Fighting corruption via accounting

Fighting corruption via accounting

Written by Kay Kimsong

FRIDAY, 26 JUNE 2009

Kak Key, chairman of Morison Kak & Associates, an auditing, tax and accounting firm, says that strict auditing can clean up Cambodia’s business environment for everyone’s benefit Photo by: KAY KIMSONG Chairman of Morison Kak & Associates Kak Key. CEO TALK BY KAY KIMSONG Do people understand the importance of your firm's role in creating a better business environment for society? When Cambodia first got peace, accounting and auditing were not things people knew of. When I came here, I was surprised to see businesses didn't use accounting systems - instead they used a notebook to write down money in and out of their businesses. Now compared with those days in the 1990s, people pay more attention to numbers, but it remains the case that most local businesses operate without proper accounting and auditing practices. I think that's due to two reasons: firstly, businesses here are commonly built on nepotism, and secondly, the authorities aren't aware how important a tool accounting and auditing is. We need proper accounting to measure the economy, to collect taxes. Some of my clients have asked why they should pay tax if the guy next door isn't. And it seems the authorities are not serious - in 2007 the Ministry of Economy and Finance urged 700 enterprises to get audited, but my firm, which is the third-largest in the country, didn't hear from a single company.