The CA(SA) designation is an internationally respected title, which has come under serious scrutiny in recent years for many reasons. I recently spent a lot of time reflecting on what I believe it means to be a CA(SA) and the ways in which we can rebuild trust and honor in the profession.

The starting point is firstly to acknowledge that the breakdown of this trust does not stem from any specific industry or profession. Many are hasty to blame the auditors for corporate failures, as the perception is that they should have identified that, accounts were manipulated, or controls were weak. Some may blame the board of directors, as it is under their watch that issues may have spiraled out of control.  A few may investigate further and assert that management are to blame, as it is after all, management who make the key decisions that may result in either the breakdown in controls or manipulation of results. The truth is that the blame should be shared collectively, as each of these ‘lines of defense’ are responsible to an extent. If each line of defense plays their part with integrity and professionalism, corporate failures resulting from abuse of trust should be few and far between.

I am fortunate to have worked within the audit profession as an external audit manager, in corporate as a member of the executive team, and on the board of directors (albeit in an executive role). With some reflection, I believe that there are two fundamental reasons that this abuse of trust goes unnoticed for too long. Firstly, that personal gain is placed before the interest of the company and society, and secondly, that the various lines of defense do not collaborate for the same common goal.

The first reason is quite simple, in that when personal gain, self-interest and greed occur, integrity is lost. When the various lines of defense mentioned above believe and understand that their responsibility is in adding value and ensuring the success of the company, the risk of personal gain, self-interest and greed is reduced significantly.

The second reason, slightly more complex, is that these various lines of defense need to work together as business partners rather than performing their individual duties in isolation. Once this mind-set is reached, a cohesive governance and oversight structure is built. The mind-set is that they all work together to reach a common goal, which is adding value to the company and society, and not to focus on audit fees or bonuses.

Integrity can be defined as the quality of being honest and having strong moral principles. This is not something that can be taught and understood quickly but rather something that is developed within individuals over time. Leaders with moral compasses who have integrity need to transfer this attitude and mindset to all within their organisation, to lead by example, and set the tone and culture from the top. This will result in healthier corporate cultures which will ultimately rebuild trust in the profession.