Study on Is Accounting Profession under Threat Recent events in global financial world that is dissolution of companies due to continuous losses has made people to question the efficiency and honesty of the professional accountants in discharging their duties for the interest of public and society. These events have forced global financial scholars and experts to think about the future scope of this profession. this article mainly focus on challenges to accounting profession in the context of strategic management accounting in connections with business firms expectations and the expectations of stakeholders and communities which ensure that the accountants will function for the benefits of society and public. The expectations of employers of accounting graduates is higher when we compare with the present academic system which indicates that the present academic courses should be upgraded as the business firms are expecting only real professionals who can be able to work any type of business environment and they should be flexible to the future changes in business environment. Their ultimate responsibility is to make the business firm trust worthy in the eyes of customers and other stakeholders and society. Today the demand from business firms for accounting professional with sophisticated modern accounting skills is caused revolutionary changes in the accounting and financial management graduation courses importance of discipline knowledge. The internal and global challenges on the professions related to financial management may be involve win the confidence of public and stakeholders of the business and operating markets, improving the performance of professional accountants and auditors, understanding the increased role of external auditors, preventing the corruption the system of public audit, and making the financial statements and reports trust worthy in the eyes of concerned parties. Todays business environment is very sensitive to the changes in its components such as technology or markets the accounting professionals to work hard with efficiency and honesty to meet these challenges effectively. Introduction In todays business environment are professional accountants directly responsible to their customers, companies and to the society and also they should know possible legal obligations to the stakeholders. Accounting profession is not only limited to preparing accounting statements but also involves in wide variety of functions which provides inputs to the managerial decision making. If an accounting professional is not able to perform his duty and responsibilities in satisfied level according to the universal standards it is the major liability in the hands of an accountant. Compared to other type of professions this profession has its own code of ethics hence it is dignified and respective profession which provides practical inputs for the effective decision making. Advanced Strategic Management Accounting During the past two decades, many organizations in business and finance sectors have to face changes in their business environment. Economic reform polices by the developing countries, policies, competition from multinational companies in local markets has resulted in a typical situation, where most companies are now competing in a highly competitive global market. In addition there has been a significant reduction in product life cycle arising from rapid changes in technological innovations and the need to meet sophisticated customer demands. To compete successfully in global environment, companies have to work towards to satisfy made customer demands. They have forced to adopt new Management strategies, changed their business systems and invested in new technologies. The increasing competition has affected their profits and more attention is required to be paid to the various aspects of Management accounting aspects. These changes have had a significant influence on strategic Management accounting systems. Role of professional accountant has no longer remained that of an accountant, but he has assumed a significant role in improving the competitiveness of firms. 5Strategic Management Accounting is the branch of management accounting which mainly focus the uncontrollable factors which a business firm should more concentrate, and these factors may be financially or non financially but related to the financial and business decisions of the firm. According to the Ken Simmonds, the formulation of business strategy of the firm mainly depends on the financial information of the firm and the competing firms. This information may involve details of Production costs, product price, production volume, Market size, availability of cash resources and other resources such as raw materials which should be emphasized. But Professor Bromwichn compared the past practices in management accounting which have modified with new directions including the active role of professional accountants in business decision makings. These directions may be towards the inclusive of financial information into strategy for cost analysis that is the basic for all future business decisions. Other directions towards having updated information bank related to the strategies of competitors especially their costing methods, cost structures and costing decisions. The limitation of traditional management accounting in the areas analysis of cost and cost related activities is significant which gives birth to the development of modern strategic management accounting system. Traditional management accounting system has no particular techniques to ascertain the costing methods and situation of competitors but decisions are based on only the information from financial statements. Modern strategic management accounting has its own techniques to ascertain cost position. It also helps business firms to how to achieve cost advantages current as well as future years. In this context the role of Accounting professional is very important for the survival of business firm compared to every angle of the present business environment. Accounting profession In the context of professional accounting, the power and responsibility of an accountant can be justified when financial statements provides expected information according to the objectives functions especially protection of public and social interest. Under flexible business environment Accountants are vested with enough power in order to perform their functions without any interruption for the healthy future of business firm.. According to the scholars the up gradation of accounting skill is a specific task as the accounting profession also one of the component of employment structure which is influenced by policies of government and economic policies. . There is a argument the accounting skills and knowledge should be revised and updated time to time because these skills and knowledge should be according to the changing expectations of the society and the stakeholders of the business firm. But as a professional an accountant should utilize these skills and knowledge in optimum level for the interest of the employer as well as interested parties. . The accounting profession has gained enough importance especially it is the sole body which has the ultimate authority on the financial related issues and matters. The one of the primary objectives is to work for the benefit of social interests that has analyzed for making the accounting progression as an appropriate occupation in modern employment world. And According to some experts.. Accountants with traditional views are no longer sustaining in the present environment. According to the research the Todays accounting and auditing methods are in modified forms compared to traditional methods of accounting. Changing role of Accountant Todays accountants should mostly focus on knowledge, skills and ability to manage these as a particular service. This requirement in business environment has created business and ethical issues for the accountants/ auditors and their customers. This includes problem-solving and customer advice features of the skilled professional. Changes also include the over emphasis on specific training for developing practical skills as part preparing of new graduates to the practical business world. The introduction of these practical training in academic degrees involves uncertainty and time frame because the academic institutions should ready for accepting the current changes. Companys especially multinational companies mainly concentrate on these practical skills but facing problems of assessment for right candidates with practical knowledge. Challenges to Accounting Profession Due to the influence of globalization changes in financial strategies have been affecting almost every business and services around the world. Especially Accounting and finance sector is directly affected, financial experts world wide are working for the improvements of the accounting system. Several seminars are going on in this regard; financial professionals, scholars have to share their ideas and views on the present challenges in finance and accounting today, and acquire sophisticated skills in order to face globalization effect. Today global recession and financial conflicts has developed new trend of threats and challenges. According to the experts of International Accounting Standards Board, the global financial conflict is the main which emphasized transference in financial reporting and flexible accounting standard with definite principle to face the new trend in future. The context and dynamics of modern strategic management accounting the changes in the accounting skills have forced to adopt by professional accountants who are cautious to provide value added service for their customers. Globalization process has made the business activities to cross the boundaries of nations. The global financial and business environment has put pressure on professional accountants and auditors as they are the important information providers for the business success. Every company seeks opportunities in global market for the expansion of the business. But uncertainty in market conditions and rapid innovations in technology have made themselves to face any type of business situation for the interest of all their stakeholders where their business strategies, their market share and capital adjustments also subject to changes along with the marginal profit. Internal challenges The first challenge to professional accountant is the measurement of financial performance. Revenue is a single measurable indicator of financial performance. The common feeling is that over-emphasis on revenues, unscientific ways of their analysis and interpretations financial information. But this information is the basis for long term business decisions. Secondly issues regarding historical accounting information and statements. Some times there is feeling that a balance sheet prepared imperfect way and it does not reveal accrued profits based on future changes in market condition. This is the major draw back in disclosing true financial information of the company. Thirdly financial statements do not measure the assets and liabilities on the basis of todays accounting standard. Hence investors may be misled in making investment decisions, which will put them at greater investment risk. They also need the information regarding the value goodwill and other intangibles and capital structure. Lastly the financial and accounting statements show only historical transactions and facts and they dont concentrate much on the future events and transactions. They put limited attention on the hard profits and also limited attention to the required process for maximization of wealth. Challenges of Globalization Innovations in technology are the greatest affect on the profession and present system failure to coop with this challenge may be resulted in the devaluation of the importance of the profession. The introduction of the information technology has greatly influence the system in which companies do business, structure their organization and operate their reporting systems and each of these are the considerable challenges for the accounting profession. E- Business has introduced new business risks along with the great advantages which a professional accountant should take into account. The unauthorized access company information; increased volume of business as created credit risks; and the proper allocation of income and expenses, Accounting firms and professionals should be concentrate on with these risks. The changes in Government financial police and company the annual financial statements and other communications can be communicated to the concerned parties through the electronic media or through web sites. Out of dated information will not reveal clear picture and hence share price of the company affected. Market expects the clear picture of financial and business performance and there are pressures on firms o provide such information when required. Lastly the centralization of accounting system and accounting information systems will be the top management based decision where accounting is considered as secondary issue. Branch accounting is in declining trend today information will be directly flow to the head office of the firms. Globalization can be defined as the existence of a situation where there is an easy access to any part of the world. It is in the form of information on any subject matter. A professional accountant should face several challenges with this situation; businesses expand sometimes beyond country borders in response to globalization. In market led globalization model an accounting professionals should play a dominant role. To make the Global markets to function properly, the accounting profession must adapt and modernize in response to the globalization of finance and investment. In corporate-led model of globalization the accounting profession does not merely adapt to forces of globalization. But accounting industry has played and continues to play an active role in the structuring global markets for accounting services. Due to the globalization there are some threats to accountants and the accounting profession as a whole Accountants working for foreign-owned companies, their knowledge, skills, and abilities may be restrict them to performing only low-value, compliance-oriented work. Accounting professionals can be also benefited from the effects of globalization. These are Accountants who are ready to expand their financial accounting knowledge, skills, and abilities they can become expertise in understanding of changing business requirements. Accountants with their theoretical knowledge, skills, and abilities with the performance oriented knowledge, skills, and abilities of management accounting can be achieve high level of experience in this context. Today businesses become increasingly globalize, 10there is clearly more pressure on accountants to increase the knowledge, skill, and abilities beyond their present limit of functioning in order to fit well into the globalization of the 21st century. In this context the accounting profession has an important role in assisting firms to face competitive finance and business environment Implications of Academicians The role of the accountant in past was just recording the facts and figures but the role of the professional accountant has been criticized by many scholars and analysts over the decades, especially the accounting skills developed by students of accounting management schools This demand primarily developed in Academic level, the. The need for this change is based on a number of draw backs identified in the skills taught in graduation schools that students when bring to the practical world. Another criticism is these 1skills cannot be efficiently being taught in schools where the employment is dominated by specialized technical skills. Requisite skills required by future professional accountants and auditors will include easy learnable professional skills along with ethics. These specific skills are necessary for modern business environment because it helps business entities to 1solve the diversity of business challenges. This is the main challenge for the academic institutions to balance between accounting graduate skills which are theoretical in nature and skills sought by modern business entities. There is gap between the actual school syllabus and the knowledge expected by companies. The academic institutions should try to train accounting graduates to suit the interest and expectations o the employers. The accounting1graduates with sophisticated skills are in an environment that requires accountants to show high level of technical performance to meet the demands of financial and business entities. Number of comments and opinions from global academicians and practitioners has forced the Government authorities and International Regulatory Bodies related to accounting issues to make revolutionary changes in the accounting standards, methods and techniques which are relevant to future years. Majority Charted accountants and Accounting professionals feels present accounting system is not according to the requirements of modern business and it is less flexible to the changing environment. These academicians and practitioners agree that if accounting is to serve a useful role in the changing environment, academic education in accounting and scope of research should become broader, dynamic and not limited by a single approach. Despite these matters, the academicians and practitioners feel that present academic programmes in Accounting and finance area should be reviewed according to the demand from job market. Professional Ethics The corporate financial conflicts has given good inputs to finance professionals and for the monitoring of accounting system. Continuous effort from academicians and financial experts in developed countries there are strategic changes in academic education and training programmes, professional accountants should be able to develop the specific skills they need to successfully compete in the employment market for new types of information and financial services. This vision is used by many of the professions leaders. As per the study in U.S.A there are considerable increase in the number of professional accountants and AICPA membership during the period from 1970 to 1994. This indicates that in developed courtiers are ready to face the challenges. Study in U.S.A (Courtesy: Annual report AICPA) Table 1 Total Accounting Employment Year Numbers in Thousands 1970 646 1980 1013 1990 1446 1994 1483 Table 2 Membership in AICPA Year Numbers in Thousands 1970 74 1980 161 1990 296 1994 319 Impact of Challenges on Strategic Management Accounting During the past two decades, many organizations in business and finance sectors have to face changes in their business environment. Economic reform polices by the developing countries, business policies and competition from multinational companies in local markets has resulted in a typical situation, where most companies have to face severe competition from rival business firms in a highly competitive situation. In addition there has been a change observed in business life cycle due to rapid changes in technological innovations and the need to meet sophisticated customer demands because production of each product is considered as a independent business. To compete successfully in global environment, companies have to work towards to satisfy made customer demands. They have forced to adopt new Management and financial strategies, changed their accounting systems and investment in new technologies. The increasing competition has affected their profits and more attention is required to be paid to the various aspects of strategic Management accounting aspects. These global challenges have had a significant influence on strategic Management accounting systems. Role of professional accountant has no longer remained that of an accountant, but he has assumed a significant role in improving the competitiveness of firms. Professional Ethics The financial crisis has given good inputs to finance professionals and for the monitoring of accounting system. Today accounting professionals in the business sector should not only concentrate on earning of revenue, but also take into account the public and external parties related to the business. The present accounting system should be able to create ethical environment for the benefit of society in generally and stakeholders particularly. Directions for Ethical Performance The directions towards performing the duty in ethical way Global Charted Accountants Associations encourage accountants and Auditors to conduct them effectively and to do quality internal and external auditing in appropriate manner and other accounting functions. Professional Institutes should develop high level auditing standards and ethics their applications in practical world. There are so many ethical obligations which make auditors in right path of accounting standards and legal obligations. Figure 1. Ethical codes Geographical study requirements Quality control Legal registration Professional programs, training and examinations Continuing education requirements Legal liability Accounting standards Conduct of professional Accounting firm personnel Future of the Accounting Profession: Introduction of specific knowledge and the increased expectations from global business world today accounting profession is a specialized profession, which is resulted in great the movement toward up gradation of accounting graduate or professional education. Advanced programmes in computer technology and its role in updating the information for concerned parties of the business, financial experts are expecting t the new trend in information technology and communications which will reshape the accounting employment structure. Computers are today important part of the accounting information system. Introduction of new computer software programmes has given considerable contribution for the modification of business and accounting from the last decade and will continue to the future also. These days we can observe that the new accounting softwares decrease the work load of accounting firms which is resulted in the decrease of employing fresh candidates for accounting work. But developments in accounting profession have shown steady growth from last 20 years despite the increased use of computer information systems to perform routine accounting tasks. Suggestions and Recommendations accounting profession have an significant role in assisting the management for business decisions to not only contribute for strengthening the financial position but also should be modified to analyze management risk factors as the parallel profession to management graduation, for firms operational and strategic decisions . These personnel should also be able to anticipate and manage risks factors arising from bulk volume of financial transactions which made the firms vulnerable to uncertainty and unexpected price variations. As the scope for this profession increased, it will find itself facing increasingly conflicting pressures arising from convergence. It should be designed to establish proper balance manage internal financial conflicts and external conflicts related to firms financial matter and should be able to these commercial interests to introduce the ability to act as a trusted and independent professional business consultant and advisor. The accounting profession should extend its role and responsibility for promoting good corporate business environment. It should also be concerned for sustaining of good corporate governance is not only fulfilling legal obligations but also should be based on values and ethics.
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A woman wakes up in the middle of the kitchen floor, and as she opens the one eye that isn’t swollen shut, she frantically searches for her minor child with no avail. She calls the police who take her report and then question her about her bruises and black eye. She tells them what happened; they take her report and begin the search for her daughter. When they find her daughter and husband they return them both home because the daughter is “safe†in their eyes and she has fearfully corroborated her father’s alibi that they haven’t been home all day.The officers leave, satisfied that they have done their jobs, only to discover the next day that the man they returned home safe has now beaten his wife and child unconscious. This situation may not be how every domestic violence situation plays out but it is all too often the case. Domestic violence is a serious problem in America that affects the victims and children involved, but does not seem to have consistent enough consequences for the offender, or strong enough protection for the victims. The Effects on the VictimsThe number of domestic violence incidents is at a staggering amount. According to the Domestic Violence Resource Center (2010), one in four women has experienced domestic violence in her lifetime. That is one quarter of the female population. This means that the majority of us probably know someone who has been a victim, whether they have admitted it or not. This could be your mother, sister, aunt or daughter. Whether you can see the physical effects there are other signs that may suggest they are in a violent or abusive situation.Victims involved in this kind of abuse typically withdraw themselves from their friends and family. They don’t participate in activities that they once loved. They may also change the way they groom themselves on a daily basis. For example someone who would typically take pride in her appearance may now dress very casually, wearing “sloppy clothing†and wearing hats and sun glasses to “hide†their face. Domestic violence victims suffer many immediate physical symptoms such as bruising and broken or fractured bones, and though most may think that is the extent of the physical problems, it is not.The BRFSS (Behavioral Risk Factor Surveillance System) is an annual, state-based, random-digit, dialed telephone survey of noninstitutionalized , US civilian population greater than 18 years of age. In a study conducted by BRFSS the findings in their report linked IPV (Intimate Partner Violence) with poor general health, chronic disease, disability, somatic syndromes, injury, chronic pain, STD, functional gastrointestinal disorders, and changes in endocrine and immune functions (Shannon, 2009).Symptoms like these can cause problems with the victims for many years to come, and in some cases, the victim’s entire life. Some of the physical effects are irreversible. Women are abused every day, and the below picture is an example of only a portion of the pain caused to the victim. This abuse affects many aspects of their lives other than aesthetics. [pic] In addition to the horrifying physical effects of domestic violence, the victims are subject to many psychological effects as well. Some of the abusers involved don’t start out hitting their partner.The abuse begins sometimes, long before the hitting. Sometimes it could start off with something as seemingly insignificant as the abuser saying “I don’t think you need that much make-upâ€. This may be an innocent enough comment in the right moment that the woman believes her partner is giving her a compliment and so she complies. The problem is now, her partner has realized how to approach her in a deceiving way to slowly gain control of her. After that control has been established, those once “flattering suggestions†have now become expected demands to the victim.In most cases by the time the victim has realized she does not want to comply with these demands, her abuser has already started demanding her compliance by hitting her. Now she does not know how to escape from her abuser. According to Encyclopedia Britannica for some victims the unrelenting cycle of violence produces diminished self-esteem, helplessness, depression, and exaggerated feelings of imprisonment, even the belief that they deserve the abuse. Once the victim has reached this phase of the relationship it becomes almost impossible for her to escape.She is under the impression that if she leaves, her abuser will find her and hurt her even worse, and possibly even kill her. She may also believe that there is no point in leaving because her abuser has made her believe that he is the only one who could ever love her, and that nobody else could ever want her. This fear of total loneliness if she was to leave can be enough to make her stay. At this point the self-esteem is so low that she needs what small portion of distorted attention she does get from her abuser. The Effects on ChildrenWhile a woman is dealing with this amount of abuse from her abuser, if she is a mother, she may not realize the consequences her child is suffering. While she may feel she is protecting her child from this violence by sending them to their room prior to an argument, many children report witnessing the violence anyway. According to the Domestic Violence Resource Center studies suggest that 3. 3-10 million children witness some form of domestic violence annually. Witnessing this violence can have a lasting effect on children.These effects may include behavioral problems such as aggression, phobias, insomnia, low self-esteem, and depression (Myers, 2006). The aggression that can occur from seeing violence like this can spill over into a child’s own social life. It can affect friendships and cause many problems in school. Being forced to deal with these feelings alone could obviously adversely affect a child’s learning experience at school and make it nearly impossible to develop and maintain healthy relationships with their peers. These are the effects from just witnessing violence between their parents.This doesn’t include what can happen if a child is caught in the crossfire. There are a terrifying amount of children who are also subject to the physical abuse themselves. So, in addition to seeing the one person who tried to protect them get abused, they are now bearing the brunt of some of these attacks. According to the Domestic Violence Resource Center (2010) In a national survey of American families, 50% of the men who frequently assaulted their wives also frequently abused their children. [pic] This puts a whole new perspective on things for the mothers now.The mothers who have been trying to protect their children from seeing the violence have left their children vulnerable to being abused also. This is a serious and vicious cycle that has to be broken. Children who view this kind of violence and are subject to it themselves will most likely be abusers in their adult life. So what is to be done? Where do these desperate victims and their helpless children turn in these terrifying moments? The Role of Police The victims, of course, have the option of calling the police. However, many women fear calling the police for a variety of reasons.According to Doak (2007) when forty one women were interviewed to find out what kept them from calling the police the factors cited included the idea that they must have physical proof that battering had occurred, the desire to avoid a humiliating physical examination in the case of rape or sexual abuse, cultural attitudes about domestic violence, poor self-esteem, being physically prevented from calling the police by the batterer, poor police response when battering was previously reported, and fears of possible retaliation by the batterer or removal of children from the home by protective services.This is a heavy burden to bear for a woman who is already in an extremely volatile situation, doing everything in her power to protect herself and her child. When her last resort is calling the police because she does not know where to go or how to even get out, she needs to know that she can depend on them to “protect and serve†she and her child and send a strong message to their batterer.When the victim gets the courage and opportunity to finally call the police in an effort to save herself and child the police need to be diligent in helping the victims find resources to get away from the home and away from the abuser at least long enough until the abuser is required to go to court. There is no guarantee that the punishment will be significant enough to make the victim’s home safe for her again, but until that is determined, she and possibly her child will need a safe place to go.Consequences for the Abuser The consequences are not consistent enough for the abuser which makes it difficult for the current victims to feel safe, and it means that in the future another victim could potentially suffer at the hands of this person. Many courts are now using batterer intervention programs instead of incarceration for the offenders. The effectiveness of this does not seem to be very notable. According to the National Institute of Justice two valuations of programs in Broward County, Florida, and Brooklyn, New York, based on rigorous experimental designs, claim that batter treatment programs have little or no effect. If this is the case, then how are the victims supposed to feel safe in their own home? Their abuser gets arrested and sentenced to a batterer treatment program, only for him to leave with the same attitude as he went in with. That is if he even completes the class. Then he is most likely angrier because he had to go through it in the first place; therefore leaves him more likely to recidivate.These batterers need to be supervised more thoroughly while they are enrolled in such programs to ensure their rehabilitation, should this be the course of action the courts decide to take in a particular case. Instead it seems that the people in charge of ensuring victim’s safety are merely handing out “slaps on the wristâ€. Recent history has shown that this is not an effective method of repercussion for the offenders, nor does it provide any solace for the victims. There are so many factors in a situation of Domestic Violence.From the start of the relationship where the abuser begins manipulating the victim to obtain control of her, through each step from verbal to ultimately physical abuse. The abusers make their victims feel like they are signing their own death certificate if they try to leave. This is enough to leave any victim afraid to ask for help. Domestic violence has such an impact on so many lives. Outside family members often are unaware of the violence. Also, in staggering amounts of cases, inside family members such as children are all too aware.These abusers are so vicious that they have poisoned their victims with fear. In their minds, the threat of their attackers supersedes any protection law enforcement may offer because in reality all they have is a piece of paper between the two of them. This is a behavior that could gradually be changed if our justice system would remain firm and consistent with the offenders. This would show the victims that they do have a choice. They would know that they could break free from these unstable, unrelenting predators and start their lives over.Nobody in this world deserves to feel dehumanized by anyone nor should any one person ever feel like they have that amount of control over another life. It is imperative to get this message through to all abusers and their victims so this cycle of abuse can cease once and for all.ReferencesDoak, M. J. (2007). Information Plus Reference Series. Detroit, MI: Thompson Gale. Domestic Violence (2010). In Encyclopedia Britannica. Retrieved October 09, 2010, from Encyclopedia Britannica Online:  http://www. britannica. com/EBchecked/topic/168589/domestic-violenceDomestic Violence Resource Center. 2010). Domestic Violence Resource Center. Retrieved from http://www. dvrc-or. org/domestic/violence/resources/C61/#domestic-violence Myers, John E. B.. (2006). Child Protection in America: Past, Present, and Future. Oxford University Press USA. Retrieved 9 October 2010, from Shannon, J. B. (2009).Domestic Violence Sourcebook (3rd ed. ). Detroit, MI: Omnigraphics. US Dept of Justice. (2003). NIJ Special Report. Retrieved from http://www. ncjrs. gov/pdffiles1/nij/195079. pdf
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