Role of Accounting Profession

What do you think of the role of accounting profession in the new business environment?



What do you think of the role of accounting profession in the new business environment?

Introduction

Accounting is often called “the language of business” because it presents much of the data that proprietors, managers, and investors need to evaluate a company's economic performance. According to the world's most thriving shareholder (and second-richest person), Warren Buffet, the best way to arrange to be a shareholder is to discover all the accounting you can. Buffet, head person and CEO of Berkshire Hathaway (a business that buys into in other companies), turned an original buying into of $10,000 into a net worth of $35 billion in four decades, and he did it, in large part, by relying on economic accounts prepared by accountants. (Philip, 2010)

You may understand that Phil Knight is the founder of Nike. But you may not understand that he began his business vocation as an accountant. Another thing that you may not understand is that accounting is a “persons profession.” An allotment of persons believe that accountants spend the day squatted behind tables crunching numbers. This is a misconception. Accountants work with other persons to explain enterprise problems. They need powerful analytical skills, and they should be able to investigate economic facts and figures, but they must furthermore be able to work competently with colleagues. They need good interpersonal abilities, and because they should write and talk apparently and present complex economic facts and figures in terms that every person can realize, they need very good connection abilities, as well. (Philip, 2010)

Discussion

Never, in its long history, has the accounting occupation been needed to deal with the kinds of trials that it should battle today. Apparently unending sequence of sensational accounting scandals has caught newspaper headlines over the last three years, decaying public confidence in the accounting occupation and premier to the most sweeping amendments to joined States securities regulation since the Securities proceed was passed by assembly in 1934. (Ronald, 2003)

The higher authorities who gathered to discuss these challenges and the changes that must follow included representatives of all those affected by the scandals, including present and former regulators, investment analysts, money managers, investment bankers, chief executive officers of major corporations, scholars and accounting professionals. As a group, we were generally satisfied with the new regulatory trends and the moves by corporate America toward reforming its own practices. We also feel the accounting industry is moving to improve its own business, after acknowledging that auditors have far too often yielded to management pressure to paint the most favorable picture possible of a corporation's financial health. (Ronald, 2003)

The current state of accounting profession

As the bubble finances encouraged business administration to take up increasingly creative accounting practices to consign the kind of predictable and robust earnings and income development claimed by investors, governance fell by the wayside. All too often, those whose mandate was to act as a gatekeeper were tempted by misguided compensation principles to forfeit ...