Challenges Faced by Accounting Professionals Essay

2919 Words Feb 17th, 2013 12 Pages
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
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Andersen worked as independent auditors for Enron for all 16 years since the company’s formation, and the firm also sold internal audit and consulting services. However, the extensive consultancy work done by Arthur Andersen compromised its independence result in its failure to report erosion of accounting standards.

People may believe that auditors’ independence will be strengthened after SOX, since it prevents accounting firms from performing non-auditing services to their auditing clients and consequently reduce the potential for conflicts of interest. The creation of PAOB will lead to enhanced audit quality; and objectivity will be improved due to audit partner rotation. However, under the current client-pay system auditors hire hired and fired by clients, there are incentives for opinions that favor the audit clients. According to Moore, Loewenstein, Tanlu, and Bazerman (n.d.), a research shows that people often evaluate evidence in a selective approach when they have a preset expectation in reaching a particular conclusion; thus they tend to pay more attention to evidence supporting the conclusion they would like to reach, and ignore when evidence conflicts with their desired conclusions (p.4). Another research also describes that when people do not know the preferences of their audience, they may heighten concern that

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