Auditing While Black: Revealing Microaggressions Faced by Black Professionals in Public Accounting

For years, the American Institute of Certified Public Accountants (AICPA) has promoted diversity, equity, and inclusion (DEI) initiatives to attract and retain underrepresented minorities in public accounting (Drumgo 2019). The largest public accounting firms have also made efforts to promote minority hiring and advancement (Edgley, Sharma, and Anderson-Gough 2016).¹ Despite these efforts, Black professionals remain underrepresented. While individuals identifying as Black currently represent 13 percent of the U.S. population (U.S. Census Bureau 2019), only 4 percent of public accounting firms' professional staff are Black, and only 1 percent of partners identify as Black (AICPA 2019). By 2060, people identifying as White are expected to only represent 44 percent of the U.S. population (Colby and Ortman 2015). Without the successful recruitment and retention of Black and other minority professionals, public accounting firms will look less and less like their clients.

There are several plausible explanations for the underrepresentation of Black public accountants. Among these, Black Americans are underrepresented in higher education, in business-related degrees, and in accounting degrees (Libassi 2018; Violette and Cain 2017; AICPA 2019). Hammond (2002) argues that Black Americans were denied access to accounting education for years and were therefore systematically prevented from taking the CPA exam. Further, while public accounting firms may embrace DEI in their own hiring and retention processes, they have less control over the way their employees are treated by clients. It is also possible that firms' DEI efforts are more talking points than actions.²

Another reason for underrepresentation is that Black professionals may face macro- and microaggressions in the workplace (Gonzalez 2021; Sue and Spanierman 2020). Macroaggressions are policies that create unequal treatment at the institutional level that may exclude Black professionals from public accounting or negatively impact their success (Pierce 1970). For example, Gonzalez (2021) describes how the experience requirement to become a licensed CPA systematically excluded Black accountants from the profession because they could not get hired by CPA firms that believed their clients would not accept a Black public accountant.

Microaggressions are more personal interactions. They are verbal or nonverbal behaviors that casually degrade members of a minority group (Sue 2010; Sue and Spanierman 2020). Because many of us are unaware that our words or actions hurt, microaggressions often go unacknowledged (Sue and Spanierman 2020). Touching a Black woman's hair (with or without permission), or commenting that a Black person is articulate, are examples of racially based microaggressions (Solórzano, Ceja, and Yosso 2000; Sue and Spanierman 2020).

The purpose of this study is to collect personal stories of inequities and microaggressions faced by Black auditors. It is also to gather suggestions about how to improve the retention of Black professionals in public accounting. We do this by interviewing current and former auditors who identify as Black about their experiences while working in teams, interacting with clients, and networking for promotion. Storytelling is our method of communication because unlike the presentation of mere data, it has the power to engage our brains, influence our thoughts, and inspire actions (Peterson 2017; Widrich 2012).

Diversity is “the distribution of differences among the members of a unit with respect to a common attribute” (Harrison and Klein 2007, 1200). Arguments for diversity include legal compliance, social justice, and business outcomes (Edgley, Sharma, Anderson-Gough, and Robeson 2017). From a social justice perspective, accounting firms serve governmental agencies and reap tax benefits, both of which are funded by the entire citizenry; ergo, their employees should be diverse. From a business outcomes perspective, the most diverse public companies are 35 percent more likely to have financial returns above their industry mean (Hunt, Layton, and Prince 2015). Diverse teams focus more on facts, process facts more carefully, and are more innovative (Rock and Grant 2016). In public accounting, diverse teams are promoted as improving collaboration, innovation, and business outcomes (EY 2020).

Despite discrimination being prohibited by the AICPA's Code of Professional Conduct (Section 1.400.010, available at: https://www.aicpa.org/research/standards/codeofconduct.html), a survey conducted in the late 1990s found 49 percent of Black accountants perceived racial bias in their jobs (Weisenfeld and Robinson-Backmon 2001). This bias may be the result of social categorization, which fills the psychological need for positive social identity and may present as microaggressive behaviors (Tajfel, Billig, Bundy, and Flament 1971). Those who share our characteristics (e.g., race, education, religion) are in-group, and others are out-group. In business contexts, social categorization biases have been found to impact how we evaluate others and allocate resources (Taylor and Doria 1981).

We invited 41 current and former auditors who were either known or referred to the researchers to participate in our study.³ Of these, 15 (37 percent) agreed to be interviewed, and 11 (73 percent) were current auditors.⁴ All of the participants self-identified as Black Americans; one also self-identified as Jamaican. As summarized in Table 1, the participants varied in terms of position, age, firm size, and geography, providing support for the idea that their stories are not specific to these demographic characteristics.⁵

To put the participants at ease, the interviews were conducted one-on-one by a Black academic researcher using videoconferencing technology (e.g., WebEx). All but one participant agreed to have their interview recorded. The interviews were semi-structured. An advantage of this methodology is that although it begins with a set of open-ended questions, it also allows for follow-up questions and elaboration by participants.⁶ The questions, quantitative data, and themes are provided in Table 2.⁷ Not every participant responded to every question.

Of the 15 participants, only one (7 percent) believed his/her experiences working in teams, working with clients, and networking for promotion were similar to the experiences of his/her non-Black colleagues. Example stories of inequity and microaggressions of the other participants are presented below.

Of the 15 current or former auditors we interviewed, 14 (93 percent) reported their experiences differed from their non-Black colleagues when working with colleagues, eight (53 percent) reported they are not assigned projects of equal importance, and six (55 percent of non-staff-level participants) reported different experiences supervising others. Common themes were feeling like an outsider, being asked insensitive questions, not having the respect of colleagues, feeling dumped on, and not being given equal opportunities. Any of these could negatively impact audit quality and/or auditor retention by making Black professionals feel uncomfortable asking questions of their leaders or team members. In turn, this could lead to substandard work creating a negative feedback loop and perpetuating DEI issues. For example, this story was shared by an experienced staff auditor (Big 4, Mid-Atlantic):

Nearly all the participants, including the men, shared a story about being made to feel different because of their hair. A staff (Big 4, Northwest) described:

Several participants described being made to feel inadequate in other ways as described in this story told by a former senior (Big 4, South):

There are also times when Black public accountants are made to feel their successes are merely the result of reverse discrimination as described by this former partner (Top-10, Midwest):

Of our participants, 13 (87 percent) shared stories of experiences they believe differ from their non-Black colleagues when working with clients. Common themes were being stereotyped, being asked insensitive questions, and not being respected. These experiences could negatively impact audit quality by making Black professionals feel uncomfortable questioning clients. For example, a senior (Big 4, Mid-Atlantic) shared:

A manager (Big 4, South) shared a different stereotyping story from when s/he was a senior:

And a manager (Top-20, South) described:

There are also times when microaggressions are more obvious, as a former senior (Top-10, Midwest) related:

As described by one of the participants, “Probably 70 percent of the job and your success is being able to make connections with clients, your colleagues, managers, and partners. It's a very, very social business.” Likewise, the results of a 2017 survey suggest 67 percent of Black accountants believe mentoring benefits their careers (Dey, Lim, Little, and Ross 2019).⁸ Of the participants, ten (67 percent) reported experiencing differences in the criteria for promotions, eight (53 percent) reported not having the same support for their career goals as their non-Black colleagues, and ten (67 percent) felt excluded from informal, job-related social networks. Challenges include feeling excluded, feeling tokenized, and having difficulty identifying mentors. As an example, a manager (Top-20, South) said:

While Black public accountants want to be included in non-work social events, they want to feel inclusion is genuine. A former senior (Top-10, Midwest) shared a story about being invited to a partner's home for a group event. Because a relative had recently passed away, she would be unable to attend:

When no one in a supervisory role looks like you, it is hard to visualize being successful. Underrepresentation in accounting starts early. As recently as 2018, only 3 percent of all fulltime faculty in degree-granting postsecondary institutions were Black;⁹ and Brown-Liburd and Joe (2020) report that collectively, Black, Hispanic/LatinX, and Native American people comprise fewer than 5 percent of U.S. accounting faculty. These data do not bode well for Black students developing an interest in public accounting careers. A manager (Top-20, South) shared:

Solving the problem of underrepresentation of Black professionals in public accounting requires a focus on both hiring and retention. As suggested by the above stories, microaggressions may play a role in the retention. Hosting a firm party at a pre-Civil War Virginia plantation, an experience shared by one of our participants, is not likely to help retain Black professionals. Not all microaggressions are intentional, making understanding how our words and actions can wound others critical to improving the workplace.

We asked participants to suggest ways their Black colleagues might respond to inequities and microaggressions in public accounting.¹⁰ They responded with advice for both their Black and non-Black colleagues. First, Black professionals should “get comfortable being uncomfortable.” Have tough skin. Because of geography or socio-economic background, some of their non-Black colleagues may have had limited interactions with people who do not look like them. They may, unknowingly, ask offensive questions. Try to give them the benefit of ignorance, not malice. On the other hand, non-Black professionals must remember that “not all Black people are alike. Not all like Rap music or basketball or watch Black television shows.” Like their non-Black colleagues, they have different interests, grew up in different areas of the country, and come from different socio-economic backgrounds.

Second, they suggest their Black colleagues find someone to advocate on their behalf. Because partners and managers are more likely to be White, Black professionals should not limit themselves to seeking out advice from other Black professionals. As described by one of the participants, “You need a Godfather in the workplace, someone who will tell you the truth.” Non-Black professionals should mentor and advocate for Black professionals beyond firm-sponsored programs. You do not have to be Black to mentor a Black professional.

Third, Black professionals should seek out employer-firms with diverse senior leadership teams. “You will always have to work hard to succeed, but you may need to work a little less hard if your firm already has a more inclusive environment.” Non-Black professionals should be cognizant of different forms of inequity. Summarizing stories of five participants, sometimes Black public accountants feel they are overloaded to see if they will break, sometimes good projects are withheld to keep them from succeeding, and sometimes constructive criticism is withheld over fears that suggestions will be perceived as racist.

Public accounting is a challenging work environment with long hours, deadlines, rotating team assignments, and high turnover (e.g., Hermanson, Houston, Stefaniak, and Wilkins 2016). In addition to managing these challenges, the stories we collected revealed the unique challenges Black public accountants also face when working in teams, interacting with clients, and networking for promotion.

We hope their stories and suggestions help to advance the DEI initiatives of public accounting firms and lead to increased hiring and retention of all minority accountants. DEI initiatives could include increased recruiting efforts at historically Black colleges and universities (HBCUs),¹¹ monitoring diversity metrics to increase awareness of the potential for unequal treatment, encouraging safe and frank conversations about race issues in the workplace, encouraging employees to report inappropriate client behaviors and acting on those reports, speaking out against racism and other forms of discrimination, and sponsoring diversity-promoting activities (e.g., AAA Diversity Section meeting, AICPA Minority Initiatives Committee meeting).

We also hope our findings are used by academics to stimulate discussions about DEI issues, enhance accounting education, and motivate additional research.