" (2004)
Ricol states in relation to the audit area that "...actions were recommended in two primary areas:
1) Reducing threats to auditor independence; and 2) Strengthening audit quality control processes. (Ricol, 2004)
In regards to corporate management and governance, it is related in Ricol's speech that the task force called for corporate boards to "demonstrate greater accountability for the information, financial management and internal controls necessary to produce trustworthy information. Sound corporate governance policies are especially important in emerging economies, directly impacting investor confidence and economic growth." (Ricol, 2004)
V. ACCOUNTING'S CENTRAL ROLE in the ECONOMY
Accounting clearly plays a central role in the economy through "building confidence in financial information and financial infrastructure." (Ricol, 2004) According to Ricol the accounting profession "cannot afford to look the other way and focus on capital markets in developed countries." (Ricol, 2004) Additionally stated by Ricol is that the accountancy profession needs to "reach out to nations without a well established profession as they will play critical roles in determining our future." (2004)
Ricol states that predictions have been made that approximately 95% of the population growth in the world will take place in nations that are yet developing and that the financial systems in these countries can be sustained through the "international accountancy community working "in collaboration with governments, regulators, analysts, development agencies funders, and others." (2004)
Finally, it is stated by Ricol there it is critical that "good quality accounting and auditing infrastructure" be present in the economy and that this infrastructure have "due respect and recognition in regulatory and legal environments." (2004) Transparency in reporting is also noted to be of vital importance. This is stated to required "...both the expertise at the national level, the capacity to train and continue to develop members of the profession, and the cooperation and coordination with other bodies both nationally and internationally." (Ricol, 2004)
V. APPLICATION of ACCOUNTING PRINCIPLES
The work of Edward L. Yingling (2008) entitled:...
Role modern accountant Corporate & Global Business the paper Double Spaced Times New Roman Font Size In many ways, the role of the modern accountant in corporate and global business has substantially changed from that in previous times. The effects of globalization are ever increasing; thus, it is necessary for accountants to be cognizant of global developments more than ever. Additionally, the financial crisis of 2008 has resulted in significant regulations
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 The role of financial statements in investing is that they provide a consistent format that can be used by potential investors and other stakeholders to evaluate a company. There are several components that facilitate this happening. For publicly-traded firms, Generally Accepted Accounting Principles (GAAP) play a key role in the creation of financial statements. GAAP is a common set of accounting principles and procedures that companies use to compile their
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
(Ibid.). Major Changes in the Accounting Profession The financial scandals proved to be a turning point in many ways for the accounting profession. The public outcry forced the legislatures to reexamine the regulatory environment for businesses, resulting in the enactment of the Sarbanes-Oxley Act in July, 2002, which is the most significant accounting legislation since 1933. It also forced the accounting professionals and their organizations such as the American Institute of
Accounting fraud is defined as the "intentional misstatement of financial reports, in violation of generally accepted accounting principles, with the objective of making certain people act in detriment to their best interests" (Wuerges & Borba, 2010). The GAAP are the principles by which financial accounting statements are produced, and for a public company these need to be followed, so deviating from GAAP will constitute a violation. Where it becomes a
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now