Jan Dijkman is SAICA’s
Legal and Ethical Director.
BA LLB LLM H Dip Tax
ADL FILPA CFP
“It is necessary only for the good man to do nothing for evil to triumph.”
The quotation above is attributed to Edmund Burke (1729 - 1797) and it still rings true today.
One of the major evils facing the world, and South Africa is no exception, is the growth in the occurrence of fraud and corruption, and perhaps even worse, the apparent acceptance by society of such occurrence as being "the cost of doing business".
Professionals, including Chartered Accountants, have long prided themselves on "being special". In particular, professionals maintain that one of their distinguishing characteristics, in addition to their particular technical skill, is their adherence to and support for professional ethics. If this is true, and the Chartered Accountant is the "good man (or woman)" referred to above, what are we doing to ensure that evil does not triumph?
Often, when we are asked to do something, it is far easier to look at the speck that is in our brother’s eye, and pay no attention to the log in our own eye. It is accepted that the Chartered Accountant has a very important role to play in assisting others in the fight against fraud and corruption, but it is as important that he ensures that his own house is also in order.
A number of matters which have recently crossed my desk have made me ask whether, in fact, our house is in order. I would like you to ask yourself the following questions:
• Does the public have confidence in an investment or enterprise because a Chartered Accountant is associated with it, either as the Financial Director or the auditor?
• Do they have confidence because they know that the CA has complied with the applicable accounting standards, or auditing statements, which it is his duty to do?
• Do they have confidence in the CA because they know that he is up-to-date with all relevant legislation, regulations and other pertinent developments, such as the Money Laundering Act?
• Do clients comply with the laws of the land, particularly the Revenue laws, because they know that if they cheat, the CA will refuse to continue with the appointment, and they will not be able to find another CA willing to take over the appointment?
• Before emigrating, did the CA settle all his outstanding debts in the country which gave him his qualification, designation and status, which have allowed him to acquire the position overseas and be held in such high regard?
The questions could go on. The point I want to make is that if we wish society to have confidence in us, and respect our abilities and contributions, we need to ensure that the confidence is well placed, and the respect is earned. Perhaps the saddest indictment of the perceived state of the accountancy profession is contained in a letter I recently received from a first-year university student. The student wrote as follows (the letter has been edited):
"QUESTIONS REGARDING THE ETHICS OF CHARTERED ACCOUNTANTS
I always wanted to become a Chartered Accountant, because in my mind it is a profession associated with high integrity and professional conduct. Due to this image, I also started studying towards this goal and currently I am busy with my first year of university studies. Lately, however, I have become very concerned about the way I will be perceived by others once I become a Chartered Accountant.
I was under the impression that a Chartered Accountant must be of strong character, honest and competent. This would, for me, naturally imply that such a person may not be insolvent or have a criminal record. However, I am aware of a certain Mr ......... who had been declared insolvent. He was also found guilty of a criminal offence and paid a fine. Since then, he has been in and out of court constantly and has a very bad reputation as someone always ready for anything sleazy. Anybody who knows him at all, would agree that his reputation is so bad that it can hardly be damaged any more at this stage.
My question to you is this: Am I to be in a profession where I will be associated with people who are, in my mind, criminals?"
We learn by example. We absorb the culture of the profession from our peers. I wrote in an earlier comment that if we are prepared to compromise or indeed, sacrifice our ethical principles, we stand to lose sight of the virtues of belonging to a profession - collegiality, concern for the group, a higher professional ethic. If we don’t ensure our adherence to our ethical standards, particularly in the fight against fraud and corruption, and implant them in our trainees, employees, and colleagues, how are we going to answer the question: "Am I to be in a profession where I will be associated with people who are, in my mind, criminals?"
Footnote:
The above mentioned practitioner’s
membership of SAICA was cancelled.