Experts call for ethical accounting

Professional integrity among accountants, fair information, accountability and transparent public finances are required to build a strong, resilient economy, according to various chartered accountants.

"The strongest and most resilient economies are those where people can make well-informed decisions with trust in the information provided to them by their leaders, said Robert Hodgkinson, an executive director of the Institute of Chartered Accountants in England and Wales (ICAEW).

Accountants will have to play a vital role for their respective countries to recover from the ongoing economic crisis brought on by the coronavirus pandemic.

They will have to ensure transparent, efficient and trusted information to help their nations recover, he added.

Hodgkinson made these comments while acting as keynote speaker at a webinar styled, 'Role of Chartered Accountants in Economic Recovery and Promoting Cross-Border Investments', organised by the Institute of Chartered Accountants of Bangladesh (ICAB) yesterday.

While addressing the webinar, Salman F Rahman, private sector industry and investment adviser to the prime minister, said that Bangladesh needs to find a way out of the crisis while one such solution could strengthen cross-border trade through an innovate approach.

Besides, stakeholders will also play a crucial role in minimising the economic losses caused by the coronavirus fallout.

ICAB's decision to organise this type of webinar was a timely initiative, Rahman said.

Chartered accountants (CA) are key to running cross-border trade and investments amid this unprecedented situation while auditors can also help things along by ensuring transparency in all sectors and following accounting principles.

"Small and medium enterprises should be given emphasis to help the country recover from the losses rapidly," he added.

Technical skills, an ethical approach and integrity are important aspects for any professional accountant and considering the current situation, everyone, including CAs, must be extra careful with their conduct and judgment, said Manil Jaysinghe, president of CA Sri Lanka.

Jaysinghe emphasised how an accountant's ethics and ability to make the right decisions have an effect on a nation's economic development while accurate record keeping helps businesses progress.

Accounting is a global profession that helps keep businesses safe from losses, according to the CA Sri Lanka president.

"Economies across the globe have been disrupted and businesses are threatened by the uncertainty and accountants have a vital role to play to address the issue," said Hodgkinson.

Behaving ethically often means having to make tough decisions. This entails putting public interest first and above and beyond all other interests, he added.

Citing some corrective measures taken by the UK amid the pandemic, Hodgkinson said that his government introduced unprecedented economic measures to help businesses survive the crisis.

"Our profession is to help businesses and the overall economy stabilise and later recover from the ongoing pandemic," said In-Ki Joo, president of the International Federation of Accountants (IFAC).

Economic disruptions are not limited to any one country but instead, it is a global issue. Therefore, accountants should help economies recover by ensuring transparency in public amid the Covid-19 outbreak, Joo added.

According to the IFAC president, the multi-billion-dollar international trade market can be made even stronger and sustainable with the help from accounting professionals that have integrity.

The pandemic has slowed down Bangladesh's economic activities and jeopardised the country's advancement in areas such as poverty reduction, said ICAB President Muhammad Farooq.

ICAB is making recommendations to the government on how to prepare an economic recovery plan and action programmes aimed at tackling the coronavirus fallout, he added.

Expert professionals from ICAB are analysing the Covid-19 impact on various sectors before making suggestions for strategy plans.

"We have the very important responsibility of building business confidence among stakeholders," Farooq said.

ICAB Vice-Presidents Sabbir Ahmed and Mohammed Forkan Uddin, among others, spoke at the session, which was moderated by Md Humayun Kabir, council member and former ICAB president.