The 2023 Top 100 People: The biggest issues in accounting

December 12, 2023 9:00 AM

The talent pipeline was far and away the most vocalized concern by the 2023 Top 100 People when asked the question, "What is the most important issue currently facing the accounting profession?" For another year, the dropping number of people entering the profession and attaining CPA licensure had this year's class of Top 100 People worried about the future, while also recommending ways to counter this foreboding trend. The T100 also frequently mentioned interrelated topics like the profession's relevancy and the need for greater diversity, equity and inclusion as incredibly significant.

But what other issues rank high on the radars of this year's Top 100? Technology advancements like artificial intelligence, new pricing models and operational structures, and overall business transformation were among some of the other chief concerns — and many relate back to what, again, many of this year's honorees expressed as the No. 1 issue: talent.

(To see the full responses of all the candidates for the Top 100, click here.)

Unpredictability. Although staffing shortages dominate everyday challenges, other factors such as GenAI, mid-market consolidation, ESG and increased SEC audit inspections are not only creating complexity but moving us into uncertain directions and at a faster pace.

— Gale Crosley, president and founder, Crosley+Co.

As a firm and profession, we have made significant strides in growing our relevance and the overall role we play in society. However, we're seeing the needs and expectations of users of independent audits continue to evolve and the information flow is growing increasingly complex.

It's been two decades since the Sarbanes-Oxley Act passed, and the US has the most robust and trusted capital markets in the world. While I am incredibly proud of where we are today, there's more that can be done to increase confidence in the independent audit and the accounting profession to help the audit stay relevant for years to come.

— Wes Bricker, vice chair, Trust Solutions co-leader, PricewaterhouseCoopers

Jim Bourke

The profession's willingness to embrace and understand the impact that AI will have on the profession. The impact that it will have on addressing all of those manual tasks in audit and tax that have been traditionally addressed by entry-level accountants. I honestly believe right now that our profession is underestimating the impact that AI will have in years to come.

— Jim Bourke, managing director, advisory services, WithumSmith+Brown

Tom Hood

Upskilling and reskilling.

— Tom Hood, EVP business engagement & growth, AICPA

Public Company Accounting Oversight Board chair Erica Williams

PCAOB

The PCAOB is seeing audit quality for both domestic and international firms trend in the wrong direction for the second year in a row. When inspection reports are finalized later this year, PCAOB inspectors expect that approximately 40% of the audits they reviewed in 2022 will have had one or more deficiencies where the audit firm failed to obtain sufficient appropriate evidence to support its opinion. That is up 6 percentage points from 2021, which was already 5 points higher than the deficiency rate in 2020.

— Erica Williams, chair, PCAOB

Richard Jones

The importance of financial accounting and reporting as an unbiased reflection of performance shouldn't be lost or skewed in the achievement of other goals.

— Richard Jones, chair, Financial Accounting Standards Board

The past two years have been a defining moment for the profession as a trusted advisor for businesses of all sizes. Although talent and managing complexity are clearly top issues, the evolution of the practice and services through technology advancement continues to be the greatest opportunity for the profession — and the best way to manage the talent and complexity challenges.

— Erik Asgeirsson, CEO & president, CPA.com

David Wurtzbacher

MIKE_BUSADA

The ground is shifting much faster than people think. As an example, everyone I talk to comes to an opinion about private equity quickly, some think it's ok and most do not. Whatever you think of the big private equity transactions that have occurred, I am very confident that someone is going to make money in these deals in the next couple of years. When that happens, young CPAs will reap financial rewards early in their careers in a way this profession has never seen.

— David Wurtzbacher, founder & CEO, Ascend

Ed Wheeler Photography

The opportunities provided by technology. Financial information is already being consumed in a very different way and the rapid changes in technology will only continue to evolve that consumption. As accountants, we need to take advantage of the opportunities afforded to us by the advancements in technology.

— Joel Black, chair, Governmental Accounting Standards Board

The fusion of ESG criteria and sustainability within business and the accounting profession's opportunity in that space is tremendous.

— Jennifer Harrity-Cantero, director, Sensiba Center for Sustainability

The need for increased efficiency, and more efficient practices in firms.

— Elizabeth Beastrom, president, tax & accounting professionals, Thomson Reuters

The understanding, adoption and use of artificial intelligence — specifically in ways that it can automate rote tasks to free up capacity for busy practitioners. This helps solve a lot of the talent supply issues and, I believe, will also make staff more satisfied in their roles.

— Kacee Johnson, VP, strategy & innovation, CPA.com

Its antiquated business model of selling time, specifically the use of the timesheet.

— Ed Kless, meta consultant, Sage

Paul Knopp

Scott Wynn

Our permission to operate and innovate for our clients can quickly be diminished if we lose the trust of our stakeholders. Therefore, we must continue to demonstrate integrity, professionalism, and quality in all that we do. Today, embracing new technologies and embedding AI responsibly across our business will transform our operations and create exciting career opportunities for our people, as we continue to reimagine how we work and develop talent while maturing ESG strategies to drive sustainable growth.

— Paul Knopp, chair and CEO, KPMG LLP

The most important issue facing the profession is the need for firms to transform their business models and value propositions to clients in the face of rapid technological advancement and increasing competition.

— Kalil Merhib, VP, growth & professional services, CPA.com

Pugliese-Anthony-Institute of Internal Auditors NEW 2023

We need to upskill the profession and our future members in a way that goes beyond where the current college curriculum takes them… that means developing human intelligence skills like team building, leadership, emotional intelligence, and more.

— Anthony Pugliese, president & CEO, Institute of Internal Auditors

Darren Root

Automation and the use of artificial intelligence (AI) are the accounting profession's most impactful advancements in the foreseeable future.

— Darren Root, chief strategist, Rightworks