Public Accounting Case Study

The United States has distinguished itself as the ultimate melting pot. The Civil Rights Act of 1964 outlawed any discrimination based on race, color, religion, sex, or national origin in all public forums, representing our country’s complete embrace of a multicultural society. Today, the U.S. is experiencing a major shift in demographics, as the Census Bureau forecasts ethnic minorities will outnumber Caucasians by the year 2042. This trend has observably manifested in the business world, as the number of minority-owned businesses in recent years has expanded twofold, increasing by 45.6% to 5.8 million. Likewise, the SEC issued a directive in 2009 that strongly supported diversity in the boardroom, requiring proxy disclosure statements to

The public accounting profession formally embraced diversity in 1969, after launching a national program through the AICPA’s Minority Initiatives Committee. Despite decades of sincere efforts, the profession has yet to yield sufficient results to its diversity objectives. According to the AICPA’s 2013 Trends report, 75% of employees at CPA firms in 2012 were Caucasian and 56% were male; therefore representing the continuing struggle of women and minorities alike to transcend barriers in the profession. (Moore) People are the number one asset of the profession, and thus define the quality of services provided by accounting firms. In order to secure its relationship with the global marketplace, it is imperative for the profession’s demographic makeup to evolve comparably in representation of

With the proliferation of minority-owned businesses and the accumulation of international clients, accounting professionals are required to be able to appeal to the different values encompassed in our globalized economy. The profession needs to consider if it has the knowledge and human capital to be able to fully understand the culture, needs, and sensitivities of its minority clients. Employing a diverse workforce introduces diversity of thought among professionals. The American Society of Women Accountants suggests that people who “fit in” can maintain the status quo, but rarely offer superior performance or groundbreaking initiative. (ASWA, 1) A broad range of perspectives prevents groupthink by fostering collective collaboration, innovation, and more efficient problem-solving skills on engagement teams. Likewise, a variety of perspectives allow professionals to build rapport with clients by increasing the number of opportunities to connect and gain trust. In this way, at the operational level, diversity adds fundamental value to the quality of services provided by the profession, subsequently increasing customer satisfaction and