THE ACCOUNTING PROFESSION AND ITS ROLE IN THE SOCIETY

THE ACCOUNTING PROFESSION AND ITS ROLE IN THE SOCIETY

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CHAPTER ONE

 

INTRODUCTION

The aim of this research project is to look into in details the accounting profession and then enumerate its function s and rise in society.

The accounting profession is regarded in the course of history as social institution, that when ever people met in the economic area a reference is needed to keep score, this is accounting.

Since the turn of the 19th century, the accounting profession has grown tremendously all over the world.  Infact, during the first sixty years of the 20th century, major economic and social force have thrust the accounting profession to new frontiers and responsibilities.  The factors contributing to this growth are th increase of the large corporate business in number, size and complexity in addition to government influence in the affairs of business by taxation and regulation.

Technological advice especially in the field of computer, which has rapidly changed the process of data accumulation and interpretation are also factors contributing to the growth of the accounting profession.

The role of the computer in accounting profession has facilitated the traditional accounting function such as payroll, cost accounting and general book-keeping.  It is also used for analytical purposes such as cost benefit analysis.

New types of work are added to the practice of the accounting profession, installation of accounting system, management of social activities auditing and a host of other activities relating to financial production and organizational problem and government units.  The accountant apart from the examine, supplying and communicating financial information to its various uses, gives his opinion on wide variety of representation such as sales, statistics, lease agreement advice on financial matters and tax matter budgeting, cost control planning etc.

He had also contributed immensely quota in a complex society in ways other than the ones stated above such as attacking problems of urban congestive, medicine, crime control, economic development etc.

This accounting profession is a wide based and complex profession, this is because the above activities performed by accountant conflict complex problems and this creates the need for a high degree of expertise by the accountant in various specialties to enable him solve some of the problem created by management and society.

New kinds of problems like auditing and installation of accounting system can also beaded.

 

  • STATEMENT OF THE PROBLEM

In discussing the problems of accounting profession when

related to the individual and society, we have already know that accounting is the actor of recording, interpreting and communicating financial information as an aid to decision making.

Firstly, is the government influence the affairs of business

Through taxation and regulation has introduced new accounting problem and broadened the scope of accounting.

In addition, we individual face some problems of decision making like how much income received in a given period of time? What expenses they will incure? Are these amount large or sooner than in some other period? If the income exceeds expenses, what do I do with the surplus.

If the income is insufficient to meet, what were the sources and amount of income for the year and to whom and in what law are pertinent to those accounting and reporting procedures?

We individuals resolve these question through primitive records and reports.  But the soundness of the judgment and decision depends on the quality, timelessness of the information.

The processing of information at this level must be systematized and managed by experts.

 

  • OBJECTIVE OF STUDY

As we have introduced

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