...Professional Development Challenges Faced by Accounting Profession ACCT 5100 Professional Development Challenges Faced by Accounting Profession Introduction Accounting has evolved, like many other professions, over time and is playing an increasingly significant role in today’s business environment. The key accounting practices are still identify, measure and communicate the economic condition of an entity with both inside and outside stakeholders. Accounting professionals have widened their attention beyond technical skills to incorporate social implications over the past several decades. Over the past few years, the whole world witnessed the impact of modern advances in information technology, globalization, and many other factors, all of which increased the public awareness of changes in global business environment and also brought many challenges to this profession. In response to these difficulties, modern accountants must develop a broader range of knowledge and skills to better perform their financial responsibilities. This paper examines several key challenges concerning the profession: 1) independence, 2) globalization and IFRS, 3) knowledge and skills gap. Challenges faced by accounting profession Independence and objectivity Independence is not a new issue faced by accountants; however, it has been and always will be one of the biggest challenges faced by this profession. Accounting to the research done by Beverley...
Words: 2914 - Pages: 12
...THE IMPACT OF INFORMATION TECHNOLOGY ON THE ACCOUNTING PROFESSION. 1.1 Introduction It has become increasingly necessary for all businesses to incorporate Information Technology (IT) solutions to operate successfully and be able to maintain a competitive edge within the market they operate. As a result, many corporations have adopted Information Technology on a large scale by investing in Enterprise Resource Planning systems (ERPs) to accomplish their business transactions and data processing needs. Through the use of technology, various organisations have ventured into more efficient ways of conducting their business operations. Focus has since shifted to adopting the latest technology in order to beat competition. In light of the accounting division, this has meant adopting different forms of ERPs, some of which have led to huge failures even in reputable organisations. In some organizations, decisions with regards to adopting newer technology are made independent of the accounting function. This implies taking on such projects without prior consultation of personnel in the accounting division. As a result, some of the failures in those projects have adversely affected the accounting function of many organizations. In this study of the Impact of Information Technology on the accounting function I intend to establish a conclusion as to whether the impact being made by Information Technology on the accounting profession is positive or negative with particular attention...
Words: 1366 - Pages: 6
...Preparation Resources Module 1: Conceptual issues in assurance Overview This module builds on the fundamental concepts of auditing and other assurance services introduced in your prerequisite auditing course. It begins with an overview of the key drivers in the demand for audits, and then surveys current challenges and issues such as the audit and regulatory environment and the expectation gap. You will also study issues related to the economics of auditing and their impact on auditor motivation and standard-setting; in the process, you will consider different perspectives on protecting the public interest and the public accountant’s role in helping to advance the profession. The various topics integrate information sources related to research in the field and readings from the Ethics Readings Handbook (ERH) , drawing on concepts from your prerequisite accounting theory course. In AU2 , you will study a wide variety of technical, practical, and theoretical material. This module lays the foundation for exploring some of the more difficult areas of professional judgment you will encounter as you progress through the course. When faced with issues that challenge your professional judgment, you are encouraged to think back to the concepts studied in this module to help frame your decision making. Please be sure that you have purchased the CPA Canada Handbook, CGA Student Edition mentioned in the course introduction, as it is required for AU2 . You are responsible for reading...
Words: 15035 - Pages: 61
...and Practice Exam Preparation Module 1: Conceptual issues in assurance Overview This module builds on the fundamental concepts of auditing and other assurance services introduced in your prerequisite auditing course. It begins with an overview of the key drivers in the demand for audits, and then surveys current challenges and issues such as the audit and regulatory environment and the expectation gap. You will also study issues related to the economics of auditing and their impact on auditor motivation and standard-setting; in the process, you will consider different perspectives on protecting the public interest and the public accountant’s role in helping to advance the profession. The various topics integrate information sources related to research in the field and readings from the Ethics Readings Handbook (ERH) , drawing on concepts from your prerequisite accounting theory course. In AU2 , you will study a wide variety of technical, practical, and theoretical material. This module lays the foundation for exploring some of the more difficult areas of professional judgment you will encounter as you progress through the course. When faced with issues that challenge your professional judgment, you are encouraged to think back to the concepts studied in this module to help frame your decision making. Please be sure that you have purchased the CPA Canada Handbook, CGA Student Edition mentioned in the course introduction, as it is required for AU2 . You are responsible for reading...
Words: 14959 - Pages: 60
...But, business sustainability depends on its financial performance and the people governing the business. And to measure whether companies are capable of handling potentially unexpected corporate risks, companies’ accounting transactions are reported through financial statements. These financial statements are the masterpieces of accountants who analyze the transactions and measure the financial stability of the company if they are sustainable enough to defray any business risks. However, in presenting these statements, some accountants may mislead owners or decision makers through financial mistatements which affect the business itself. Because of this accounting malpractice, it may cause to a major problem that will put CPAs into grave misconduct such as allegation of fraud and engangement in corporate accounting scandals. Accounting malpractice are affecting the businesses globally. It decays the economy of the country and slowly creeps into different industry until they are no longer outlive in the business world. In fact, the Report to the Nations on Occupational Fraud and Abuse in Asia-Pacific Region led by Wells (2010) found out that the Asia Pacific median has a loss that was significantly higher than the global median loss of $160,000 because of accounting malpractices. This report also added that 338 fraud cases that has been found on that Asia-pacific region wherein China has the most number of fraud cases and followed by India, Australia, Indonesia and United Arab...
Words: 18180 - Pages: 73
...who is from San Francisco Bay area, goes to college, majors in accounting, and goes to work for a large accounting firm referred to as “The Firm.” The auditor is based on real world experiences of the author that lets students follow Jack Butler’s journey up the company’s ladders at The Firm, which gives students a better understand of the auditing profession. The story begins with Jack Bulter getting a promotion to become a partner in the firm in which he has been working for over 10 years. We are later introduced to his colleagues Dan Pamell and Barbara Gillespie who were in the same situation as Jack to whether they were going to be chosen as a future partner. In the end Barbara Gillespie gets the promotional, worrying Jack that his relationship with Dan Pamell be affected with not obtaining the position. At the end of the book Don, Jack’s friend, was offered to get a partnership position in the Oakland branch but he declined it. As the story progresses, we follow Jack through the struggles and achievements that lead him into becoming a partner as well as maintaining a life outside the office. As the story progresses, Jack Bulter explained how he was going to purse a law degree to become a lawyer like his father who we learn is a partner in Messner, Smith and Bolther in San Francisco. After taking some accounting classes and making As in them, Jack came to realize that his passion was to major in accounting. With the help of Jack’s professor and advisor at Farwestern State...
Words: 824 - Pages: 4
...Abstract Over the past ten years, public trust in the accounting profession has been diminished due to financial scandals brought on by poor decision making, dishonesty and a move away from morals, values, and ethics. With the perception of accounting at an all-time low, there is a need to reinvent the profession. The following pages of this research paper will examine the Model of Organizational Trust, and its three elements of ability, benevolence, and integrity. The three elements will be defined and explained using support from peer-reviewed articles. The report will also discuss the ways in which the elements are incorporated in the AICPA’s Code of Professional Conduct. The elements will be examined to learn the ways in which they help to promote trust in the accounting profession and finally, suggestions will be proposed to help improve public trust in the accounting profession. Introduction An essential component every profession must possess in order to garner satisfaction and commitment from clients and customers is trust. Trust cannot be gained quickly; it is developed over time through interactions, observations, and an understanding of another’s beliefs and values (Mayer, Davis, Schoorman, 1995). However, a person’s stated beliefs do not often dictate their behavior. In pursuit of professional goals, individuals often set aside what they know to be right and act in a manner that benefits them either financially, with recognition, or in some other manner (Six...
Words: 5916 - Pages: 24
...motto sewed Arthur Andersen & Co. well. Unfortunately, the firm's association with one client, Enron Corporation, abruptly ended Andersen's long and proud history in the public accounting profession. K Y TOPICS: history of the public accounting profession in the United States, scope of E professional services provided to audit clients, auditor independence, and retention of audit workpapers. ; Case 1.2 Just for FEET, Inc. 23 In the fall of 1999, just a few months after reporting a record profit for fiscal 1998, Just for Feet collapsed and filed for bankruptcy. Subsequent investigations by law enforcement authorities revealed a massive accounting fraud that had grossly misrepresented the company's reported operating results. Key features of the fraud were improper accounting for "vendor allowances" and intentional understatements of the company's inventory valuation allowance. K Y TOPICS: applying analytical procedures, identifying inherent risk and control risk E factors, need for auditors to monitor key developments within the client's industry assessing the health of a client's industry, and receivables confirmation procedures. Case 1.3 Jamaica Water P r o p e r t i e s 37 Shortly after accepting an executive position with JWP David Sokol discovered several suspicious items in the company's accounting records. Sokol insisted on thoroughly investigating those items. When that investigation...
Words: 3544 - Pages: 15
...MICHAEL C. KNAPP SEVENTH EDITION MAKE IT YOURS! SELECT JUST THE CASES YOU NEED Through Cengage Learning’s Make It Yours, you can — simply, quickly, and affordably — create a quality auditing text that is tailored to your course. • Pick your coverage and only pay for the cases you use. • Add cases from a prior edition of Knapp’s Contemporary Auditing. • Add your course materials and assignments. • Pick your own unique cover design. We recognize that not every program covers the same cases and topics in your auditing course. Chris Knapp wrote his case book for people to use either as a core e book or as a supplement to an existing book. If you would like to use a custom auditing case book or supplement the South-Western accounting book you are currently using, simply check the cases you want to include, indicate if there are other course materials you would like to add, and click submit. A Cengage Learning representative will contact you to review and confirm your order. G E T S T A R T E D Visit www.custom.cengage.com/makeityours/knapp7e to make your selections and provide details on anything else you would like to include. Prefer to use pen and paper? No problem. Fill out questions 1-4 and fax this form to 1.800.270.3310. A Custom Solutions editor will contact you within 2-3 business days to discuss the options you have selected. 1. Which of the following cases would you like to include? Section 1: Comprehensive Cases 1.1 1.2 ...
Words: 20989 - Pages: 84
...The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, it defines which records are to be stored and for how long (www.searchcio.techtarget.com). The legislation not only affects the financial side of corporations, it also affects the IT departments whose job it is to store a corporation's electronic records. The Sarbanes-Oxley Act states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." The consequences for non-compliance are fines, imprisonment, or both. IT departments are increasingly faced with the challenge of creating and maintaining a corporate records archive in a cost-effective fashion that satisfies the requirements put forth by the legislation (www.searchcio.techtarget.com). The intent of the Sarbanes-Oxley Act was to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes. The Sarbanes-Oxley Act created new standards for corporate accountability...
Words: 1253 - Pages: 6
...The impact of ICT on accounting practice in Nigeria CHAPTER ONE Introduction 1.1 Background of the study In the recent past centuries, before the inception of Information and Communications Technology (ICT), the accountants of an organization were using a socially acceptable behavioural method of reporting accounting and economic reports, carried out during accounting year ends, the preparation of accounting records, book such as the profit and loss account, the balance sheet, cash book, cash flow statement, income and expenditure accounts. The application of Information and Communication Technology (ICT), on accounting practice in Nigeria has become a subject of fundamental importance and concerns to all business enterprise and indeed a prerequisite for local and international competitiveness. It is obvious that the way accountants plan and take decision on what and how to provide their service in the accounting profession has been affected immensely by Information and Communication Technology (ICT). This has continued to change the manner in which accounting practice and their corporate relationships are organized worldwide and the variety of innovative device available to improve and facilitate the speed and quality service delivery. It is obvious that the biggest impact of Information and Communication Technology (ICT) has been made on accounting; and it is the ability of companies to develop and use computerized system to...
Words: 4194 - Pages: 17
...The impact of ICT on accounting practice in Nigeria CHAPTER ONE Introduction 1.1 Background of the study In the recent past centuries, before the inception of Information and Communications Technology (ICT), the accountants of an organization were using a socially acceptable behavioural method of reporting accounting and economic reports, carried out during accounting year ends, the preparation of accounting records, book such as the profit and loss account, the balance sheet, cash book, cash flow statement, income and expenditure accounts. The application of Information and Communication Technology (ICT), on accounting practice in Nigeria has become a subject of fundamental importance and concerns to all business enterprise and indeed a prerequisite for local and international competitiveness. It is obvious that the way accountants plan and take decision on what and how to provide their service in the accounting profession has been affected immensely by Information and Communication Technology (ICT). This has continued to change the manner in which accounting practice and their corporate relationships are organized worldwide and the variety of innovative device available to improve and facilitate the speed and quality service delivery. It is obvious that the biggest impact of Information and Communication Technology (ICT) has been made on accounting; and it is the ability of companies to develop and use computerized system to...
Words: 4194 - Pages: 17
...CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION TABLE | | | | |Topics |Questions |Cases | |1. |Subject matter of accounting. |1, 2 |4 | |2. |Environment of accounting. |3, 29 |6, 7 | |3. |Role of principles, objectives, standards, and accounting |4, 5, 6, 7 |1, 2, 3, 5 | | |theory. | | | |4. |Historical development of GAAP. |8, 9, 10, 11 |8, 9 | |5. |Authoritative pronouncements and rule-making bodies. |12, 13, 14, 15, |3, 9, 11, 12, 13, 14, 16, 17 | | | |16, 17, 18, 19, | | | | |20, 21, 22, 24 | ...
Words: 4213 - Pages: 17
...networks of independent firms who come together to cost-effectively provide services to clients through an organized framework. * They are principally found in law and accounting. They may also be found in investment banking, insurance, real estate and architectural services. * Any profession that operates locally, but has clients in multiple locations, are potential members of a network. * They include the well-known accounting networks like PwC, KPMG, Deloitte, and Ernst & Young (also known as the Big 4 Audit Firms) as well as more than 30 other accounting networks and associations. * These firms use a network disclaimer which states that the network members are independent firms that do not practice jointly and are not responsible for the negligence of each other. It further states that generally the network does not practice a profession or otherwise provide services to clients of the network’s members. * The firms joined this network for tangible reasons: to receive referrals from other members, to have reliable firms to which they can refer, to maintain independence, to meet clients’ needs, to retain existing clients by being able to provide services in other states or countries, and to obtain new clients in their market who know of the membership. 2. What were the challenges faced by Colin Sharman after being appointed as the Chairman? * Increasing competitive situation globally- this required to develop strategies to cope with changing conditions...
Words: 670 - Pages: 3
...IMPORTANT AICPA INFORMATION ON SARBANES-OXLEY |How the Sarbanes-Oxley Act of 2002 Impacts the Accounting Profession (AICPA) | | | | | | | | | | | | | | | | | | | | ...
Words: 4973 - Pages: 20
