President: Accounting lacks quality, ethics

QUALITY and ethics in accounting is something that is not found in PNG, says Certified Practicing Accountants (CPA) PNG president Richard Kuna.
Kuna made the remarks during a dinner to welcome the International Federation of Accountants (IFAC) president In-Ki Joo, who is in the country to attend the 24th joint CPA PNG and CPA Australia (PNG branch) conference in Port Moresby. “You see companies declaring losses in their tax returns but yet they build up assets,” he said.
“There are auditors who audit those accounts and lodging those tax returns to the IRC (Internal Revenue Commission) and it doesn’t make sense.
“This is because we do not have a quality assurance programme in the country which is a function of government. But this has never been financed.”
Kuna said it was a challenge and that CPA PNG was trying to take on this role and would need government support to ensure change occurred.
“In terms of the conduct of our members (accountants), they need to be investigated.
“We need to discipline practitioners who need to change for the betterment of PNG.
“Good governance is needed for a country to develop.”
It was also announced that CPA PNG had been elevated to join IFAC as a permanent member of the international accounting body. CPA PNG was previously an associate member and was voted into IFAC on Nov 13 which saw it join 130 member countries.
Kuna said it had been a long, vigorous and challenging journey for PNG to join IFAC.