Challenges and Impediments to Accountability; Lessons for the Kenyan
Accountant
CPA Denish OsodoDirector, Internal Audit
Safaricom Limited, Kenya
Uphold . Public . Interest
What is Accountability? Working
Definition
Accountability in Ethics and Governance
In ethics and governance, accountability is answerability, blameworthiness, liability, and the expectation of account-giving.
As an aspect of governance, it has been central to discussions related to problems in the Public Sector, Nonprofit And Private
(Corporate) And Individual Contexts.
Accountability in LeadershipIn leadership roles, accountability is the acknowledgment and assumption of responsibility for actions, products, decisions,
and policies including the administration, governance, and implementation within the scope of the role or employment
position and encompassing the obligation to report, explain and be answerable for resulting consequences.
Accountability in Accounting
Accountability is the responsibility of either an individual or department to perform a specific function in accounting.
Examples:-
• An auditor reviewing a company's financial statement is responsible and legally liable for any misstatements or
instances of fraud.
• Accountability forces an accountant to be careful and knowledgeable in their professional practices, as even
negligence can cause them to be legally responsible.
Accountability as a national value of governanceConstitution of KenyaChapter 2 – The Republic10. National Values and Principles of Governance
(1) The national values and principles of governance in this Article bind all State organs, State officers, public officers and all
persons whenever any of them --
(a) applies or interprets this Constitution;
(b) enacts, applies or interprets any law; or
(c) makes or implements public policy decisions.
(2) The national values and principles of governance include:-
(a) patriotism, national unity, sharing and devolution of
power, the rule of law, democracy and participation of
the people;
(b) human dignity, equity, social justice, inclusiveness,
equality, human rights, non-discrimination and
protection of the marginalised;
(c) good governance, integrity, transparency and accountability; and
(d) sustainable development.
The accountancy profession must provide trust and accountability
Accountability reflections
The Accountants Act 2008Section 30 of the accountants Act 2008, the professional conduct of accountants
ICPAK professional code of ethics section 100.1A distinguishing mark of the accountancy profession to act in the public interest. A professional
accountant’s responsibility is not exclusively to satisfy the needs of an individual client or employer.
ICPAK professional code of ethics section 200.3
The threats to accountants’ responsibility and
accountability to the public interest when performing
professional work.
Threats of : Self Interest, self review, advocacy, Familiarity ,
intimidation
International Federation of Accountants ( IFAC)
The decisions and behaviors of accountants should reinforce
good governance and ethical practices, promote ethical
culture, foster trust and transparency, bring credibility and
value to decision making, and present a faithful picture of
organizational health to stakeholders.
Our profession is hinged on trust and accountability4
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In high accountability cultures.
Accountability has a direct relationship to prosperity
Have a look at the Tag lines – Communication to Stakeholders!!!
Broken promise by professionals??6
Market Headlines
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Challenges to Accountability
• Ethical codes for professional accountants globally compels professional accountants, regardless of the roles that they perform.
• However, Compliance with the fundamental principles may potentially be threatened by a broad range of circumstances.
Weak and/or Incompetent Actors - Legislation, Prosecution, Judicial Systems and Citizens
Cultural Excuse
Absence of synergies from the Multiple agents of Good Governance
Corruption - Theft
Organisation Structure Design
High level Discretion, Privacy, Secrecy and Concealment of Information in Society
Absence of Consequence Management
I AN
SWER
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R IT
I AC
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The imperative move from Responsibility to Accountability
Accountants must fast track progression from a responsibility point to a position of answering for
results produced.
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I OW
N IT
. Responsibility (Before Phase)
A before- the- fact mindset of personal ownership and commitment to a result
Self Empowerment
(During Phase)
Taking action and risk to ensure the achievement of the result.
Accountability
(The After Phase)
A personal willingness after -the -fact to answer for results produced.
“Back to basics of accountability ” - Code Of Ethics For Professional
Accountants
•A professional accountant should be straightforward and honest in all professional and business relationships.
Integrity
• Devoid of bias, conflict of interest or undue influence of others to override professional or business judgments.
Objectivity
• Acting diligently and continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques.
Professional Due Care
• Respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose.
Confidentiality
• A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession.
Professional Behaviour
How often do you reflect on these fundamental principles of our profession?
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Key Lessons
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• What should you / your organisation be accountable for?
• To who should you be accountable?
• In what form should you fulfill accountability obligations?
• All work in public interest must be transparent
• All your actions will be on the screen one day. Will you be proud watching?
• Governance and Ethics is the next frontier- will you be in it? Will the accountant provide the
lead?
Effective leadership is Central to Accountability
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