Global accountancy survey recognises profession's contribution to economic growth

The key issue of how members of ACCA (the Association of Chartered Certified Accountants) and other professional accountancy bodies around the world can best contribute to national economies in 2008 has been highlighted in a survey by the International Federation of Accountants (IFAC) of CEOs of its member bodies.
SHORTAGE OF ACCOUNTANTS THREATENS NATIONAL DEVELOPMENT SAYS IFAC
THE KEY FINDINGS OF THE IFAC GLOBAL LEADERSHIP SURVEY INCLUDE:
-- Accountancy leaders believe the profession plays a key role in economic development globally and nationally.
-- Maintaining a strong reputation is key not only to attracting talented people into the accountancy profession, but also in maintaining the confidence amongst investors and other stakeholders that accountants can contribute to the optimal functioning of capital markets and hence economic development.
-- The limited supply of qualified accounting professionals is having a negative effect on the growth of some national economies, notably in Africa, the Middle East, North Africa, and North America, where the most pressing staff shortages exist.
-- Convergence to a single set of both international accounting and international auditing standards is very important to a country's economic growth and development.
-- Applying new accounting standards is the most important issue faced by professional accountants working in business, followed by adopting good practice in corporate governance, internal control and risk management.
-- Auditor liability remains a significant national issue.
-- Effectively supporting small and medium entities (SMEs) is a crucial issue of the global profession and will have an impact on economic development.
-- Despite the current credit crisis affecting financial markets, most respondents expressed optimism for their national economies in 2008.
ALLEN BLEWITT, ACCA CHIEF EXECUTIVE COMMENTED ON THE SURVEY'S FINDINGS:
"There are some interesting regional variations shown here. European respondents pointed to education and training and the growth of SMEs as particularly important, but also to a lack of investor confidence in capital markets. In North America, the costs and availability of energy was most prominent, while in Asia-Pacific the availability of skilled human capital was identified as the crucial issue which could make or break continued economic development. And in the Caribbean and Latin America, taxation policy was noted as a critical factor in economic growth.
"But it is noteworthy how much agreement there is. Almost unanimously, a strong accountancy profession is regarded as playing a key role in helping national economic health and development. The move to IFRS and international standards on auditing are regarded everywhere as important. Maintaining the reputation of the profession will be critical if countries are to recruit the number of accountants they need there is a shortage across the board and this represents a real threat to economic growth".
With respect to public sector issues, leaders of accountancy bodies in countries that are not applying International Public Sector Accounting Standards (IPSASs) resoundingly believe that if their governments did adopt these standards, the result would be increased in country's economic growth and development. They also indicated that applying IPSASs would enhance public sector accountability in their jurisdictions.
Allen Blewitt said: "It is important that governments be held to the same high standards of accountability as entities in the private sector. Governments must demonstrate a commitment to sound and transparent financial management and financial reporting if public confidence in their probity, efficiency and effective governance is to be maintained. The discipline of embracing common public sector reporting standards, combined with greater transparency, will be part of the bulwark against public sector corruption".
ACCA, as a strong supporter of IFAC, has marked the 30th anniversary celebrations by organising a number of events in its offices around the world on IFAC's chosen theme of recognising the role that finance professionals play in the support of local and national economies. ACCA has also created a microsite dedicated to the work that its members have carried out in support of IFAC and the global profession over the past 30 years. Visit: www.accaglobal .com/ifac30