The CPA Evolution Exam model, which became effective at the beginning of 2024, requires each candidate to pass three core exams and one specialized discipline exam selected by the candidate. More importantly, CPA Evolution emphasizes technology and data analytics skills in all its core and discipline exams, which may represent a challenge for historically marginalized candidates from under-resourced schools, namely Black/African American and Hispanic/Latino candidates. Furthermore, emerging legal constraints, effected through Executive Order 14173 (which prohibits recipients of federal funds from offering programs that explicitly reference race or sex criteria in outreach, hiring, or financial assistance), represent both uncertainty and opportunity. For CPA firms, this moment represents a critical inflection point: those that respond with strategic foresight can sustain and potentially expand the talent pipeline, reduce systemic barriers, and cultivate a more resilient profession. Motivations for fostering inclusion and access have ranged from public interest values (such as fairness and access) to strategic workforce imperatives, including profitability.
Generational expectations add urgency. For example, a survey of 9,889 accounting and finance professionals conducted by the Association of Chartered Certified Accountants found strong generational differences in attitudes toward diversity. Asked whether a strong culture of diversity and inclusion would be a key factor in deciding to work at an organization, 78% of Gen Zers agreed, compared with 74% of Millennials, 71% of Gen Xers, and 62% of Baby Boomers (ACCA, Global Talent Trends Survey 2024). These results suggest that expanding the pipeline is not only a matter of inclusion and access, but also of aligning with the values of younger generations who now dominate the emerging workforce.
Research from Deloitte found that organizations with strong diversity and inclusion cultures were twice as likely to meet or exceed financial performance goals, three times as likely to be high-performing, and six times as likely to be innovative and agile (Deloitte, “Diversity and Inclusion Revolution: Eight Powerful Truths,” Deloitte Insights, 2020). Similarly, McKinsey & Company found that companies in the top quartile for “gender diversity” and “ethnic diversity” outperform peers on profitability (McKinsey & Company, “Diversity Matters Even More: The Case for Holistic Impact,” McKinsey & Company, 2023). While these studies were framed in terms of diversity and inclusion, their findings align with the broader goals of inclusion and access, suggesting that inclusion and access may be increasingly viewed as a strategic imperative.
Inclusion and Access in the CPA Profession
Exhibit 1 illustrates that both Black/African American and Hispanic/Latino individuals were significantly underrepresented in accounting education (in terms of the number of undergraduate and graduate degrees conferred) and within the CPA profession as a whole (including the number of licensed CPAs and professional staff employed in accounting and finance roles) across the United States in 2020. Although limited evidence indicates small gains in representation since 2020 (e.g., the AICPA 2023 Trends report), underrepresentation among these groups remains clear and persistent.
EXHIBIT 1
Under-Represented Minorities in Accounting Education and US CPA Firms in 2020
Forces of Change: CPA Evolution
As the accounting profession evolves toward a technology and data analytics–aligned competency model, it risks inheriting systemic barriers long observed in tech and data science education. Prior research shows that historically marginalized students—specifically Black/African American and Hispanic/Latino students—often face inequities in math preparation, technology access, and institutional resources. Similar patterns are documented by the National Academies of Science, Engineering, and Medicine, highlighting potential equity risks as CPA Evolution advances (P. Noguera, J. C. Pierce, and R. Ahram, “Race, Equity, and Education: Sixty Years from Brown,” Springer, 2019; Pew Research Center, R. Fry, B. Kennedy, and C. Funk, “STEM Jobs See Uneven Progress in Increasing Gender, Racial and Ethnic Diversity,” Pew Research Center, April 1,2021, https://tinyurl.com/2jvs4cbn; The Education Trust, “Why Are Black and Latino Students Shut Out of AP STEM Courses?” 2022, https://tinyurl.com/mwhpe7pk; National Academies of Sciences, Engineering, and Medicine, “Transforming Undergraduate STEM Education: Supporting Equitable and Effective Teaching,” 2025, https://tinyurl.com/4de3rptz). On one hand, CPA Evolution may enhance the appeal of accounting to technically oriented students; on the other, it may discourage historically marginalized students who lack sufficient technical training from joining the profession.
Faculty perspectives.
The authors recently conducted a faculty survey that highlights growing concern about the implications of CPA Evolution for inclusion and access (W. Keshk and E. Lynch, “CPA Evolution: A Survey of Accounting Faculty Across the US,” Accounting Educators Journal, forthcoming). Because faculty are responsible for preparing the next generation of CPAs, their perspectives provide a critical barometer of how reforms like the CPA Evolution are reshaping the profession.
Among other objectives, this survey of 149 accounting faculty at 70 schools across the United States examined perceptions of how the increased emphasis on technology and analytics under CPA Evolution might influence: 1) enrollment in accounting programs, 2) the overall quality of students, 3) the enrollment of historically marginalized students, and 4) the number of students pursuing CPA licensure. The responses are illustrated in Exhibit 2.
EXHIBIT 2
Faculty Perceptions of CPA Evolution Impacts on Enrollment, Inclusion, and Access
While these results suggest a generally neutral-to-positive outlook (particularly regarding student enrollment, academic caliber, and interest in licensure), a closer examination reveals areas of concern. Most notably, faculty expressed concern that the increasing technological demands of CPA Evolution may disproportionately affect historically marginalized students. The lower average score (3.8 on a scale of 1 to 7) for historically marginalized students’ enrollment reflects a perceived risk that participation may decline. Faculty participants’ narrative comments and response patterns suggest that the heightened expectations for data analytics and IT proficiency could impose added burdens on students from under-resourced schools, particularly those with limited access to advanced math or technology coursework. Consequently, while the profession stands to benefit from the CPA Evolution, faculty anticipate that it may also unintentionally exacerbate existing gaps in inclusion and access, particularly for students from historically marginalized backgrounds.
Constraints of Order 14173
Compounding the inclusion and access issues associated with CPA Evolution are recent federal directives against the use of sex or race criteria. In particular, Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” issued in January 2025, prohibits recipients of federal funds (including contractors, grantees, and universities) from offering programs that explicitly reference race or sex criteria in outreach, hiring, or financial assistance. Legal commentators warn that such efforts may now expose organizations to liability under the False Claims Act if deemed non-compliant with federal nondiscrimination mandates (F. A. Davis et al., “The Department of Justice’s Latest Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination,” Paul Hastings LLP, July 31, 2025, https://tinyurl.com/mww5bxkp). As a result, even well-intentioned efforts to support historically marginalized students must now be restructured in this uncertain legal landscape.
Historically, many CPA firms, universities, and professional organizations implemented identity-based outreach, internship, and scholarship programs to broaden participation in the accounting profession. In light of Executive Order 14173, accounting firms should reassess these efforts to ensure compliance with emerging federal limitations on race or sex-based criteria. Rather than abandoning inclusion goals, firms can strengthen them by adopting legally resilient strategies that expand access by focusing on socioeconomic status, school resources, or first-generation status.
The College Board’s “Playbook: Understanding the Role of Race-Neutral Strategies” (2023, https://tinyurl.com/5yt3w7pz) provides guidance that CPA firms can adapt to incorporate sex- and race-neutral criteria in support of sustainable, inclusive, and access-oriented initiatives. Applicable approaches include:
- Targeting socioeconomic background—family income, parental education level, and occupation (especially first-generation college students entering accounting programs).
- Addressing geographic or school-based disparities—students from underfunded high schools, rural regions without broadband access, or schools lacking coursework relevant to accounting and data analytics.
- Providing mentorship and career development programs—tailored to students from under-resourced backgrounds, particularly those with limited exposure to the accounting profession.
- Expanding virtual mentorship models—CPA Exam preparation, interview coaching, and digital literacy training via online platforms with an emphasis on reaching candidates with limited access to in-person support.
Sustaining an Inclusive Profession
CPA firms and universities should offer internships, mentorships, or recruitment programs that are broadly inclusive using selection criteria that are neutral with respect to both sex and race. There are currently scalable nationwide initiatives that use sex-neutral and race-neutral models to sustain inclusion and access, including: NASBA’s Student CPT chapters (currently 48 in 24 states), which provide ethics training, mentorship, leadership certification, and industry networking; AICPA Foundation programs (such as scholarship and institutional outreach initiatives) that support historically marginalized and under-resourced students; the federal Pell Grant program, which awards aid based on financial need; and Accounting+, a Center for Audit Quality campaign introducing accounting careers to high school and early college students with digital resources and mentorship outreach.
While the CPA Evolution initiative, with its focus on technology and analytics skills, aims to modernize the profession and keep it relevant, there is also a risk that it compounds existing inclusion and access challenges for certain members of our community. Expanded expectations around data analytics, IT proficiency, and math readiness may inadvertently create barriers for students from under-resourced educational backgrounds, many of whom already face systemic obstacles to entering the accounting pipeline.
Admittedly, the arrival of CPA Evolution in the current political environment creates unforeseen challenges. The path forward is not about abandoning inclusion and access—it’s about reimagining how we get there. While race or sex targeted efforts face new constraints, firms may potentially adapt by focusing on alternative criteria. By rethinking existing pipeline efforts, CPA firms can comply with federal orders while modernizing education and licensure as well as sustaining an inclusive workforce that reflects the communities served. This includes upholding a broader ethical responsibility to serve the public interest through equitable access to the CPA profession.
Authors’ Note on Terminology: This article uses the terms “sex” and “race” rather than “gender” and “ethnicity” because Executive Order 14173 explicitly refers to “sex” and “race” as protected classifications under federal nondiscrimination law. When, however, external research is cited (e.g., studies referring to “gender diversity” or “ethnic diversity”), the original terminology used in those studies is retained for accuracy.
