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Regulation Of Accounting Firms: Evidence From Fiji

Author

Listed:
  • Shiro Shivani Devi
  • Rashika Saroshma Kumar
  • Sherlin Krishna Raju

Abstract

Ever since the major corporate collapses of Enron in the United States and HIH Insurance in Australia, the public accounting profession has come under global scrutiny. Both collapses had one thing in common, the auditor firm, Arthur Anderson. Many lessons were learnt from these failures which saw both jurisdictions taking counter-active measures either through enactments of new legislation or establishment of oversight bodies aimed at tightening control over practicing public accountants and auditors. In the Pacific region, developing countries such as Fiji have also experienced corporate calamities. This paper explores the need to regulate chartered accounting (CA) firms in Fiji following three major financial mishaps: the National Bank of Fiji, the Fiji National Provident Fund and the hardware industry. To gather data, we conducted in-depth interviews with the Commerce Commission of Fiji, the South Pacific Stock Exchange, the Fiji Institute of Accountants (FIA) and partners from the top four CA firms in Fiji, namely, KPMG, PricewaterhouseCoopers, Ernst & Young and G. Lal &Co. The results showed that the FIA and the CA partners were pro self-regulation while other interviewees showed strong support for regulation by an independent oversight body.

Suggested Citation

  • Shiro Shivani Devi & Rashika Saroshma Kumar & Sherlin Krishna Raju, 2012. "Regulation Of Accounting Firms: Evidence From Fiji," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(1), pages 91-101.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:1:p:91-101
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    References listed on IDEAS

    as
    1. Ray Ball, 2009. "Market and Political/Regulatory Perspectives on the Recent Accounting Scandals," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 47(2), pages 277-323, May.
    2. Brendan O'Connell & Laurie Webb & Henry R. Schwarzbach, 2005. "Batten Down The Hatches! U. S. Accounting Scandals and Lessons for Australia," Australian Accounting Review, CPA Australia, vol. 15(36), pages 52-67, July.
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    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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