ICAI Comments On Protection Of The Term Accountant

by Robin Pilgrim, LawAndTax-News.com, London

03 May 2006

On Friday, just ahead of the deadline for submissions on the topic, the Institute of Chartered Accountants in Ireland (ICAI) published its submission to the consultation process initiated by the Irish Auditing and Accounting Supervisory Authority (IAASA) on the ‘protection’ of the term accountant.

In early March, the IAASA invited comments from interested parties as to whether the term 'accountant' should be afforded legal protection under the Companies Acts. The Authority also sought contributors' views as to whether persons providing accountancy and/or similar services to the public - other than members of accountancy bodies coming within the Authority's remit - should be subject to regulation and/or supervision.

The Institute’s submission rejected the notion that the term accountant should be protected. Rather, it argued that the term should be given legal recognition, following the Government’s decision to establish a supervisory regulatory authority.

It argued that a similar approach has been undertaken recently with regard to architects, and is advocated in the case of auctioneers and estate agents.

Commenting on the matter, ICAI President, John Greely stated that:

“Accountancy is perhaps the most competitive of the professions. The state recognises nine separate accountancy bodies, all of which are supervised by IAASA. The point we are making today is that following that move by Government that it is a reasonable inference for the public to draw that anybody describing themselves as an accountant will fall into this two tiered (professional body/IAASA) regulatory structure."

"However, this is not the case. There is no bar on anybody offering accountancy services or describing themselves an accountant. In short the IAASA does not oversee the regulation of the sector as presented to the public."

"What ICAI wants to see is a level playing field in which accountants can compete against each other. But we also believe that the standards and quality of the services offered are important also. Hence, it is both unfair and contrary to the public interest to have unregulated, possibly untrained and uninsured non accountants to present themselves as being in the regulated sector."

He continued:

"There are two obvious elements of an approach to this issue which we set out in our submission. The first part is to require people in the unregulated sector to refrain from describing themselves as accountants. Support for this position is implied in the legislative structure set out by Government for the profession. For example, the report on auctioneering and estate agents recommends that the statutory body it proposes engages in this kind of work."

"Secondly, legislators should seek to define what constitutes accountancy services and require IAASA to initiate a licensing system that brings everybody who wishes to offer such services onto a more level playing field."

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