Survey Evidence: Why Professional Ethics Matters
Why Professional Ethics Matters
Survey evidence shows that professional accountants may face pressure to compromise ethical standards. Understanding this pressure helps accountants protect their judgement, their profession, and the public interest.
CCAB Ethics Survey 2021
The CCAB Ethics Survey 2021 was an anonymous informal survey of professional accountants. It was designed to take the ethical temperature of the accountancy profession in the UK and Ireland over the previous three years and as the profession emerged from the COVID-19 pandemic.
The survey received 445 completed responses and more than 300 written comments. Although it was not designed as a rigorous academic study, its findings provide useful insight into the ethical pressures faced by accountants in practice.
Key survey findings
Examples of ethical pressure reported
The survey showed that ethical pressure can arise in many practical areas of accounting, finance, audit, procurement, and reporting. Common examples included:
- Excessive optimism in budgets, business cases, cash flow forecasts, and plans.
- Unreasonably downplaying risks in budgets, business cases, cash flow forecasts, and plans.
- Categorising personal expenses of employees, directors, or shareholders as company expenses.
- Getting around local policies, standing orders, financial instructions, or procurement regulations.
- Altering audit opinions or issuing favourable reports despite weak internal controls.
- Not obtaining sufficient appropriate audit evidence.
- Incorrect tax treatment or manipulation of reported performance.
- Failing to report unethical behaviour by a colleague.
Consequences of ethical pressure
Ethical pressure does not only affect financial statements or reports. It can also affect the accountant personally. The survey found that almost one third of respondents who faced pressure experienced anxiety, stress, or depression.
Some respondents resigned, were removed from their role, faced disciplinary processes, or suffered damage to professional relationships. This shows why ethical culture, support systems, and professional courage are important in accounting practice.
Other survey evidence
Key message
The survey findings show that ethical pressure is real. Professional accountants need more than technical knowledge. They also need ethical awareness, professional judgement, courage, and support when facing pressure.
As you continue this course, think about how the five fundamental principles can guide your decisions when you face pressure, conflict of interest, intimidation, confidentiality concerns, or financial incentives.
References
- Consultative Committee of Accountancy Bodies. (2021). CCAB Ethics Survey 2021.
- Institute of Management Accountants and RSM US LLP. (2019). Survey on ethical pressure and compliance issues among finance professionals.
- International Federation of Accountants. (2019). IFAC Global SMP Survey.
- International Ethics Standards Board for Accountants. International Code of Ethics for Professional Accountants, including International Independence Standards.
Why Professional Ethics Matters
Survey evidence shows that professional accountants may face pressure to compromise ethical standards. Understanding this pressure helps accountants protect their judgement, their profession, and the public interest.
CCAB Ethics Survey 2021
The CCAB Ethics Survey 2021 was an anonymous informal survey of professional accountants. It was designed to take the ethical temperature of the accountancy profession in the UK and Ireland over the previous three years and as the profession emerged from the COVID-19 pandemic.
The survey received 445 completed responses and more than 300 written comments. Although it was not designed as a rigorous academic study, its findings provide useful insight into the ethical pressures faced by accountants in practice.
Key survey findings
Examples of ethical pressure reported
The survey showed that ethical pressure can arise in many practical areas of accounting, finance, audit, procurement, and reporting. Common examples included:
- Excessive optimism in budgets, business cases, cash flow forecasts, and plans.
- Unreasonably downplaying risks in budgets, business cases, cash flow forecasts, and plans.
- Categorising personal expenses of employees, directors, or shareholders as company expenses.
- Getting around local policies, standing orders, financial instructions, or procurement regulations.
- Altering audit opinions or issuing favourable reports despite weak internal controls.
- Not obtaining sufficient appropriate audit evidence.
- Incorrect tax treatment or manipulation of reported performance.
- Failing to report unethical behaviour by a colleague.
Consequences of ethical pressure
Ethical pressure does not only affect financial statements or reports. It can also affect the accountant personally. The survey found that almost one third of respondents who faced pressure experienced anxiety, stress, or depression.
Some respondents resigned, were removed from their role, faced disciplinary processes, or suffered damage to professional relationships. This shows why ethical culture, support systems, and professional courage are important in accounting practice.
Other survey evidence
Key message
The survey findings show that ethical pressure is real. Professional accountants need more than technical knowledge. They also need ethical awareness, professional judgement, courage, and support when facing pressure.
As you continue this course, think about how the five fundamental principles can guide your decisions when you face pressure, conflict of interest, intimidation, confidentiality concerns, or financial incentives.
References
- Consultative Committee of Accountancy Bodies. (2021). CCAB Ethics Survey 2021.
- Institute of Management Accountants and RSM US LLP. (2019). Survey on ethical pressure and compliance issues among finance professionals.
- International Federation of Accountants. (2019). IFAC Global SMP Survey.
- International Ethics Standards Board for Accountants. International Code of Ethics for Professional Accountants, including International Independence Standards.