TA Country Focus: Germany

Joe Pickard hears from Institut der Wirtschaftsprüfer in Deutschland eV (IDW) CEO Melanie Sack about the main challenges and opportunities for accountants. The IDW represents around 13,000 auditors and auditing firms – around 79% of all German auditors

To build a better understanding of the state of the accountancy profession around the world, The Accountant is launching a new set of country surveys that will be featured in most editions.

Each country survey will feature a short interview with at least one representative of a leading professional body, regulator or accountancy firm from the country, and will look at the key issues impacting accountants in a certain jurisdiction.

We will also be featuring staff numbers from the top networks and associations in each country, region or area, with data pulled from our sister publication, International Accounting Bulletin.

The Accountant: What are the main challenges and opportunities for accountants in Germany currently?

Melanie Sack: The greatest challenges for accountants in Germany currently lie in the continuing uncertainty of the German economy with its impending recession scenarios, coupled with the challenges of growing deglobalisation developments and the emphasis on values in the economy due to rising anti-European movements.

In addition, there is the digital transformation and the need to integrate new technologies such as artificial intelligence and data analysis into audit processes.

Another important challenge for auditors in Germany is the increasing complexity of regulatory requirements, particularly with regard to the sustainable transformation of the economy.

Auditors are called upon to make well-founded assessments in this area too, and to help ensure that companies implement sustainable practices and report on them transparently. Auditors are also currently challenge by the battle for skilled workers.

At the same time, these developments also offer enormous opportunities: auditors can position themselves as experts in transparency and trust-building in an increasingly digitised and globalised economy. This not only strengthens their role, but also opens up new business areas, for example in advising on compliance and governance issues.

Digitisation in particular offers enormous opportunities, as it can significantly improve the efficiency and accuracy of audit processes.

TA: What are the main priorities for your organisation for the next year?

MS: Our overarching focus topics are artificial intelligence, sustainability and the shortage of skilled workers, where we want to offer our members qualified services and support.

In addition, the IDW, as the professional association of auditors in Germany, is repositioning itself: we want to become more digital, more agile and more resilient in order to actively position ourselves as an attractive employer for talented individuals and professionals.

TA: Is accountancy still seen as an attractive career choice for people in Germany?

MS: Auditors play a crucial role in ensuring the regularity and reliability of company reports, which strengthens public and investor confidence in the financial markets. Their auditing work strengthens public and investor confidence in the financial markets and is given added relevance by the increasingly important role of sustainability in companies.

So yes, auditing remains a very attractive career choice in Germany. The professional field offers secure career prospects with attractive earning opportunities, as the demand for qualified assurance services is constantly growing in an increasingly complex economic world.

The growth in sustainability issues in particular gives the auditing profession an even greater sense of purpose, which attracts young talent.

Young, talented professionals also appreciate the opportunity to work in a global environment and continuously develop their skills. The combination of responsible tasks, international networking and varied development opportunities also makes the profession highly attractive to them in the longer term.