week 7 assignment

Horizons 2025: .oad Map for the

Future 10 topics every CPA must

examine to stay ahead ofthe curve

The AICPA has released the findings from a yearlong initiative toexamine what's on the horizon for CPAs and the accounting pro-fession. CPA Horizons 2025 leveraged insights from more than 75,000 comments from CPAs in all segments of the accounting pro- fession, regulators, thought leaders and futurists to highlight key trends and chart what the profession will face in the years leading up to 2025.

This major effort, undertaken in parmership with the state CPA societies, builds on the CPA Vision Project undertaken in the 1990s.

The research shows that the profes- sion—from sole practitioners to medium and large firm members to members in business and industry to those in govern- ment and academia—has a bright future and will need to respond quickly and com- petitively to the shifting ground on polit- ical, economic, social, technological and regulatory fronts.

Insights and directions related to op- portunities and challenges for the profes- sion emerged through the initiative. Using these insights and directions as a road map, CPAs and the accounting profession will mold their future.

Key findings included: • CPAs overwhelmingly agreed that

the profession's core purpose, "Mak- ing sense of a changing and complex world," remains relevant today and for the future.

• The profession's core values re- mained substantially unchanged.

• The profession's core competencies evolved to reflect the 21st century.

• The services provided by CPAs have become so varied and diverse that the concept of core services is no longer representative of the profes- sion.

The following is an excerpt from the CPA Honzons 2025 Report. The full report is available at cpahorizons2025.org.

10 INSIGHTS AND DIRECTIONS Through the information-gathering phase of CPA Horizons 2025, thousands of CPAs provided feedback that was aggregated into the major themes that significantly influ- ence the current state and future of the profession. [An] Advisory Panel further

44 Journal of Accountancy December 2011 www.journalofaccountancy.com

examined tbese tbemes, assessing tbeir im- pact on tbe core purpose, values and com- petencies. Ten key tbemes emerged tbat give insigbt on bow tbe profession is con- ducting and will conduct business, serve clients and employers, attract and retain employees and new business and remain competitive in tbe marketplace.

Here are tbe insigbts along witb details on bow eacb is likely to impact tbe profes- sion. (Tbe list is not ranked, and its order does not indicate priority or weigbt.)

1. Technology. Understand and leverage relevant tecbnology in conjunction witb core CPA competencies to deliver superior services.

• CPAs must stay current witb, em- brace and exploit tecbnology for tbeir benefit for increased efficiency and expansion of services.

• Tbe profession must find solutions to offer investors and stakebolders up- to-date, real-time financial informa- tion and to increase transparency

• CPAs must embrace mobile tecb- nologies and social media to mod- ernize and enbance interaction and collaboration witb clients and col- leagues.

• Fraud may be easier to commit and more difficult to prevent and detect. CPAs must continue to be vigilant in ensuring data is captured and man- aged properly and protected from malfeasance.

2. Pre-certification and Lifelong Learn- ing. Evolve tbe educational framework to keep pace witb tbe cbanging dynamics of business, government and our profession.

• CPAs must devote more time to stay-

ing current witb regulations and standards and social, economic, tecb- nological and political trends domes- tically and abroad. CPAs must furtber develop interper- sonal skills to enbance relationsbips witb colleagues, clients, businesses and employers.

Real-time learning in tbe workplace will cbange tbe way CPAs leam and will belp tbem adopt and adapt quickly and knowledgeably to ever- cbanging circumstances. Requirements for new CPAs must re- main rigorous and demanding and be practical and relevant. New CPAs must bave a broad knowl- edge of business and soft skills and not simply focus on tecbnical ac- counting. ^

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P R O F E S S I O N A L I S S U E S

Embracing the Future w h a t have we learned? Ii is a small world after all—every business is becoming a global business The future is here—embracing the future now will ensure viability in the long run Change is inevitable—technology is already changing the way we work ... and the change will continue Generations are working side by side—Baby Boomers are not retiring and Mil- lennials are bringing a new set of skills and ideals to the workplace

What must we do? Be open to change—embrace, don't fear, the future Be nimble—adapt traditional services and establish new ones to take advantage of change Be collaborative—^work with each other and with the global community to shape and execute the standards and services that will emerge over the next decade Be forward-thinking—assess and evaluate the current and future environments and plan accordingly

3. Worldwide Profession. Position the CPA as a premier designation of the ac- counting and finance profession throughout the world.

• CPAs must be increasingly aware of intemational business issues and trends.

• CPAs must assess the trend toward outsourcing overseas and create op- portunities to expand services to serve these markets.

• CPAs must continue to market the quality and value of their services in order to expand and thrive globally

4. Pride in the Profession. Encourage pride among CPAs in the CPA profession and in the value CPAs create throughout society

• The profession must continue to ad- vocate on behalf of itself to ensure continued recognition as a trusted ad- visor.

• CPAs must uphold the integrity of the profession and maintain high stan- dards in an ever-changing environ- ment and in cultures where business practices differ from U.S. practices.

5. Trusted Attester Preserve the role of the CPA as the trusted attester of financial and other information.

• The profession must stay vigilant in defending its unique role as providers of audit and attest servic- es. All CPAs benefit from the public trust that is rooted in the provision of

audit and assurances services. • Audit and attest functions must evolve

to meet changing regulatory demands and client and business needs.

6. Trusted Advisor. Promote the CPA as the trusted advisor who, in addition to providing core CPA services, develops so- lutions to complex problems by integrating knowledge, expertise and resources from multiple disciplines.

• CPAs must continue to evolve as strategic partners of clients, business and employers, applying multidisci- plinary and integrated problem solv- ing to expand traditional services and enhance nontraditional offerings and the perception of trusted advisor.

7. Market Permissions. Leverage the strengths of the profession to expand mar- ket permissions.

• Emerging opportunities for special- ization will allow CPAs to strengthen their expertise and provide addition- al value to clients, employers and business.

• The profession must continue to eval- uate which services it offers locally and globally and how it will deliver these services to adapt to the needs of clients, employers and business.

8. Marketplace. Address continual changes in the marketplace, economy, busi- nesses and regulations.

• The exact nature of the work that CPAs periorm must evolve to respond to shifts in business, society and technology These changes will offer

E X E C U T I V E S U M M A R Y • The CPA Horizons 2025 ef- fort, undertaken in partnership with the state CPA societies, builds on the CPA Vision Proj- ect of the 1990s. The project in- cluded a survey, in-person forums and online discussion and focus groups involving more than 5,600 CPAs commenting on the current state and future of the CPA pro- fession. • A 21-member advisory panel

representing all segments of the AICPA membership and state CPA societies reviewed and syn- thesized the grass-roots input. • The results show a bright future for CPAs paired with a need to respond quickly and competitively to the shifting ground on political, economic, social, technological and regula- tory fronts. • CPAs overwhelmingly agreed

that the profession's core pur- pose as stated in the CPA Vision findings of the 1990s, "Making sense of a changing and complex world," will continue to remain rel- evant. The profession's core val- ues remained substantially un- changed as well, while the core competencies evolved to reflect the 21st century. • Ten key insights emerged that shed light on how the

profession is conducting and will conduct business, serve clients and employers, attract and retain employees and new business and remain competitive in the market- place.

To comment on this article or to suggest an idea for another arti- cie, contact Kim Nilsen, executive editor, at [email protected] or 919-402-4048.

46 Journal of Accountancy December 2011 www.journalofaccountancy.com

P R O F E S S I O N A L I S S U E S

opportunities to enhance the value of CPA services, positioning CPAs to be leaders in helping clients and em- ployers adapt to change while also re- sponding to change themselves.

• Lifelong learning will take on greater importance as a way for CPAs to stay up to date as the pace of change ac- celerates.

9. Value Proposition. Increase the visi- bility of the profession's value proposition by demonstrating the profession's core V alues in multiple areas of business and society.

• By listening to and understanding the needs and challenges of employers and clients, opportunities for CPAs to develop services that align with core values will emerge.

i.i The profession must spend more time demonstrating their value to clients, businesses and the public about the role and value of the CPA in order to thrive amid increased competition and economic pressures.

10. Demographic Shifts. Continue to offer opportunities that enhance the pro- fession's appeal and be proactive in ad- dressing both U.S. and global demograph- ic shifts.

• The profession must strive to reflect the demographic shifts of incoming accounting students, clients, business and society

• Programs offered to support minori- ties, women and young CPAs in the workplace must be more widely im- plemented throughout the profes- sion.

• Experienced and older CPAs must continue to mentor young CPAs and identify leadership and advancement opportunities that will foster stronger relationships and loyalty

• In order to attract and retain younger generations, employers must increase flexible work arrangements and work- at-home options.

• The profession must continue to sup- port and enhance programs that build awareness of the CPA profes- sion to young audiences. •

Core Values and Competencies CPA Horizons 2025 asked participants to evaluate the profession's core values

and competencies established in the late 1990s in light of current and future trends.

The Advisory Panel carefully reviewed and further refined each value and com-

petency based on this feedback. The results, listed below, reflect the foundation

of the unique strengths and qualities, which will continue to drive and distin-

guish the profession in the coming decades.

CORE VALUES

Core values of the CPA profession are the essential and enduring beliefs that it upholds over time. Core values en- able CPAs to retain their unique char- acter and value as they embrace the changing dynamics of̂ the global economy

Integrity CPAs conduct themselves with integrity and honesty, holding themselves to rigorous standards of professional ethics.

Competence CPAs demonstrate superior technical proficiency by performing with a high level of expertise and knowledge.

Lifelong Learning CPAs highly value education beyond certification and continually pursue new and broad skills and knowledge.

Objectivity CPAs maintain impartiality and intel- lectual honest}' by remaining free of personal bias and conflicts of interest.

Commitment to Excellence CPAs continually deliver exemplary, high-quality services.

Relevance in the Global Marketplace CPAs enhance thdr value by meeting the ever-changLng needs ofthe world around than.

Note: These lists are not ranked, and item order does not indicate priority or weight.

CORE COMPETENCIES

Core competencies are a unique com- bination of human skills, knowledge and technology that provides value and results to the user. Enhancing the profession's core competencies is key to sustaining a competitive and differ- ential advantage in the marketplace.

Communications Skills CPAs are able to effecüvely exchange reli- abk and meaningful information, using ap- propriate context and interpersonal skills.

Leadership Skills CPAs are adept at influencing, inspiring and motivating others to facilitate change and achieve excellence.

Critical-Thinking and Problem-Solving Skills CPAs are skillful in evaluating facts, challenging assumptions and applying judgment to develop relevant solutions.

Anticipating and Serving Evolving Needs CPAs are adept in identifying strategic directions and opportunities to meet the evolving needs of those they serve.

Synthesizing Intelligence to Insight CPAs are expert in connecting data, per- forming analysis and using business acu- men to provide astute guidance for bet- ter business decision making.

Integration and Collaboration CPAs are effective at building strateg.c alliances and warfeing collaborativelj to provide muliidlsclplinary solutions to complex problems.

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