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Accountability ensures that people conduct themselves honestly and ethically towards others. In the corporate world, the accountability of an organization extends to the employees, shareholders, and the community in which the firm operates. Being accountable implies that an individual or organization is willing to be judged based on their performance. Corporations must provide stakeholders with timely, reliable, and relevant information to make economic decisions. Accounting and governance are important components in ensuring transparency and the effective flow of information in the capital market. Nonetheless, recent accounting issues have demonstrated the need for substantive system improvement to curb the challenges. Identifying the issues in accountability and governance helps in understanding how to mitigate challenges and promote the concept of accounting. 

The key issues that need to be considered are the significance of financial statements and their impact on maintaining accounting quality. The financial reporting environment is faced with tremendous pressure to manage earnings and control bad news to the target orders. This means that some companies can manipulate their financial statement to persuade stakeholders. To prevent the issue of accountants manipulating the market value, the organization must employ skilled accountants. The role of the accountant is to ensure that they conduct a follow-up in bookkeeping and provide the auditor with the correct statement. Working with the auditor ensures that accountants provide all information necessary to determine the credibility and reliability of the financial statements. Therefore, manipulation of financial records is an issue that can be controlled by monitoring the financial records.

Another key issue that has an impact on accountability and governance is Fraud. Frauds committed in financial statements hinder the company from reporting its true and fair value. Performing fraudulent activities such as manipulating books to evade taxation is a form of fraud. It is the role of the accountant to record the accurate financial statement to show the position of the firm. Identifying the issues in fraud is achieved when the accountant is transparent and has integrity. An accountant has the responsibility to record the true value of the transactions that have taken place without having malicious intent. The role of the accountant is to report any person suspected to defraud the organization that demonstrates proper governance.

Accounting quality and detection of fraud are important issues that had to be addressed in the current study. Addressing the common issues narrows the gap in research and increases evidence-based measures that ensure proper accounting standards. The current research focused on analyzing the importance of accountability and governance. Identifying the issues that hinder accountability helps in developing appropriate recommendations that improve how accountants perform their duties.

The issues in accounting and governance must be addressed now due to the changes in the technological, economic, and political environment (Adam & Frost, 2008). The advancement in technology increases the need to evolve and find solutions that increase the accounting standards by reducing fraudulent activities. In a world that is embracing innovation, and technology, keeping up with innovative strategies helps in finding advanced ways to increase accountability and governance. Having software tools that monitor the quality of accounting information enhances stakeholder trust. Integrating accounting and technology promotes the idea of adapting innovation to sustain accounting quality.

The lack of proper governance is an implication of the issues within the accounting profession. Being a leader entails creating a culture that supports honesty and integrity (Bebbington, 2007). Poor governance leads to a decrease in accountability from top management to the subordinate staff.  The management can set a good example by ethically dealing with employees. Organizations have a corporate social responsibility to meet the needs of employees by improving their working environment (Mosa & Martin, 2015). When employees lack a system of accountability in the workplace they might partake in measures that reduce accounting quality standards which in turn reduces the reliability of the financial statement. When stakeholders cannot rely on the financial statement it disrupts their investment decision. Financial statements are essential in deciding whether the company is a going concern or can gain market opportunities. Stakeholders rely on accountants to provide accurate books that help in making investment decisions. Hutchinson et al (2008), argue that there is an association between management earning and board independence. Leaders in an organization must ensure that their primary goal is to promote transparency and have the best interest of the organization.

The key issues identified in accountability and governance are the common occurrence within the accounting profession. Many companies still face challenges in mitigating fraud in their organization and ensuring ethical standards have been adhered to. Manipulating financial records reduces the accounting quality. Stakeholders relying on the financial records might find it difficult to rely on information that does not meet the international accounting standards. The analyzed issues in the study create implications in the accounting profession. Therefore, identifying, analyzing, and interpreting the issues of accounting and governance helps in adapting new procedures that promote the high maintenance of financial records.

References 

Adams, C. A., & Frost G. R. (2008). Managing social and environmental performance: Do companies have adequate information? Australian Accounting Review, 17(43), 2-11. https://doi.org/10.1111/j.1835-2561.2007.tb00331.x

Bebbington, J. (2007). Changing organizational attitudes and culture through sustainability accounting. Sustainability Accounting and Accountability, 226-242. https://doi.org/10.4324/noe0415384889.ch12

Hutchinson, M. R., Percy, M., & Erkurtoglu, L. (2008). An investigation of the association between corporate governance, earnings management and the effect of governance reforms. Accounting Research Journal, 21(3), 239-262. https://doi.org/10.1108/10309610810922495

Moser, D. V., & Martin, P. R. (2015). A broader perspective on corporate social responsibility research in accounting. The Accounting Review. https://doi.org/10.2308/accr-50139