Accountants play major role in reducing corruption

An IFAC study, The Accountancy Profession- Playing a Positive Role in Tackling Corruption, found that a higher percentage of accountants in the workforce strongly correlated to better outcomes in Transparency International’s global Corruption Perceptions Index.

Examining the profession’s impact in nations with stronger governance structures, the study further found the correlation was significantly greater in G-20 countries and member nations of the Financial Action Task Force.

IFAC CEO Fayed Choudhury said that corruption was an “economic cancer that disproportionately impacts those least able to absorb its malignancy”.

“This study shows that the accountancy profession—acting in the public interest—is an important part of the cure,” Mr Choudhury said.

“The study confirms that the accountancy profession is a crucial part of strong national governance architectures that confront corruption, in partnership with good government and strong businesses.

“And vitally, the study shows professional ethics, education, and oversight—at the core of the global accountancy profession—are key to our positive impact in tackling corruption.”

The study further showed when professional accountancy organisations were present in an economy, having adopted the global profession’s ethical, educational, and investigation and discipline requirements, the positive correlation with Transparency International’s index rose even further.

Mr. Choudhury stated that meaningful progress would require three things: “Continued strong cross-sector collaboration; reinvigorated international interest in public financial management; and greater adoption of high-quality international standards on financial reporting, auditing, and ethics”.

Conducted by the Centre for Economics and Business Research, the study built on two earlier reports: Nexus 1: The Accountancy Profession, Behind the Numbers and Nexus 2: The Accountancy Profession, A Global Value Add, which examined both the size of the global profession and its economic contribution to the global economy.