After the study of ACCG315, I have gained a deeper knowledge regarding accounting profession. The stereotyped assumption that the only job for accountant is dealing with numbers no longer rooted in my mind. In practice, the accounting profession is a diverse occupation that is not just number crunching, but more about problem detecting and data analyzing. The role of accountant is particularly essential as they need to consider both the internal and external environment so as to expose existing or potential risks and provide feasible suggestions. Besides, the requirement for an accountant is not merely professional skills but the ethical conducts is highlighted. Due to the significance of accounting profession, the standard of it is heightened these days.
The development of technology has altered the accounting industry substantially. With the help of accounting software namely Xero, the efficiency and accuracy can be achieved. It is foreseeable that more advanced technical equipment or system will be created which means the work effectiveness could be accelerated; however, challenges may be imposed in accountants as computers can do almost everything that an accountant can do. Another contextual factor could be globalization. Under the background of
…show more content…
Accountants are concerned with the redundancy of their career as technology might replace accountants in the future. Not only that, the changing environment has impact on accounting industry since it requires accountant to be more adaptable and flexible. Still, the ethical issue can be found in the accounting profession. Unethical behaviors conduct by accountant will result in collapse of confidence in the public towards accounting profession. In words, although some of the issues are inevitable, accountants still need to acquire certain skills namely teamwork skill and professional
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
With every business activity come opportunities for fraudulent behavior which leads to a greater demand for auditors with unscathed ethics. Nowadays, auditors are faced with a multitude of ethical issues, and it is even more problematic when the auditors fail to adhere to the standards of professional conducts as prescribed by the American Institute of Certified Public Accountants (AICPA). The objective of this paper is to analyze the auditors’ compliance with the code of professional conduct in the way it relates to the effectiveness of their audits.
As accountants, we have an ethical obligation under the AICPA Code that requires us to place the public's interest ahead of all other interest, including our own self-interest and that of our employer or client. We must be independent, make decisions objectively, exercise due care, and must act with integrity. The standards of the Institute of Management Accountants (IMA) are similar to the Professional Conduct in the AICPA Code. Moreover, the principles of the AICPA Code include responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services. The IMA provides guidance on issues relating to competence, confidentiality, integrity, and credibility. The Resolution of Ethical Conflict section
The ethical dilemma in this case is one that Daniel Potter is faced with. Daniel is a staff
Proverbs 10:9 states: “People with integrity walk safely, but those who follow crooked paths will slip and fall” (New Living Translation).” This Scripture suggests that individuals who do not walk in integrity follow “crooked paths.” They walk in ways that are not morally sound, pure, and honest—but in ways that are corrupt. Clients want accountants with integrity. Thus, integrity is critical to the public trust. As a matter of fact, one of the general definitions of integrity provided by the AICPA Code is that it is a quality from which the public trust derives. Also, it is an element of character fundamental to professional recognition, and it requires members to be (among other things) honest and candid within the constraints of confidentiality (Duska, Duska & Ragatz, 2011). Integrity in the accounting profession involves adhering to the rules and principles of the profession. This includes remaining free of conflicts of interest and maintaining client relationships in which the accountant can remain objective in discharging his or her responsibilities. This requires independence in fact and in appearance as mandated under section 1.200.001.01, Independence Rule the AICPA Code. In other words, no one should be able to view the accountant as being biased with respect to a client’s financial reporting due to an improper client relationship. Lack of integrity in accounting practices has been, and continues to be, a key element in the downfall of many institutions which has hurt the public trust in the accounting
Ethics is commonly taught in all accounting courses in higher education and continues to be taught by companies when training accountants and auditors. With so many different accounting services now provided by accounting firms they have a duty to have ethical standards. In recent years fraud resulting from accounting
Accounting ethics has been difficult to control as accountants and auditors must keep in mind the interest of the public while that they remain employed by the company they are auditing. The accountants should take into account how to best apply accounting standards when company faces issues related financial loss. The role of accountant is crucial to society. They serve as financial reporters to owe their primary constraint to public interest. The information provided is critical in aiding managers, investors and others in making crucial economic decisions. An accountant is responsible for any fraudulent financial reporting. Some examples of fraudulent reporting are:
The Financial Accounting Standards Boards laid out the strict loyalty to the accounting ethics to ensure the integrities, the reliabilities and the comparability of the financial statements. Integrity in accounting in my mind is huge, because the community, the organization, or the state is trusting the professional accounting with their money. Therefore, the most fundamental thing that they can require from the accountant is integrity, that they can trust us, that we will do what we said we would do, also that we are not going to say or do anything that is not
It is highly essential for accountants and business professionals to maintain a standard of ethical conduct in the workplace as the nature of their work places them in position of trust. (Senarante, 2011). Accountants have the responsibility to ensure that their duties are performed in accordance with the five fundamental principles set out in the Code of Professional Ethics such as integrity, objectivity, professional competence and due care, confidentially and professional behaviour (Cunningham et al. 2014). Accountants are expected to be reliable and trustworthy. Thus they are required to act ethically in relation to their clients, employers and the general public in order to provide quality services in the best interest of the society (Eginiwin & Dike, 2014). The International Federation of Accountants (IFAC) have established a code of ethics for accountants, allowing each specific country to add their own national ethical standards to the code to reflect cultural differences. The code provides emphasis on the five fundamental principles as well as resolution of ethical conflicts. In Australia, professional accounting bodies such as CPA Australia, Institute of Chartered Accountants in Australia (ICCA) and the Institute of Public Accountants (IPA) adopt the Australian Professional and Ethical
Accounting: From Clay Tablets to the Cloud, How Technology has Changed the Accounting Profession Every business professional knows that accounting is the language of business. The language of business has especially been transformed in the last 38 years due to the almost constant change in technology and technology. Accounting professionals have become the interpreters for the language of business, a language that all business professionals must understand to be successful. in today’s highly competitive market.
The aim of this paper is to provide the framework of the current professional accounting code of ethics. What are the ethics and how we define them? In this report we try to determine the main ethical principles that will establish the right and
Change is inevitable. Yogi Berra once said “The future ain’t what it used to be.” It is clear that the future of the accounting profession ain’t what it used to be (Gormon and Hargadon 1). The changes occurring are happening fast, they are dynamic and they are completely and undeniably real. Since the world around the accountant is changing, the accountant has no option but to change as well. The field of accounting has always been one to know change and to know adjustment, but within the recent past and certainly within the next few decades, the changes that are occurring and will occur absolutely are the most dramatic and exponential yet. Obvious changes lie in the expanding scope of services performed by accountants, the increased use of
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.
The following essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning. Other aspects such as the current state of the system and the interactions with other systems and the future of the system will also be covered in this paper.