RIYADH – Mr. Talal Abu-Ghazaleh, Chairman of the Arab Society of Certified Accountants (ASCA), called yesterday for the convention of a seminar to discuss the topic of accountants’ credibility and the gap in expectations between the accountant and client and specifying the specific responsibilities and commitments of the accountant.
Mr. Abu-Ghazaleh also welcomed government oversight on accounting behavior, and asked that global accounting firms operating in the Arab world work towards a qualitative development of the profession’s level, in addition to a quantitative development to address the needs of the Arab world for certified accountants.
In a meeting with “Al-Hayat”, Mr. Abu-Ghazaleh described the controls adopted by the government as a positive step to raise the level of the profession. This came after a seminar he participated in Riyadh, which was organized by the Saudi Ministry of Commerce in order to introduce the controls adopted by the ministry for the profession, and was held under the patronage of the Minister of Commerce, Dr. Suleiman Alsalim.
Abu-Ghazaleh said that these controls are one of a series of correct measures being issued by the ministry, that include defining accounting standards, a charter on the profession’s ethics, oversight on the level of accountants’ behavior and system to ensure adherence of accountants to continuous training.
He said that the Saudi Assembly of Certified Accountants is following up on these decisions with predetermined steps, in order to advance the discipline and those who work in it, with the objective of serving the national economy. He pointed out that the level reached by the Saudi Assembly has granted it membership on the board of the directors of the International Federation of Accountants (IFAC). The IFAC held its most recent meetings in the city of Venice. There, the Saudi Assembly was approved as a full member of the IFAC.
Abu-Ghazaleh considered the lack of controls that specify the responsibilities of certified accountants, and the lack of professional accountability, to be some of the primary reasons behind the global lawsuits being pursued against international accounting companies.
He stated that a study prepared by a British organization entitled “The Nightmare of Lawsuits Against Accountants” showed that the total value of lawsuits currently ongoing against the 6 major accounting firms has exceeded 20 billion dollars, including the case of the Bank of Reliance and Trade against Price Waterhouse.
In regards to the status of the discipline in the Arab world, Mr. Abu-Ghazaleh emphasized the need to qualify large numbers to address the needs of the Arab accounting market. He pointed out that the number of Arab accountants does not exceed five thousand, whereas the region does need –according to the averages in advanced nations- approximately half a million accountants.
He went on to say that ASCA established the first system of examinations to qualify the certified Arab accountant at an international level, and that the first batch of Arab certified accountants were graduated from Bahrain last year, under the patronage of the Bahraini Prime Minister, Sheikh Khalifah Bin Hamad Al Thani. Among the graduates was the first female accountant, from Saudi Arabia.
He elaborated that there currently is close to one thousand students who have registered for the ASCA exam. He also called for the preparation of a dictionary that compiles all the terminology used in financial statements.
Mr. Abu-Ghazaleh said that his company –Talal Abu-Ghazaleh International (TAGI)- opned its first office last month in Jericho, as a step to begin its activities in the Palestinian territories. It is expected that the second of these offices will open in Gaza before the year’s end.
He affirmed that the company will limit its activities to accounting only, pointing out that the company has abided by this commitment in all Arab nations and abroad, because mixing accounting activity with other consultative or trade activities “violates the adherence to the profession’s ethics.”
In this regard he mentioned that TAGI was considered –according to the British study- to be the top accounting firm in the Arab region as far as the number of offices is concerned (40 offices), in addition to the number of employees (more than 600) and the number of clients and volume of business.
He said that TAGI last year achieved one of its highest rates of growth, reaching 25%, with business volume being 20 million dollars. He expected an even better growth rate this year; 30%.
Abu-Ghazaleh elaborated that due to the company’s interest in preserving its dominance, it follows predetermined policies related to ongoing training that its employees follow. The company is always keen to attract Arab expertise in the profession as well according to Abu-Ghazaleh, as it has more than 100 experts with PhDs and international certificates who are members in the American Institute of Certified Public Accountants, he said.
He stated that TAGI is committed to supporting the national expertise in the Arab world, and applies technical oversight systems on all its offices and activities that are centrally operated, in order to ensure the quality of performance. Additionally, its policy is to provide comprehensive services to its clients, including financial, administrative, legal and tax-related consultations, in addition to providing information technology and services/consultations on intellectual property. He said that this policy “qualified the company to be the only Arab accounting institution to be registered on the list of accredited companies with the World Bank and its affiliated organizations.”
TAGI includes 10 companies that operate in the areas of legal accounting, financial, administrative and industrial consulting, legal services, patents, project management and translation services.
Mr. Abu-Ghazaleh has obtained numerous honors and awards in recognition of his efforts in the field of Arab and international accounting. One of these was the Chevalier Medal of the French Republic, awarded to him by the French President Francois Mitterand.