The role of accounting system in the UK for motivation Dissertation

The role of accounting system in the UK for motivation - Dissertation ExamplePertinently, accounting use to be a function that is merely focused on its ability to prepare monetary statements to glow the current state of the company to enable the manager of the latter to make sound decisions relative to their right(a) functioning. Nowadays, the accounting system has evolved to cater to one important function to supply information necessary for backup planning, decision-making and control. The wideness of the accounting profession has been underscored by the dynamism and competitiveness of the business environment. In this regard, there is an intent necessity for business strategies to focus on the development of various tools and models for the preparation of financial statements by which apt information are obtained. Accounting now is an essential part of strategic planning and control. In summation thereto, it is also through the development of accounting systems that the r ole of the accountants within a particular organisation is witnessd. The grandeur of accounting systems is also underscored by the need to monitor the roles of accountants as they practice their functions (Broadbent and Laughlin 2005). Interestingly, literature has highlighted the presence of the supposed audit expectations interruption wherein the accountants and auditors have non really been able to comply with the expectations of their financial users. Audit expectations gap is simply defined as that inconsistency between the manners by which the users of financial statements expect their accountants to perform their duties vis-a-vis the manner by which the latter actually complies with what expected from them. Succinctly, the presence of the audit expectations gap buns be damaging to the entire profession. It has been stated that the audit expectations gap reduces the level of trust afforded by the users of financial statements to their accountants and auditors. The foll owing are usually the expectations that the users of financial statements have with respect to their accountants (1) the need for accountants to perform advisory roles, (2) the importance of undertaking designer roles, and (3) the need to fulfill executioner roles. On the other hand, in performing the audit function, the accountant is also expected to (1) detect fraud, no matter how big or small it is (2) to provide early detection signals that show the state of the company most especially as regards to whether or not it is on the brink of bankruptcy (3) to ensure independence in the auditing process and lastly, (4) the need to prevent the natural misstatements in the financial statements. It is therefore in this regard, that the need for accounting systems has been once again underscored as the antecedent has the capacity to address the said deficiencies. The collapse of major corporations such as Enron due to financial scandals has withal called for the betterment of the roles of the accountants. Evidently, the collapse of the said corporations has been brought about by the fact that it has failed to ensure the proper preparation of financial statements. In view of this, it has been suggested that the accounting process be incorporated within the Corporate Governance Initiatives to ensure accountability, transparency and better decision making. Hence, again, the development of accounting systems