Expanding the Ranks of African-American CPAs: A Report on the CPA Examination Summit
EXECUTIVE SUMMARY * The National Association of Black Accountants (NABA) and the Howard University School of Business Center for Accounting Education (CAE) in June 2007 convened the CPA Examination Summit, a gathering designed to identify ways to fill the pipeline of future CPAs with African-American accountants who are ready and willing to sit for the CPA exam. * NABA and the CAE will convene a second summit in June at NABA's annual convention in Atlanta, where the discussion will focus on identifying next steps and soliciting commitments from participants willing to take the lead in working toward the stated goals. * The CAE is sponsoring an academic study on barriers African Americans face to becoming CPAs. Results of that study are scheduled to be presented at the second summit. ********** [ILLUSTRATION OMITTED] One of the great joys of being an accounting professor is hearing a former student say the following words: "I have passed all parts of the CPA exam." That message is likewise heartening for CPAs in practice. Encouraging more young people to become CPAs is crucial for the profession. A majority of CPA firms outside of sole practitioners identified finding qualified staff at all levels as a top concern in the 2007 AICPA Private Companies Practice Section's Top Management of an Accounting Practice (MAP) Issues Survey. The AICPA has named people as a leading priority in its fiscal 2009-2011 strategic plan. The plan calls for leading the profession in embracing a changing work force environment by attracting, educating and nurturing CPAs throughout their careers and into retirement. The National Association of Black Accountants (NABA) in 2007 launched "CPA Bound," an advocacy initiative supported by the Howard University School of Business Center for Accounting Education (CAE). The program is designed to address one important segment of the CPA staffing challenge--the barriers to certification faced by African Americans. One of the first steps in that initiative was a June 2007 gathering of thought leaders at a one-day summit designed to identify ways to fill the pipeline of future CPAs with African-American accountants who are ready and willing to .sit for the exam. This article summarizes key recommendations that emerged from the discussions. The ranks of African-American CPAs are small. According to an AICPA survey, African Americans comprised just 1% of CPAs employed by public accounting firms in 2004, the most recent year for which figures are available. NABA'S own membership rolls reflect the need to grow the number of African Americans in the profession. NABA is perceived by many to be a leading organization for African-American financial executives, yet only approximately 23% of NABA's professional members are CPAs. The CPA exam summit--part of NABA's annual conference in Philadelphia--drew approximately 45 participants representing public accounting, industry, academia, CPA exam preparation companies, state societies and professional associations. The participants spent the day identifying and prioritizing their concerns, regrets and best practices. A wide-ranging summary of the summit published by the CAE, "Insights Into Increasing the Number of African American CPAs," is available on NABAs Web site, www.nabainc.org. Along with highlights from the summit discussion, this article includes some insights from the Center for Accounting Education's third annual leadership skills development program, "We're About Success!" The program, which drew more than 100 African Americans with nine months or less experience in public accounting, focused on developing skills necessary to be successful in the profession, as well as tools and skills needed to pass the CPA exam. KEY IMPROVEMENTS--Low HANGING FRUIT Summit participants proposed many ideas, including some long-term efforts that require focus, resources, and accountability, and solutions that cross lines of responsibility between the groups represented at the meeting. …