The client as consumer: an over-protected species?

Article Abstract:

Externally imposed legislation for protecting accounting clients is a good idea, but the recent increases in regulations are increasing client costs and reducing professional quality without giving clients any added protection. The European Community's Eighth Directive will require professional bodies to write new rule books for consumer protection. Increasing legislation is resulting in increase consumer costs because the costs of higher professional insurance rates and training requirements are passed on to the consumer. Increasing legislation is also reducing the quality of service rendered because accountants and auditors are being forced to become expert in one area and they are losing sight of their clients' wider business environments.

Consumer protection, Accounting

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Damned if they do, damned if they don't

Article Abstract:

Auditors may find themselves engaged by firms that are performing improper business activities. In such circumstances, the auditors may find themselves in a double bind: if they go beyond their professional and legal reporting duties, they may have trouble with the client, but if the auditors fail to inform authorities inside or outside of the client firm, the auditors risk censure from the UK Department of Trade and Industry or the Joint Disciplinary Committee of the Institute of Chartered Accountants. In a case where a company is being mismanaged for the personal advantage of its directors, the auditors' duty is to serve the public interest by protecting the funds of the investors or shareholders.

Accounting and auditing, Auditing, Practice, Auditors, Corporation reports, Company reports

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