The role of professional accounting in business

Accountability, transparency and ethics in business and financial reporting have become more important than ever in the wake of the global financial crisis. Professional accountants are crucial business advisors, helping protect the interests of stakeholders in every industry. The Institute of Chartered Accountants is at the forefront of promoting and ensuring ethical business practice, with Chartered Accountants working in every industry and sector.

As a result of reading the Case Study, students should be able to:

• Explain the various roles of Chartered Accountants in business and how they contribute to business 
• Understand different types of financial reports and how they are used
• Discuss the importance of professional ethics and accountability and how Chartered Accountants and the Institute contribute to this.

Introduction

The Institute is the professional body for Chartered Accountants in Australia and represents 70,000 current and future business leaders working both here and overseas. It has around 57,000 members and almost 13,000 graduates undertaking the Chartered Accountants Program while they work.

Professional accounting in business

Chartered Accountants are in high demand in every type of business, and also within a variety of different roles. They are business leaders, decision-makers, technical analysts and influential advisors in industry and commerce.

Effective financial reporting

Financial reports are used by relevant stakeholders, e.g. owners, managers, investors, or analysts, to find the information they need to understand and manage the business, e.g. some may be used to accompany a tax return, to lodge on a public register such as the stock exchange, for banks, or to help with effective management of the business.

Creating accountability in business

Ethics are the cornerstone of a Chartered Accountant’s profession. Clear, visible and honest reporting allows company stakeholders to make informed decisions about the business and ensures businesses are meeting relevant legal and regulatory standards.

Conclusion

Chartered Accounting offers a varied and exciting career, with opportunities available throughout the world of business. Accountants are essential to the success and sustainability of modern business, and of public confidence in the markets.

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