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The Accounting profession and its Obligation to Society. The Accounting
Profession and its Obligations to Society Advanced Financial ...
... are already predisposed to listen, its effect on ... a sense of moral obligation" or
responsibility. ... Learn to deal with uncertainties of the accounting profession. ...
... Accounting Work Product New York State requires its accountants to adequately maintain
its work papers ... any personal gains encountered in their profession. ...
... industry, there is a profound obligation of company ... of how an entity is doing in
its quest for ... accountability and regulation in the accounting profession is of ...
... are already predisposed to listen, its effect on ... a sense of moral obligation" or
responsibility. ... Learn to deal with uncertainties of the accounting profession. ...
Submitted by linso958 on October 8, 2006
Category: Business
Words: 744 | Pages: 3
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The Accounting Profession and its Obligations to Society
Advanced Financial Accounting and Reporting
Topic D Review
Due: Thursday 14 April 2006
Sophie Lindsay
87864
Over the last decade or so the credibility of the accounting profession has taken some major hits. Enron, WorldCom, and the Australian HIH Insurance case are just a few examples where the executives of corporations have served their own self interest while leaving the stakeholders and society to cop the blow. So how can the accounting profession safeguard against these huge corporations destroying their credibility? Will there have to be a major shift towards accountants being ultimately responsible to society as well as the common stakeholder?
Without the corporation evolving into the giant capital raising tool, the modern industry would never have developed so tremendously. It is this notion though, which has transformed share ownership from a responsibility into simply a transfer of wealth in the hope of a buck or two in return. Shareholders ‘own’ the company, but as there are often hundreds of thousands of shareholders to any one company – how does any normal shareholder have any control over what it is they supposedly own? Transferability has become the biggest demand with respect to share ownership. Investors want to be able to sell at the drop of a hat or buy just as quickly. For this to work shareholders must have limited liability (which means relinquishing control), and there must be millions of shares available for trade. The latter of the two results in any one shareholder having a less meaningful stake in the company. All of this collapses into the simple “Wall Street Rule”: vote with management’s wishes or sell up! (Monks & Minow, 1995) So in the end, management has very little...
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