Talent Shortage: Crisis in Malaysia’s Accounting & Auditing Industry

The accounting and auditing industry in Malaysia is currently facing a significant talent crisis, characterized by a widening gap between the demand for skilled professionals and the available workforce. Despite increasing enrolment in accounting programs, only a small percentage of graduates pursue careers in the field, contributing to a systemic shortage of qualified accountants and auditors. This paper examines where factors of talent shortage and its impact on accounting and auditing industry. A total of 33 articles were included in this paper as research finding. This paper highlighted the talent shortage is driven by multiple factors, including high attrition rates, negative perceptions of the profession, and a lack of alignment between academic training and industry needs. Technological advancements, such as artificial intelligence and data analytics, have reshaped the profession, requiring new skill sets that many graduates are not equipped with. Additionally, demographic shifts, including the retirement of experienced professionals, have further intensified the talent gap. The impact of this shortage extends beyond individual firms, affecting regulatory compliance, financial reporting quality, and Malaysia’s competitiveness in the global financial sector. This paper explores the root causes of the talent shortage and its broader implications for the profession and the economy. It also offers strategic recommendations, including modernizing accounting education, enhancing continuous professional development, and strengthening collaboration between industry and government. Addressing these challenges is critical to building a future-ready workforce that can adapt to evolving industry demands and sustain the profession’s contribution to national economic resilience.