SL accountancy students aware of governance issues, says global expert
View(s):It’s inspiring to note that young aspiring accountants in Sri Lanka are interested and aware of governance, according to a top international accountant. “I was inspired to have met some amazing and bright accountancy students who were well aware of and quite interested in governance,” Olivia Kirtley, President International Federation of Accountants (IFAC) Board told the Business Times in an interview this week in Colombo during an official visit. She said that IFAC views governance as being critical to improving the functioning of organisations. It is about the way organisations work and should not be simply a compliance exercise.
She said Sri Lanka’s national accountancy bodies are on par with their international counterparts. “Sri Lanka certainly has the capability (in terms of how to get those in the profession to the top) and it’s only a matter of empowering them,” she said. Ms. Kirtley a business consultant on strategic, risk, and governance issues and also a non-executive director of three public companies – U.S. Bancorp, Papa John’s International, Inc., and ResCare, Inc. noted that knowledge itself isn’t sufficient. “One needs to embrace ethical standards.”
Ms. Kirtley, who spent the first decade of her career with Ernst & Ernst/Ernst & Whinney (now EY) in both audit and tax, added that independence is one of the hallmarks of the accountancy profession. “We’re professionals. We adhere to professional standards. That is what distinguishes us as professionals and we can add value to the ‘system’,” she remarked.
She noted that accountants can participate in the governance process and that there needs to be a lot more focus in the professionalism. “In accounting, ethics and integrity standards are based on a broad commitment to honesty, impartiality and objectivity. Ethical standards also require that accountants present information in the clearest and most accurate way possible, with the expectation that the information constitutes independent report of a business’ financial situation,” she noted, saying that in most cases, this requires not just observing professional rules but also recognising the potential for harm, using reasoning and judgment to resolve ethical conflicts and displaying moral integrity and motivation to apply a resolution.
In 1998, Ms. Kirtley was elected chairman of the Board of Directors of the American Institute of Certified Public Accountants (AICPA). She is the recipient of the AICPA’s highest honour, the Gold Medal, in recognition of her exemplary leadership and service to the accountancy profession. In 2010, she was also named to NACD Directorship 100 by the National Association of Corporate Directors as one of the leading 100 corporate directors and governance and governance professionals in the US.