Challenges, Education, Regulation, Reputation
Author:
David Simpson
[Fulltext] As incoming President, I am conscious that there are many challenges facing Chartered Accountancy in Ireland today. The majority of our members are enjoying success in their careers and are contributing significantly to economic growth and prosperity. Chartered Accountants generally and recently qualifieds in particular are in great demand as business, especially in the Republic of Ireland, enjoys significant growth. Yet, at the same time, as a collective profession we face a growing public scepticism, even hostility at times. The contribution which the business community and the accountancy profession have made to the economic well-being of this country should not be undervalued. I intend in my year as President to avail of every opportunity to focus on the many positive inputs which Chartered Accountants make to creating vibrant successful businesses.
The Chartered Accountant of the future needs a more versatile skills base, enabling him or her to become a premier business adviser and a skilled participant in the commercial decision-making process, as opposed to merely being a custodian of technically, highly developed auditing and accounting skills. All Chartered Accountants must now have a competency in the retrieval, analysis and presentation of financial information by electronic means and there will have to be greater emphasis on information technology in the education and training process.
A primary objective in the year ahead will be to steer through the work of the Education & Training Review Group, chaired by Deputy President, Henry Saville. The Group is recommending significant improvements in the teaching model, including the syllabus. Skills training, such as information analysis, presentation techniques, letter- and report- writing, interpersonal skills, negotiation and interviewing techniques will form a constituent part of the new education and training process. The possibility of front-loading the process, allowing students to acquire a greater level of technical knowledge before entering into a training contract is also being explored. It is anticipated that the new syllabus would be operational from September 2001.
As reported elsewhere in this edition (see page 12) the Institute is currently engaged in discussions with seven other accountancy bodies worldwide to explore the creation of a new international business professional designation. If the project is successful, the new designation would enable professionals from a wide range of disciplines to build on their ethical standards, traditional skills and expertise, helping them to provide a broader range of globally relevant services to clients, customers and employers. The Institute is involved in these discussions in the interests of Irish Chartered Accountants, current and future. Many of our members seek employment abroad and we would expect that in the future, there will be even greater mobility. One in five Chartered Accountants is now under 30 years of age. Access to this new designation will make Irish Chartered Accountants more marketable and more employable internationally.
Regulation of the profession, particularly in the audit area, remains a very controversial and difficult topic. Ireland needs to be recognised as a well-regulated market. But a balance is also required - global norms of regulation and business practice must be adhered to, without imposing overly restrictive and costly compliance systems on Irish business competing in international markets or on global business coming into Ireland. The Institute is fully committed to strengthening the existing regulatory structures and to enhancing auditor independence. While the current system of self-regulation is effective and consistent, there is room for change. We want to work with Government to improve public confidence through a strong, effective and transparent regulatory system. Some of this will require legislative action and we have put our views to Government in our submission to the Review Group on Auditing.
In recent years the issue of public confidence in the profession has been at the top of the agenda for the officers and senior executives of the Institute. Supported by the membership at large, we have moved to make our processes and procedures for dealing with disciplinary issues more open and transparent. However, this process must continually evolve. A key to improving public confidence is dealing effectively and efficiently with inquiries and investigations which relate to the professional conduct of members. The sooner we deal with many of the controversial issues before us, the sooner we can restore the reputation of Chartered Accountants to where it should be.
David Simpson, FCA
President