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Post-graduate educational requirements and entry into the CPA profession

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Abstract

Forty-one states require educational requirements for CPA licensure to include 30 credit hours beyond the baccalaureate degree. This study, using state-level panel data of CPA examination pass rates, examines two hypothesized effects of this requirement: one, it improves the quality of new CPAs, and two, it restricts entry into the profession reducing the supply of potential CPAs. Empirical findings reveal that raising minimum educational requirements increases the success rate of first-time CPA exam takers, leading to improved entrant quality. However, increased success rates are associated with significant declines in the number of exam takers and, hence, reduced supply.

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Authors and Affiliations

  1. Georgia Southern University, 30460, Statesboro, GA

    Robert E. Jackson

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  1. Robert E. Jackson
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Additional information

This research is based on a chapter in the author’s dissertation. I thank Bernt Bratsberg for his guidence in conducing this research. Additionally, I thank Don Ballante and Antoinette James Criss for helpful comments on drafts of this paper. Any errors are mine.

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Jackson, R.E. Post-graduate educational requirements and entry into the CPA profession. J Labor Res 27, 101–114 (2006). https://doi.org/10.1007/s12122-006-1012-1

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  • DOI: https://doi.org/10.1007/s12122-006-1012-1

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