A question of identity

Article Abstract:

The Institutes of Chartered Accountants in England and Wales, in Ireland, and of Scotland are considering a change in rules that would allow accounting firms in public practice to use the term 'chartered accountants' if at least 75% of the firm's partners and voting rights are held by chartered accountants, a reduction from the current 100% requirement. The change will allow firms to bring non-accounting specialists into their firms, but there is the threat that non-member partners will be accorded the designation in the public perception of 'chartered accountant'. The term 'chartered accountant' distinguishes many small practitioners and should not be debased. Before the change is adopted, it must be ensured that limitations on the use of the term 'chartered accountant' are relevant and that all those responsible for running a chartered accountant firm are members of the Institutes.

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Specialists under the CA banner

Article Abstract:

The Institutes of Chartered Accountants in England and Wales, in Ireland, and of Scotland are considering a change in rules that would allow accounting firms in public practice to use the term 'chartered accountants' if at least 75% of the firms' partners and voting rights are held by chartered accountants, a reduction from the current 100% requirement. The change is being contemplated due to the expansion of services being offered by accounting firms and the increasing reliance of accounting firms on non-accounting specialists. People becoming members of chartered accounting firms would be subject to disciplinary procedures and have to pay a fee, but accountant partners would not be held liable for their ethical lapses. By allowing specialists to be brought into chartered accounting firms, the profession will be strengthened.

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Regulation - from a Scottish perspective

Article Abstract:

Both the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS) recognize that the accounting profession's existing regulatory regime needs to be reviewed. The two bodies acknowledge the concern expressed from within and outside the profession that the present regime, widely considered as self-regulation, is not completely independent. However, ICAEW and ICAS have different proposals for addressing the problem. The English institute favors the continuation of the 'self-regulatory' regime, but with the help of an outside oversight board. The Scottish institute, on the other hand, believes that the best way to get rid of the public's negative perception of self-regulation is to create an entirely separate regulatory body.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Professional Organizations, Professional Organizations NEC, Accounting Services Regulation, Analysis, Accountants, Industry self-regulation, Industry self regulation, Professional associations, Accounting law

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