Role of Accounting in Society (Essay Sample)
* APA style of writing,
* Cover page
* Reference page
* No less than 8 pages (not including cover page, table of contents,
endnote page, etc.),
* Typed, double spaced, normal 1” margins,
* Type size 12, type style: New Times Roman or Arial font,
* Report is to be written in narrative form, and
* Detailed information covering the project requirements.
Role of accounting in society
Accounting information has been used for regulation purposes in the society this includes the focus on the efficiency of the different economic sectors as well as the value of money. Accountants need to respond to the needs of the society, while there are also requirements for provision of information to shareholders and employees. Accountants also provide information to decision makers. Since accountants also need to present financial information that reflects the true and fair view of financial records, they help to evaluate an organization’s system, while they may also provide tax advising and consultation to various entities (Mintz, 2013). Typically accountants are less involved in environmental and social reporting, which would be a new task that is not their primary responsibility.
The accounting profession requires accountants to complete financial records, while also keeping track of accurate accounts. Given that various stakeholders rely on financial information, the role of bookkeeping is necessary. This further allows organizations to handle their payment system, salary payment and fill bank accounts. This shows that bookkeeping is one of the basic functions of accounting that allows organizations to run their businesses (Drury, 2006). Even for people with no direct stake in a company, the accuracy of financial records depending on the accounting information system can have indirect effects on their financial well-being.
Accountants play a critical role in the society towards enhancing transparency and accountability through financial recording. The management ensures that there is an accurate accounting system, as this eliminates the risk of financial misstatements, errors and frauds. Additionally, accountants voice their concerns about the effectiveness of the internal control system, given that it affects the transparency reporting. Users of financial information rely on audited accounts to make decisions, meaning that the accountant is well placed to request for responsible planning by the management (Drury, 2006). In any case, the management gives responses to financial data when there are doubts about the accuracy of financial statements prepared by the accountants.
Protection of public interest
Reliable accounting is integral to the integrity and the reliability of the accounting system. Accounting helps to ensure that there is protection of public interest, given that accounting and auditing scandals have tainted the accounting profession. Accountability is closely related to protecting the public interest, while accountants need to adhere to set standards to avoid losses for investors and other users of financial information (Mintz, 2013). Accounting professional standards also call for the need to protect public interest, as this supports high quality standards meant to ensure integrity. In any case, commitment to ethical behavior and professional standards protects the public, who are then more likely to have confidence in the work of accountants who provide public value.
Ensuring Corporate governance
Corporate governance ensures that there is protection of all stakeholders’ interest, with organizations also operating more responsibly. Accounting ensures proper corporate governance, while it is also possible to assess an organization’s performance depending on the accounting information. Accountants seek approval for certain transactions, and lack of clarity on such proper authorization is a red flag on a company’s corporate governance. Accountants then assess whether there are proper governance roles as they also report on the financial position of a reporting entity. Additional, the accounting profession highlights...
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