Accountants’ group in call for legal status ruling

Aug 11 2008 by Tony McDonough, Liverpool Daily Post

OWNERS and managers of small firms in Merseyside and the North West are at risk from unqualified people calling themselves accountants.

The Association of Chartered Certified Accountants in the North West is joining a campaign to persuade the Government to give the term “accountant” legal status.

A petition was recently posted on the government’s Number 10 website by one of the ACCA members in the hope of bringing this to public attention. Over 4,000 people had signed it by the government-imposed deadline.

The campaign is being supported by Vince Cable, the Liberal Democrats’ deputy leader and shadow chancellor.

He sponsored an EDM (early day motion) in the House of Commons which has been signed by 40 MPs, calling for the term “accountant” to be legally recognised.

ACCA North West spokesman Ilyas Patel said: “Surveys consistently show that small businesses and private individuals see their accountant as their most trusted adviser.

“When people seek the help of an accountant and depend on the advice they get, they have no effective redress against unqualified practitioners for incompetent or unprofessional work.

“We believe simply that reservation of the term ‘accountant’ to qualified professionals is necessary to protect those small businesses and individuals who have every justification and right to be able to rely on their accountants.

“This is not a unique or revolutionary suggestion. Indeed, many people are amazed that such protection does not already exist.

“Parallels can be drawn with many other professionals such as lawyers and doctors who must have recognised qualifications and keep their knowledge up to date.”

Mr Patel says the issue has particular significance now we are in an economic downturn. He claims small firms could have their finances damaged through poor accounting advice.

He added: “Greater accountability needs to be introduced and ACCA, together with the UK’s other professional accounting bodies, is keen to see that the public and small businesses are properly protected in this area.

“Legal protection for the term accountant would allow only technically qualified practitioners to call themselves accountants.

“Use of the description should be restricted to members of the prescribed accountancy bodies who are subject to a range of significant regulatory and monitoring measures.”

tonymcdonough