are we Auditor or Accountant

Imtiaz Iqbal · 10-23-2002, 09:07 AM

Once Accountancy profession was a respected profession but now we have been labelled as tax evaders and also perpetrators of many evils in the corporate circle.

Although it is image has been built by TV dramas which were onair in previous year. ICAP did take very stringent actions to stop such things. but I think this is not the solution to the problem.

I suppose it is noe time to rethink and redevise our profession considering a seperate role for Auditor and Accountant.

jbladeus · 10-23-2002, 09:44 AM

To be really honest and frank Imtiaz.... we r that evil right from the start.

I mean, since we teach our trainees to let go and ignore material mistakes in the financial statements... and even when one does report such misstatement to us, we have this habit of falling to the whims of our clients by removing these audit issues from our reports... so what do u expect us to be in our lives.... angelic and honest?!!

I think that we have been given a 'true and fair view' by the media which has been projecting us in a bad light lately. Its only just that we've been caught this time.

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

***admin*** · 10-23-2002, 09:47 AM

Dear Imtiaz

I think that the topic u posted in this forum should've been posted in our forum 'Crisis in the accounting industry'

Skimpy · 10-24-2002, 11:19 AM

This term 'true and fair' doesnt apply to anything in our industry.... 'cos nothing over here is true... we all say lies all the time.

Similaraly... nothing is fair over here... where everybody is out for each other's thorat. How can things be fair over here??!!!

farroo · 10-25-2002, 06:17 AM

Enron case has significantly damaged the image of auditors. this has led to the revolutionary measures in the field of global financial reporting. Weas the auditors have created terms like 'true and fair view' , 'materiality' , reasonable assurance' etc. but ironically we cannot define these terms properly. now the demands of the profession are that we act as auditors and accountants as well. we need to conduct our audit by going in deep into the accounting system of the client to identify the anomalies existing in the accounts.

flu

kris · 06-06-2004, 06:29 PM

Accountants are geniuses. No doubt.
Every scandal always has some root cause.
The recent turmoil came on the accountants are really merger of the term auditing and accounting. The person or firm who is giving auditing services should not be involved in auditing and tax or any other service to the cliental.
The terms them selves are not root cause as auditor is librated to take decision regarding materiality, and due diligence while doing fieldwork. The main factor is auditor independence and ethics. Unless masseurs will not be taken to stream line these to main elements in auditing the issues like Enron will keep coming up, hence SOX is introduced which is, I understand, compromise from SEC of USA due to political pressure.
Regards,


kris

sumaaan · 06-07-2004, 05:38 AM

In all honesty, accountants have been tax evaders from the very beginning... Although being a respected profession, this accountancy field was corrupt long before Enron and what these recent KPMG cases have highlited..

It has just been due to recent significant cases like Enron that the image of accountants has been tarnished... Long before all this, any person close to this profession would have known all the 'tricks' even though our society wasn't aware of it...

We should never blame media for highliting all these cases... After all media is for spreading awareness.

jbladeus · 06-09-2004, 03:57 AM

whoa... Return of a long dead topic!

Why did u have to bring this topic back from its virtual grave, Kris? Dont you know that its morally wrong to dig up graves? <img src=icon_smile_big.gif border=0 align=middle>

Anyways, i'll agree with Sumaaan that its wrong to kill the messenger. Media is just showing what already was known to the profession's insiders for a long, long time. Lets hope that this public humiliation, the regulatory changes, the added emphasis by the profession's governing bodies on quality control and compliance with standards will bring a qualitative improvement in our profession and we can once stand up with our heads high as a professionals of integrity.

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

sumaaan · 06-09-2004, 07:19 AM

Yup... Lets hope quality control procedures are applied... Lately there have been so much concerns and talk about 'Earnings Management' and window dressing... This has increased pressure on accountants to investigate whether figures are no artificially inflated or reduced.

smraza · 06-09-2004, 04:11 PM

Aaaaah Dukhti Rug,
Who says Auditors or Accountants are tax evaders????????
Our Income Tax Ord. itself is playground for the tax evasion, and Auditors n accountants are genius that they know each and every looop hole of the system.

all the members who have posted messages in this forum, i would like to ask, have anybody been to I.T. department, bhai saaab, can u quote any case of I.T. which has been against the provision of I.T. Ord. ?????
Suppose if u find the Case as i mentioned, then tell me how can it be possible that an I.T.O. or C.I.T. will allow to do so? (I hope u will understand that how will they allow)
So dear why always the Auditors or Accountants are blamed.

Suppose if they present the window dressed case for Assessment, then in my opinion the I.T. Dept. should be competent enough to prove that the case is fake, why dont the I.T. Dept. hire Competent Staff?
as i quoted an example before in another forum,
that an I.T.O. accepted the lease liability (Long term) as liability but he objected the Current Portion of lease liability and added the same in the income of the company.

No body in our society is ready to pay taxes, so accountants and auditors help the society in this regard. <img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle>

SMR

Edited by - smraza on Jun 09 2004 112302 AM

smraza · 06-09-2004, 05:56 PM

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>
Dear Imtiaz

I think that the topic u posted in this forum should've been posted in our forum 'Crisis in the accounting industry'

<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

Hey Admin,
Where is the forum which you have mentioned above???

SMR

Moon · 06-09-2004, 06:32 PM

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>
but now we have been labelled as tax evaders <hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

There is a difference between being tax evadors and helping in the clients to exploit the weaknesses in the law as no law is complete other than that introduced by ALmighty Allah.

Invest your hard work today for a success benefit tomorrow

sumaaan · 06-10-2004, 06:32 AM

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>

There is a difference between being tax evadors and helping in the clients to exploit the weaknesses in the law as no law is complete other than that introduced by ALmighty Allah.

Invest your hard work today for a success benefit tomorrow
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

It is morally and ofcourse technically wrong to exploit weaknesses in accounting standards and artificially mould items as desired... This has been a very hot topic in the past couple of years... Auditors are strongly recommended to investigate such things which auditing financial statements!

jbladeus · 06-11-2004, 12:59 AM

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>Hey Admin,
Where is the forum which you have mentioned above???<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

Check out the date of that message SMR.... it was posted two years back and i can clearly remember that there used to be a forum of that name.

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>It is morally and ofcourse technically wrong to exploit weaknesses in accounting standards and artificially mould items as desired... This has been a very hot topic in the past couple of years... Auditors are strongly recommended to investigate such things which auditing financial statements!<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

Most respectfully Sumaaan... dont want to say this but you really dont know what you are talking about. Modern-day chartered accountants get such exorbitant salary packages only because of their ability to find and exploit loopholes in the prevailing tax laws and other standards and if they stop doing that, they'll only be offered salary packages of a munshi!

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

smraza · 06-11-2004, 03:58 AM

Totally agreed, Guybrush, the word 'Chartered' simply distinguishes a CA from simple accountant, that a CA has some 'Special' qualities which a normal accountant donot possess <img src=icon_smile.gif border=0 align=middle>

SMR