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professionalism and the accounting profession (2)
Finance & Accounting
Pages 6 (1506 words)
STUDENT’S NAME: INSTRUCTOR’S NAME: COURSE TITLE: DATE: Professionalism and the Accounting Profession Clever accountancy has gained ground in recent years to become a major business model for many accounting firms. This paper will seek to define clever accountancy; how it came about, how it serves the public interest and how it is cursed by the tax collector.
The paper, among all other things, will discuss how accounting could be done more professionally. Clever Accountancy Clever accountancy is the use or application (or over-application) of accounting knowledge to aid clients in reducing significantly their tax liability. It is the manipulative use of knowledge for ulterior motives. Clever accounting crept into the profession early but was more prevalent in the 1980s (Offeand Ronge, 1984). Prior to this, the role of accounting firm was to increase awareness on the importance of ethical professional conduct. Their members were also qualified personnel in the accounting field. Later they turned into profit oriented outfits. It was realized that more revenue was generated from consulting rather than auditing. This was when accounting firms started to ‘bend’ ethical accounting principles (McGrew, 1992). The underlying justification was that companies wanted auditors to keep them out of trouble. Clever accountancy is justified by its perpetrators (accounting firms) as being in the interest of the public. They claim that if everyone had their way, no one would want to pay taxes. On the other hand, those with the contrary opinion rubbish their claims as just lame justifications of tax evasion. ...
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