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Reputation of accounting profession top concern in IFAC global survey 

By Ken Tysiac 
February 27 2012

The reputation of the accounting profession continues to be a top concern among those in the field – and the profession needs to present itself better to improve public approval, according to a new global survey.

Respondents to the “2011 Fifth Annual Global Leadership Survey” gave the perception of the accountancy profession in their region a rating of 7 on a scale of 1 to 10.

The survey, conducted by the International Federation of Accountants (IFAC), received 123 responses. Participants included 92 member bodies and associates in 71 countries and jurisdictions. Perception ratings in Europe were lowest, at 6.7, and highest in North America, at 8.7. The average was 7.0.

“While this rating is above-average, it is not remarkable – implying that respondents think their profession needs to present itself better to gain higher approval with the public,” the report says.

Participants in the survey rated the reputation and credibility of the profession as their top ongoing concern. The needs of small and medium practitioners and entities (SMPs and SMEs) was the No. 2 concern. The global financial climate was the third-highest concern. Each of those three issues was cited by more than 50% of respondents as one of their top five concerns on a list with 19 choices.

Last year, the top three concerns were protecting the reputation of the profession, transitioning to International Standards on Auditing (ISAs) and addressing the needs of SMPs and SMEs.

In this year’s survey, the reputation and credibility of the profession was a concern from respondents in almost every region. In addition:

  • Respondents in Europe, North America and Australasia/Oceania rated the difficult financial climate as a high concern.

  • Survey participants in Europe, Africa and the Middle East expressed strongly the needs of SMPs and SMEs, and respondents from Latin America and the Caribbean were more concerned about attracting new talent to the profession.

  • North American respondents expressed strong concerns about increased regulation and global regulatory convergence.

—Ken Tysiac (ktysiac@aicpa.org) is a CGMA Magazine senior editor.

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3 Comments


Comments
Bryan Tenorio

As accountants try to perform what they are not supposed to, other than reporting financial facts of any given entity, then our profession is doomed to fail.  CFOs and Controllers trying all accounting gimmicks, justified by gray areas in the GAAP, and worse, approved by their auditors. Maybe they believe that presentation can make their problems disappear.

Mar 3, 2012 11:59 AM
Comments
Daniel Reynolds

1. There is not enough information in the article for the reader (presumably global management accountants) to assess whether the opinions of this group''s membership are valuable.

2. There is some mention of the prior year''s results, but since it is the fifth annual survey, more information about the trends from prior years could have added some useful context.

Mar 3, 2012 5:59 AM
Comments
Joseph Jefferis

For the past several years I have been ashamed of the accounting profession.  The ethics of  leadership is embarassing.  Why no one in the global accounting industry has been held accountable for the man created financial crisis of 2008 is deplorable.

With each passing day the prefessional credibility declines for accountants. The best way to protect the reputation of the industry is to remove the unethic inside traders within our ranks.  Protecting criminals while attempting to restore an honorable reputations cannot happen simultaneously.

There are some bad apples among us. As long as they are allowed to continue with secret immunity or non-public disciplinary actions (PCAOB), the decline in the industry's reputation and credibility will only escalate.

Mar 2, 2012 6:27 AM
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