Accounting Skills Assessment Test: What CPA Firms Should Measure Before Making an Offer

By Vincent Howard, CPA | Managing Partner, Howard, Howard and Hodges | SkillAbility for Accounting Firms

Last updated: July 13, 2026  |  29-minute read

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A résumé can tell you where someone worked.

It cannot prove what that person can do.

An interview can tell you how confidently a candidate describes their experience.

It cannot prove the candidate can reconcile an account, investigate an unusual transaction, document a conclusion, or submit work another professional can review.

A transcript can show which accounting classes someone completed.

It cannot show whether the person can apply that knowledge to a messy, incomplete, real-world file.

That gap matters because an accounting hire affects more than payroll.

A weak hiring decision can create:

• Manager rework
• Repeated review notes
• Missed deadlines
• Unreliable workpapers
• Client frustration
• Training time spent on skills the firm expected the employee to possess already
• Delayed capacity

CPA firms need a better way to answer a practical question before making an offer:

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Who I Am and Why This Matters to Me

I have practiced public accounting since 1990. I founded my own firm in 1993 and merged it in 2001 to form Howard, Howard and Hodges. I helped grow the organization from three people to approximately 50 staff across four locations and multiple states.

Our firm was named PASBA Firm of the Year in 2015.

Over more than three decades in public accounting, I have hired people who interviewed extremely well but struggled to perform basic accounting work independently.

I have also seen less polished candidates become excellent accountants because they could follow a process, think through a problem, accept feedback, and improve quickly.

One of the experiences that shaped SkillAbility happened when a new employee entered one of our accounting modules.

Other employees typically completed the module in approximately four hours.

After approximately 16 hours, this employee was only 77% complete. The employee resigned on the sixth day.

That experience did not prove that every slower candidate will fail.

It did prove something more important:

Performance data can reveal capability gaps that interviews and résumés often miss.

The goal of a pre-employment assessment is not to create an obstacle course.

It is to make the hiring decision more informed, consistent, and connected to the work the person will actually perform.

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Why Accounting Skills Assessments Matter Now

CPA firms are hiring in a difficult labor market while accounting work itself is changing.

The U.S. Bureau of Labor Statistics projects approximately 124,200 openings for accountants and auditors each year from 2024 through 2034. Many of those openings are expected to result from people changing occupations or leaving the labor force, including retirement.

BLS also expects automation to make accountants’ analytical, advisory, and higher-level responsibilities more prominent.

The assessment therefore cannot be limited to whether someone remembers a journal-entry rule.

Firms increasingly need people who can:

• Use accounting knowledge in context
• Evaluate automated output
• Identify exceptions
• Document reasoning
• Communicate findings
• Learn new systems
• Recognize when human judgment is required

The AICPA PCPS CPA Firm Competency Model reinforces this broader view of capability. It identifies six firm competencies:

• Productivity
• Technical knowledge
• Client service
• People development and teamwork
• Business development
• Culture and inclusion

Not every pre-employment assessment should test all six areas equally.

But the model makes one point clear:

Accounting performance is broader than technical recall.

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What Is an Accounting Skills Assessment Test?

The assessment may include:

• A realistic work sample
• A simulated client file
• A bank reconciliation
• A transaction-classification exercise
• A workpaper review
• An exception-identification task
• A written client or manager communication
• A structured follow-up interview

The assessment should not become a miniature CPA Exam.

It should answer a narrower question:

Can this person perform the essential entry-level requirements of this job?

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What the Assessment Should—and Should Not—Do

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Begin With a Job Analysis—not a Generic Accounting Quiz

The U.S. Office of Personnel Management describes job analysis as the foundation for assessment and selection decisions.

A job analysis connects:

• The tasks the employee performs
• The competencies required to perform those tasks
• The level of proficiency required upon entry

Before writing test questions, answer these questions:

What will the employee do in the first 90 days?

List the actual work.

For a staff accountant, that might include:

• Categorizing transactions
• Reconciling bank and credit-card accounts
• Preparing basic journal entries
• Following a month-end checklist
• Documenting open items
• Preparing work for review

Which capabilities must exist on day one?

A candidate may need to arrive with:

• Basic debit-and-credit knowledge
• Spreadsheet navigation
• Attention to supporting documents
• Basic written communication
• Ability to follow multi-step instructions

Which capabilities will the firm teach?

The firm may plan to teach:

• Its preferred accounting software
• Its workpaper naming conventions
• Its review process
• Its client communication standards
• Its industry-specific workflows

Do not reject a promising entry-level candidate for failing a skill the firm has already decided to teach.

OPM specifically cautions that work samples are most appropriate when the measured competencies are expected upon entry. If the activity will be taught after hiring, a highly specific work sample may be less appropriate.

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Eight Capabilities CPA Firms Should Measure

1. Technical accounting foundation

The technical section should match the role.

For an entry-level staff accountant, assess foundational application:

• Debits and credits
• Basic transaction classification
• Account reconciliation
• Financial statement relationships
• Basic adjusting entries

For an experienced hire, assess work closer to the claimed experience:

• Complex reconciliations
• Accruals and estimates
• Fixed assets
• Payroll liabilities
• Tax workpaper preparation
• Review-note identification

Do not ask questions merely because they are difficult.

Ask them because the answer matters in the job.

2. Accuracy and attention to evidence

Accuracy is not only whether the final number is correct.

Evaluate whether the candidate:

• Uses the correct source
• Checks formulas
• Reconciles differences
• Notices conflicting information
• Preserves an audit trail
• Avoids unsupported assumptions

A candidate who arrives at the correct answer through unsupported reasoning may create future risk.

3. Documentation and review readiness

Ask the candidate to leave work another accountant can review.

The file should show:

• Purpose
• Source information
• Procedure performed
• Result
• Conclusion
• Open items

For a full submission standard, see Workpaper Review Checklist: How CPA Firms Train Staff to Submit Review-Ready Work.

4. Problem recognition and judgment

Include at least one situation where the candidate should not proceed automatically.

Examples include:

• A transaction that lacks support
• A bank difference that does not reconcile
• A client explanation that conflicts with the documents
• An unusual revenue entry
• A payment that may be personal
• A payroll liability that has not cleared

The candidate does not need to solve every complex issue.

But the candidate should recognize that the issue exists.

5. Spreadsheet and software fluency

Measure transferable digital skills rather than memorized software menus.

You may assess whether the candidate can:

• Navigate a workbook
• Use basic formulas
• Sort and filter information
• Trace a value to a source
• Recognize a broken formula
• Work between reports
• Follow written software instructions

When the job requires proficiency in a specific application upon entry, a realistic software simulation may be appropriate.

When the firm intends to train the application, assess broader technology learning and accounting reasoning instead.

6. Ability to follow instructions and organize work

Accounting assignments often involve several connected requirements.

Observe whether the candidate:

• Reads the entire assignment
• Uses the provided source documents
• Completes all required sections
• Names and saves files correctly
• Manages time sensibly
• Separates completed work from open questions

7. Written communication

Ask the candidate to prepare a short handoff note.

For example:

This reveals whether the candidate can organize information for another professional.

8. Response to clarification or feedback

Consider giving every candidate one standardized clarification or additional fact during the exercise.

Then observe whether the person:

• Incorporates the new information
• Revises an earlier conclusion
• Asks an appropriate question
• Becomes defensive
• Continues using an assumption that is no longer valid

This is not a personality test.

It is an observation of how the candidate handles information during a job-related task.

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What to Test by Accounting Role

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A Practical 60-Minute Accounting Skills Assessment

The assessment should be long enough to reveal work patterns without demanding hours of unpaid candidate labor.

The following structure is a practical starting point.

Sample work-sample scenario

Provide the candidate with a synthetic file containing:

• A general-ledger cash balance
• A bank statement
• A list of outstanding checks
• A deposit in transit
• A bank fee not recorded in the ledger
• One unsupported reconciling item
• A short prior-period workpaper

Ask the candidate to:

1. Prepare the reconciliation.
2. Identify the necessary adjustment.
3. Flag the unsupported item.
4. Document a conclusion.
5. Prepare one client question.

This single exercise can reveal:

• Accounting knowledge
• Accuracy
• Source-document use
• Spreadsheet fluency
• Issue recognition
• Documentation
• Communication

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Copy-and-Use 100-Point Accounting Assessment Scorecard

The weighting below is an example starting point for a staff-accountant role.

Adjust it based on your documented job analysis.

Suggested score interpretation

Do not treat the cutoff as automatic.

Review which competencies caused the score.

A candidate who loses points for a software feature the firm plans to teach presents a different risk from a candidate who invents support, ignores an unreconciled difference, or submits a conclusion that contradicts the work.

Noncompensable risk signals

Some behaviors may require separate review regardless of the overall score:

• Fabricating support or claiming work was completed when it was not
• Changing data to force a reconciliation
• Ignoring an obvious material exception
• Using unapproved external tools with assessment data
• Disclosing or mishandling confidential information
• Failing to follow a clearly stated escalation requirement

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Accounting Skills Assessment Test Template

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Completed Candidate Assessment Example

The candidate did not produce perfect work.

That is not the standard for an entry-level hire.

The assessment showed:

• The candidate understood the accounting objective.
• The candidate did not hide the unsupported item.
• The candidate could explain the work.
• The documentation weakness was visible and trainable.

That is more useful than a single pass-or-fail score.

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How to Interpret Accounting Assessment Results

Separate findings into three categories.

1. Skills the candidate can demonstrate now

These are supported by observable work.

Examples:

• Correctly prepares a reconciliation
• Uses formulas accurately
• Identifies missing support
• Writes a clear open-item note

2. Gaps the firm can reasonably train

Examples may include:

• Firm-specific workpaper formatting
• Software navigation unique to the firm
• Preferred review-note conventions
• Internal file organization
• Client-specific workflows

3. Gaps that conflict with a day-one requirement

Examples may include:

• An experienced bookkeeper cannot complete a basic reconciliation
• A senior candidate cannot identify an obvious unsupported balance
• A manager candidate cannot explain why a conclusion lacks support
• A candidate claims advanced spreadsheet proficiency but cannot use basic formulas required by the role

This distinction helps prevent two mistakes:

• Hiring someone who lacks a capability the firm does not have time to teach
• Rejecting someone for a gap the onboarding system was designed to address

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Why Assessment Results Should Shape Onboarding

The assessment should not disappear into the recruiting file after the offer is accepted.

Use it to build the employee’s first development plan.

For the complete development pathway, read Accountant Development Plan: From New Hire to Advisor.

For a structured first-90-day process, read Staff Accountant Onboarding Checklist: The First 90 Days.

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Common Accounting Assessment Mistakes

Testing trivia instead of work

A difficult question is not automatically a useful question.

Focus on essential tasks and competencies.

Using one generic test for every role

A new graduate, tax preparer, senior accountant, and manager should not receive the same assessment.

Testing firm-specific software without notice

Only make specific software proficiency a meaningful selection factor when it is genuinely required upon entry.

Rewarding speed over accuracy

Time matters, but an unrealistic time limit may measure test anxiety or familiarity with the format rather than job performance.

Scoring only the final number

Review sources, formulas, assumptions, documentation, open items, and conclusions.

Changing instructions between candidates

Standardize the assignment, permitted resources, time, clarifications, and scoring rubric.

Using live client data

Create synthetic or thoroughly sanitized files.

Letting managers score from instinct

Require evidence-based scoring and evaluator training.

Ignoring assessment outcomes after hiring

Use demonstrated gaps to shape onboarding and early development.

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Legal, Accessibility, and Fairness Safeguards

Pre-employment testing can create legal and ethical risk when it is poorly designed or administered.

The U.S. Equal Employment Opportunity Commission advises employers to ensure that tests and selection procedures are job-related, appropriately validated, administered without prohibited discrimination, and updated as job requirements change.

Employers should work with qualified HR, employment-law, and assessment professionals when designing or implementing selection tests.

Connect every tested capability to the job

Document:

• The task performed in the role
• The competency being measured
• Why the competency is required upon entry
• How the assessment measures it
• How the result will be used

Use consistent administration

Candidates for the same role should generally receive:

• The same assessment version or an equivalent validated version
• The same instructions
• The same time rules
• The same permitted resources
• The same scoring standards

Provide reasonable accommodations

EEOC and Department of Justice guidance emphasize that assessment tools should measure the intended job skill rather than an unrelated disability.

Firms should:

• Tell candidates how the assessment will be administered
• Provide a clear accommodation-request process
• Ensure that requesting an accommodation does not harm the candidate
• Offer accessible alternatives when appropriate

Do not ask prohibited pre-offer medical questions

EEOC guidance states that employers generally may not ask disability-related questions or require medical examinations before making a conditional offer.

An accounting assessment should measure accounting capability—not health information.

Monitor outcomes

Review whether the assessment:

• Continues to reflect the job
• Produces consistent scoring
• Creates unexpected barriers for qualified groups
• Needs a less exclusionary alternative
• Requires updating after technology or workflow changes

This section provides general educational information and is not legal advice.

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How CPA Firms Should Handle AI During the Assessment

AI creates two separate questions.

Should candidates be allowed to use AI?

The answer depends on what the job requires.

Consider three possible assessment modes.

Whatever rule the firm chooses, communicate it clearly and apply it consistently.

Should the firm use AI to score candidates?

Automated tools may help organize responses, but they can introduce risk.

The U.S. Department of Justice warns that hiring technologies can screen out qualified people with disabilities when the technology measures an impairment rather than the relevant job skill.

Before using an AI assessment vendor, ask:

• What traits or competencies does the system claim to measure?
• How were those measures validated for this job?
• Can candidates request accommodations?
• Can a human review the result?
• Does the tool analyze voice, facial movement, typing patterns, or other factors unrelated to accounting performance?
• How is candidate data stored and protected?
• Can the firm audit scoring and outcomes?

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How to Implement an Accounting Skills Test

Step 1: Choose one role

Start with a frequently hired position, such as staff accountant or bookkeeper.

Step 2: Conduct a job analysis

Interview people who currently perform and review the role.

List:

• Core tasks
• Common errors
• Required day-one competencies
• Trainable firm-specific skills
• Quality expectations

Step 3: Build a synthetic work sample

Create realistic but fictional:

• Source documents
• Workpapers
• Transactions
• Errors
• Client questions

Step 4: Create the scoring rubric before testing anyone

Define correct answers, acceptable alternatives, material errors, partial credit, and risk signals.

Step 5: Pilot the assessment

Ask several current employees at different performance levels to complete it.

Use the pilot to identify:

• Unclear instructions
• Unrealistic timing
• Scoring disagreements
• Tasks that do not reflect the job

Step 6: Train evaluators

Require evaluators to score sample responses and discuss differences before using the assessment in hiring.

Step 7: Use a structured follow-up interview

OPM describes structured interviews as job-related questions asked consistently and evaluated using the same rating standards.

Useful follow-up questions include:

• Walk me through the approach you used.
• Which item created the most uncertainty?
• What additional information would you request?
• What would you ask a reviewer before finalizing the work?
• What would you check if you had ten additional minutes?

Step 8: Review the assessment regularly

Update it when:

• The role changes
• Technology changes
• The firm changes its workflows
• The assessment no longer differentiates capability
• Scoring or fairness concerns emerge

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How SkillAbility Helps Firms Assess and Develop Accounting Capability

A pre-employment assessment can tell the firm what a candidate can demonstrate today.

It cannot replace the development system required after hiring.

SkillAbility helps CPA firms connect assessment, onboarding, technical practice, judgment development, and leadership growth.

It is not a generic LMS or course library.

It is an accounting workforce development and knowledge-transfer platform.

The assessment identifies the starting point.

The development system should build what comes next.

For more on converting review problems into development, read How to Reduce Review Notes in Accounting.

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Frequently Asked Questions

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External Research and Authority Sources

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The Bottom Line

An accounting skills assessment should not be designed to prove that the firm can create a difficult test.

It should help the firm make a better hiring decision.

Start with the job.

Identify the work the employee must perform.

Separate day-one requirements from trainable firm-specific skills.

Use a realistic, sanitized work sample.

Measure:

• Technical application
• Accuracy
• Documentation
• Judgment
• Software fluency
• Instruction following
• Communication
• Response to new information

Score every candidate against the same job-related rubric.

Provide accommodations.

Protect candidate and client data.

Use the results with—not instead of—the rest of the selection process.

Then carry the findings into onboarding.

Assess capability.

Identify trainable gaps.

Build a focused onboarding plan.

Measure development.

Protect knowledge.

Develop people.

Scale the firm.

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To better hiring and stronger development,

Vincent Howard, CPA
SkillAbility for Accounting Firms

© 2026 SkillAbility for Accounting Firms. This article provides general educational information and is not legal, employment, human-resources, accessibility, or assessment-validation advice.