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PANNELL KERR FORSTER _ 60 ANNIVERSARY SEMINAR THE ROLE OF THE

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PANNELL KERR FORSTER _ 60 ANNIVERSARY SEMINAR THE ROLE OF THE Powered By Docstoc
					                                BY

PROF. KWAME BOASIAKO OMANE-ANTWI; Ph.D; FCCA, FRSA (UK); AMP (OXON)
                           VICE RECTOR
                   PENTECOST UNIVERSITY COLLEGE
  HISTORY OF ACCOUNTING PROFESSION IN GHANANANA


  In 1943, Income Tax was introduced in Ghana (then
     Gold Coast) culminating in the production of accounts
     for tax purposes.

  In 1948, Census recorded no Ghanaian Accountant.

  In 1949, Pannell Kerr Forster was established in Ghana
     (then Gold Coast).

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                  HISTORY OF ACCOUNTING PROFESSION IN GHANA –
                                                  CONTINUED


  In 1950, Mr. Harry Duodo, first Ghanaian chartered
     accountant qualified.

  In 1954, Mr. James Barnes of Deloitte, Haskins and Sells
     who first came to Gold Coast and in 1939 spearheaded the
     formation of Association of Accountants of Gold Coast.

  In 1963, Institute of Chartered Accountants Ghana was
     established.

            (Sources: Barnes, 1981; Ghartey 1988; Duodo, 1988)
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  TRAINING OF ACCOUNTANTS IN GHANA

  PKF credited with the training of Ghanaian
     Accountants through open door policy in 1960s and
     1970s.

  Beneficiaries of the training to name a few are:
            Hon. Kan Dapaah
            Mr. Yaw Agyei
            Mr. Oko Djani Nikoi
            Mr. Dua Agyeman
            Prof. Nana Ato Ghartey
            Mr. Chris Nartey
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QUESTIONS – ROLE OF PROFESSIONAL ACCOUNTANTS:


 1. Are professional accountants crucial economic
    actors in the capital market economy?

 2. Is professional accounting a value-adding
   function (an added – value) function?

 3. What does the business community expect of
    professional accountants?

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QUESTIONS – ROLE OF PROFESSIONAL ACCOUNTANTS

 4. With several areas of conflict of interest
    surrounding the professional accountant’s
    function and his or her performance, how can
    independence be assured?

 5. How should professional accountants respond to
         continuous environmental changes?



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QUESTIONS – ROLE OF PROFESSIONAL ACCOUNTANTS

 6. What changes, if any, should be made to improve the
    efficacy of professional accounting, particularly
     auditing?

 7. Will auditors need to move from an ‘archival’
    approach, where the auditor comes in at the end of
    the year, examines financial statements and issues an
    opinion on the statements, to an approach based on
    the process during which the financial information is
    compiled?

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 QUESTIONS – ROLE OF PROFESSIONAL ACCOUNTANTS


 8. Will auditing need to move from an annual
         assurance to a continuous assurance?


 9. How should the audit profession respond to
        structural changes in the capital market economy?


 10. How will professional accountants handle complex
          information systems with linked business processes?

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  ECONOMIC GROWTH – CHALLENGES AND EVOLVING ROLE OF
                    ACCOUNTANTS

 Factors mitigating against economic growth in
 developing nations:
 -     Colonial Legacy
 -     Obsolete Technology
 -     Poor Social Condition
 -     Ethnic and Tribal Divisions
 -     Deficient Infrastructure
 -     High illiteracy rate

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 ECONOMIC GROWTH – CHALLENGES AND EVOLVING ROLE OF
                   ACCOUNTANTS

  Factors mitigating against economic growth
   in developing nations:

  - Macroeconomic mistakes

  - Dependency in primary commodity for export

  - Low life expectancy

  - High Population growth

  - Low incomes, low savings habit

  - Absence of, or insignificant industrial activity
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  ECONOMIC GROWTH – CHALLENGES AND EVOLVING
             ROLE OF ACCOUNTANTS



 • Given the said scenarios, the challenges are:

      How to acquire and deploy resources

             Such that NATIONAL MISERY INDEX (NMI)
              is minimized

             To improve standard of living on a sustained
              basis

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   ECONOMIC GROWTH – CHALLENGES AND EVOLVING ROLE OF
                              ACCOUNTANTS



 • Strategies to increase the quality and quantity of
     the wealth of nations are:
       • the thrust of economic growth, development and
          empowerment, and
       • the real essence of the accountancy profession
 • Accounting calculus and ideologies have become a
   major influence on commercial and everyday life
   in most societies.

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ROLE IN PUBLIC SECTOR

• Government Accounting system needs
  reformation
• Government Accounting practices frequently
  characterised by lack of transparency,
  inconsistency and incompleteness.
• Poor quality accounting impacts adversely on
  the growth prospects and economic stability of
  a country
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 ROLE IN PUBLIC SECTOR – CONTINUED

  Migrating from cash to accrual basis the answer to

     reap:

  Better information on sustainability of fiscal
         policies.
  Stronger basis for accountability to achieve
         economy, efficiency, effectiveness and equity.

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 ROLE IN PUBLIC SECTOR – CONTINUED


 - Team approach to ensure successful
        migration through collaborative
        involvement of:
         Institute of Chartered Accountants, Ghana
         Controller & Accountant-General’s Department
         Audit Service
         Other Relevant Stakeholders


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   ROLE IN PUBLIC SECTOR – CONTINUED


  -      PKF with experience in public finance and
         management information systems can play a
         leading role.




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 ROLE IN PRIVATE SECTOR
 • PKF’s expertise cover a wide range of
   services in the private sector
 •      Professional Accountants provide invaluable
        Services in:
         Investment Decisions
         Portfolio Diversification
         Internal Controls
         Enterprise Risk Management
         Tax Administration and Management
         Record Keeping

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 EMPOWERMENT ACCOUNTING

  Empowerment Accounting is a new type of
     measurement necessary in the global economy
     today for competitiveness and economic progress.

  It is about open-book accounting methodology
   that:
     Shares the broad array of financial and non-
      financial information with employees.
     Trains employees to become more business
      literate
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 EMPOWERMENT ACCOUNTING - CONTINUED

  Rewards employees when the company is successful
  Turns employees into true business partners
  It is a change in paradigm to enable accountants regain
   their role as one of the key drivers of the knowledge
   engine in an information-age economy.
  PKF as external auditors of higher educational
   institutions in Ghana can collaborate with accounting
   educators to research into empowerment accounting –
   the new measurement paradigm.

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 ROLE IN PUBLIC ACCOUNTING
  Professional accounting is synonymous with Public
   Accounting since it is considered so important to the
   public good.
  Image of accountants severely dented by corporate
   collapse (Key reference: Enron and Anderson saga).
  Bridging the expectation gap to ensure that audit
    meets industry and business expectations in the
   on-going revolution in the accounting profession.


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 ROLE IN PUBLIC ACCOUNTING – CONTINUED

   Building trust matters deeply to all stakeholders
  ACCA Round Table Conference in Zambia
   suggestion:
    Co-opting other exports to compliment skills in
      the area of risk management.
    Issuing specific report in the audit report
      about business risk.
    Investing in training especially in the area of
      business risk

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 ROLE IN PUBLIC ACCOUNTING – CONTINUED

  Capacity building in skills relating to derivative
   products.
  Auditor’s Report should include a statement on
   ‘going concern’ status of a company.
  Developing different ground rules for SMEs.
  External Auditors and Internal Auditors to
    collaborate strongly in the audit exercise.


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 ROLE IN PUBLIC ACCOUNTING – CONTINUED

  Making accounting information user-friendly to
   CEO and non-accountants.
  Audit Committees to be sensitive and address audit
   independence of appointed external auditors.
  Students to undertake article clerkship arrangement
   to gain work experience before obtaining
   professional qualification.


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 ROLE IN THE AGE OF CORPORATE GOVERNANCE

  Good Corporate governance:
         Maximises value of shareholders, legally,
         ethically and on a sustainable basis.
         Ensures equity and transparency to customer,
      employees, investors, government and
      community.
  Professional accountant add-value to the
      governance system.


26 January 2013   PKF @ 60                               24
 ROLE IN THE AGE OF CORPORATE GOVERNANCE - CONTINUED



  Using strategic audits, accountants promote good
        corporate governance by enabling managers to make
        well-informed decisions.


  Strategic audit helps to create value which is a core
        objective of good corporate governance.

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 ROLE IN FORENSIC ACCOUNTING
       Forensic Accounting is the practice of utilising
        accounting, auditing and investigative skills to uncover
        sophisticated corporate fraud.

       Accountants use forensic accounting to compliment the
        work of various agencies fighting corruption.

       Role of Forensic Accountant will become very major in
        corporate fields and governance business in the days to
        come.

       PKF is deeply involved in forensic accounting services.
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 SMEs AND BUSINESS EMPOWERMENT

  SMEs contribute significantly to national
        economy – it is the engine of growth.

  Professional Accountants are trustworthy and
        credible source of advisers to SMEs.

  PKF is a strong service provider to SMEs in
        Ghana.

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 ROLE IN THE ENVIRONMENTAL MATTERS
 •       Professional Accountants encourage clients
          To be socially responsible as well as making
                  continuous contribution to the environment
       Accountants provide assurance services to companies
        to meet Elkington “triple bottom line” concept by
        focusing on:
          Economic,
          Environmental , and
          Social value that companies add or destroy

26 January 2013           PKF @ 60                             28
 ROLE IN THE ENVIRONMENTAL MATTERS – CONTINUED

 • In Kenya, Professional Accountants have contributed in
     the establishment of Carbon trading market.

 • Kenya government is estimated to earn US$2 billion a
     year in the next 15 years from Forest Reserves.

 •    PKF with its specialist service in Forest Management
     Projects in Ghana can be of immerse help in establishing
     a trading markets in Carbon Credits in Ghana.
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 ROLE IN THE OIL AND GAS INDUSTRY

 • Oil Economy starts in December 2010 in Ghana

 • Accountability and transparency from our
     political leaders would be key.

 • Accountants are bound to play a critical role in the
     proper financial administration of the oil revenue



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    ROLE IN THE OIL AND GAS INDUSTRY – CONTINUED

  Accountants should take active interest in:

     Production Sharing Agreements

     Petroleum Revenue Management

 • Accountants should not play a second fiddle to
     Lawyers/Economists when it comes to financial
     advisory role to government.


26 January 2013   PKF @ 60                           31
 ROLE IN THE OIL AND GAS INDUSTRY - CONTINUED

  Accountants are better skilled to advise on rules
     and procedures of funding as enshrined in the
     Santiago and Edwin Truman Best Practices in
     Petroleum Revenue Management.

  PKF is already providing valuable service to some key
     players in the oil and gas industry in Ghana.

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 ROLE IN ANTI–CORRUPTION CRUSADE AND MONEY LAUNDERING


 • Accountant’s responsibilities not primarily that of

     watchdogs but extends to protect the public
     interest.

 • Accountants are essential players in the efforts of
     society to reduce corruption as prompted by the
     International Federation of Accountants (IFAC)

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     ROLE IN ANTI – CORRUPTION CRUSADE AND MONEY
                 LAUNDERING - CONTINUED

 • Using participatory auditing techniques reinforced by
     corruption opportunity test tools, professional accountants
     can go ‘beyond the books’ to detect corruption

 • Confronting corruption in Ghana – there is a strong need
     to change the Public Accounts Committee’s Public hearing
     practice and adopt:
      South Korean Model using the citizens Audit Request
         system.


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  ROLE IN ANTI–CORRUPTION CRUSADE AND MONEY
             LAUNDERING (CONTINUED)

 • South Korean model was piloted in 2007 by the
     Supreme Audit of Honduras and was confirmed very
     effective.

 • In the area of money laundering/terrorism,
     accountants have an imposed professional obligation
     to help drive a crusade to combat the menace

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       ROLE IN ANTI–CORRUPTION CRUSADE AND MONEY
                  LAUNDERING (CONTINUED)


 • PKF as auditors of a number of financial

     institutions in Ghana is already in the fore front of

     the combat of money laundering/terrorism

     financing activities.

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                      ROLE IN EDUCATION
 • PKF provides professional services to a number of higher
     educational institutions.

 • In the 1960s and 1970s PKF was in the front line of
   training.
 • Partners sacrificed year-end profits for open door training
   policy for accounting graduates.

 • PKF can do more by collaborating with ICAG and
     accounting educators in education/training of accounting
     students and practioners.

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                  ROLE IN HEALTH CARE SECTOR

 • PKF is noted for providing a number of consultancy
     services to the Ministry of Health.

 • Accountants can help to lower the ever escalating cost in
     health care by focusing on four (4) core areas:
  Information System

  Logistic Management

  Quality Management

  Electronic Health
26 January 2013    PKF @ 60                                38
MEETING THE CHALLENGES OF EVER-CHANGING GLOBAL ECONOMY


• Professional Accountants need to strengthen core
  values of :

           Relationship

           Integrity

           Excellence
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                               CONCLUSION
   PKF’s role in the economic development and
        empowerment of nations is vividly evident.

   PKF is indeed “advisor of choice” with a culture of:


         Experience

                 Confidence and
                 Delivery

26 January 2013         PKF @ 60                           40
                  CONCLUSION (CONTINUED)

  PKF is ranked 11th place in the world ranking
        of Public Accounting Firms.

  PKF is represented in 120 countries.

  PKF has 1,827 partners and 12493
        professional staff world-wide.


26 January 2013      PKF @ 60                      41
                   CONCLUSION (CONTINUED)

 •    In Ghana, PKF has four (4) partners and eight (8) professional
     staff

 •    PKF operates in three (3) strategic offices – Accra,
      Tema, and Kumasi.

 •     PKF promise is “Local expertise where you are”

 •    PKF has done so much for Ghana in the 60 years of existence in
     this Country.

 •    Ayekoo PKF. We Salute you. HAPPY SIXTIETH ANNIVERSARY!!!

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          CONCLUSION (CONTINUED)

                    • Ayekoo PKF.
        • We Salute you.
 • HAPPY SIXTIETH ANNIVERSARY


26 January 2013   PKF @ 60          43
                                 THANK YOU!!!


     Professor Kwame Boasiako Omane-Antwi, Ph.D;
                   FCCA; FRSA (UK); AMP (OXON)
                                 Vice Rector
                    Pentecost University College
                            Sowutuom – Accra
                   Tel No. 0244320448/0202011775
                  E-mail: kbomane@yahoo.com &
                  kbomane-antwi@pentvars.edu.gh

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