¶ … Accounting Profession: New Scrutiny and Responsibilities
While many people treat the accounting profession as something which lacks glamour and prestige, ordinary civilians often don't realize how crucial the accounting profession is to the world at large. The accounting departments in major firms are often what provides a foundation for most companies to be able to do what they do and accomplish tasks as needed. Accountants are the ones who are able to keep track of all the finances that are going out vs. what is coming in. Given the "new normal" in the world of corporate finance in light of the more recent corporate scandals, the work that accountants do have a greater level of importance. Accountants are now under greater scrutiny and have greater levels of responsibility: the accounting departments in major firms are now seen as ethical watch-dogs.
The skills and knowledge required in being an accountant are extensive. Aside from tax preparation and auditing services, accountants are also responsible for offering sage advice to firms and even government organizations. "Internal accountants create processes to find and eliminate waste and fraud. Management accountants record and analyze financial information. Government accountants -- at the federal, state or local level -- maintain records of government agencies and audit private businesses or individuals whose activities fall under government regulation or taxation" (usnews.com, 2014). Thus, because there has been such a rapid evolution of technology and comparable forms of gadgets, accountants now take the role of trusted business advisors (usnews.com, 2014). The business advisory role has become even more aggravated in this day and age as accountants are now seen as individuals who have to engage in a more regulatory/watchdog role, and become better acquainted with the signs of corporate scandal.
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When there is an overrun in an electrician's contractor fees or some other issue that is not controlled by the project manger, the project could come in over budget and cause additional cost-control problems. Poor estimating of an original wiring scheme for example could create delivery delays or a need to push a project's wiring portion into an unacceptable overtime scenario. Thus, any unforeseen delays push costs and the project
Loyalty to the client was clearly placed above loyalty to the overall public good and the standards of the profession. "Enron paid Andersen $25 million for its audit…and $27 million for 'consulting' and other services" which meant that Anderson had a substantial financial stake in retaining Enron as a client (Kadlec 2002). The Enron case illustrates the difficulty of self-policing within the industry. Today, providing additional services besides the
Accounting and the Public Interest: The accounting profession is not only an integral aspect of the society but it also plays a critical role in the nation and the corporate sector. As a result, this profession is expected to serve or contribute towards the public interest. The ability of the accounting profession to contribute towards the public interest is determined in the context of its standard setting process and legislation. In
Accounting in Australia: Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed to become an important element of the business fabric and economic development of a country and its organizations and institutions. This element has developed as a profession and business practice that is closely linked with the considerable economic development in Australia for
However, they have also changed the face of the accounting profession in a way that will affect the education and conduct of accountants in the future. In the future, the accountant will have to do more than to balance the books. In order to understand the potential educational requirements for accountants in the future, we will examine how they have changed historically and then apply the changes that have
However, the application of the 3% independent ownership has been restructured to make SPEs much clearer to delineate between parent company ownership and independent ownership. Another major issue that arose out of the Enron scandal is the manipulation used by Anderson of derivatives. In a BBC report, Emma Clark explains, "If you dig deep enough into any financial scandal you can usually find a derivative or two to take the
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