The issue of credibility and accountability won’t go away any time soon. Whether you believe Sarbanes-Oxley is overkill or Richard Murphy’s take on taxation is wrong matters not. The reality for many people is they don’t know who to trust. It is one of the reasons why Anastasia Winer (registration required) talks to the issues of CSR. So it is with concern that I see James Governor posing the question: But who will audit the auditors? As an industry analyst, James is rapidly building a reputation for fearless commentary on an industry riddled with credibility issues. Not ours I hasten to add (usually that is) but the tech analyst community.
Tech analysts are people to whom senior board people turn to provide what they hope will be an unbiased opinion. In that sense, they can be thought of as the auditors to the tech sector. Yet tech analysts’ credibility as unbiased observers is under increasing scrutiny. This is not new. I recall Gary Flood writing a seminal piece about this for Information Week UK some years ago. (If my memory is faulty here – please correct.)
Our profession, or rather the reputation of being a Chartered Accountant runs similar risk. This is why James’ comments should be a matter of concern. Ken Frost – the man who leads Stopthemerger – believes the ICAEW is badly managed and acts in the interests of a favoured few. This is an opinion I’ve heard over more than 20 years behind the closed doors of the partner’s meeting. Today it is in the public domain. This matters.
If the profession – or rather the ICAEW – cannot be trusted by its own members to act in the interests of the members as a whole then how can the public be expected to trust the moniker ACA/FCA? If that becomes manifest, then there is a risk that its self-regulatory status will be removed by law. It is a recipe for implosion. The truly sad thing is that it is unnecessary. Over the years, I’ve met many fine and honourable CAs. You’ll rarely hear about them but they represent what I believe is the pinnacle of achievement in an accountant’s career – respect and authority among the community he or she serves.
As auditors and business advisors, the profession is conflicted. Most can work out the difference. Being a commentator on technology and taking sponsorship from the companies about whom I comment conflicts me. I’ve worked out the difference and I can tell you it’s not easy. It is this transparency that allows people like James to comment with authority about the companies who sponsor his efforts.
Credibility+transparency+accountabiility=trust. Without these, we are lost.
ENDNOTE: James has issued a statement on the tech industry accusation of pay for play. You don’t have to like his position but you have to admire his transparency. Why can’t ‘we’ be the same?
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