The Impact of the CPA Evolution on Students’ Interest in Earning a CPA License and Working in Public Accounting

Abstract

ABSTRACT The CPA Evolution is a joint initiative of the AICPA and NASBA to ensure the continued relevance of the CPA exam and to increase CPA licensure. Beginning in January 2024, a core plus discipline approach requires all candidates to pass three core exam sections and one of three discipline sections. This study examines whether this new exam format affects an individual’s interest in earning the CPA license and working in public accounting. The results of an experiment suggest that the new exam format significantly increases interest in earning a CPA license and that this effect is driven by nonaccounting major students who have career preferences in the accounting profession. Additionally, the new exam format marginally increases interest in working in public accounting, specifically with nonaccounting majors with career preferences in accounting. Our results indicate the CPA Evolution may help address the current pipeline staffing shortages in the field of accounting. Data Availability: Please contact the authors.