Also, the study sought to examine the factors which might be contributing to sexual identity and ethnicity bias. The study utilized secondary sources, including literature search and data from big four firms’ websites. The study discovered that language contributed to both gender and racial discrimination. The existence of a sex-based language was also found. Data from the big four firms confirmed that women were rare in the topmost positions. It was difficult for the people of color to interact with white people and get jobs in those countries. Therefore, the study recommended various strategies to address gender and racial discrimination.

Introduction

Over the last years, the accounting industry has been characterized by male and white dominancy. Several accounting researchers have developed an interest in investigating the issue related to gender and racial biases in accounting. Several underlying factors contribute to the low number of females, African Americans, and other minority groups engaged in American accounting operations. According to American history, the issue of discrimination dates many years ago. In the early 1920s, John W. Cromwell was recognized as the first individual from the black community to become certified as a public accountant. He was a Phi Beta Kappa campus located in Dartmouth (Jeny, 2017). He also had advanced studies in Mathematics and astronomy. The accountant applied for a CPA course to advance his studies. John W. Cromwell was forced to wait for approximately 15 years before his application could be accepted. The main reason for waiting for such a long time was that American law stated that a person would be required to be working for a certified CPA in an already operating accounting industry. Cases similar to that of Cromwell were identical at that time. In many accounting industries, Black Americans were denied the opportunity to associate themselves with and work, earn experience and improve their living conditions. The firms urged that their fellow white accountants could not be satisfied with working environments of black skin color (“Accounting for bias,” 2021). They would allege that they would only work with individuals who match their skin color.

After approximately a century, the issue of gender was still existing in many companies associated with accounting. A study was conducted and focused chiefly on ethnicity engagement in accounting firms. The Asian and the black communities were the study’s significant samples (“Accounting for bias,” 2021). The senior-most occupations were rewarded to the white community despite the increasing heterogeneity among entry categories in the field. In 2018, research done in the American Institute of Certified Accounts showed that approximately 42% of the graduates comprised individuals from the minority groups compared to the number of the white community and overall graduates. Therefore, due to racial bias in the accounting industry, only a small proportion of the minority groups would secure job opportunities compared to the white.

Studies have also shown that a wide gap exists between males’ and females’ engagement in accounting firms. The studies urge that most accounting firms comprise many males compared to women. After a research study investigating gender involvement in the big four audit companies, it was justified. In the American states, the researchers discovered that in Deloitte and Peat Marwick International and Klynveld Main Goerdeler firms, females accounted for only 18% of the total high ranked employees, and while at the PricewaterhouseCoopers Company, female gender was approximately 16.9% (Jeny, 2017). Various factors may attempt to justify the variance of gender engagement in accounting firms. Studies attempt to explain the gender disparities in high-rank positions in the big four audit companies. They suggest that females would be different from males (Dambrin & Lambert, 2012). They are said to experience various barriers when seeking opportunities and working for the accounting industry. Also, other factors result from the society within which the organization is established. It may present a negative perception and expectation towards awarding females with high-ranked positions in accounting firms, reducing the overall number of females.

As a result, in an environment dominated, gender and racial discrimination would not be ideal for the minority groups to associate themselves with effectively. Therefore, the accounting firms would discourage the victims from working to earn a living and deny them opportunities for career advancements. Thus, the paper attempts to justify the existence of gender and minority-related biases in various accounting industries.