...ACCT 5100 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...
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...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...
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...for its Malaysia’s Head Office. However, the size of the head office cannot be decided until the Malaysia organisation structure for Eastern Foods has been finalised. Eastern Foods has targeted that the Malaysia organisation structure be fully operational in six months for its inaugural opening all across Malaysia. However, the board of directors of Eastern Foods agreed that there are important issues that need to be addressed by the Malaysia organisation structure and they have raised concerns on the four crucial aspects of the business, which are Human Resource Management, Accounting, Marketing, and Operations Management. By addressing and resolving the issues that stem from these four business aspects, the Malaysia plan can be developed smoothly. Human Resource Management With swiftly transforming business settings, it is imminent that the human resource management will have to face business challenges...
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...BA3121 Introduction to Management Accounting Group Assignment Word Count | 2,499 words | Management Accounting System Proposal for Automobile Power Executive Summary Due to the absence of a management accounting system within the company, Automobile Power has been seriously disadvantaged since its founding. Particularly, cost efficiency at the company had been poor, as there was much unnecessary manufacturing expenditure incurred. Additionally, due to the lack of thorough market analyses, the company has missed out on a lot of otherwise profitable business opportunities. As evidenced by the many bank overdrafts, the company had also regularly overspent. In 2009, recession has finally hit Automobile Power, resulting in losses for the company’s historical first time. Understandably, Automobile Power faced substantial difficulties in obtaining accurate estimations of its assets and liabilities, optimizing its manufacturing expenditure, determining a suitable business portfolio and markets, among other considerations. To help address the various challenges mentioned, Automobile Power requires an effective management accounting system. The following contains several suggestions and guidelines, with which the management is advised to adopt for a smooth and successful implementation of the management accounting system. Management Attitude Towards Management Accountants Firstly, the management should change their attitude towards management accountants. Instead of merely...
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...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 the paragraphs from the CPA Canada Handbook as referenced in the course module notes. The expectation of a professional is to be able to research material using the CPA Canada Handbook and to interpret it at a level...
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...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 the paragraphs from the CPA Canada Handbook as referenced in the course module notes. The expectation of a professional is to be able to research material using the CPA Canada Handbook and to interpret it at a level...
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...have found a great interest in the field of taxation. Though approaching taxation from a legal perspective has exposed me to a variety of tax issues, I have realized that my interest lies in the numbers behind the taxes. As such, I have decided to pursue a career in tax accounting. I believe that Kellstadt will provide me with the education necessary to be successful in the accounting field. To this end, for my short-term goals, I wish to attend the Kellstadt Masters of Science in Accounting program in order to develop the skills necessary to secure a position at a large accounting firm. A position with a large accounting firm will allow me to continue to expand the practical skills I have developed as an attorney. My experience serving small-business clients has given me a unique perspective on the importance and necessity of accounting in all aspects of business operations. The cases I have worked on have given me an appreciation for the value that can be added to businesses through proper accounting procedures. For the long-term, I believe that expanding my skills in the accounting field will open doors into business administration or tax consulting where I could leverage my legal and accounting skills in order to provide versatile service to large business clients. I believe that the training gained at Kellstadt will provide the...
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...is the capstone segment for the CPA Program professional level. This segment consolidates your learning in the other three compulsory segments, Ethics and Governance, Financial Reporting and Strategic Management Accounting. In the increasingly complex business environment in which organisations operate, characterised by change, uncertainty and escalating competition, the disciplines of strategy and leadership have become critical to successful organisational performance. The aim of this segment is to link the knowledge of management and financial accounting to the concepts of strategy and leadership. Accountants use a variety of technical information to make decisions for the future of the business within an ethical framework of operation. This segment shows that accounting information, ethics, strategy and leadership are applicable to accountants working throughout the world in diverse organisations. As discussed in Ethics and Governance, accounting as a profession is respected internationally and CPAs are employed worldwide. The segment materials address the needs of candidates operating in different international markets in varying roles. This segment builds upon knowledge gained in the other three compulsory segments of the professional level. The concepts of professional ethics and good governance underpin the segment. Candidates who have previously undertaken the Advanced Audit and Assurance or Strategic Management Accounting segments will be familiar with the use and application...
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...EXPLORING THE CHALLENGES OF STRATEGIC MANAGEMENT ACCOUNTING IN POST GLOBAL ECONOMIC CRISIS ERA IN NIGERIA: IMPLICATIONS FOR THE NIGERIAN PROFESSIONAL BY BENNETT B. BENNETT UNIZIK/ACC/Ph.D./2011387014F DEPARTMENT OF ACCOUNTANCY, FACULTY OF MANAGEMENT SCIENCES, NNAMDI AZIKIWE UNIVERSITY, AWKA SEPTEMBER, 2012 TABLE OF CONTENTS Certification Approval Declaration Acknowledgement List of Tables Abstract CHAPTER ONE INTRODUCTION 1.0 Background to Study 1.1 Statement of Research Problem 1.2 Objective of Study 1.3 Research Question 1.4 Research Hypothesis 1.5 Significance of the Study 1.6 Scope and Delimitation of Study 1.7 Limitations CHAPTER TWO LITERATURE REVIEW 2.1 Historical Background 2.2 Conceptual Frame work 2.3 theoretical Frame work 2.4 Review of Current Literature CHAPTER THREE METHODOLOGY 3.1 Design of the Study 3.2 Data Collection 3.3 Method of Data Analysis CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION 5.1 Summary 5.2 Conclusion 5.3 Recommendations 5.4 Suggestions for Further Studies Bibliography Appendix CERTIFICATION This is to certify that this research work was carried out by Bennett, B. Bennett of the Department of Accountancy Nnamdi Azikiwe University, Awka. _______________________ Prof. B.C. Osisioma Date. APROVAL This paper titled “Exploring the Challenges of Strategic Management Accounting in Post Global Economic Crisis Era: Implications...
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...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...
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...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 ...
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...Guillermo Furniture Store Case Study The aim of this paper is to examine the Guillermo Furniture case study. It begins with a description of the store, the current market challenges it faces, and the options that its owner, Guillermo Navallez, has in meeting those challenges. It then explores these options in the context of the business’ budget, performance reports and accounting information, as well as from an ethical perspective. Located in Sonora, Mexico, Guillermo Furniture has historically done well as a furniture retailer. Its success, however, has been challenged by the introduction of a major competitor, an international chain that has recently opened a store in the community. The result has been a rise in costs, a drop in prices and a smaller market share for the smaller company. Navallez, Guillermo’s owner, has explored a number of options for dealing with these challenges. Unwilling to merge with another company, he is left with three remaining options: investing in expensive new technology – in the form of a laser lathe – in order to reduce production costs, choosing to represent a Norwegian furniture manufacturer or focusing his efforts on marketing his patented furniture coating process. Budget, Performance and Accounting In order to make an informed decision, Navallez should begin by evaluating his budget. A budget is a quantitative action plan based on a company’s performance. A performance report provides information about variances in a company’s performance...
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...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 Emirates. This claim has been confirmed further by Yancey (1996), which she states in her study that during 1987-1993 AICPA Professional Liability...
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...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...
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...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...
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