Human Capital Challenges Facing the Public Company Auditing Profession

Abstract

SYNOPSIS: This paper addresses human capital (HC) challenges facing the public company auditing profession. In my opinion, the HC challenges facing the profession make it less likely that the profession can effectively serve the interests of the investing public in the future, and I believe that we must consider fundamental changes to our educational model if these challenges are to be adequately addressed.In the sections below, I consider the quantity and quality of accounting graduates, the quantity and quality of new accounting and auditing faculty, and a potential educational solution to the HC challenges facing the profession. To the extent possible, I cross-reference my identification of HC challenges to the Advisory Committee on the Auditing Profession’s discussion outline (see http://www.treas.gov/offices/domestic-finance/acap/agendas/outline-10-15-07.pdf). I hope that these comments will provide useful input to the Advisory Committee’s deliberations and will promote additional analysis and debate regarding the future of the auditing profession.