Trust: What It Takes To be Number One
Ethics and integrity in financial reporting are not obligations we turn on and off as circumstances demand. They are habits — formed directly by choice. Reinforced by discipline and upheld daily. When we took the oath to become Certified Public Accountants, we chose a professional path that holds us to a higher standard not out of necessity, but out of conviction.
Most people outside the profession do not fully understand what that choice requires. It demands sacrifice, restraint, and the willingness to be unpopular when the truth is inconvenient. It matters not whether we practice in public accounting, private industry, corporate environments, or government. When we leave our desks at the end of the day, we remain fiduciaries to the public, to officers and shareholders, to clients, to courts and banks, and to the state laws, the Internal Revenue Code, and the Code of Professional Conduct.
There is a framework — a foundational framework — that is drilled into us from the very beginning. In its simplest form: know your audience, do not forget the standards, uphold those standards by using the Financial Reporting framework, tell the financial story, and use the reports appropriate to that audience and that story.
Internal financial reporting, used for decision‑making, must be understandable, verifiable, complete, free from error, and one of the most overlooked qualities, which is reports need to be comparable. Internal reports are not intended for public distribution, and in most circumstances, a CPA will restrict their use accordingly. The responsibility is not reduced simply because the audience is internal.
The second financial story is told to the Internal Revenue Service. Financial reports are adjusted in accordance with the Internal Revenue Code, yet the same framework applies. Accuracy, completeness, and consistency remain non‑negotiable, regardless of the reporting objective.
The final story is the one presented to the market and to society at large. Here, our duty intensifies. A company and the CPA who prepares or compiles these reports must understand the audience and must never intentionally mislead. Verification is essential. Trust that the presented reports are complete, free from material error, and comparability to market realities must be evaluated with professional skepticism.
When we step into a courtroom, we attest that financial statements are a fair representation, free from material misstatement, and capable of being relied upon to reach consequential decisions. Wherever our work is relied upon — by courts, regulators, lenders, or investors — we must be able to stand behind the framework that supports our reporting and like wise tell the story in an understandable narrative.
If you ask for my professional opinion on a set of financials. I MUST be able to say without hesitation that the Financial Statements can be relied upon to make decisions — often crucial ones. That is what it means to be a CPA. Integrity is not a fleeting moment. It is a daily habit. Unfortunately, so are misleading and often cumbersome reports.
Discuss Your Matter
Financial disputes often involve incomplete records, hidden assets, ownership questions, or source of funds issues that require deeper analysis.
If you’re an attorney or client facing a complex financial matter, Dawn Murrill, CPA, CFF can help provide clarity and defensible financial analysis.
