The Contemporary Landscape of the CPA Profession: SEC Enforcement Actions Highlight Issues Relating to Ethics and Technical Competencies

The purpose of this paper is to discuss the contemporary landscape facing the U.S. CPA profession with a focus on enforcement actions of the SEC. The present labor shortage of accountants may be a contributing factor in the recent surge of corporate financial restatements. Data for six fiscal years (2019-2024) collected from SEC Accounting and Auditing Enforcement actions suggests that ethics and technical competency are areas of concern for the accounting profession. The findings raise questions about the role that education could play in addressing the need to enhance the knowledge and skills relating to these two essential competencies that have been identified in AICPA Foundational Competencies Framework for Aspiring CPAs.