2019 Pipeline Trends Report

Yvonne L. Hinson, Ph.D., CPA, CGMAAcademic-in-Residence, Academic & Student EngagementAssociation of International Certified Professional Accountants

The report has been published by the AICPA since 1971.

Identifies key trends in accounting enrollment, graduation and hiring.

The 2019 report covers the 2017-18 academic year and 2018 hiring year.

Provides estimated information based on statistical projections and descriptive statistics from a census survey of U.S. colleges and universities as well as public accounting firms.

Report history & methodologyTrends

The 2019 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits report includes both statistical projections and descriptive statistics.

The data presented for overall numbers of enrollments, graduates, and hires are:• Based on statistical projections;• Calculated by creating a model that is meant to predict population

values;• Should be used to look at the overall trends in the reporting areas,

rather than taken as a statement of exact values;• Weighted to represent the total population.

Demographic breakdowns for enrollments, graduates, new hires, and firm demographics are descriptive statistics.

Interpreting the data

Trends

Accounting graduates vs. new examineesAfter the 2016 increase in CPA Exam candidates, attributed to new version of the Uniform CPA Exam that launched in 2017, the number has dipped to its lowest level in 10 years.

Total accounting graduates New CPA exam candidates (7% pts)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

30K

60K

90K

76,542

36,827

Trends

Accounting enrollmentsTotal projected accounting enrollments are down 4% from the record highs of 2016 but are still among the highest.

Bachelor’s ( 4%)

Master’s in Accounting ( 6%)

Master‘s in Taxation MBA Accounting Ph.D. ( 23%)

2018 241,873

Total enrollments

253,0472016

Trends

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.

Total 2017-18 graduates

76,542Bachelor's Master's

0

30,000

60,000

90,000

Total accounting degrees awardedTrends

University Discussions

Enrollments/ Graduates

• Many accounting programs expressing concern about the size of applicant pools

• Larger decreases at master’s level

• Online enrollments up, face-to-face enrollments down

Insights

University Discussions

Enrollments/ Graduates

• Decline in international applicants –especially from China

• Some report other international are increasing

• Universities with tech investments and firm partnerships experiencing increased enrollment

Insights

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

U.S. public accounting firm hiring of new accounting graduates

In 2018, hiring of new accounting graduates slowed 11 percentage points.

Bachelor's Master's Total demand

30,903

19,498

11,405

Trends

U.S. public accounting firm hiring of new accounting graduates declines across reports

2018*Hiring Year

Master’s(MA)

42%

17%

25%

Bachelor’s(BA)

23%

8%

15%

Total demandfor accounting graduates

30%

11%

19%2016**Hiring Year

Trends

**Percentage point change from 2014-2016 *Percentage point change from 2016-2018

Non-accounting new graduate hiresNon-accounting hires as a percentage of all new graduate hires are up 11 percentage points.

22%

Non-accounting graduates

20% 31%

2014 2016 2018

Trends

Firm and University Discussions

Hiring

• Firm hiring remains stable – more hiring in technology and experienced

• More students are interested in non-public accounting careers

• Students value purpose, work/life balance and entrepreneurship

Insights

University Discussions

Technology Integration

• Recruiters and Accounting Advisory Councils are requesting more technology

• Universities, like firms, are along the spectrum as far as integration

• Some programs in accounting are gaining STEM designation

• AACSB changed their accounting standards to require technology knowledge by students AND faculty

Insights

Accounting Hires Discipline Assignments

6% 5% 4% 2% 1% 1% 0.3% 0.2% 0.1%

Auditing Taxation

Assurance services

Businessvaluation

Management Accounting

Financial Forensics

Other areasTransactionservices

Consulting

Informationmanagement and

technologyassurance

Internal Audit

47% 32%

Financial Accounting

0.01%

Personal Financial Planning

2%

Trends

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

New accounting grads hired into accounting/finance functions of U.S. CPA firms

Accounting/Audit ( 4% pts from 2016; 9% pts from 2014)

Taxations ( 4% pts)

All other areas

12%

56%

32%

Audit and related services continue to increase as the largest area of assignment for new hires.

Trends

Diversity Trends

Bachelor’s and master’s of accounting enrollees by race/ethnicity

0.6% 0.6% 0.5% 0.4% 0.6% 0.4% 0.5%8% 7% 7%

10% 11% 14% 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%

2006-07 2007-08 2009-10 2011-12 2014-15 2015-16 2017-18

American Indian/AlaskanNative

Asian/Pacific Islander

Black/African-American

Hispanic/Latino

Multiethnic

Other

White

( 4% pts)

Trends

( 3% pts)

(Non-white = 44%, 3% pts)

Bachelor’s and master’s of accounting graduatesby race/ethnicity

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%

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%

2006-07 2007-08 2009-10 2011-12 2014-15 2015-16 2017-18

American Indian/AlaskanNative

Asian/Pacific Islander

Black/African-American

Hispanic/Latino

Multiethnic

Other

White

Trends

( 2% pts)

( 7% pts)

(Non-white =42% 5% pts)

Bachelor’s & Master’s of accounting graduates hired into accounting functions of U.S. CPA firms by race/ethnicity

1% 2% 0.0% 0.1% 0.1% 0.2% 0.1%

13% 12% 12%19%

15% 16% 14%

8%4% 4%

4%4% 4%

4%

4%

4% 7%

6%8% 7% 10%2%

2% 2%2%2%

3%2%

2%1% 0.30% 0.2%

72% 78% 73%70% 70% 70% 70%

0%

20%

40%

60%

80%

100%

2007 2008 2010 2012 2014 2016 2018

American Indian/AlaskanNative

Asian/Pacific Islander

Black/African-American

Hispanic/Latino

Multiethnic

Other

White

Trends

( 3% pts)

(Non-white = 30%)

Diversity along the accounting career pipelineTotal nonwhite populations make up a greater percentage of the beginning stages of the pipeline.

Professional staff CPA PartnerHiresGraduates(BA + MA)

Enrollments(BA)

29% 16% 9%42%44% 30%

Trends

Diversity along the accounting career pipeline is up from 2017

Professional staff CPA PartnerHires(33% at large)

Graduates(BA + MA)

Enrollments(BA)

(48% at large)

+3% +5% 0% +7% +4%+4%

29% 16% 9%42%44% 30%2019

22% 12% 5%37%41% 30%2017

Trends

Gender along the pipeline

Men Women

2017 2019 Growth 2017 2019 Growth

Enrollments 52% 51% -1% 48% 49% 1%

Grads 52% 49% -3% 48% 51% 3%

Hires 52% 49% -3% 48% 51% 3%

Professional Staff 54% 53% -1% 46% 47% 1%

CPAs 60% 58% -2% 40% 42% 2%

Partners 77% 77% 0% 23% 23% 0%

Trends

Firm Expectations

Firm hiring expectations of non-accounting graduates

expected to hire more non-accounting graduate(s) in 2019.*

5% expecting hiring would remain the same in 2019.

32%Of firm respondents who hired non-accounting graduate(s) in 2018,

Trends

( from 3%)

Firm hiring expectations for new accounting graduates

expect to hire in 2019.

7%Among those who hired at least one new accounting graduate in 2018,

expect to hire at the same or higher rate in 2019.

58%Among those who did not hireaccounting graduate(s) in 2018

Trends

(Same as 2016)( from 9%)

Enrollments down 4%; among record highs

Graduates down 4%; among record highs

Hiring of new accounting graduates down, yet many opportunities exist

AICPA.org/PresenterToolkitto get involved.

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AICPA laser-focused on the CPA pipeline

Key takeawaysTrends

AICPA programs dedicated to evolving the profession and growing the CPA pipeline

Academic Champions

Academic Executive Committee (AEC)

Accounting Accreditation Practitioner Engagement Program

Accounting Doctoral Scholars Program (ADS)

Accounting Program for Building the Profession (APBP)

Accounting Scholars Leadership Workshop (ASLW)

AICPA and National Academy Foundation Recognition Program Partnership

AICPA Fellowship for Minority Doctoral Students

AICPA Legacy Scholars Program

AICPA Student Affiliate Membership

Annual Accounting Profession Diversity Symposium

Bank On It

HBCU Toolkit

Real CPA Pipeline Campaign

Start Here, Go Places. (SHGP)

State Societies Dual Recruitment

ThisWaytoCPA (TWTCPA)

Uniform CPA Examination®

Yvonne L. Hinson, Ph.D., CPA, CGMAyvonne.hinson@aicpa-cima.com

Thank you