freeman School of Business, is available to speak about major changes underway for the accounting profession.

With over 20 years of experience, she can discuss:

• How Millennials and Gen Z have influenced the CPA profession.
• The specifics of the new CPA exam and why these changes were necessary.
• Potential long-term benefits and challenges for future CPAs and the profession.
• The reasons behind the current shortage of accountants and the urgent need for reform.

Key Points:

• Urgent Need for Reform: With the number of accountants nearing retirement age and a significant drop in new CPA candidates, the AICPA is considering reducing the education requirements for becoming a CPA. The current five-year requirement may be replaced with a competency-based licensure model.
• Industry Crisis: The number of people taking the CPA exam has plummeted from over 100,000 in 2016 to just above 67,000 in 2022, leaving firms struggling to find replacements for retiring baby boomers.
• Influence of Current Students: Today's college students have driven changes to the CPA exam structure, which now includes three core sections and three options for a fourth discipline area.

Quote from Christine Smith:

"Millennials and Gen Z are reshaping the CPA profession by challenging traditional paths and demanding more immediate value in their roles. The new CPA exam is a critical step toward addressing these demands and ensuring the profession's future. The AICPA's move to support educational reform is a critical response to the pressing issue of a shrinking talent pool."