Under fire: The Institute of Chartered Accountants in England and Wales has been criticised for ‘not doing enough’ over the make-up of its top ranks
A top accountancy body is under fire for failing to appoint black and minority ethnic directors to its board.
The Institute of Chartered Accountants in England and Wales, one of the industry’s most prestigious professional bodies, has been criticised for ‘not doing enough’ over the make-up of its top ranks.
The row comes after the organisation’s biggest auditors were blasted for not spotting problems at a string of companies that went bust.
The institute’s board is dominated by white directors despite the fact that a third of staff at the Big Four accounting groups – PwC, KPMG, Deloitte and EY – come from black and minority ethnic backgrounds.
The proportion of non-white partners and senior managers at the top of those firms is lower.
In recent years the accounting profession has successfully recruited more entrants from diverse backgrounds. But two senior professors of accountancy from Asian backgrounds told The Mail on Sunday that the organisation is falling short on appointing black and minority ethnic candidates to its upper echelons.
Atul Shah, professor of accounting at City University, said: ‘The ICAEW has not been doing enough to fix this issue. At best it is a box-ticking exercise.’
Critics point out that many non-white trainees entering the profession are struggling to advance.
Prem Sikka, a Labour peer and professor of accounting at the University of Essex, said some young accountants from black and ethnic minority backgrounds set up their own firms to avoid discrimination.
‘I hear from many of my former students that there was no opportunity to progress,’ he said. ‘The only way they could get on was to get out.’
An ICAEW spokesman said: ‘Ensuring the chartered accountancy profession reflects the communities it serves is a key part of our ten-year strategy.
‘We’re working hard to increase access to the profession, boost social mobility and to give members the tools they need to encourage an inclusive profession, and this will continue to be a priority.’
Allegations that ethnic minorities are disadvantaged come after a series of scandals over the audits of companies that later collapsed.
PwC and EY, which audited retail chain Wilko, were quizzed by MPs last month following accusations that they did not do enough to investigate its finances before it went under.
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