A Perspective on the Proposed Global Professional Credential

Abstract

You have no doubt heard of the proposed global professional credential, under such placeholder names as XYZ or Cognitor, that would supplement the CPA. At this writing, the AICPA and state societies are in the midst of a program to inform AICPA members sufficiently about the new credential to enable them to determine their interests and vote on whether to pursue the project to conclusion. The purpose of this article is (1) to put the project in the context of market forces affecting the accounting profession and all other knowledge-work professions and (2) to present my view of the appropriate skill set for a holder of the new credential. The need for a new credential is separate from the specific proposal to create one now under consideration. New economic conditions are having profound effects on the knowledge-work professions. As a result, and whether the accounting profession goes ahead with the new credential concept now facing a ballot, one way or another the forces affecting our marketplace will have their effects on the profession's opportunities and viability. The validity of the new credential concept must be seen in light of these circumstances. This article is not intended as an indirect entrance into the debate about the new credential, but it does put me squarely in the camp of supporters of the multinational initiative. My position is consistent with my part in the initiative from the start. I contributed to the project's development. Nevertheless, what I have to say here is broader than most of the debated issues, is my own interpretation of the historic role of the new credential, and presents my own view of the body of knowledge that should define the needed professional. A few words of background for those readers unfamiliar with the proposal: The AICPA and Canadian Institute of Chartered Accountants initiated the project for a new credential. The conception was at all times international. AICPA representatives worked with members of a consortium of accounting institutes from around the world. All agreed that the profession could not ignore certain market trends without inviting peril or other trends that represent unprecedented opportunities. The reach of the current CPA and CA credentials as brands creating market permissions for new services was approaching its limits. All also agreed that a new, broad international credential was the right response.