Becoming a CPA: Evidence From Recent Graduates

Abstract

The purpose of this paper is to examine the actual testing experiences and behavior of recent graduates in taking the revised computerized CPA exam. We collected data from 181 accounting alumni who had graduated from three different business schools during 2003-2006. Our results indicate that a large percentage of recent graduates intend to take the CPA exam; however, less than half of our sample had actually taken at least one part of the exam. This may be due to the flexibility of the new exam which appears to be creating a procrastination mindset. Our research indicates that specific incentives and assistance were significantly related to individuals taking the exam. We also found that the level of pressure perceived from employers and the accommodations made to take the exam are rather modest. In fact, there appears to be an expectations gap such that new hires perceive that passing the CPA exam is very important to them personally but only of moderate importance to their employers. These insights should prove valuable to the accounting profession in understanding how recent graduates approach the CPA exam as well as providing certain prescriptions to increase the number of candidates working toward and passing the exam.