‘Technology will allow us to move away from our desks’

RACHEL GRIMES, president, International Federation of Accountants (IFAC), a global organisation representing three million accountants from 130 countries, is not wary about the growing use of artificial intelligence and bots in the profession. Instead, technology will free accountants from manual tasks, allow them to become more pro-active, and forward-looking, she feels. In a freewheeling interaction with Sudipto Dey and N Sundaresha Subramanian, Grimes, during her maiden visit to India, shares her views on the public perception of the profession, issues on regulation, and the impact of technology on accounting jobs, among others. Edited excerpts:

On change in the public perception of the accounting profession following the release of the Panama and Paradise papers, issues around misuse of shell companies, etc:

In the aftermath of the release of the Panama and Paradise papers it has been the lawyers’ ethics, not the accountants’, that have come into question.

This is an exciting time for accountants. With technology, what the public sees as the “boring” part of the job will disappear and allow us to go back to doing what we do best — advise our clients. Some of the manual tasks will go.

Trust and ethics are something that set us apart among all the professions globally. We are perhaps the only profession in the world that has a global ethics code. In all major milestones — good or bad — people turn to their accountants.

On India’s role in setting the global regulatory agenda:

India has the second-largest number of accountants in the world and we look to them for guidance. Europe is trying to dominate the regulatory space (in accounting). Asia-Pacific must stay close together and make sure we have the representation (in the regulatory set-up). It is very important for the Asia-Pacific region to have a voice. India has spots in different standard-setting boards and committees. I regard them very crucial for our profession.

On the issue of the independence of regulators:

The current system in India has enormous checks and balances. If you throw everything out, you will also be losing many good things we have. We should look at making minor tweaks in every process to enhance and improve it.In my own country, Australia, we see the public driving standards. Earlier, it was the church and then the government that set standards. Now it is the public that is driving that. We must always look to the public for guidance and make sure we are up-to-speed and up-to-date.

On the impact of technology on accounting jobs:

Technology may finish some jobs, but will also create them. I see artificial intelligence as being helpful in some things, such as tax structuring and financial planning. But there will always be the need for that expert advisor whom people trust. Our jobs could be different and our skill sets may need a lift, so will be in the case in audit.

While we will continue to need the basic skills (for accounting and auditing), working on the analytics component is the next stage of what we do. One important question is — where should that learning take place? At universities, on the job, or through member bodies? I think it is all the three. All of us need to understand the value chain of learning. Another important point to look at — how should we include those in the age group of 35 and 50 years on this journey?

I think technology will allow us the freedom to move from our desks and engage more with customers and regulators. Trust is the key to everything we do and so are ethics. Ethics have to be the same and strong across the value chain of accounting and finance.

On nationalistic traits in politics impacting the profession:

That is where politics is going, but that is not where accountants want to go. We are a truly global profession — our members represent so many countries. That is the power, the mobility that this ticket to this game gives you.

It is very important for the Asia-Pacific region to have a voice. India has spots in different standardsetting boards and committees