Individuals in all places need some measure of assurance — one thing they will belief. Confidence within the high quality of data is critical for a fancy society to operate, and markets function most effectively when there’s dependable, high quality info stakeholders can use to make selections. And accountants — particularly Licensed Public Accountants (CPAs) — play a key position in incomes that belief.
Assurance delivered by trusted auditors — who’re impartial and goal — is a cornerstone for the well being of our monetary and capital markets, our financial system, and, in a sure respect, the well-being of our society. I imagine CPAs’ position is noble and demanding. Right here’s why.
What’s the “P” in CPA?
If there’s one factor I’ve discovered all through my profession at PwC and the SEC, it’s that the “P” in “CPA” has by no means been extra vital. CPA is the license given to accountants who meet training, examination and expertise necessities. The important thing right here is the general public. CPAs have a duty to stakeholders all through the capital markets to supply high-quality, credible info they will depend on to make selections — no matter whether or not they’re working within the public or personal sector, as a preparer, auditor, regulator or extra.
And to me, the “P” has a further that means — goal. At PwC, our goal is to construct belief in society and remedy vital issues. That’s the reason we restructured our enterprise into Belief Options and Consulting Options to mix all of our companies that relate to constructing belief for each the client and public customers of these companies — together with assurance and tax coverage compliance. These companies present essential info that stakeholders ought to be capable of depend on and trust that it’s proper. They’re inherently trust-oriented.
Why it issues
What does this imply? When CPAs full monetary assertion audits or present assurance over different info, these experiences are designed for public use — not only for firm administration or shareholders. And that distinction is essential. Whereas non-CPA accountants present comparable companies, any deliverables are addressed to firm administration. They don’t seem to be held to the identical requirements as CPAs, and the knowledge will not be designed for exterior stakeholders to leverage in resolution making.
In a time when belief is extra vital than ever — and harder to construct and retain as corporations look to handle the wants of a number of stakeholder teams — offering the very best requirements and persistently dependable info is essential in constructing belief in our capital markets. Impartial assurance might help establish and resolve high quality points for buyers, broadening entry to the advantages of structured, machine-readable knowledge.
How we transfer ahead
There may be rising demand from buyers, regulators and different stakeholders for corporations to reveal extra info outdoors of historic monetary statements — and this new knowledge, if materials, needs to be held to the identical high quality requirements as monetary info. CPAs, who’ve the right experience and independence, are nicely positioned to supply assurance over extra enterprise areas to extend confidence and worth in info.
I imagine the occupation’s experience and integrity can present extra investor protections and market high quality over areas akin to for environmental, social and governance (ESG) info, eXtensible Enterprise Reporting Language (XBRL) tagging, benchmark knowledge, cyber danger administration and different very important market info. These areas beforehand haven’t usually acquired exterior assurance, which can result in prices for info customers and the markets extra broadly.
Because the world, enterprise and know-how proceed to evolve, all of us should proceed to problem ourselves about how belief is earned and delivered. And as CPAs, we should ask ourselves vital questions: Do we now have a tradition that embraces our public duty? The place else may assurance profit buyers and the general public? Traders, regulators and different stakeholders proceed to demand elevated transparency from corporations round info outdoors conventional monetary disclosures, and as companies transfer to fulfill these expectations, CPAs — and the reassurance we offer — have an vital position to play.