An analysis of the accountants' role in the fight against corporate corruption

Abstract

Purpose: Corruption is an age-old phenomenon and a global concern. Its pernicious effects may be felt not only on corporate and national levels but also worldwide. This study embarks on ascertaining whether and to what extent the prevention, detection and disclosure of corporate corruption needs to be part of the accountants' roles and what training is being provided for this purpose. Design: The objectives of this study were achieved by carrying out a combination of semi-structured interviews and self-administered questionnaires to local Certified Public Accountants. Findings: This study reveals that Certified Public Accountants play a vital role in setting up generic preventive measures in the company rather than specifically target the prevention and detection of corporate corruption. The environment and culture, both inside and outside the organisation, must be conducive to fight it. Furthermore, they are rather uncertain about their responsibility in disclosing corporate corruption to third parties. Maltese accountants acknowledge that they are not well trained and informed on how they should act if they had to encounter corruption. Value: This study clearly points out that accountants cannot struggle to overcome corporate corruption on their own. The fight has to be an ongoing process and needs multi-fronted approach. Thereby, the study recommends the enactment of a specific law on the subject matter, inter-professional support and a coordinated approach from all levels of society.