The role of public accountants

(Speech of Mr. Roberto G. Manabat, CPA chairman and CEO of Manabat Sanagustin & Co., CPAs during the Professional Regulation Commission Board of Accountancy and Philippine Institute of Certified Public Accountants – Joint oathtaking ceremonies of new CPAs)

When I was tasked by the Board of Accountancy to be the Keynote Speaker for today’s oath-taking ceremonies of newly licensed Certified Public Accountants, I felt elated to be given this unique opportunity to speak before a distinguished group of future CPA practitioners and hopefully leave a lasting impression that will help shape your minds in your present and future practice of our profession.

Somehow I felt nostalgic, looking back to my own struggle to make something of myself in our profession. The day I took my oath as a CPA like you. I still remember the pride of my mother seeing me become a full-fledged professional, embarking on a challenging future ahead and starting to earn my own keep.(Not that it was my first time to hold a job because I had to work part time while studying to help with my tuition and other school expenses).

Now what was in my mind as I received my CPA certificate? That early I already established a goal and how to realize that goal. I wanted to be a partner in an accounting firm which to me was the pinnacle of success. Why an accounting firm? It was in an accounting firm where I thought I would get maximum exposure early in my professional life. So I joined an established auditing firm as the first step to realize my dream. True enough I was assigned to many companies in different industries, not to mention different systems and ways of doing business where I did my job assiduously. My efforts were rewarded that in a short period of time, I was given a supervisory role as a field in charge and later as a manager of some engagements. In addition to on-the-job experience and training, accounting firms have the most up to date information on developments in our profession which gave me and the rest of the staff access to vast resources. I dare say my present firm, KPMG with its international network of offices recognizes this need thereby giving competitive edge to our staff.

After many years of sacrifices, I realized my goal of becoming a partner in a reputable firm and ultimately become the managing partner of another. Now, I am standing here before you, a fulfilled public practitioner in the field which you are about to embark on, eager to share my thoughts.

As you start your careers as CPAs, you will witness the constant flow of changes that has shaped and molded our practice of accountancy in the Philippines and around the world. I have always approached our profession with a certain awe for what we practitioners can contribute in influencing and shaping the world we live in, especially in the field of commercial enterprises. Indeed, I believe this must be the starting point of understanding the weight of responsibility and the awesome task that each of us, public accountants undertake in the service of public trust in ensuring the fair practice of commerce within the business community. 

How can we best play our role as Public Accountants especially in the face of growing regulatory pressures and public clamor for good governance, transparency and fair practice?

When we hear about the news around the world, the many scandals on corporate mismanagement, the fiscal issues among sovereign nations, and the growing public distaste for corporate greed as embodied by the “Occupy Wall Street Movement” and other similar public expression of defiance around the world, we are left with a certain degree of confusion; perhaps, we ask ourselves, “what kind of a world are we entering as agents of public trust? How can we be good professionals amidst the backdrop of such a mistrustful environment?” Indeed, the times have been extra-ordinarily challenging for us public accountants. We are faced with ever growing scrutiny in the way we perform our task not only from our clients, and regulators, but even from the general public. How do we ensure that we maintain an objective viewpoint amidst rising pressure from all sides?

The financial crisis at the turn of century (Enron, Worldcom) and the global financial crisis of 2008 have brought our profession under attack. The credibility of financial reporting which is the core of our profession is being questioned. The Task Force formed by IFAC on Rebuilding Public Trust many years ago has concluded that action is necessary at all points along the information supply chain that delivers financial reporting to the market. To improve the credibility of financial reporting, action will be necessary at all points along the information supply chain that delivers financial reporting to the market. Corporate managements and boards of directors, who have the prime responsibility for financial reporting, as well as auditors, standard setters, regulators and other participants in the reporting process such as lawyers, investment bankers, analysts, and credit-rating agencies, all have important roles to play and improvements in practices to make to restore the credibility of financial reporting. You will note that most of the important players, CPAs will be involved.

Roberto Manabat is the chairman and CEO of Manabat Sanagustin & Co., CPAs, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG in the Philippines. For comments or inquiries, please email [email protected]or [email protected]