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Accounting, Auditing Crucial in Development, Experts Say

Socheat Chum, a senior associate auditor for KPMG.
WASHINGTON DC - Proper accounting and auditing help promote business opportunity and development, finance experts say.

Socheat Chum, a senior associate auditor for KPMG, a professional accounting service, told “New Voices” on Monday that companies with “solid” financial statements will “attract more business partners and be able to borrow money from the bank.”

That can lead to further social and economic development, he said.

“The better the business environment, the more investors invest in the country, and the better the economic conditions a country will have,” he said.

In general, Cambodians practice family-style business, he said. That means they don’t have proper financial statements or systems that could help local businesses grow. But the ability to grow, borrow money and bring in new partners will be important as Cambodia joins with its Asean neighbors in economic integration, he said.

Chansivatha Nhem, a certified public accountant in New York, said accounting is important for any business in any country, no matter the size. Good accounting increases transparency and reduces corruption, she said.

“A financial statement is not just figures in a paper, but it reflects the strength and weakness of the operation of a company or government,” she said in a phone interview.

However, she said, Cambodia would be best served following the international finance system, which is different from that in the United States—because now the US is considering following the international system, as well.