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GAZETTE
JANUARY 1989
accountant, which, in essence, is
not the advising of his clients, but
auditing the annual accounts of his
clients. Consequently, the char-
tered accountant does not primarily
have the same relationship of trust
with his client as the lawyer has.
His client may hesitate to tell him
all the facts because by doing so
the client may jeopardise the
chance of obtaining a clean
certificate for his accounts.
It is true of course that in many
cases the chartered accountant
also is an adviser to his clients, but
that does not alter the fact that in
the first place he is the person that
on the request of his client has to
audit/certify the accounts of that
client.
This difference in function, inmy
opinion, is an aspect to be seriously
reviewed when deciding, for
example, under the existing Ruling
in the Netherlands, whether the
profession of chartered accountant
qualified under that Ruling.
It is not surprising that most law
firms have reduced the so-called
accountant's letter (the statement
about pending litigation) to the bare
minimum. These firms - even if
they provide the information to the
chartered accountant on request of
their clients - try to limit this to the
bare minimum because they do not
wish their clients to hesitate to
come to them and consult them
about possible litigation out of fear
that this may have to be included
in the letter to their accountants.
The problem lies in the fact that
the chartered accountant has by
law a public duty to perform.
Assume a considerable claim
against a client of one of the
lawyers, which client also uses the
services of one of his chartered
accountant partners; the lawyer
will have to advise his partner, the
chartered accounant, at some time
about the chances in the legal
proceedings. How free will he feel
to advise his client?
Considered from this angle the
conclusion may have to be that
such a combination of professions
is undesirable, because it could
jeopardise seriously the free and
independent exercise of the law
profession or in any case make that
impression on the outside world.
It is not a question of conflicting
interests as may occur in any mixed
partnership, also not of how to
make sure that privileged
knowledge remains with the lawyer
handling a certain case. It is a
matter of difference in the
relationship with the client; a
problem that does not arise in the
case of a mixed partnership with
for example, a tax lawyer or a public
relations adviser or consultant
because they all are advisers, who
have no public function as the
accountants primarily have. It is this
difference in function that may well
have to lead to the conclusion that
a mixed partnership with account-
ants is not desirable as it may
endanger the free and independent
exercise of the profession.
•
Handwriting & Subject
Document Analysis
Michael Rasmussen,
Mayanncor Ltd.,
19, Woodside, Rathnew,
Co. Wicklow.
Telephone: 0404-69474
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