ACCOUNTANTS need to acquire new skills and offer services that are aligned with moves by Hong Kong and mainland companies to adapt to a global playing field.
Companies are under pressure to increase transparency, improve corporate governance and ensure stricter compliance with norms. Professional accountancy firms can provide the expertise to address these demands from regulators, stakeholders and the community at large.
Joseph Lai, past president of the Hong Kong Institute of Certified Public Accountants and the Chartered Institute of Management Accountants (CIMA), said high-profile corporate failures in the past few years had put the spotlight on the need for good reporting systems and strict financial controls in companies.
He said the accounting profession, unlike fields such as IT, had evolved quite slowly. 'Accountants have a comfort zone. However, the world around us is moving forward very quickly and we must not be complacent about change.'
Mr Lai said the services offered by accountants in public practice seemed to have come full circle.
Historically, audit firms had provided management consultancy and share registrations, which created certain efficiencies and allowed them to capitalise on client relationships. The audit function was now expected to be completely independent, and these other business activities had to be curtailed.
'However, in addition to their role as reporting accountants in initial public offerings, there is an emerging reliance on accountants to ensure compliance under the listing rules,' Mr Lai said.
