A friend of mine is thinking of suspending his membership of the SA Institute of Chartered Accountants (Saica). He’s afraid it’s sullying his reputation.
Doing so will mean he won’t be able to practise as a chartered accountant (CA), but he’s beginning to think that’s a small price to pay to escape the dark, knowing looks he gets whenever he confesses to being a Saica-approved CA. "This must be what it’s like when you tell people you’re a journalist," he said, trying unsuccessfully to get some sympathy.
I’ve been particularly worried about the accounting and audit profession since its members started banging on about SA’s ranking in the World Economic Forum (WEF) competitiveness report. It was a troubling indication that nobody was looking closely at what lay behind the numbers.
It shouldn’t have taken the Steinhoff and Gupta scandals and the implosion of KPMG to make us wonder how the local industry could have ranked number one for so many years. Not that almost every other country in the survey isn’t also having problems with accountants and auditors. But the reality is that SA’s ranking was determined by the 50-odd white-collar workers with the time and inclination to answer 100 or so survey questions. It’s likely many respondents were accountants or worked closely with accountants.
In the 2017 survey the local industry slumped from number one all the way down to 30. It’s possible we’ll slide further in the next report.
"Over the past decade or so, figures with authority have slid from their pedestals, mainly because they didn’t play by their own rules
— Ann Crotty
Of course, the industry has not deteriorated that sharply. It’s unlikely we ever deserved the top position, and the difficulties that plague us have not just sprung up — they have been many years in the making.
The WEF survey will be as poor an indicator on the way down as it was when we were on top. When things were looking good it aggravated the industry’s smugness and general lack of self-awareness. Over the next six to 12 months, as industry leaders struggle to make any decisive moves, the smugness will be replaced by nervous self-doubt, which will reflect in an overstated slump in our next ranking.
In a way, the decline is part of a global post-authority era. Over the past decade or so, figures with authority — politicians, bankers, accountants/ auditors, lawyers, corporate executives — have slid from their pedestals, mainly because they didn’t play by their own rules. They used their authority for self-gain, making no contribution to a wider purpose.
Accountants were smitten by the huge bucks being made by their banker-lawyer-corporate executive colleagues and started to forget about the nuts and bolts of their profession. Bankers were also smitten, as were the politicians. They drifted into an unholy alliance and forgot about the people they were supposed to serve.
In the process they created huge tax-dodging corporate entities that dominate our lives; entities whose increasingly complex financial statements are becoming less credible.
The great thing about the current "crisis" is that at least the leadership has noticed there’s a problem. There might just be enough time to find a solution before people start questioning whether we actually need CAs and my friend suspends his Saica membership permanently.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.