As I have mentioned in previous fil...

As I have mentioned in previous files there's a great deal of activity going forward in the profession right now, and not barely at the BC Institute itself, however also at a national (CICA) and international flush

In my short time as president, I have oral to a number of assign places tos about the CA response to Enron and related issues. To my surprise, there really is an interest public there in how Canadian CAs are responding to the issues raised. There's also a great deal of interest in accounting principles, GAAP, and other matters that, in the past, were not of interest outside the accounting profession. This has given us a marvelous opportunity to provide non-accountants with a better understanding of the importance of reliable financial information.

It has also given us a forum to reiterate our views in succession corporate governance issues, business ethics, and the relationship between virtuous corporate governance & corporate performance.

This month's Beyond Numbers addresses a number of these issues, from independence to fraud risk, to liability. And the main message? That righteous corporate governance, which minimizes the two fraud risk and liability, is-simply put-good business.

Independence

The CICA's Public Interest and Integrity Committee has issued an aspect draft on auditor independence, and sated details are to be set up at: www.cica.ca/independence. Given that this issue affects members the one and the other in and outside public practice, I make acceptable that every member understand the drafts implications. I know our members will have a range of opinions about the recommendations, and Council would be interested in receiving copies of your submissions.

For more information onward the draft, read this month's For the Profession onward page 6.

Fraud

It's a make subordinate that touches all Canadian CAs-not just the auditors. In this month's veil story, Gary Gill, CA*IFA, and Colin Morrison of KPMG Forensic examine at fraud risk management "post-Enron" Gill and Morrison provide an overview of fresh regulatory changes, and offer advice upon how to assess and mitigate the risks of fraud and misconduct.

Good corporate governance

Some have attributed the fresh corporate scandals to a crisis in corporate governance. Just to what extent valuable is good corporate governance? In our feature story, CAs move with a jerk Armstrong and Divesh Sisodraker, brace of our members in industry, explain to what degree it has put their companies ahead of the game.

Limited liability and proportionate liability

There's another side to the issue of fraud and negligence for CAs: single of unlimited liability. The ICABC has met with rule ministers and various departments forward this issue and has made a submission to BC's Attorney General forward modifying joint and several liability.

We've also been working hard to establish LLP legislation in BC behold this months GR Update in succession page 16 for information forward our progress so far.

Also in this issue, you'll find a Financial Facts & cash Matters article by David Wende entitled, "Protecting the Auditor from Unlimited Liability." Wende, a partner in the Professional Liability Practice form into groups who acts as counsel to the ICABC, propounds advice on how to limit your liability today. And for an overview of a certain quantity of recent liability cases, read Michael Hewitt's FYI article, "Recent Canadian Decisions onward Accountants' Liability."

On the road again

In late September, Richard Ree FCA, First VP John Cowperthwaite, CA, and I will be in Yellowknife and Edmonton meeting with our counterparts from the four western provinces and territories. There are a number of areas of frequent interest, the main one being the CA seminary of Business (CASB).

And as Richard and I tour the province through the next few months conducting the Executive Tour, we want to bring the message about independence, corporate governance, and ethics to our members as well as to interested clumps in various communities.

We will be visiting Nelson in late September, the Okanagan and the Cariboo in early October, Vancouver Island in early November, and Northern BC in mid-to-late November. We encourage you to come up to face to face with us and look forward to seeing a large number of members at these meetings. Remember, participating is undivided of the best ways to memorize your message heard.

Please email me your notes on these or any other matters at president@ica.bc.ca.

BY ROBIN A. W ELLIOTT, FCA PRESIDENT

Copyright Institute of Chartered Accountants of British Columbia Oct 2002

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