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Challenges Faced by Accounting Profession

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ACCT 5100 Professional Development

Challenges Faced by Accounting Profession

ACCT 5100 Professional Development

Challenges Faced by Accounting Profession

Introduction
Accounting has evolved, like many other professions, over time and is playing an increasingly significant role in today’s business environment. The key accounting practices are still identify, measure and communicate the economic condition of an entity with both inside and outside stakeholders. Accounting professionals have widened their attention beyond technical skills to incorporate social implications over the past several decades. Over the past few years, the whole world witnessed the impact of modern advances in information technology, globalization, and many other factors, all of which increased the public awareness of changes in global business environment and also brought many challenges to this profession. In response to these difficulties, modern accountants must develop a broader range of knowledge and skills to better perform their financial responsibilities. This paper examines several key challenges concerning the profession: 1) independence, 2) globalization and IFRS, 3) knowledge and skills gap.

Challenges faced by accounting profession
Independence and objectivity
Independence is not a new issue faced by accountants; however, it has been and always will be one of the biggest challenges faced by this profession. Accounting to the research done by Beverley, Barry, Philomena, and Steven (2007), failure to maintain independence and objectivity is ranked as the second most frequent ethical failure factor (p.938). The growth of large international accounting firms has facilitated the provision of diversity of services. Clients benefit from such umbrella services more than the value of the service itself, which raises the question…...

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