Survey: Most accountants see ethical challenges increasing

Most accountants see ethical challenges growing more complex throughout their profession as technology speeds the expansion of businesses worldwide, exposing regional differences in law and culture, according to a global survey. 

Nearly one-in-four accountants (24%) have faced pressure to act unethically during the past three years, and 55% of finance executives have witnessed unethical behavior during their careers, according to the survey data from the Association of Chartered Certified Accountants. 

“These insights underscore the need for robust ethical leadership and culture in organizations, and ongoing learning and development to support professional accountants in navigating these challenges,” Sarah Lane, ACCA head of ethics and assurance, said in a statement. 

U.S. accounting firms have come under sharper scrutiny in recent years. The PCAOB reported in August that an increase in flawed reporting by audit firms persists. 

The most error-prone audit firms “are strongly influencing the aggregate deficiency rate,” the PCAOB said in a review of 2023 inspections of financial reports for 2022. 

Inspections of nearly half (46%) of the engagements reviewed by the PCAOB revealed a Part 1.A flaw, or evidence that the audit firm failed to obtain enough evidence to support its opinion on a company’s financial statement or internal control over financial reporting, the PCAOB said. It did not single ethical lapses as a source of flawed accounting. 

Additional findings from the ACCA survey: 

• 40% of accountants said they most frequently face ethical challenges and threats to sound accounting because of weaknesses in company leadership and culture. 

• 64% of respondents said ethical dilemmas have become more difficult to resolve during the past three years. 

• 30% of accountants cited an emphasis on sustainability as a point of ethical tension, including “operating sustainably, reducing environmental impact, honest reporting on sustainability practices and balancing profitability with sustainability.” 

• 26% said technology posed an ethical challenge, including “ensuring unbiased, transparent and accountable use of AI in decision-making.” 

The ACCA surveyed 1,165 finance executives in 135 countries. 

Respondents identified a full range of unethical practices, including tax avoidance, pressure to manipulate financial statements, bribery, conflicts of interest, reluctance to challenge authority and weak governance and accountability.