Historically, middle-class white males were the only people to occupy the accounting field. Due to globalisation, the need for workplace diversity has increased especially in the accounting industry. Therefore, the numbers of ethnic minorities and women entering the accounting industry have increased. The purpose of this research report is to find out what the effects of ethnic and gender diversity are in accounting firms in New Zealand. The secondary research method was used to produce the report. The collection of data involved using the research engines and browsing through statistics websites. The findings are ethnic minorities experience difficulty in entering the accounting profession, encounter communication challenges within the accounting firms, and struggle to reach top management positions due to language and cultural barriers. While women were found to experience gender inequality in the accounting firms, employment discrimination, and encounter barriers to career progression. This may have an impact on the turnover of the accounting firms. Recommendations include developing a diversity plan, enforcing an anti-discrimination policy, implementing education and training programmes for skills development, improving performance reviews and feedback along with encouraging informal mentor relationships, and equal pay among the accountants.