Accountants understand the numbers better than anyone. But one area in which they can’t afford to be skimp is trust, says Carla Vijian CA, a principal with the International Ethics Standards Board for Accountants (IESBA).

“Trust is the cornerstone of our profession and we cannot afford to be economical with the truth,” she tells Acuity from New York.

Jon Reid FCA, also a principal with the IESBA, agrees. “The damaging and negative reputational consequences that result when accountants fail to act ethically, affect not only the individual accountant, but also their colleagues and employing organisation, and the overall trust in the profession.”  

Certainly, following a spate of high-profile ethical issues during the past few years, CA ANZ has made moves to strengthen the awareness, training and explicit commitment of all members, including affiliates, to professional ethics.

Last year, members voted strongly in favour of changes to the CA ANZ by-laws and New Zealand Institute of Chartered Accountants (NZICA) rules that will enable CA ANZ to implement the recommendations from the Professional Conduct Framework Review in full.

Following this, a recent report, Going Further – A roadmap to enhanced trust and accountability, articulates 14 actions CA ANZ can implement along with support from government and stakeholders.

Trust is fundamental to organisations

Some of these actions include a commitment to professional ethics and the public interest; taking on accountability for a higher standard of conduct than the general workforce; and building trust and transparency in multidisciplinary firms.

Because, as Vijian says, “Trust is also fundamental to the functioning of capital markets. As trusted partners, we navigate today’s business world with integrity and foresight, bolstering the trust that underpins effective capital markets.”

Indeed, in 2018, The Economist published an analysis of large corporations, such as Volkswagen and Wells Fargo, calculating that a company loses 30% of its value when it loses trust. Meanwhile, it found a 10% increase in trust leads to 0.8% more economic growth.

Trust begins with individuals

Geraldine Magarey FCA, general manager, International Development, at CA ANZ, spoke on a Small Firm, Big Impact podcast episode about the future of trust and says the CA–client relationship should be mutually assured.

“We need to think, it’s not just about clients trusting us as a professional, it’s actually us trusting the client as well,” she says. “If either one of the parties breaches that trust or breaks that trust, it takes a long time to rebuild it.”

Clients come to chartered accountants in the first instance because there is trust in the designation, Magarey says. “It’s a shortcut, in a way. It signals to our clients we’ve got a high level of training. We’ve demonstrated our competence. We’ve passed demanding exams.

“We have a code of ethics, we have professional standards and we abide by disciplinary process. All of that builds trust in our designation, which helps in that initial interaction with the new client.”

Building on trust

But how do you continue to build on that trust as a relationship progresses and maintain that trust over a period of time?

Brett James FCA, the director and chief of operations for the International Foundation for Ethics and Audit (IFEA) in New York, believes as accountants’ roles evolve, they must ensure trust remains a constant.

“As accountants expand into new service areas, such as sustainability reporting and assurance, technology and data, we have the opportunity to extend the trust our stakeholders have in our work and expertise into these new domains,” he tells Acuity.

“However, we must do so with care to ensure we carry forward our foundational ethical principles and the trust we have built with clients and stakeholders over time.”

James says despite the shifts in roles, a CA’s fundamental ethical principles remain the same and “must guide our judgements, choices and decisions – where we go, our principles must go,” he says.

“What are these principles? Acting with integrity, being objective in assessments and judgements, performing duties competently, maintaining confidentiality and keeping the public interest front of mind.”

Championing the public interest

Championing the welfare and wellbeing of the general public, aka the public interest, should certainly be a primary focus for many accountants, both individually and as they collaborate with other professions.

“In my years of experience, I have seen firsthand how commitment to transparency, unwavering ethical standards and data integrity fosters lasting relationships,” says Vijian.

“In an increasingly complex environment characterised by a rapidly evolving regulatory landscape and the expanding use of technology, our role transcends mere numbers. We provide essential guidance on resilience, technology and ethics, ensuring our actions reflect professional competence and due care.”

Reid believes professional accountants have a primary responsibility to act in the public interest and should use the International Code of Ethics for Professional Accountants (including International Independence Standards) as a guide.

“They help to guide our behaviours towards this objective by establishing the five fundamental principles of ethics: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour – and [provide] a conceptual framework to identify, evaluate, and address any threats to those principles,” he says.

“We have a collective responsibility to continually champion the code’s strong ethical foundation, which helps to differentiate accountants from other professions,” he adds.

“Having the courage to approach dilemmas in our professional lives in an ethical manner will help to establish and maintain trust with clients and employers.”