Date issued: 12 January 2009
Responsibility for dealing with the fallout of the global financial crisis does not rest solely with governments and regulators, CPA Australia's president will tell a conference in Cambodia's capital later this week.
'Time and time again we have witnessed sub-standard governance, accountability and reporting practices wreak havoc on national economies, companies, financial markets and workers,' says Alex Malley who will address an audience in Phnom Penh that will include Cambodia's deputy prime minister and minister for economy and finance.
'Just last week we saw the head of one of India's biggest outsourcing groups, Satyam Computer Services, confess to a US$1bn accounting fraud which has left the company on the brink of collapse.
'However, the failure to detect the façade of good governance that has cloaked too many businesses worldwide cannot be laid at the doorstep of governments and regulators alone.'
Mr Malley is travelling to Cambodia as part of CPA Australia's ongoing collaboration with regional professional bodies to help foster the exchange of knowledge and address the strategic challenges that the profession faces in the Asia – Pacific region and globally.
'Rectifying these profound problems does not rest solely with governments and regulators. The accounting profession, comprising individual accountants, practices and professional bodies, have the knowledge, skills and resources to address the issues at the heart of the current ills.
'Accountants, and the profession as a whole, cannot distance itself from the prevailing strategic business, economic and financial issues of the day.
'The accounting profession cannot take a back seat in working to prevent future shocks to the global financial system. Quite simply, the accounting profession must show leadership.'
Mr Malley will acknowledge the principles established at the G20 Leaders' Summit in Washington last November that placed accounting at the centre of the solution to the global financial crisis.
The information that accountants collate, analyse and disseminate is far too crucial to the health of businesses and markets for them not to be fully engaged in the challenges we currently face, Mr Malley will argue.
'Acting in the public interest, the platform that underpins the accounting profession, is the roadmap for the profession to help resuscitate confidence in international financial markets through the provision of high standard financial reports and processes.
'Building and maintaining confidence in the accounting profession amongst investors, managers, board members, governments and the public will help to promote accurate disclosure, mitigate the impact of future financial shocks and promote improved approaches to risk management,' Mr Malley said.
The speech will be given at an accounting conference being held in Phnom Penh to mark CPA Australia's successful sponsorship of the Kampuchea Institute of CPAs and Auditors entry as an Associate member to the International Federation of Accountants.
Alex Malley is available for media interviews.