A Study of Why Fewer Choose to Become State-authorized Public Accountant in Denmark

Abstract

The aim of this master thesis is to investigate why fewer choose to become state-authorized public accountant in Denmark. The investigation is based on the research method Mixed Methods, whereby a quantitative questionnaire is combined with six qualitative semi-structured interviews. Using both quantitative and qualitative research methods to obtain empirical data is based on the scientific theory called pragmatism, which forms the foundation of this thesis. To understand the tendencies seen in the empirical data, the data was partly analysed using William Strauss and Neil Howe’s generation theory. The generation theory was complemented with a research article from Sezin B. Berkup, which provides an understanding of the individual business characteristics of each generation. The research article and the generation theory form the theoretical frame of this thesis. It was found, that the MSc students and graduates in business administration and auditing primarily selected the following four reasons for not choosing or being in doubt if to become a state-authorized public accountant: ‘Work/life balance’, ‘I am unsure if I want to stay in this industry’, ‘too stressful’ and ‘lack of time’. The MSc students and graduates in business administration and auditing primarily belong to generation X, Y and Z, of which all are characterized by prioritizing private/family life and a pleasant, free working environment over a hard working-life, title, and money. The above-mentioned characteristics are in sharp contrast to the business characteristics seen for the generation Baby Boomers. The Baby Boomers constitutes the majority of the approved auditors and are therefore determining the working culture and morality, which follows with the title of a stateauthorized public accountant. However, generation X, Y and Z cannot identify themselves with this working culture and morality and therefore decide not to become state-authorized public accountant. In order to encourage generation X, Y and Z to become state-authorized public accountants it is deemed necessary to change the working culture and morality, which racks the accounting industry; this would require (i) less over-hours and (ii) motivation through leadership. These two approaches will together create the frame for an ideal working culture and morality in the accounting industry, which is currently dominated by generation X and Y. If the lack of state-authorized public accountants continues, it will have an impact on the maintenance of the auditing requirements, as well as the working pressure, the quality of the work and the prices for accounting services, which require the signature of a state-authorized public accountant. All the mentioned consequences will in the end not only affect Danish businesses, but also society as a whole.