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)

My first and foremost advice to you is to practice your profession with integrity. Doing the right thing at all times is not an option, it has to be the manner which will govern our lives. Ang pagtahak sa matuwid na pamamaraan ay ang susi ng ating kaunlaran at ang haligi ng isang bansang maka-Diyos, maka-bayan at maka-tao. We often look to other nations and get inspired by the way they have developed and transformed their society, I propose and daresay, we too can be great like our neighbor countries! Our greatness shall hinge upon the unique strength our people – simple, hardworking, professionals and ordinary workers – who take the high road and struggle each day to do the right thing.

We must make sure that we live integrity in the smallest details of our lives. For how can one be prudent on large concerns when one cannot be trusted with small ones? It starts with discipline in the streets, in how we dispose our garbage and the way we pay our taxes, perform our jobs, and make prudent decisions that impact the lives of many. Integrity is the currency of our profession.

As an auditor, our integrity is always under challenge everytime we face difficult client situations where the client’s position is in violation of the standards of our profession. I remember a Harvard Business Review article on”Why good accountants do bad audits” which talks about strong-willed client officers imposing their opinions on the auditors who give in to the pressure despite knowing the outcome is wrong. The heavy involvement of audit partners in sensitive and risky jobs plus proper training of audit staff in risk management and handling of difficult clients have to be undertaken to address this kind of problem.

A professional with integrity must also be a professional with a high level of competence. These qualities should always go together. 

Just what is a competent CPA? Competency is not limited to technical aptitude although it is a significant part of what we need to be good at. Competency on a macro level   includes, among others development of a world view or an understanding of how the globe is interconnected, and a keen appreciation of the issues faced by our Nation and the international community. Competency is about understanding our clients and their business. It is also understanding the concerns of other stakeholders such as the regulators, the government, and the public at large. Competency is also sensitivity to our environment and our ability to adapt to change as may be needed from time to time.   In a fast changing environment, a person who neglects to update himself with the developments in the field is left with outdated skills. Accounting has evolved into a very dynamic profession and we should not allow ourselves to be left behind. Lastly, competency must include our ability to communicate ideas effectively and precisely. They often say that the Philippines is not a manufacturing hub and that we are essentially a service economy, to that extent, I would agree but I would also like to add that we, Filipinos manufacture ideas and skills, ideas and skills that serve not only our economy but many of the economies where Filipinos work and live. 

What are the qualifications of a successful CPA of the future?

A research report done by KPMG & CFO Publishing Corp., has stated that the CFO of tomorrow should be a big-picture thinker rather than detail-oriented, outspoken rather than reserved, prefer to delegate rather than be hands-on, emphasize what gets done rather than how things are done, and make collaborative rather than unilateral decisions.

While remaining accountable for traditional tasks such as monthly closings, CFOs are also leading company-wide initiatives aimed at enhancing business performance, extending decision support, and planning strategy.

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 ma[email protected] or [email protected]