Chapter 6: Why Graduate Accounting Students Do Not Sit for the CPA Exam: Perceptions of the CPA Credential

Despite the high demand for certified public accountants, the supply of professionals produced by colleges and universities is insufficient. Contributing to the inadequate supply, which the profession refers to as a “pipeline challenge,” are students who major in accounting but do not sit for the CPA exam. We shed light on this issue by studying students’ perceptions about the content of the CPA exam and the value of earning a CPA credential based on a survey of graduate accounting students at two East Coast universities. Overall, we find that students who do not plan to take the CPA underestimate the value of the CPA credential. We find that students cite various reasons for avoiding the exam including the difficulty of the exam, difficulty in preparation time and cost. We contend that until students perceive the true value of the credential, initiatives to increase the pipeline may not fully succeed. We suggest several potential interventions to educate students about the importance of the exam and encourage them to reconsider taking it.