Here the skill lies in choosing and conveying the information, which is relevant and reliable to the user. According to the American Institute of Certified Public Accountants (AICPA), accountancy can be defined as “the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof” (Accounting, Finance & Capital Budgeting, nd., 1). Early records show that accountancy was used primarily for maintaining business related data on behalf of businesspersons and the only account viewer were record keepers who maintained accounts. In the current context, accounting is referred to as “the language of business” (McGrath, 1921, 5) since it is a vehicle primarily used for publicizing financial data about a business firm to various interested people. There are different theories that try to elucidate the development of professionalism within accountancy and whether it can be taken as a profession or as a trade. As per the functionalist theory, a profession starts only when there are a group of people practicing specific techniques based on specially designed training. They are viewed as forming a group to mutually assure their skill and competence and maintain high standard In terms of professional practice and character (Carr-Saunders, 1928). In this context, the paper will examine whether accountancy is a profession or a part of the trade market primarily from a functionalist perspective. Discussion Accounting as a profession has been analysed from various perspectives and different settings. Various researches have used the functionalist, critical and interactionist perspectives to elucidate the development of professionalism within accountancy even though it had mainly trade market associations. The functionalist theories claim that the core of professionalization is based on any profession‘s capability to create professionals with a common set of skills and knowledge that would work towards serving the society selflessly. The interactionist perspectives on the other hand suggest that professions are interest-based groups that aim at persuading the society members to seek their advices/services for protecting and furthering their own interests. The critical perspective, which is modern in form, analyses the process of professionaliz
Accounting is the procedure that is used for conveying necessary business information to various users.This communication takes place in the form of financial statements, which show the economic resources that are controlled by a firm’s management. …
David Sciulli further asserts for the essentiality of specialized knowledge incorporated to the provided definition. Torgersen (1972) defines profession basing on the aspect of specialized education. Individuals who have acquired this education seek the occupation in which they are finally recruited.
This essay analyses how each of these models view accountancy as a profession. The first section discusses the trait-based model and functionalist perspective, as well as their weaknesses as models of profession. The second section discusses how the Weberian tradition and Marxist paradigm fill the gap left by the trait-based model and functionalism.
Accountancy is not a profession Although the status of accountancy as a profession was started to be challenged around the start of the 20th century, yet for the most part, accountants in the 20th century were organized into a kind of profession that was self-governing.
Clever accounting crept into the profession early but was more prevalent in the 1980s. Today, clever accountancy is the use or application or over-application of accounting knowledge to aid different clients in reducing significantly their tax liability. It is the manipulative use of knowledge for ulterior motives.
Continued efforts in different spheres of interaction have established the need for a more unified globe. The world has gradually modernized into a more sophisticated ‘global village’ in matters of economic cohesion, political integration as well as the social dynamics.
In this write up, these effects of technology have been discussed from the point of view of core accounting, auditing, and taxation functions of the accounting profession.
The method of collecting, manipulating, and transmitting data has gone a
Dayananda, et al., (2002) found that a perfect budget plan includes set of regulations regarding capital to be employed, income, and the expenditure. Budgets should always be prepared and approved by the authorities before the start of the period. The budgets which are approved