Almost half (48%) of accountants have admitted that their senior colleagues have deliberately made decisions based on a commercial result over an ethical objection, according to international research published by audit recruitment website www.careersinaudit.com and PQ magazine today.
The study also revealed that nearly 1-in-2 accountantsí bosses in accountancy firms have pressurised them to ignore necessary adjustments to client accounts. 12% of accountants admitted that this had happened to them personally, whilst a further 30% confessed to knowing other accountants who had been faced with the same dilemma.
Part of the problem may lie with the issue that accountancy firms do not provide an environment which protects the whistleblower. The research revealed that nearly 3-in-4 accountants believe that accountancy firms do not do enough to protect an employee from victimisation or dismissal, should he or she report the misconduct of a colleague. Although nearly 1-in-2 accountants believe they would get better protection at work if they reported the wrongdoings of a client.
When it comes to punishment, over a third (39%) of accountants believe that anyone who signs off deliberately misleading accounts should be banned from practising as an accountant, whilst 10% held a more draconian view believing that a prison sentence should be enforced.
Other highlights of the research include:
Almost half of accountants (46%) still deem their profession as the most trustworthy compared to other professions in the financial services and legal sector. Lawyers were considered to be the second most trustworthy (17%), whilst corporate financiers (6%) and investment bankers (8%) were regarded as the least trustworthy;
Over half (57%) of accountants believe that accountancy bodies should be doing more to promote awareness of ethical standards;
Nearly two thirds of accountants (62%) think it is unacceptable for the engagement team of an accountancy firm to have intimate relationships with their clients;
Nearly half (46%) of accountants believe that companies should ban office relationships in certain situations . A further 14% believe that relationships should be banned at all times;
Nearly half (47%) believe that in practice accountancy firms should not accept any gifts from clients.
Max Williamson, CEO at Careers in Audit comments:
ìThe issue of auditor independence has received enormous attention over the last few years so itís very surprising to hear that nearly half have received pressure from senior colleagues to ignore necessary adjustments.
ìThere is an ongoing danger that the UK could experience its own ëEnroní and if that did happen then the UKís highly prized principles-led accounting approach could also be in danger. The repercussions of such would certainly be felt beyond the confines of the industry, particularly when you consider the significant role that the UKís approach to accounting has played in encouraging foreign companies to list on one of Londonís exchanges.
ìAccountancy firms need to be doing more to encourage employees to report any malpractices of colleagues, senior staff and even clients, without feeling their job or personal reputation is at risk.î
Graham Hambly, PQ magazine editor said: Accountancy seems like a fairly scary profession looking at these figures. It appears you can only get on if you are willing to keep your head down and help 'the management' cook the books! Ethical accountants are getting swamped by the realities of the real world and are left to flounder alone. Who out there is helping them make the right decisions and what are the professional bodies doing to help?
Accountacy Profession Falls Short of Ethical Practices
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