The Gazette 1989

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. •

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Michael Rasmussen, Mayanncor Ltd., 19, Woodside, Rathnew, Co. Wicklow. Telephone: 0404-69474

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