Folks in every single place 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 data stakeholders can use to make selections. And accountants — particularly Licensed Public Accountants (CPAs) — play a key function 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 economic system, and, in a sure respect, the well-being of our society. I imagine CPAs’ function is noble and significant. Right here’s why.
What’s the “P” in CPA?
If there’s one factor I’ve realized all through my profession at PwC and the SEC, it’s that the “P” in “CPA” has by no means been extra necessary. CPA is the license given to accountants who meet schooling, examination and expertise necessities. The important thing right here is the general public. CPAs have a accountability to stakeholders all through the capital markets to offer high-quality, credible data 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 which means — function. At PwC, our function is to construct belief in society and remedy necessary issues. That’s the reason we restructured our enterprise into Belief Options and Consulting Options to mix all of our providers that relate to constructing belief for each the customer and public customers of these providers — together with assurance and tax coverage compliance. These providers present vital data that stakeholders ought to be capable of depend on and have faith 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 data, these studies are designed for public use — not only for firm administration or shareholders. And that distinction is vital. Whereas non-CPA accountants present comparable providers, any deliverables are addressed to firm administration. They aren’t held to the identical requirements as CPAs, and the knowledge will not be designed for exterior stakeholders to leverage in determination making.
In a time when belief is extra necessary than ever — and harder to construct and retain as firms look to deal with the wants of a number of stakeholder teams — offering the very best requirements and constantly dependable data is essential in constructing belief in our capital markets. Impartial assurance can assist establish and resolve high quality points for traders, broadening entry to the advantages of structured, machine-readable knowledge.
How we transfer ahead
There may be rising demand from traders, regulators and different stakeholders for firms to reveal extra data outdoors of historic monetary statements — and this new knowledge, if materials, must be held to the identical high quality requirements as monetary data. CPAs, who’ve the correct experience and independence, are effectively positioned to offer assurance over extra enterprise areas to extend confidence and worth in data.
I imagine the occupation’s experience and integrity can present extra investor protections and market high quality over areas equivalent to for environmental, social and governance (ESG) data, eXtensible Enterprise Reporting Language (XBRL) tagging, benchmark knowledge, cyber danger administration and different very important market data. These areas beforehand haven’t typically acquired exterior assurance, which can result in prices for data 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 necessary questions: Do we’ve a tradition that embraces our public accountability? The place else may assurance profit traders and the general public? Buyers, regulators and different stakeholders proceed to demand elevated transparency from firms round data outdoors conventional monetary disclosures, and as companies transfer to satisfy these expectations, CPAs — and the reassurance we offer — have an necessary function to play.
