Strengthening the accounting pipeline through diversity: preference for Big 4 employment and intentions to change

Hispanic Ethnicity and Hidden Barriers to CPA Exam Success

“…Diversity is sought after in the workforce; yet according to the U.S. Census Bureau's 2020 Business Survey, minority-owned firms accounted for 18% of all employers' firms. According to Holmes et al (2022) when companies have a diverse workforce they benefit economically and socially as they create better customer relationships. It is therefore necessary to have employees that have the sensitivity and multicultural knowledge that can aid in the success of a business.…”

“…The Uniform Certified Public Accountant Exam (CPA Exam) low pass rate among Hispanics and other minorities is a challenging issue with implications among different stakeholders and settings (Espahbodi et al, 2023;Akindayomi et al, 2021;Gabre et al, 2015;Enofe 2010). Despite the efforts of the American Institute of Certified Public Accountants (AICPA) and other organizations, the profession continues to struggle to achieve diversity (Adams, 2019;Gabre, 2017;Gabre et al, 2015;Madsen, 2013, James andHill, 2009;Weisenfeld, and Robinson, 2001;Didia and Flasher, 2021;Holmes et al, 2022;Pelzer & Nkansa, 2022). Hispanic candidates generally have a very low success rate in passing the CPA Exam (Espahbodi et al, 2023;Self et al, 2014) resulting in low representation of Hispanics among CPAs.…”

“…In addition, the AICPA Foundation Minority and Affinity Scholarships fund minority student scholarships each year while the Accounting Profession's Annual Diversity Symposium provides a platform for diverse sectors to identify ways to expand the accounting workforce with diverse professionals. Despite the efforts, Hispanics in accounting and finance roles in Public Accounting Firms are significantly lower than Whites (Holmes, et al, 2022;AICPA, 2021;Lewis, 2020).…”