211. Talent's impact on internal controls, with Dr. Rebecca Hann

Future-Proof

In this episode, we're continuing our focus on the pipeline issue but this time we're looking at it's impact on corporate America specifically. Companies, big and small, are citing a shortage of skilled accounting personnel for weaknesses in financial reporting controls. This deficiency is a significant predictor of potential restatements of financial statements, affecting not only CPAs and firms but also investors.

Dr. Rebecca Hann, Assistant Dean of Doctoral Programs at the Robert H. Smith School of Business, discusses her recent study, "The Price of an Accountant Shortage: Evidence from Job Vacancy Duration and Internal Control Weaknesses." We explore the study's key findings, including correlations between the shortage of accounting talent and the frequency and severity of internal control deficiencies, as well as the duration of job vacancies in accounting roles. Additionally, we consider the role of purpose, the "why" behind we do, in addressing this issue.

Tune in for this crucial conversation on the profound impact of the accounting profession's challenges.

Resources

• Wall Street Journal article, "The Accountant Shortage Is Showing Up in Financial Statements" by Mark Maurer
• Accounting Today article, "The U.S. is short 340,000 accountants—just look at the wave of earnings report mistakes" by Jo Constantz
• UMD Robert H. Smith School of Business, Dr. Rebecca Hann webpage
• Dr. Rebecca Hann Scholarly Papers
• Dr. Rebecca Hann LinkedIn Profile