AICPA Spring Council
May 17, 2022
Hello, everyone. Thank you for joining in what has been another great Council meeting today and it’s great to be in-person with all of you. We truly appreciate your time, energy and service.
I am honored and humbled to accept the position as the 109th Chair of the AICPA, and Chair of the Association of International Certified Professional Accountants, the Association.
The Association’s united approach is vital for representing, supporting, and protecting all of our accounting and finance colleagues across the globe, which is why I look forward to serving with the CIMA President and our Association Co-Chair, Melanie Kanaka, over this year and with AICPA Vice Chair, Okorie Ramsey. Together, we make a great team!
I would like to start by thanking my amazing wife Bina for all of her love and support over our years of marriage. And my two beautiful daughters, Anisha and Nikita, whose support and belief in their father has been an inspiration to me. I also acknowledge my two sons-in-law – truly a part of my family – and the two children who gave me my most cherished title – “grandfather” – Riyan and Anika. Mom, thank you for all your sacrifices and encouragement and dad thank you and I know you are looking down with great pride.
I am a great believer in tradition, and traditionally two past chairs escort the incoming chair to the podium. I am sure you must have noticed that I had three people escort me. It is a special moment for the incoming chair, something Bill and Tracey were unable to experience in our last two virtual Spring Council meetings. Today, I want to recognize them for their incredible leadership, and with the help of Kimberley, give them the recognition they so well deserve.
Please join me in congratulating and thanking Bill Pirolli, and congratulating and thanking Tracey Golden.
I would also like to thank Bill Pirolli for his outstanding service over his entire career and during the last year. I have seen him demonstrate great leadership as we continued to navigate an uncertain and constantly changing environment. I could not have had a better person to learn from, and I am honored to follow in his footsteps and continue his passion for his focus on our pipeline
Bill, you have been a wonderful mentor and friend. Thank you and you know I will continue to lean on you and Paul Ash for your support and guidance
Of course, a huge thank you goes out to Barry, the leadership team, staff and every volunteer at our global Association. Barry, I do believe you are a rock star!
I have watched this incredible global team double down during the last two years in support of our members, students and millions of small businesses. You have elevated us all, and I have never been prouder to be a part of this organization. It’s remarkable that many of these individuals are not CPAs or CGMAs and yet they show great passion to further our profession.
The past two years have shown us just how interconnected we all are. We are truly a profession without borders or boundaries. A profession represented not only by AICPA and the Association, but by the work we do every day for our clients, employers and the tremendous amount of time we give back to the community where we live and work.
For more than a century, both AICPA and CIMA have united like-minded professionals. And now together, through the Association we have a broader and stronger platform to drive a dynamic accounting profession worldwide and empower members and students with the critical knowledge, insight and foresight to help organizations of all kinds succeed.
As I am sure each past Chair has, I have spent a great deal of time reflecting on the path that led me here today.
Accounting has always been a huge part of my life. My father was a Chartered Accountant who worked on three different continents over the course of more than 60 years. He began his career in India, worked for several years in Tanzania, and eventually came to the United States, spending the rest of his years of service at a CPA firm in Maryland. He is an example of how our profession can be lifechanging and how it can open doors for us all in unexpected ways.
My father’s career truly illustrates that accounting is a global profession, connected with shared ethics and commitment to public interest. Having the ability to work across three continents with shared relevance and applicability shows that we are part of a versatile and global community.
My dad had a passion for the profession. He made an impact – driving value for clients and businesses and commanding respect in the community. He was my inspiration to follow a similar path, and to make my own impact. While I credit my father for the passion in the profession, I credit my mother, a teacher, with showing me the value of a strong work ethic, drive and determination to make that passion into something real. I am in awe of the energy she has, this energy powers everyone around her.
I see that dedication and passion reflected in my fellow CPAs and CGMAs. Those putting in extra time to create the best results for their clients and organizations.
- Those learning how to perform remote audits without sacrificing quality;
- Leading small business through economic recovery;
- Partnering across their business for better decision making;
- Leading their organizations through finance and business model transformation; and
- Continuously learning new skills to keep up with market changes and emerging needs.
As I reflect on these last few years and anticipate the coming disruptions we face, I see our profession steadily and enthusiastically taking the helm to guide people to a brighter future.
It is times like these when we must all offer bold leadership. And we must have that courage to step forward; to maintain our momentum; to never relent in disruption; to find opportunity for growth; and to go beyond the current crisis to claim our leadership role for the future.
Specifically, I have three areas where we must focus and step forward in the coming year:
- Help others grow to reach their potential
- Diversify the pipeline of incoming new accountants and finance professionals
- And preserve trust in the profession.
First, we must commit to helping others grow professionally and personally.
The journey to the CPA is not done in isolation. It depends on the support and guidance of other people. This includes those accountants who have gone before us, the employers willing to mentor, train and promote professionals through the ranks, and especially the families and friends who understand the efforts and sacrifices.
My road to the CPA was not easy. I was not, as you might say, an Elijah Watt Sells Award candidate.
My first job in accounting was a college internship with one of my father’s clients. It was not glamorous. I managed the office, made coffee, typed letters and various other odds and ends. I guess I did well, because by the time I graduated from the University of Maryland, I was asked to stay on.
Then I did what many new accounting grads did – I signed up for a CPA review class. I sat for the exam.
And I didn’t pass.
I had set a goal to achieve my CPA designation, but after a few more unsuccessful attends, I gave up. I was resigned to never achieving those elusive letters. But something changed in me several years later. On my 30th birthday, Bina asked me if I was really satisfied with where I was in my career. It gave me a pause, because in truth, I wasn’t satisfied. This was a turning point for me. So, I gave the CPA exam one last shot. You know the rest of the story.
Today, I exemplify that truth – that the CPA is a foundation to open doors, broaden horizons and build career journeys. It was true when I passed the exam in 1991, and it’s just as true now, if not more.
As CPAs and CGMAs, it is our responsibility to represent the opportunities the profession has given us, and to provide these same opportunities to others. We all have a role to play in helping members of our profession grow.
To do this, the profession must adopt a people-first approach. People should be at the center of our practices and decisions, large and small, the chief focus for where we want the profession to go. Because we know, the strength of our profession depends on who is a part of it.
We all know how daunting the process of becoming a CPA can feel. It can be so easy to get discouraged. It should be our responsibility to support future CPAs and CGMAs through these hurdles, so that they reach their goal. Whether we are talking to young people about their careers, hiring interns, supporting staff pursuing the CPA or mentoring and coaching talent — all these things collectively add up to make an impact. We all have a compelling story to tell, and I am sure if we share that story, it will be inspirational.
And growth is not just for young people. Those of us who have been in the profession for 10, 20, or 50 years know that we cannot remain static.
Over the course of my career, the one constant has been change. Which is why I believe we must commit to continuous growth. To foster a sense of learning – unlearning – relearning in our organizations and firms.
All of us are members of the AICPA and our global Association, which provides access to resources that can help us – as well as those in our firms and businesses – stay sharp in our areas of expertise, and build expertise in new and emerging areas. Consider the Town Halls Series, which shares up-to-the-minute information and guidance that is necessary as the world shifts so rapidly. What started as a way for Association to help members and accounting professionals in the early days of the pandemic, has become a community – a way for us to connect and help each other.
I am reminded of growing up in India, living with my extended family – grandparents, aunts, uncles, cousins – a lot of cousins – all under one roof. Oh, by the way some of them are here today, with so many of us, it was vital we work, problem-solve and minimize conflict together. These are lessons I bring to my time as Chair.
While we upskill and advance talent in the profession, we must also focus on the next generation of accountants, and how they too will continue to learn and grow.
This leads me to my second point.
We must inspire a diverse pipeline into the profession.
Driving diversity is a journey. This is not a one-year platform, but a constant commitment, and my goal this year is to push the needle of progress. I will continue the efforts of many past Chairs in building our pipeline, with a major focus on increasing diversity, equity and inclusion in our profession. And Okorie and future Chairs need to continue making this a priority. Okorie, Melanie, earlier I said we are a team, this will require a team effort.
Per our latest Trends report, 44% of ethnic minorities are enrolling in accounting courses but only 14% are represented in the profession. This shows growth over the years but is nowhere close to being reflective of the vibrant and varied people who make up our communities.
To attract top talent at our firms and businesses, we need to reflect the changing world. Because by tapping into different people, cultures and perspectives, our profession is positioned to solve even the most complex and challenging issues. Diversity makes our profession stronger and enables us to meet the needs of the publics we serve.
In fact, McKinsey has consistently found that companies with more gender, racial and ethnic diversity routinely outperform those who are not more representative of the world we live in. We need to address biases and their implications on advancement and retention in our firms. We must showcase diversity in the profession so that everyone can see a place for themselves.
We have made good strides in providing more flexibility for women in the profession, but we can always do more. We are in the middle of the Great Resignation and studies show that women are leaving the workforce in greater numbers than men. We should be mindful of offering support to enable women to take leave when they need to, but also re-enter the workforce and not lose the progress they’ve made.
Most importantly, we must maintain accountability through the establishment and measurement of DEI goals. This is all just talk if we are not holding ourselves accountable for change.
In the past two years, we have seen many firms and businesses increase their strategies to address DEI barriers in their workplaces. We encourage organizations to keep up this momentum. However, as a profession, we still have a long way to go.
It is my duty, to do whatever I can to increase these numbers and drive broader interest in the profession. This is not just during my tenure as Chair, but this will continue till all voices are heard. The voice should be such that people lean in and listen. Because I have no doubt, that it is through greater diversity – of thought, perspective, and experiences – that we can help our profession achieve even greater things.
My story is proof of that. The challenges I faced earlier in my life taught me perseverance and gave me a unique perspective that I have carried with me throughout my career.
Coming to this country in the early 1970s was not easy. While I had been taught English in school, trying to communicate with other 12-year-old Americans – that was a whole other story. The first few years were tough, but I also learned to appreciate the wonderful freedom enjoyed here – it is something that if you don’t grow up in another country, you can’t really understand.
That freedom came with many new opportunities, one of which was becoming a CPA. There are so many paths available to us through our profession. It is our responsibility to show the next generation of accountants how to harness the varied opportunities that come along with this career path.
I especially believe we need to focus more on high school outreach and alerting future generations about how our profession can open doors to so many careers. Because while my dad was the one who first influenced me, it was my high school accounting teacher Mr. Miller who played a critical role in convincing me to pursue this career path. That is why AICPA’s efforts to get accounting recognized as a STEM career, along with programs like This Way to CPA, are essential to the longevity and vitality of our profession.
That is also one of the reasons why our joint CPA Evolution initiative with the National Association of State Boards of Accountancy is so important. We are transforming the CPA licensure model to ensure the future of our profession, and we are on track to launch a new CPA Exam in January 2024. CPA Evolution is essential for the survival of the profession. If we think that the CPA will maintain its relevancy without changing, then we will watch a profession lose its relevance. CPA Evolution will help us make this profession appealing to future CPAs from all walks of life.
We are also launching the Registered Apprenticeship Program for Finance Business Partners, which gives college graduates an apprenticeship path to pursue the CGMA designation. Participants will be able to learn and benefit from exposure to more career development and mentoring opportunities.
Apprenticeships are extremely valuable to future CPAs and CGMAs. These programs help employers broaden their talent pool, improve recruiting and retention, and boost productivity. Apprenticeships can also bridge the gap between academia and practice and can help colleges and universities place students in jobs by the time they graduate. This type of collaboration, between the Association, NASBA, state societies, educators and firms, is essential in preparing the next generation of our profession.
This year, my hope is to visit as many colleges, community colleges, and high schools as I can; to be able to talk to as many students as possible; and to help inspire the same passion that my father and my mentors inspired in me. I can show students and young people that there is opportunity in our profession for anyone – no matter where they come from, what they look like, or who they are. That there is opportunity for anyone who is willing to put in the effort and has the drive to make it a reality.
The dedication and hard work of our people is what keeps our profession strong. Strong enough to live up to the expectation of trust that is required of us – which leads me to my final point.
We must preserve trust in the profession.
Trust is the cornerstone of what our profession is all about. It is in our character, and it must be in our DNA.
There is a reason that we are called “trusted advisers.” We have been on the forefront of economic recovery globally; we have leveraged the trust our clients, businesses and the public have in us to restore consumer confidence, mitigate and prevent damage to small businesses and local and national economies; and we have been maintaining and enhancing audit quality.
I see the profession working to protect trust in everything we do.
We protect trust for our firms’ accounting and auditing practices by managing quality, and the AICPA has our back. Our Auditing Standards Board offers us guidance on proactive, risk-based approaches for effective quality management systems. And the new Dynamic Audit Solution enables us to use the power of technology to transform the methodology of the financial statement audit.
Businesses are more secure because CPAs and CGMAs are implementing effective cybersecurity processes and controls in our organizations. To guide members in this space, we offer up-to-date resources on how CPAs and CGMAs can protect their clients, firms, and organizations from cyberattacks.
We drive confidence in supply chains by helping manufacturers identify, assess and address supply chain risks. And the AICPA and Association developed the SOC for Supply Chain framework to help us perform attestation engagements on these efforts.
And we protect trust in the corporate responsibility space, driving a new normal in corporate responsibility. The profession leads corporate accountability to stakeholders and to social and sustainability goals through Environmental, Social and Governance reporting. I have spent my entire career working with organizations that conduct research on our planet’s natural systems and we study things like climate change, severe weather, the atmosphere, the oceans, sea ice and the land surface. I can tell you this is very important to me.
Public accountants have the necessary expertise and objectivity to provide advisory and assurance services to organizations to enhance confidence in this information. And management accountants have the necessary analytical skills, scope of influence and organizational understanding to play a central role in introducing and managing better processes and controls, making business decisions, and reporting to stakeholders in a holistic, integrated way. These evolving roles will appeal to future generations and enhance the profession for many years to come.
The Association too, takes this very seriously, and our ESG initiatives show the power of collaboration between public and management accountants. This is one of the places that the profession will be looked at in 10, 50, or even 100 years from now as having led trust and confidence in providing this data in a consistent manner.
It is obvious to me that this trust in the profession is well-placed. Everything we do adds onto the trust that our forebearers built. When I think of those great men and women who came before us in the profession, one moment with my father specifically came to mind.
Telling my father that I passed the CPA Exam was a moment worth waiting for. In 1991, results still came in the mail. After opening the envelope, I drove 40 minutes to my dad’s office to tell him the good news in person. I remember walking up to him and extending my hand.
“Dad, shake hands with a CPA,” I said.
I could feel his hands trembling with excitement as he shook mine. That moment was as much an accomplishment for me as it was a point of pride for him.
I am grateful for the strong foundation that my father, my mom, and the rest of my family gave me growing up. I was raised to value ethics, determination and strength, which built the basis of my career. Just as trust builds the foundation of our profession.
This foundation allows us to step forward with confidence that we can handle any challenges that come our way.
I am asking you to step forward too. Step forward by helping others grow professionally and personally. Step forward by working to diversify the pipeline of accounting and finance professionals. Step forward by preserving trust in our profession.
We must step forward as one.
Because together, we are advancing the profession. Together, we are delivering on our purpose of driving trust, opportunity and prosperity. And together, we are changing the world.
I am honored to be in your presence, and I am honored to serve you as Chair. Thank you.