Going GlobalPosted: March 26, 2013
The past week really brought home to me how international the profession of accounting is becoming. I attended the International Federation of Accountants, Professional Accountants in Business committee meeting in New York and the Regional AICPA Council meeting in Atlanta.
The IFAC meeting really brought home that no matter where you work in the world, the U.S., Canada, Europe, India or Australia, the issues we are dealing with as PAIBs are the same. We are dealing with investor demands for more information being fulfilled through standard setters and regulators. We are dealing with risk management and internal control and the realization that as a business we have been organized to take risks – but as PAIBs we are being asked to monitor that risk taking to make sure the risks are known and within the corporate plans. PAIBs across the world are being asked to be more than just good accountants; we are being asked to be strategic leaders in the business to deliver on business plans and ultimately the return to all stakeholders in the business.
The internationalization of the issues facing the profession was made even more apparent at the AICPA Regional Council meeting. We spent half the meeting hearing updates about and talking about potential implications to the AICPA and our members of the various impacts of Internationalization. Mandatory auditor rotation is just one such issue. It is a purported solution to all the ills related to audits around the world. Some areas see it as the solution to an apparent lack of competition among the audit firms. Others see it as the way to give auditors backbones to stand up to unreasonable requests from the companies they audit – the theory is it is easier to say no if you know your going to lose the relationship after a few years anyway. But whatever the problem, mandatory auditor rotation as the solution is gaining momentum due to an interesting dynamic – that everyone else is “doing it” so it must be good and we need to do it too.
This last point brings out the reason why it is important to talk with an be part of the international professional accountant community. Some solutions are good and worth emulating. Others, however, are not good at all and the misinformation being spread can only be combated by hearing the real story from our fellow professionals in those countries. I for one am glad the AICPA is focused on the internationalization of the profession and opening the lines of communications around the world.