Private equity investment is bringing sweeping changes to the accounting profession, raising questions about the future of CPA firms and whether universities are adequately preparing students for a rapidly evolving workplace. As investment firms acquire stakes in accounting practices, long-established approaches to ownership, career advancement and professional development are being challenged. A new study warns that accounting education risks falling behind these changes, leaving graduates unprepared for the realities of their chosen profession.

Led by Portland State University accounting professor Elizabeth Dreike Almer, the study examines how private equity (PE) investment is transforming public accounting firms and what these developments mean for future accountants. Drawing on interviews with regulators, accounting professionals and transaction experts, the researchers explored how new ownership structures are influencing workplace culture, compensation, professional responsibilities and career opportunities. Their findings suggest that the growing involvement of private equity could fundamentally reshape the accounting profession, creating an urgent need for universities to rethink how they educate and advise students.

“Private equity isn’t just changing who owns CPA firms; it’s fundamentally reshaping accounting careers, firm culture, and the skills needed on day one,” Almer said. “If business school classrooms don’t adapt to these changes, new graduates will face severe reality shock when entering the workplace.” Industry experts interviewed for the study identified several potential consequences of private equity ownership, including increased layoffs, reduced time devoted to client engagements and fewer opportunities to become traditional equity partners. They also anticipated a growing emphasis on higher-profit consulting services at the expense of auditing, potentially changing the nature of accounting careers.

Another concern involves the development of technical expertise and professional judgement, particularly among younger accountants. Auditing requires more than knowledge of accounting rules; it demands experience, critical thinking and the ability to make sound decisions in complex situations. Researchers warn that commercial pressures and changes in staffing practices could limit opportunities for employees to develop these essential skills. At the same time, the decline of traditional partnership pathways may alter how aspiring accountants view long-term career prospects, professional independence and advancement within their firms.

To help students navigate this changing environment, the study calls for accounting programmes to move beyond conventional classroom instruction. The researchers recommend expanding experiential learning and encouraging students to examine the ethical and professional challenges associated with different ownership models. Courses should integrate technical accounting and auditing knowledge with discussions about firm structures, financial incentives, stewardship and public service responsibilities. Particular attention should be given to situations where commercial objectives may conflict with accountants’ obligations to protect the public interest and exercise independent professional judgement.

The researchers also emphasise the importance of career guidance that reflects the profession’s changing landscape. Rather than preparing students for a single traditional career path, universities should help them understand the opportunities and trade-offs associated with different types of accounting firms. This includes examining how ownership arrangements may influence compensation, workplace expectations, professional development and advancement. By connecting classroom learning more closely with industry realities, educators can help graduates make informed career decisions while preserving the professional standards and public trust that remain central to accounting.

More information: Elizabeth Dreike Almer et al, The Impact of Private Equity Investments in Accounting Firms on Accounting Careers, Issues in Accounting Education. DOI: 10.2308/ISSUES-2025-043

Journal information: Issues in Accounting Education Provided by Portland State University