Doctors ‘play god’ every day as they hold patients’ lives in the palm of their hands. A cut one centimetre too deep or too wide can be the difference between a mother, father, son or daughter going home to their family or not. Accountants can’t compare, or can they?
Accountants play a vital role in all organisations by translating and summarising economic events into a format that is understandable and useful to a variety of users. Many key decisions hinge on what the numbers say. For example, optimistic budgeting during COVID-19 could lead to staff increases and, ultimately, business failure. Conversely, conservative budgets may result in excessive salary cuts, putting staff at risk of falling below the breadline unnecessarily.
The key message is this: There is an obvious and direct link between a doctor’s actions and life-or-death outcomes. But while a doctor may impact a few people at a time, accountants impact thousands, if not hundreds of thousands, of lives albeit less directly. To illustrate, TimesLive reported that the former CEO and founder of African Bank ‘felt the company … had a “rosy future” and it was wrongly placed under administration’. I’m taking no sides, but African Bank Investments Limited (Abil) illustrates, at least in principle, the metaphorical knife’s edge that accountants must navigate: accountants cannot always play it safe, yet cannot be reckless.
While Abil can be used to illustrate the balancing act gone wrong, Steinhoff may illustrate the consequences of allowing greed to blind accountants. News24 reported that Steinhoff’s share price dropped as much as 91% in 2017, writing off approximately R210 billion in value. Picture yourself at retirement age with a large tranche of your investments sitting in the (then blue-chip) retailer when the news hit and Steinhoff’s share price plummeted. Many innocent South Africans would have had to re-enter an already depressed employment market, and at an advanced age, when they should have been enjoying the fruits of working and contributing to a retirement vehicle for decades.
Retirement savings aside, the Daily Maverick reported that as many as 130 000 jobs may be lost, globally, if Steinhoff went bankrupt. How many families and, in the South African context, extended families would be ruined and become destitute if that happened? Do you still think doctors have a greater impact than accountants?
Perhaps accountants should take the Hippocratic oath, too?
Perhaps our Code of Professional Conduct should accompany a formal ceremony to swear an oath. ‘I, Wayne van Zijl, solemnly swear to put the public’s interests above my own, to provide objective and unbiased advice that is cognisant of the power I yield due to my position. I vow to consciously evaluate the impact that information generated by me may have on my entity’s employees, society, the environment and the company. I will use my skills to positively contribute to the well-being of …’
Author
Wayne van Zijl CA(SA)
Associate Professor at School of Accountancy WITS
