Some of the key environmental factors which are having a profound effect on the accounting profession are:
A global economy
The impact of economic globalization continues to be felt around the world. This in turn affects the evolution and convergence of international financial reporting standards (IFRS) and the continued refinement of the norms and standards of all types of professional practice. National boundaries are becoming less relevant to the flow of capital, goods, services and people with a profound impact on the development of business and the professions.
The associated impact of these global trends on the accounting profession is immense. The scope of responsibility for today’s professional accounting leaders has never been more complex.
Globalization affects the practice of currently designated accountants and the education of future accountants. Meanwhile, all professional accounting bodies are seeking international alliances and partnerships to better serve their members’ needs and those of an increasingly mobile population.
Breaking down external and internal trade barriers
Along with the overall trend towards a fully integrated global economy comes the diminishing of trade barriers both between and inside countries. In Canada this is best reflected in the continued pressure for the reduction and eventual elimination of internal trade barriers and the need for greater professional and labour mobility within the Canadian federation. This in turn is having a major impact on all professions, including accountants.
Greater fiscal literacy equals greater fiscal accountability
As the public grows increasingly conscious of national and local government spending priorities, so too does its impatience with waste, inefficiency and ineffective policy and program spending decisions. Accounting professionals and their representative associations will increasingly be called upon to address these matters from a fiscal responsibility and expertise perspective. There will be a resulting impact on the development of sound public policy and sound fiscal management within government and public sector management.
The ongoing challenge of building corporate credibility
These challenges are not yet resolved to the public’s satisfaction. There will continue to be broad interest in sound corporate governance practices and greater corporate social responsibility. Corporate sustainability reporting will grow in influence and will provide a new avenue for professionally designated accountants to demonstrate leadership.
Meanwhile, corporations will struggle with a new burden of increased regulation and oversight which will prove to be a challenge to business growth and productivity in a national and international context.
An aging population will challenge all professional groups
Particularly in North America (where the post-war baby boom bulge is pronounced), greater numbers of retirees will put pressure on the growth of professional designations and on workforce planning in general. Simultaneously, greater emphasis will be placed on financial planning and fiscal preparedness for an aging population with a resulting draw on the accounting profession to provide guidance, expertise and leadership.
A federal-provincial jurisdictional landscape
Canada’s structure of shared federal and provincial jurisdictions brings added
complexity to the matter of professional regulation and oversight. For example, Canada currently has a national auditor oversight body that was established outside of the realm of federal legislation, unlike its US counterpart. In order to achieve its mandate, that body (the Canadian Public Accountability Board — CPAB) will be seeking legislative protection. Yet without the necessary accountability, CGA associations will continue to challenge its structure and transparency.
Likewise, securities regulation continues to be retained as a provincial responsibility in Canada, with some cross-jurisdictional harmonization initiatives underway. Yet some national business and government leaders have suggested there is a need for a single national securities regulator. Opportunities will continue to exist for CGA associations to participate in this ongoing public policy debate.
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