The CPA Career

Adam Lusch

English III Honors Pd. 3

Mr. Piatak

February 23, 2017

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The CPA Career

Imagine a distressed single mother struggling to determine how to file her taxes correctly,

or a CEO of a fortune 500 company wondering how he could make his company produce the

financial results he desires. Who could these people call to help remedy their financial

situations? A CPA. Money and its correct use in the economy remains imperative for financial

success for businesses and individuals all around the world. Whether the president of a company,

or member of an organization trying to reach a specific financial goal, consulting a CPA, or

certified public accountant, can help navigate todays financial landscape by acting as financial

decision makers, advisors, and act as experts in auditing, taxes, and accounting. Certified public

accounting stands as an excellent career choice due to its rich and intriguing historical

background, the education and experience necessary for entering the field, as well as the

everyday life and responsibilities that accompany the career.

While not all CPAs work in an office environment or in an official CPA firm, the CPA

career started through the formation of organizations made up entirely of members of the

profession. As the American economy shifted from the traditional agricultural economy to the

bustling, bank dominated cities in the 1880s, the demand for CPAs reached a new high (Flesher

and Previts 51). In response, the number of CPAs and accountants grew in the United States,

especially in the New York City area, resulting in the creation of two organizations that

specialized in the employment and use of CPAs: The Institute of Accountants, and the American

Association of Public Accountants, also known as the AAPA (Flesher and Previts 51). As the

number of CPAs and individuals in bookkeeping and accounting careers increased, these

accounting organizations gave CPAs a stable source of employment. Once employed by these
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organizations, CPAs used their financial skills to help people manage and correctly use their

newly found wealth. The formation of these organizations also made the CPA career more stable,

and therefore more attractive to people wishing to find work where they could utilize their skills

in accounting and finance. Less than a year into its existence, the AAPA realized it needed an

official legal standard for distributing CPA certificates, as the current standards allowed

individuals not a part of an official CPA organization to receive their CPA license and rival CPA

organization members (Flesher and Previts 51). The AAPA and its rival, the Institute of

Accountants, negotiated and drafted a bill that found its way into the hands of New York state

legislators in 1896, which stated that in order to become a CPA, one must pass the CPA exam

and intend on gaining United States citizenship (Flesher and Previts 51). This CPA bill greatly

benefited the CPA organizations, as it forced accountants and auditors wishing to take the extra

step of acquiring a CPA license to go through those organizations first, giving these CPA

organizations far more power over the direction of the CPA career, as well as those who wished

to participate in it. In December 1896, the first administered CPA exam took place, admitting 14

test takers into the ranks of official CPAs, including Frank Broaker, the first CPA in American

history, who lobbied the most for the CPA exam and New York legislature bill in 1896 (Flesher,

Marinari, and Previts). While undergoing many revisions in types of questions, difficulty, and

formatting, the CPA exam still remains relevant and a point of interest for anyone wishing to

acquire the sacred CPA certification. The creation of the first CPA organizations, its first

government mandated standards, and iconic exam laid the foundation for the growth and

development of the CPA career for decades to come.

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After the birth of the career in the late 1880s, it continued to evolve and grow, where the

career encountered greater notoriety from federal and state government and had to fight for their

autonomy. The American Institute for Accountants, formerly known as that American

Association of Public Accountants, gained notoriety and recognition from the federal

government and the general public in 1921 when president Warren G. Harding invited many

notable CPAs to honor them for their assistance in domestic economic affairs during World War

I (Flesher and Previts 52). This level of recognition by a federal entity for a career so early in its

life improved its image immensely to not only the onlooking public, but also the state and federal

governments. The respect CPAs gained among these government entities most likely helped

them when conflicts arose between the two in the coming decades. While the CPA bill passed by

the New York legislature 1896 set certain standards for acquiring a CPA certification, CPA

organizations created and followed their own set standards, practices, and rules (Flesher and

Previts 52). However, this came under attack in 1934 when the Securities and Exchange

Commissions began to overextend themselves by writing their own accounting and auditing

standards and regulations for CPA organizations to follow (Flesher and Previts 53). After three

decades of these CPA organizations practicing autonomy over themselves, they became used to

their salutary neglect, resulting in harsh backlash when the government entertained the idea of

controlling their private enterprises. The American Institute of Accounts, realizing their sacred

autonomy and self control could disappear into the hands of an encroaching government, knew

they needed to merge and ally themselves with other accounting, auditing, and CPA firms in

order to combat the SEC (Flesher and Previts 53). After the CPA organizations displayed their

strength in numbers and prominence in American business, the SEC allowed the American
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Institute of Accountants to self-govern themselves with their own accounting and auditing rules

and regulations (Flesher and Previts 53). The CPA organizations presented their incredible

organization and power when they formed a unified force to take a situation that would have

normally destroyed a career, and use it as an advantage to further legitimize themselves and

improve their autonomy under the federal government. The CPA organizations won major

victories by receiving notoriety from the federal government after World War I, as well as gain

the SECs approval to operate and rule themselves. These victories and victories similar to it laid

the strong foundation on which the CPA career would grow and develop in the decades to

follow.

Ever since Frank Broaker claimed the title as the first CPA in 1896, the career has only

grown in numbers, and still continues to grow at a predictable rate with the assistance of future

projections. Shortly after World War II ended in 1945, only a measly 9,000 CPAs worked in the

field, however that number leaped all the way up to 350,000 CPAs by 1996 (Flesher and Previts

55). As the United States economy grew in both size and complexity, the need for CPAs

increased alongside it, as more people and businesses needed assistance managing their

increasingly complicating tax and business forms. The career still continues to grow, with

465,286 CPAs working in the field in 2016, with the number projected to increase by 7,534 by

2017, and increase even more in 2018 with 9,822 additional members (Offices Of Certified

Public Accountants 6). These statistics show that a grand total of 115,286 individuals joined the

CPA career between 1945 to 1996, amounting to 5,764 new members every year, displaying a

clear growth of the career and that the interest in public accounting remains alive and well.

While the CPA career possesses a rich and centuries long history, its history never truly ends, as
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the American economy will always continue to change and evolve, resulting in a constant flow

of CPAs to assist businesses and the American public to achieve financial excellence.

In order to enter the field of certified public accounting, one must complete the extensive

education requirement, as well as pass the rigorous CPA exam. Before one can even sit down to

take the CPA exam, he or she must endure 150 hours of college education, in hopes that during

these long hours of work and study, the aspiring CPA achieves a deeper understanding of

accounting and business practices (Larkin 307). While 150 hours of college education seems

exhausting and excessive, the CPA career contains multiple layers of complexity and difficult

subject matters. Therefore, it only makes sense that the aspiring CPA goes through as much

educational experience as possible to prepare them for entering the field, for they will definitely

need it. Once the aspiring CPA completes the 150 hour requirement, they must then take the

CPA exam (Tysiac 27). The questions on the test will not only test ones knowledge of terms and

facts, but also test the aspiring CPAs ability to evaluate and analyze situations, requiring them to

posses the ability to apply their knowledge in different real life scenarios (Tysiac 27). The ability

to recognize and memorize different vocabulary terms, regulations, and auditing procedures

remains a critical aspect of the CPA field, however, the CPA exam creators recognized that this

information serves no purpose unless the test taker can apply it to make better financial decisions

in real life scenarios. Overall, only about 50 percent of CPA exam takers pass (Online Format

FAQ). The pass rate of this exam indicates its substantial difficulty, thus making it an intelligent

decision to pursue study programs and take extra steps to prepare and study for this rigorous

assessment. While the journey to entering the CPA career seems challenging, from its extensive
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time requirement for college education, to its rigorous exam, it all serves the purpose of making

sure the aspiring CPA possesses the necessary skills and knowledge to succeed in the field.

For a student interested in acquiring an accounting degree, the University of Texas at

Austin stands out from the pack of schools to attend, as the University of Texas boasts one of the

best accounting programs in the country. 50,950 students attend the University of Texas, each

one attending one of the 18 schools on the Universitys campus, with the accounting and other

business related majors attending the McCombs School of Business (Facts and Figures). The

standard tuition for a nonresident of Texas attending McCombs School of Business adds up to

about $41,336 annually, with a resident of Texas paying around $11,946 annually (Longhorn

Fixed Tuition). The schools large student population and amount of different schools on

campus shows its overall largeness, making it an attractive place for an extrovert who loves the

large campus atmosphere to study. Unfortunately, nonresidents of Texas must pay more for their

education there, most likely frightening off many aspiring accountants who may come from low

income households. The department of accountancy at McCombs School of Business prides

itself on teaching students different methods for researching and studying accounting and

economics (Accounting Research). These methods include archival, which involves analyzing

and interpreting historical data, experimental, which studies the behavior of people, requiring

knowledge in both psychology as well as performing formal experiments to test and research

behavior, and analytical, which involves the analysis of economic models and the creation of

new ones, requiring expertise in mathematics and economic theories (Accounting Research).

The University of Texas proves its capability in educating students by not only teaching them the

necessary facts and figures, but also teaching them how to think critically about accounting and
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economics in a historical, behavioral, and mathematical sense. The University of Texas at Austin

provides one of the best accounting educations in the country, including a large campus with

many different students and schools and a valuable, but definitely expensive, education that goes

in depth into the the studying and thinking of accounting.

The University of Texas at Austins accounting program requires the completion of

several different courses that go in depth in certain accounting related subjects, such as:

investing, accounting regulation and principles, and taxation. An accounting major must take the

ACC 326 as one of their first courses (Freeman). According to the class syllabus, Instructor

Robert Freeman teaches this course, where he will help students learn about investing, finance,

and basic accounting rules and practices, as well as how to apply those skills in real world public

accounting situations (Freeman). It makes sense to arrange this course as one of the first ones

taken by incoming accountant majors, as it goes over the basic foundation topics that requires

thorough understanding in order to grasp the more complex and nuanced aspects of the CPA

career that will appear while working in the field. Later in their academic careers, accounting

majors attending the University of Texas tend to take ACC 364, which deals exclusively with

introducing the student to taxation (Robinson). In ACC 364, students learn about Federal income

tax, corporate tax, and how taxation influences business practices, all under the guidance of

Instructor John Robinson (Robinson). This course serves the purpose of educating students on

the very basics of taxation, a concept that accountants and CPAs encounter on a regular basis,

making it an important concept to learn and understand thoroughly. While these two courses

only make up two of the many classes offered in the accounting major, they exist in order to

educate the student on the basic foundations of accounting practices and taxation so that they
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may prosper in later college courses and in the field.

Wake Forest University, similarly to the University of Texas at Austin, provides a

valuable education in a small, private school setting, offering an incredible useful CPA exam

review course. This small, private university that boasts a student faculty ratio of 10:1 with

students from almost every state in the country has more than a quarter of students representing a

racial minority (Undergraduate College). However, admission comes at the hefty price,

charging of $66,528 annually, with approximately $49,000 allotted to housing and tuition alone

(Undergraduate College). Students who wish to attend Wake Forest must take the large price

tag into consideration, though for many students the benefits of a small, diverse student

population and excellent education outweighs the large tuition fees. Wake Forest University also

holds the record for the highest passing rate for the CPA exam in the country, mostly attributed

to a rigorous preparation course called Beckers CPA Exam Review (Wake Forest Students...).

Beckers CPA Exam Review course includes 100 hours of teaching, reviewing of the different

types of questions that may appear on the exam, as well as several full practice tests, resulting in

students who took the course to pass at twice the rate than students who did not participate in the

course (Wake Forest Students...). For anyone interested in obtaining an official CPA

certification, Wake Forest offers an incredible opportunity, for ones chances of obtaining that

certification drastically increases due to the rigorous preparation. The preparation in Beckers

CPA exam review course clearly pays off, as evidenced by the high pass rate by students who

took the course, as well as that fact that Wake Forest University claims that nations highest CPA

exam pass rate. Attending Wake Forest University could benefit students by introducing them to

an advanced private school tailored to students who enjoy small, diverse environments and wish
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to perform well on their CPA exam, as long as they can pay the price.

Wake Forest University presents interesting demographics and CPA exam preparation for

undergraduates. However, Wake Forest demonstrates its true ability to train aspiring CPAs. This

training comes in the form of a special graduate program geared exclusively for students who

wish to receive the best possible education in accounting. The Master of Science in

Accountancy, or MSA, provides students that hold bachelor's degree in accounting with an

opportunity to take more advanced courses and help them receive internships, with almost every

student receiving a nine week paid internship during their time in the program, with 100% of

students acquiring employment after graduation (Master of Science in Accountancy). The

MSA program serves the students of Wake Forest by not only granting them a way to expand

their knowledge in the accounting field, but also helping them get employed by providing them

with rewarding and educational internships meant to train aspiring CPAs for actual employment.

The MSA program also offers different paths that deal exclusively with a single area in

accounting (Masters of Science in Accountancy). These paths include assurance services,

which deals mostly with studying auditing and assurance, tax consulting, which studies how to

research tax policies and perform proper tax tasks, and financial transaction services, which deals

mostly with the studying of the United States market, and analyzation of business practices

(Masters of Science in Accountancy). The ability for the student to choose what specific topic

he or she wants to study in the MSA program allows for that student to specialize in certain skills

like tax consulting or assurance services, making them more equipped to take on real world

account situations where they can utilize their special skills and knowledge. The Master of

Science in Accountancy program provides CPAs all of the resources they need to succeed, from
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educational internships, advanced business courses, help gaining employment afterward

university, as well as giving the student the option to choose what specific area of research they

wish to specialize in.

CPAs and public accountants work in a variety of different environments, from the

traditional accounting firm with rows of cubicles, to a messy and cluttered home office. Though

no matter the environment, the CPA can expect to spend a large amount of time in it. Normally,

accountants and CPAs work in a cubicle environment in firms ranging from tens of people to

possibly hundreds, or they can also work as freelancers, where they operate from home or a

home office (Flynn). The variety in work environments makes the CPA career enticing for

introverts and extroverts alike, due to the fact that if one tends to enjoy company while working,

they can join an accounting firm, though if they enjoy working by themselves, they can simply

freelance. In a series of interviews performed on a large public accounting firm, many auditors

within the firm revealed that their hours ranged from 51 hours a week, to 62 hours during the tax

season, with many of the higher level auditing staff revealing they normally work about 44 hours

weekly, with a grand total of 71 hours weekly during tax season (Hermanson A45-A46). These

long hours show that this career requires commitment and time management skills, as well as the

ability to sacrifice precious family and leisure time. The CPA career presents itself in a variety of

different ways, giving the aspiring CPA the advantage of choosing an environment that best suits

them and their traditional social work style, though that CPA can expect to work in said

environments for hours on end.

Financial consulting acts as the main duty of a CPA, however, this includes multiple

responsibilities. These range from their chief tasks like auditing and managing money, to taking
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on leadership positions in the office. The basic duties of a CPA involve working with a specific

client or business, performing tasks like managing and analyzing taxes and how they could

influence their clients money, as well as managing payroll, auditing, and bookkeeping (Flynn).

These tasks seem daunting and complex for many business owners and individuals that do not

hold a degree in accounting, resulting in the necessity for experts with extensive education and

experience to assist them. According to Matt Snow, a CPA working for a firm called Dixon

Hughes Goodman LLP, a CPA helps businesses by, ...providing them assurance that their

financial results are materially correct, assisting them in filing their tax returns, determined how

they can minimize the taxes they owe... (Snow). Mr. Snow proceeds to explain that his main

objective as a CPA, as well as the CPAs he works with, deals with ensuring that the businesses

he works with will operate at their utmost quality by assisting and advising them in financial

decisions and situations (Snow). Snows responsibilities as a CPA aligns fairly well with the

responsibilities of a regular CPA, however Mr. Snow works in a CPA firm that tends to deal with

corporations and businesses instead of individual clients. This means that the work done by Mr.

Snow and his colleagues will deal more with tasks like corporate tax and analyzing financial

records to determine the best possible way to increase financial growth. In office environments,

some CPAs may take on the extra responsibility of supervising a group or department of

accountants or CPAs (Flynn). Those in leadership positions mostly train and lead new recruits,

evaluate employees, and overall supervise the members of the floor and grant them guidance or

assistance if necessary (Flynn). While most CPAs do not hold leadership or supervisory positions

in their firm, they remain open for CPAs who wish to further their career by climbing the chain

of command, usually resulting in increased pay and time spent in the office. The roles of CPAs
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includes everything from a simple audit or review or a client's taxes, to an evaluation of an entire

business's financial status and possible means of improving, with supervising and leadership

positions for any CPA up for the challenge.

The CPA proves its worth through its historical stories of success, whether it be World

War I, the SEC, or the continued growth over the decades. It also proves itself through its lift

education requirements and exam, with the official career containing unique responsibilities and

work environments, with CPAs spending long, committed hours in a cubicle or at a home office.

The CPA career proves itself as a longstanding and successful career through its historical

background, extensive educational requirements, and unique and interesting responsibilities and

working environments. In this mad world of economics and finance, the certified public account

shall persevere and lead the way, making sense of this financial world of complexity and

confusion, one client at a time.

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