Accounting is the stewardship (faithfulness in business) exercised in the day-to-day running of the business in order to know where the business is to put more effort (performance appraisal), this is usually on black and white (written document). Some businesses has wind-up because proper books of account where not adequately kept or the business did not set an accounting unit which will oversee the cash flows of their business. Businesses (either Small, Micro, Medium and Large scale businesses) ought to set up accounting unit (if possible get a professional consultant) and it must be standard at it best.
On this note, what is accountability? (In ethics and governance) accountability is answerability, blameworthiness, liability, and the expectation of account-giving. (As an aspect of governance) it has been central to discussions related to problems in the public sector, non-profit and private (corporate) and individual contexts. (In leadership roles) accountability is the acknowledgment and assumption of responsibility for actions, products, decisions, and policies including the administration, governance, and implementation within the scope of the role or employment position and encompassing the obligation to report, explain and be answerable for resulting consequences. (In governance) accountability has expanded beyond the basic definition of "being called to account for one's actions". It is frequently described as an account-giving relationship between individuals, e.g. "A is accountable to B when A is obliged to inform B about A's (past or future) actions and decisions (performance), to justify them, and to suffer punishment in the case of eventual misconduct". Accountability cannot exist without proper accounting practices; in other words,
"an absence of accounting means an absence of accountability. Accountability of accounting depends on the accountability of accounting stakeholders."
Accountability can also be defined by the responsibility to execute a desired role. Aeechy (2007), "Accountability relates to the objectives of financial reporting - the base upon which all accounting practices must be found". Barata et al (1999) say, "Accountability has been defined as the obligation of anyone handling resources of the designated office". Boven (2005) says, "In the modern political discourse, 'accountability and accountable' no longer convey a staffy image of bookkeeping and financial administration, but they serve as synonyms for fair and equitable governance". Accountability means responsibility or capable of being held responsible for something; capable of being explained; being held to account, scrutinized and being required to give an account or explanation.
On this note, what is accountability? (In ethics and governance) accountability is answerability, blameworthiness, liability, and the expectation of account-giving. (As an aspect of governance) it has been central to discussions related to problems in the public sector, non-profit and private (corporate) and individual contexts. (In leadership roles) accountability is the acknowledgment and assumption of responsibility for actions, products, decisions, and policies including the administration, governance, and implementation within the scope of the role or employment position and encompassing the obligation to report, explain and be answerable for resulting consequences. (In governance) accountability has expanded beyond the basic definition of "being called to account for one's actions". It is frequently described as an account-giving relationship between individuals, e.g. "A is accountable to B when A is obliged to inform B about A's (past or future) actions and decisions (performance), to justify them, and to suffer punishment in the case of eventual misconduct". Accountability cannot exist without proper accounting practices; in other words,
"an absence of accounting means an absence of accountability. Accountability of accounting depends on the accountability of accounting stakeholders."
Accountability can also be defined by the responsibility to execute a desired role. Aeechy (2007), "Accountability relates to the objectives of financial reporting - the base upon which all accounting practices must be found". Barata et al (1999) say, "Accountability has been defined as the obligation of anyone handling resources of the designated office". Boven (2005) says, "In the modern political discourse, 'accountability and accountable' no longer convey a staffy image of bookkeeping and financial administration, but they serve as synonyms for fair and equitable governance". Accountability means responsibility or capable of being held responsible for something; capable of being explained; being held to account, scrutinized and being required to give an account or explanation.
To maintain the accountability of accounting many scholars have shown their opinions.
Rika et al (2008) says, "To improve standards of accounting and accountability, it will be necessary to revise accounting procedures, automate accounting systems, upgrade accounting skills and decentralize accounting functions. Barata and Thurston (1999) says, "stakeholders in the accountability process cannot effectively perform their accountability obligations nor be held properly accountable unless the evidence of their actions is made available through organised, secure, yet easily accessible means.
To achieve this, reliable documentary evidence in the form of records must be consistently provided. Records are the indispensable foundation of the accountability process. Without reliable and authentic documentary evidence underpinning all essential accountability processes, government, civil society and the private sector cannot ensure transparency, guarantee accountability or allow for the exercising of good governance.
Accountability has been fully explained. Now, what is the next thing? Businesses, especially business owners should endeavor to be account informed (be knowledgeable in accounting principles), it is not as easy as you think rather take time to educate yourself in basic accounting principles (both in national , based on your country and international accounting principles). The reason for this, is to be able to avoid or reduce fraud and error made in the organisation after which an external auditor has independently examine the financial statement (putting up internal control system is not enough, because if the managers knows that the shareholders/owners are knowledgeable in accounting principles used in preparing the financial statement, they will be aware not to make unnecessary mistakes and not siphon the company's wealth).
Walkins (2007) says, "One must consider the unique competencies accounting comprises, one could, for example, select from among the elements of decision usefulness, stewardship, control, fairness, attestation, relevance, reliability, faithful representation, and accountability for the grounding norms for both accounting information and accounting firms.
Accountability in accounting is all about:
References:
https://en.wikipedia.org/wiki/Accountability
Faithful Representation, Consistency, Professionalism, Responsibility, Ethics, Quality, Rationality and Relevance.
Suitable accounting rules, regulations and systems can provide relevant and reliable accounting information users to make useful economic decisions but if the stakeholders of accounting are not sincere to uphold the accountability of accounting standards then it is necessary to ensure that all the accounting stakeholders are performing their roles and responsibility.
Suitable accounting rules, regulations and systems can provide relevant and reliable accounting information users to make useful economic decisions but if the stakeholders of accounting are not sincere to uphold the accountability of accounting standards then it is necessary to ensure that all the accounting stakeholders are performing their roles and responsibility.
Classification of stakeholders of accounting:
1. Regulators
2. Preparers
3. Researchers
4. Users etc
Stakeholders of accounting:
1. International bodies
(a) International Accounting Standards Board IASB
(b) International Federation of Accountants IFAC
(c) Financial Accounting Standards Board FASB
(d) Accounting Regulatory Committee ARC etc
2. Regional bodies
(a) European Accounting Association EAA
(b) Pan-African Federation of Accountants PAFA
(c) South Asian Federation of Accountants SAFA
(d) Arab Society of Accountants ASCA
(e) Accounting Bodies Of West Africa (ABWA)
3. Local bodies
(a) Government of respective country
(b) Regulator of listed companies
(c) Chartered Accountant body
(d) Users of Accounting information
References:
https://en.wikipedia.org/wiki/Accountability
Global Journal of Management and Business Research: Accounting and Auditing. Volume 15 Issue 2 Version 1.0 Year 2015. Publisher: Global Journal Include. (USA)
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