The Role and Image of Accountants in the Globalized Era Introduction As a partner of the Big Four firm Ernst and Young we have a goal of developing and expanding an already prominent area of service further. This particular service is Assurance. Assurance services can include; auditing both internal and external, Actuarial assurance, Corporate reporting, IFRS reporting and many more. Last year assurance, ‘our largest practice, delivered a positive year growing revenues by over 4% to US$10.9bn.’ (Ernst and Young, 2013). This is our strongest service and with that in mind it is reinforcing the reckoning on expanding this service further. As a firm we are looking into expanding this service into China. China has the world’s largest population …show more content…
In the UK in particular the concept of a true and fair view has been entwined into its statutory law for decades. This concept sets out to ensure that once an audit report is issued clean or unqualified that the financial statements it has reviewed consists of no fraud or material misstatements. This is a concept not embedded in Chinese auditing standards currently and may be a potential area to improve on in the future. ‘China’s new accounting framework is based on many common aspects on Western accounting frameworks (Davidson et al, 1996) Furthermore ‘however this does not necessarily mean that financial position and operating results provided by the Chinese system represent the true and fair view’ (Kenny Z. Lin & K. Hung Chan, 2000). Furthermore ‘the Chinese public accounting profession needs to improve, establishing audit independence’ is one area where this needs to happen. (Yining Chen & Kam C. Chan, 2009 p.106). The cry for this globally is definitely a factor to consider. Increased pressures from stakeholders across the world will have an influence on this and China will be aware of that, this is a prime example of how the role of accounting is changing. Its effectiveness is no longer limited to the country of which it is being practiced …show more content…
They can do this through the introduction or removal of policies, such as the Open Door Policy. They can change the standards that the profession has to adhere to with an example of moving more towards IFRS. ‘Accounting education has long been underdeveloped in China’ (Yining Chen & Kam C. Chan, 2009 p.100). Implementing better educational systems or examinations might be something the Chinese government looks to develop or a way in which the government influences the profession. Ernst and Young have to be ready to adapt to these changes and principles. China is an ever changing, ever growing market and part of the risk of entering this market is that the profession and economy is subject to shifts especially from governmental
Arens, Alvin A., Elder, Randall J., and Beasley, Mark S. (2012). Auditing and Assurance Services:
Lucas Pacioli was the first to describe a system of debts and credits in accord with journals and ledgers in 1494. These basics came together to be the concoction for what is known as accounting. Since the formal establishment of accounting in 1494, the field has expanded as the demands of the ever-changing economy became greater. The industrial revolution created the first jump in the field forcing the creation of sectors within. Since this first creation of sectors, accounting as a field has been creating more specific sects to accommodate a large variety of areas. The most common and large sects created this far include public and private accounting. Although both sects carry the same basis for their work, the variation between the two lies in their demographic, demands, and decoration.
T.A., L. 1996. Richard Brown, Chartered accountant and Christian gentleman. In: Lee, T. eds. 1996. Shaping the Accountancy Profession: The Story of Three Scottish Pioneers. New York, Garland: pp. 153-221.
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
The ethical dilemma in this case is one that Daniel Potter is faced with. Daniel is a staff
The ‘deficient standards gap’ refers to situations when the auditors are not required by the standards to report certain issues, whilst its counterpart refers to situations when auditors have not complied with the existing standards. This dissection is particularly important when I look at each of the problems separately later on and look for the respective solutions. The beginning Since the early 1970s, the auditing profession has been under increased pressure and scrutiny by government and users of audit reports. The phrase, ‘Audit Expectations Gap’ was first coined when the AICPA put the Cohen Commission together in 1974 to investigate whether the ‘expectations gap’ existed. However, the history of the expectation gap goes right back to the start of company auditing in the nineteenth century (Humphrey and Turley 1992).
Sulaiman, M. b., Nik Ahmad, N. N. & Alwi, N., 2004. Management accounting practices in selected Asian countries: A review of the literature. Managerial Auditing Journal, 19(4), pp. 493-508.
Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South Western College Pub.
Schroeder, Richard G., Myrtle Clark, and Jack M. Cathey. Financial Accounting Theory and Analysis: Text and Cases. 10th ed. Hoboken, NJ: John Wiley & Sons, 2009. 97. Print.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
I have applied the IFRS to audit half-year income statement and statement of finical position from domestic sub-company or oversea branches. This allows me to understand the difficultly of dealing with accounting report form different nations. For example, we have to negotiate each report from the U.S. with their reporter by phone. It would take incredibly long time to explain the difference in order to adjust the figures in the reports. During the stuff training, we have been taught that to be professional at everywhere and anytime. Moreover, I realise that the most important feature to be a professional accountancy is responsibility. This is because that a unit of misallocation will cost other team number a huge amount of work to correct it. The experience of taking notes of weekly conferences between senior managers and PWC partner has indicates that how does change in financial policy influence the accounting treatment. For instant, since vice-perminster Mr Le Ke Qiang who visited China Construction Bank at earlier May. He point out that the Rate of Non-Performing Loans could not exceed 7% in the “BIG Four” Chinese bank. This has led Chinese bank to relax its accounting standard of credit rating. It allows me to understand the relationship between government and financial
Amelia Annette Baldwin, Brad S. Trinkle. “The Accounting Educators’ Journal.” An Initial Placement Research Ranking of U.S. Accounting Doctoral Programs. N.p., n.d.
What does the accountant of the future need to be successful? A sturdy education that while is based on traditional accounting practices, also prepares future accountants for the plethora of changes happening in the accounting universe. Frequently, most of the institutions responsible for educating professionals fail to evolve as rapidly as the professional practice itself (Bedford et al. 4). In every way, accounting is expanding and in order for the future to have competent accountants, accounting education must expand as well. Major changes occurring in the world of accounting include the expansion of services and products, changes in competition, an increase in specialization, and an increase in and an advancement of technology. It is up to academic institutions to find proactive ways in which to prepare students for such changes. Accounting education of the future will require more breadth to cover the inevitable expansion of services and products, increased knowledge of economics, marketing, management and information systems to increase competitive advantage, a balanced course load that provides a general accounting knowledge as well as increased knowledge of a specialization, and also a greater, proactive focus on the use of continuously advancing accounting technologies (Bedford et al. 8). Also in play is the chance of change in accounting standards, the move from US GAAP to IFRS. While there are no certainties surrounding the threat of such change, students in the U.S. should acquire at least a general, basic feel for the practices used in regards to IFRS. The future health of the accounting profession depends, to a great extent, on the health of our students (Gormon and Hargadon 4). Reorganization of curriculums would surely be difficult and assumedly time-consuming, but nevertheless, completely
The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.
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.