In search of a definitive definition
17 Aug 2006, Gavin Hinks, AccountancyAge
http://www.accountancyage.com/aa/opinion/1747918/in-search-definitive-definition
The argument being that when someone hires an accountant, they know what they are buying a professional with a recognised qualification, governed by a properly constituted professional body and regulated by the appropriate watchdogs.
Last week the Irish government revealed its intention to go down this road after making similar efforts with professionals such as architects. But you don’t have to look at architects to see a precedent. Solicitor has long been a title with statutory protection. Lawyers cannot claim the term for themselves unless they are properly qualified and regulated, a special status envied by accountants.
It will come as no surprise then that the moves in Ireland have been welcomed by the UK professional bodies who perhaps see the development as a means of persuading the Department of Trade to follow suit. But it seems unlikely that trade ministers will be so easily swayed. They have already asked for hard evidence that people are suffering because anyone can call themselves an accountant.
A close watch on what solutions the Irish come up with should provide a lead, but on the face of it these problems do not appear to be insurmountable. Compromises will need to be made, no doubt, but for a government shown to be interventionist, this should not present an obstacle.
What is perhaps lacking more is a will to push ahead with the work. Ministers may believe accountants already benefit enough through the reform to liability. In which case the professional bodies may find themselves bargaining for a statutory definition.
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Visitor comments
Future of the accountancy profession
My view is that the Irish approach to regulation of the accountancy profession is the right way forward.
The government in Ireland is about to define the term accountant and legally protect the term. Nine accountancy bodies are precribed in law and these 9 belong to a forum of prescribed bodies which advises the Irish government - not CCAB - on policy matters.
Whether the 9 bodies eventually merge is of benefit to them in terms of economies of scale etc, but as the forum speaks as a unified voice to government, the Irish government would have nothing to gain by any such merger.
I recommend that the Rt Hon Alastair Darling MP should follow the Irish example and replace the non statutory POB with a statutory authority like in Ireland ( www.iaasa.ie ). This statutory authority could prescribe bodies in the UK and also protect the title accountant. CCAB would be sidelined and a forum of all the RQBs/RSBs in the UK could be formed.
In this way the public interest would be served by having the term accountant protected and also HM government would have a single united forum advising on policy.
issues.
HM government could ordain that all member bodies of this forum could describe their members as chartered (ie legally recognised accountants) by Royal Charter and statute.
When this is accomplished, any merger debate would be held as a discussion among legally protected equals (ie chartered accountants) and the current hierarchy of qualification debate should be consigned to history.
Later this month, the AIA expects to be made a recognised body for auditing purposes in Ireland. They have also applied for membership of CCAB in the UK. If the CCAB accepts them into membership then CCAB UK will comprise all RQBs/RSBS and this group would then become the forum of Chartered Accountants as per my proposal.
Posted by: damien roche , 08 Sep 2006 | 00:00