Accountants Act out of date, says professor

Press, 28 August 1982, Page 20

Accountants Act out of date, says professor

PA Wellington A call for updated legislation allowing for some outside control of the accountancy profession, was made by a Victoria University senior lecturer in commercial law, Mr Rob McLuskie. Speaking at the annual conference of the Accounting Association of Australia and New Zealand in Wellington, he called the Society of Accountants Act, 1958, outdated and in no way suited to the needs of a profession in the 1980 s. He believed that a governing statutory organisation like the Medical Council, could be adapted for accountants’ needs, but believed its make-up should also incorporate non-accounting representatives. The Society of Accountants had complete control of all disciplinary proceedings, as well as educational requirements, and admission to the profession, he said. . “Is it in the best interests of society that exclusive control of this nature be accorded a professional trade association? If society grants

substantial legislative • protection to-a profession, then it should have greater participation in decisions affecting the public interests.” Accounting standards, for example, affected the whole of commerce, industry, and the whole social fabric. “Fee fixing activities ... are increasingly seen as trade practices which are against the public interest. There are increasing demands to curb the activity of professional organisations which restrict competition," he said. The profession had to realise that non-members wanted a voice in the shape of the profession, the quality of its members, and the scope of professional activities, Mr McLuskie said. A separate statutory governing council would allow different groups within the profession to be separately represented, and could do away with the need, for compulsory membership. ' New legislation should give more-detailed requirements on registration and practice and should not be

left to regulation. A separate body, with outside representation, should govern registration, and also, possibly, education, he said. “The accountancy profession has had an almost exclusive concern with public practice. A council provided for by statute with representation also from public sector accountants, corporate accountants, cost and management accountants as well

as academics would go a long way to ensuring recognition of education and newer specialisations. “The needs of the wider community could be recognised by representation of the consumers of accounting services, especially industrial and commercial interests.” Mr McLuskie said that the profession should be actively considering the need for change.