November 2001
Perception of Professional Acceptance and Commitment of Black Accountants
By Fannie L. Malone
More than 30 years ago, the AICPA adopted a resolution to make equality of opportunity in the accounting profession a reality. Statistics suggest that the actions taken by the AICPA have contributed toward the inclusion of blacks in the accounting profession. What the statistics do not show is how black accountants perceive their professional acceptance and commitment.
According to 1995 AICPA statistics, 2% of professional staff at CPA firms were black. The percentage of black professional staff leaving CPA firms was 3%. In 1995, 1% of CPAs employed by CPA firms were black; however, less than 0.5% of the CPAs employed by majority-owned CPA firms were black. Furthermore, blacks were partners or owners of 1% of CPA firms; however, blacks were owners or partners of less than 0.5% of majority-owned CPA firms. Clearly, there is a need for greater representation and retention of blacks in the profession.
Survey Development
This study asked 1,000 members of the National Association of Black Accountants (NABA) about their perceptions of black accountants in five areas (Exhibit 1):
The survey results, based on 483 responses, provided a perplexing conclusion. Although black accountants opine that they have the technical training and ability to provide a quality service to clients, they perceive that corporate America considers their ability to deliver a quality product is inferior.
Questionnaires were mailed to 1,000 CPA and non-CPA black female and male accountant members of the NABA in industry, government, and public accounting, selected randomly from NABA’s total membership of approximately 1,500. Accountants in industry and government were included because 75% started their careers in public accounting.
Methodology
Responses were grouped according to five employment categories: public accounting (nonmanager and manager), self-employed, and industry and government (nonmanager and manager). For each variable and each employment category, mean responses were derived from eight demographic subgroups (female CPA, male CPA, female non-CPA, male non-CPA, CPA, non-CPA, female, male). Subgroup responses were compared to determine whether they were significantly different. Six comparisons were made:
Respondent Rate and Sample Characteristics
Of the 1,000 surveys mailed, 529 responses were received, a response rate of 53%. Of the 483 usable survey responses, 233 were from black females and 250 from black males. Exhibit 2 details the demographic information collected about the survey respondents.
Results
Exhibit 3 (section 1 and section 2) summarizes mean responses to the survey and the significant differences in perceptions.
Acceptance. Responses to the question of whether clients consider blacks as acceptable as whites to perform work on engagements indicate that most black accountants have a negative view of acceptance by the profession. Although non-CPAs held a more positive view than CPAs, the mean responses for non-CPAs were not positive. The most positive view of acceptance was held by female non-CPAs in manager positions in public accounting. Self-employed female CPAs perceived less acceptance than any other subgroup. Nevertheless, the only significant difference between groups existed between male CPAs and male non-CPAs, which overall elicited significantly more positive views of acceptance.
Years of work experience may act as a mitigating factor in the perception that black accountants are not equally acceptable to clients. The data suggest that the more years of experience a black accountant has in public accounting, the more negative is their perception of acceptance by clients. Moreover, if the manager/nonmanager factor is included in the analysis, the data suggest that the more decision-oriented the tasks required for the engagement, the less likely a client will want a black accountant to perform such engagement.
Commitment. Self-employed female non-CPAs “strongly agree” that blacks are generally as committed as whites to a career in public accounting. Interestingly, male non-CPAs employed as managers in public accounting displayed the least agreement with this statement, rating it “neutral.”
Three significant differences between groups were found for this statement: female non-CPAs held more positive views on commitment than female CPAs; females held more positive views than males; and female non-CPAs held more positive views than male non-CPAs.
The data suggest an inverse relationship between one’s work experience in public accounting and one’s willingness to make a long-term commitment to continue with a career. Such an inverse relationship is supported by the more positive views on commitment of CPA managers in public accounting versus CPA nonmanagers in public accounting. An explanation may lie in the frustration associated with the perception that attaining partner level is not likely for the black accountant. The more positive responses to the statement from respondents employed in industry and government supports such an explanation.
Longevity. Most subgroups disagree with the statement that, during the recruitment process, blacks are generally viewed as potential long-term employees. The most positive view of longevity was held by female non-CPAs employed by public accounting firms in manager positions. Self-employed female CPAs had the lowest perception of longevity.
Three significant differences between groups were found for this statement: nonCPAs held more positive views on longevity than CPAs; female non-CPAs held more positive views than female CPAs; and male non-CPAs held more positive views than male CPAs.
Marketing. A majority of the subgroups disagreed with the statement that blacks are generally able to develop new business as effectively as whites. Female CPAs employed as managers in public accounting firms voiced the strongest disagreement, whereas female non-CPAs employed as managers in public accounting firms expressed the most agreement.
Four significant differences between groups were found for this statement: female non-CPAs expressed more positive opinions about marketing than male non-CPAs; non-CPAs were more positive than CPAs; females were more positive than males; and female non-CPAs were more positive than female CPAs.
In general, black accountants perceive that they are not equally capable of effectively developing new business, a primary determinant in assessing partner potential. It follows, therefore, that black accountants may perceive that their advancement within the public accounting firm is limited to the manager level, which would explain the perception that an employer does not view the black accountant as a long-term prospect, as indicated by the previous data.
Auditing. As to whether blacks are better suited, equally suited, or worse suited than whites to performing auditing services, most respondents believed that they had the technical training and ability to perform quality auditing services. The least positive view was held by male CPAs employed by public accounting firms in manager positions; the most positive by female CPAs employed by industry and government in non-manager positions. No significant differences appeared between the comparison groups.
Tax. In general, black accountants do not perceive themselves to be inferior in terms of providing tax services. Male CPAs employed in manager positions by public accounting firms had the highest opinion of their abilities; female non-CPAs employed in nonmanager positions by public accounting firms had the lowest. The only significant difference found between groups was that female CPAs held a higher perception of their abilities than female non-CPAs.
Consulting. In general, black accountants do not perceive themselves to be inferior to whites in providing management consulting services. Female non-CPAs employed by industry and government in nonmanager positions had the highest opinion of their abilities; self-employed male non-CPAs, the lowest.
All three significant differences related to gender: female CPAs, female non-CPAs, and females held higher perceptions of their abilities to perform consulting services than male CPAs, male non-CPAs, and males.
Editor:
Robert H. Colson, PhD, CPA
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