The accounting profession is surrounded by a continuously changing regulatory environment in Australia with accountants needing to be across new and amended taxation legislations, financial reporting requirements and auditing practices. Ignorance of any recent changes may result in legal as well as financial consequences for both the accountant and their respective clients. At worst, an accountant’s license may be revoked or other penalties imposed on them by their professional body.
For this reason, accountants should be proactive in their pursuit of knowledge about changes. This requires something above and beyond mere passivity; professionals should be actively reading from the updates provided by regulatory bodies, attending relevant seminars, and sharing views with colleagues and experts in the field and learning from information available online such as law podcasts in Australia. By formally seeking guidance through entities such as the Australian Accounting Standards Board (AASB) or the Accounting Professional and Ethical Standards Board (APESB), accountants are better equipped to deal with all of the nuances associated with new standards and regulations.
In addition to seeking the information, accountants should make sure they are always careful in interpreting and applying these regulations. The preparation of correct financial reports, correct tax filings, and correct audit results depends on the accountant’s ability to apply the proper standard in various situations. Breach of these standards could result in financial misstatements or errors, which may damage the reputation of the accountant, their firm, and the clients.
The role of continuing professional development (CPD)
CPD for accountants is to be treated as a necessity for sustaining competence in the field. CPD is the process of systematic learning and improvement that occurs throughout the career on a continuous basis whereby professionals update their knowledge and skills. Most professional bodies require members to undertake a minimum number of CPD hours annually. CPD may involve a wide array of learning activities, formal courses, workshops, individual study, and work-based experiential learning. The purpose of the CPD is not only to refresh the accountant’s knowledge regarding new regulations but also to expand professional skills in growth areas. Technology, for example, influences the practice of accounting, and modern automated and AI functions are increasingly integrated into accountancy practices. Those professionals who learn to embrace such tools will have a competitive edge, as they can offer their services more speedily and accurately. CPD for accountants helps them learn how to integrate these technologies into their effective practices.
Continuing Professional Development also enables accountants to develop in specialist fields. From forensic accounting and insolvency to international taxation, specialisation can help to advance an accountant’s portfolio. Quite often, becoming proficient in a specialised area of operations can even lead to higher salaries due to the demand for that service.
Engaging in CPD means that accountants are well-prepared to manage routine tasks with agility, as well as complex assignments involving large values.
Accountants should approach CPD strategically due to the benefits it provides to their careers. CPD should be more than just a checkbox for accountants; it should be an important part of their professional development. Professionals will need to study what areas they are weak at and where the profession is headed and concentrate their efforts on learning in those domains. Additionally, the nature of CPD should not be one-sided; it should cover both technical and soft competencies. Interpersonal communication is as important as leadership and problem-solving skills in the delivery of services, just like technical knowledge.
Maintenance and adaptation of skills
Accountants are expected to have familiarity with an array of different accounting packages and systems as financial services are becoming increasingly digitised.
Accountants should be constantly reviewing their competency for strengths and weaknesses and plan their development accordingly. Technological literacy including data analytics, and cybersecurity awareness are some of the emerging areas accountants should include in their skill profile to meet customer expectations and navigate a digital landscape in which data integrity and security are of utmost importance. Clients anticipate that accountants will not only oversee financial records but also use technology to facilitate insightful decision-making while protecting sensitive information from potential breaches.
The 2020 HanesBrands data breach is an example whereby accountants played a role in failing to shield financial data and personal information regarding customers from data breaches.
This breach involved information related to customers, including the personal data of about 200,000 customers that had been compromised because of poor cybersecurity. The breach involved a third-party vendor responsible for maintaining customer information for HanesBrands, information that was under the care and control of the business and its accountants.
The accounting professionals involved in this practice did not implement the necessary security measures and effective procedures to manage the risk of leakage of confidential information about the customers. This case highlights the importance of the technological literacy of accountants, specifically in areas such as data analytics and cybersecurity awareness, in meeting consumer expectations to help avoid further potential illegal activities due to the misappropriation of data.
Besides their technical competencies, accountants must acquire the relevant competencies in ethical reasoning. Accountants often face situations as guardians of financial integrity where they must resolve ethical dilemmas.
The most prominent example of an ethical issue facing accountants in Australia was the case involving Crown Resorts in 2020. Through investigations carried out by the Bergin Inquiry, accountants found that money laundering had been allowed within its financial operations.
The accountants had to make the tough decision of how to handle this situation and bring the irregularities into the open, knowing it would create a rather weighty effect on the company and all its stakeholders. Their professional responsibilities needed to be weighed against the potential impact on employees and investors. In the end, it was the accountants who helped uncover these unethical practices, underlining the importance of ethical reasoning in maintaining the integrity of financial reporting. This investigation led to significant regulatory oversight and changes in corporate governance for the company.
The capacity to make suitable and ethical decisions constitutes a significant characteristic that requires ongoing enhancement. Professional organisations, such as CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA), provide ethical guidance within their CPD frameworks, thereby ensuring that practitioners are equipped with the essential resources to meet their ethical obligations.
Adaptability leads to perennial success within the accounting profession. In a field that keeps broadening its horizons, considering sustainability reporting, ESG disclosures, and accounting of cryptocurrencies, the courses take on a critical nature. For accountants, lifelong learning is imperative; it constitutes the fundamental element in their commitment to the competent and reliable rendering of services to their clients.
The accounting profession will always be subject to change, in accountants should be curious and agile. The responsibility for maintaining knowledge of professional standards, engaging in Continuing Professional Development, and maintaining more than a competent level of skills is key for an accountant. Through continuous professional development to review their skills and competencies regularly, accountants are able to ensure they always provide the best services for their clients and also position themselves well to seize emerging opportunities in the profession. In a profession marked by legislative updates and changes in technology, the maintenance of competence goes beyond merely professing standards, it is about achieving long-term success in a career in accounting.