How Does the Wage Disparity Between Accounting and Finance Impact the CPA Pipeline?

The purpose of this study is to examine the impact of wage disparity between accounting and finance on the Certified Public Accountant (CPA) pipeline. We study the relationship between accounting and finance wage disparity and the key measurement of the CPA pipeline: the number of first-time CPA exam takers. We find that an accountant’s salary, relative to that of a finance professional, is significantly correlated with the number of new CPAs entering the profession. This study is important because the accounting profession has recently experienced a severe shortage of CPA candidates. We believe that our results will shed light on the reasons for the shortage of CPA candidates and provide insightful information for the National Association of State Boards of Accountancy (NASBA), the American Institute of Certified Public Accountants (AICPA), and CPA firms to improve the CPA pipeline.