Accountant in Private or Public Sector Should Remain Impartial

Accountant In Private Or Public Sector Should Why Remain Impartial? An accountant in private or public sector should remain impartial and also loyal to ethical guidelines when preparing and reviewing the company’s financial statements for reporting purposes. Some of the contemporary issues that affect an accountant in the workplace emanate from outside or forces within trying to ensure that financial records are manipulated to make the company appear as if it is making profits when this is far from the truth(Anandarajan and Simmers, 2002). This leads to both criminal and ethical violations. The balance from the legal point of view can be considered as the assets and rights in favor of the company in a given moment of time (assets), the obligations contracted at that date (liabilities) and, as a difference, the property belonging to the owners (Bowie and Werhane, 2006). From the economic point of view, the balance sheet shows the sources of financing that existed at any given time, both from third parties outside the company, as well as from the owners of the company (liabilities and assets) and the investment or application that has been given To that (active) financing. Some of the work place problems include: the goal of makeup or "beautification" of the balance sheet is to make the company's liquidity situation appear more favorable. From this point of view, it is customary to practice transferences of securities or feigned transactions in books, aimed at taking sums from accounts considered as not realizable to other accounts held by more liquid, before the balance sheet is drawn up. Irregularities to records or accounting reports for any fraudulent purpose may be "employee fraud" or "management fraud". Employee fraud refers to dishonest acts done against the company by its employees. Examples include asset theft, charging lower sales prices to "favored" customers, receiving money from suppliers, overestimating hours worked, filling expense accounts, and embezzlement (theft of assets that Is hidden by falsifying accounting records). Management fraud refers to a deliberate misrepresentation made by top management of a business to outsiders, tending to mislead investors or creditors, concealing the truth, and to this can be added the rudeness between partners, as well Such as the fraudulent management of Directors and Directors, which may consist of misappropriation of funds or distortion of Balance Sheet. This naturally entails having to make false entries during the course of the business year, which will alter the time of the statement of the balance when it is being drawn up. The most common is that such false seats take place during the inventory; Excessive wages to managers and / or their families which allows management to use them for personal purposes; Fraudulently structured business transactions between the company and members of its senior management; Transfer of accounts to another that have nothing to do with the origin of the operation; Seats that have been embroiled in order to maintain or introduce certain values not included in the balance sheet, as in the case of value depreciation in the "goods" account when part of the goods is damaged; Fictional sales; Fictive existence of assets; False overvaluation of the Asset; Omission of commitments; Indication of a major change to the real, among many others.   According to the manner and time of its execution, the accounting offenses of the employers are broken down into three categories: those committed in the course of the exercise(Bragg, 2001). Those that are made when formulating the inventory with repercussion on the balance sheet and the offenses of balance proper, in the most limited sense, which affect the accounts of the Major to obtain the balance sheet. Management that wants to hide the situation of their business can do it in two directions: up or down. In the first case there is the purpose of making the commercial capacity appear in the books and vice versa in the second; The final effect is to distort the general situation, according to the interest that may exist according to the prevailing circumstances. The above risks are commonly handled in risk management of companies, but how could we translate them into an accounting firm? Perhaps we could handle them as quantitative, qualitative risks, risks arising from the management of the business and results of recent audits. The quantitative risk should be evaluated by aspects such as the sufficiency of the cash flows of the business, the amount of capital of the firm itself, the sufficiency of the fees to collect the financial situation of the business, and so on(Careers in accounting, 2008).The qualitative risk of the business should be given by aspects such as the industry in which the firm is immersed with its main customers, its number of customers and suppliers, management experience in charge of the business, number of products on the market, personnel Key in the operation, and so on. The problem arising from the operation of the business, by the administration in charge, results from such issues as the pressure of the partners to generate profits or positive cash flows, financing needs, additional capital, reserves not to recognize (Or recognize) inadequate income, very high administrative compensation based on results. Indications of unhealthy accounting practices may also result in a risk, only comparable to the lack of sincerity (to hide information) of the administration towards the partners of the firm. The results of recent audits of our own accounts and controls can point us to the risks that other Accounting professionals have detected in the recent past. The pressure to impose ideas, unreasonable dates of reporting, detected frauds, unexplained departures from the firm's staff, and so on. Litigation is also a source of risk for the firm, as well as operations or contracts unnecessarily complex with parts of the firm, etcetera(Weetman, 2016).As can be seen, trying to convert traditional general risks into landed risks for the accounting profession (specific industry) is complex and it is only after a careful evaluation of them, their weights and their balances that can lead to knowing Whether the risk you are taking with your contracts is acceptable or not. One suggestion to carry out such an assessment of the total risks of the firm is the development of one or more risk matrices in which the different types of risk to which the firm is subject are evaluated by assigning values of each of the different risks Noted above. Once the analysis was developed through a matrix with weighted data, the result would be a scheme, perhaps as follows With limited exceptions, issuers may not extend or maintain credit, extend credit arrangements, or renew an extension of credit, in the form of a personal loan for any of their senior managers or executives(Test of professional competence in management accounting, 2013). An existing credit extension will not be subject to this prohibition if there is no material modification to the credit extension or renewal after the enactment of the law.   This fraud strongly impacts the financial statements. It can include asset theft, concealment of debts, manipulation of income, manipulation of expenses, among others.     Alteration of information: change of information before or during computer entry. Anyone who has access to the process of creating, registering, transporting, encoding, examining, converting information that enters the computer can do so.   Trojan horse: It consists of placing additional instructions in a program so that, in addition to its own functions, it performs an unauthorized function. It can be done by anyone who has access to any file normally used by the program. It's easy to hide among hundreds of program instructions. It can also be hidden in the operating system. They are introduced preferentially by adding the unauthorized change when implementing an authorized change to the program. Salami Technique: Theft of small amounts from a large number of records through fraud in the program. The funds thus obtained are applied to a special account. Control totals do not change. The person equipped with this course are   considered to be trusted advisors to managers who did not have a leading and driving role, much less control and monitoring, since their role was confined to making recommendations on the progress of the company and the management of its executives , Validating with their presence and their signature the acts of those, to such an extent that in business language a radical line was made between what was management and those who called themselves directors, in a denomination that was above all honorific(Test of professional competence in management accounting, 2013). This reduces ethical issues in the accounting and management profession. This eans that their performance is exclusively in the interest of society and associates and are subject to a catalog of functional prescriptions that makes them active subjects of business management, not only as drivers of their objectives but also as Vigilantes of the implementation and of the results of its policies, strategies and programs, assigning them a joint and unlimited liability to the damages caused by deceit or fault to society, partners or third parties, unless there is no knowledge Of the action or omission that generates responsibility or has been voted against, provided that those who oppose the act have not executed it. How accounting degree can be used to solve workplace problems To determine the location of accounting in the field of knowledge, assuming for the present work, the different definitions of some work that relate it to the economy, regardless of whether or not they belong to the Economic School of Accounting, which was published in the virtual International Accounting and Social Responsibility of Organizations, Accounting is a social science of an economic nature whose purpose is, by means of a specific method, a way to produce information in quantitative terms, relative to the economic-patrimonial reality that occurs in an economic unit so that the users of the information can make decisions In relation to the expressed economic unit(Management accounting, 2010). Accounting is an economic science that serves the explanatory, predictive and control information of the measurement and aggregation of the value of wealth and of the income generated in the exchange of private and public subjects Research problems and accounting research problems are needed, which lead to the diagnosis and description of aspects that generate obstacles in research. As an example, research in order of the major research topics is presented through the most representative academic journals with the intention of evidencing the global accounting research. The problem that guides the argument is the need to distinguish two problematic axes in accounting research that makes this exercise an activity that historically marches slowly, seeking to understand that with the conceptual and analytical clarifications in the conceptions that govern accounting knowledge, Could contribute to the disruption of this issue. It is established that problems are not the same as motivators of research, that the problems that revolve around research as a human activity. This writing has been thought with two purposes, which are meant to mean in the title(Management accounting, 2010). On the one hand, it is implied th at there are research problems in the science or discipline of accounting, which are those that by nature move to a field of knowledge; That is, that through the accounting an investigator could explain an own fact of such discipline. This first approximation leads to linking the problems of investigation in the plane of what can be called accounting ontology, as it refers to the object of accounting study, to the facts of which accounting is concerned. On the other hand, it is understood the problems of accounting research, as the result of an accounting epistemological analysis, in the sense of outlining the main axes that lead to problematic situations in the process of accounting research as a social activity. For this first part it is necessary to make precision about what can be understood by research problem. Traditionally it has been understood that a problem is a situation of conflict, where there are two aspects that do not correspond with each other, either the reality and the explanation of it; On the other hand, a problem is understood as the absence of an explanation about aspects of reality that have not yet been addressed and / or finally that in the face of a problem the available explanations are not coherent. The above three causes are the sources of problems in science. It is important to emphasize that problems are not exhausted in the abstraction presented here, but that many problems can be generated by confusions in language, in thought, these problems would be philosophical, however, To the extent that philosophical approaches to accounting problems exist, these ways of understanding them can significantly guide researchers in providing solutions(Management accounting, 2010). The latter aspect provides a path that is not entirely unexplored, but which has been insufficiently exploited for the benefit of accounting discipline. Accounting as a scientific discipline can be approached from any of these models of science. Whatever it is, accounting research is needed from two planes; the pure and the applied. On the applied side, research becomes pragmatic, instrumental and technological, seeking concrete solutions to specific information problems derived from empirical research, inductive, starting from the state of things that exist, without trying to transform it. This investigative exercise revolves around recognizing - measuring - disclosing the accounting fact, through an information system, to generate information useful in economic decision making, within the framework of the market logic. On the "pure" side, research in accounting is based on the search for new theories, methods, techniques, to know the accounting reality through an interdisciplinary, transdisciplinary, multidisciplinary or multidisciplinary conception. The center of this type of research is the expansion of the frontiers of accountin g knowledge based on the idea that accounting is a socially, economically, politically and culturally constructed discipline. The link between these investigations and accounting practice for many is diffuse, but it must be considered that for a theory to be accepted by the scientific community it has to be recognized, tested and proven, which does not happen in short periods, even more so in The accounting field must go through the recognition of regulatory bodies and relevance to social needs. There are multiplicity of fields in which you can do accounting research either applied or what has been called here pure research, within these we locate some that are representative to give an idea of each category. The problems that are indicated in the plane of accounting epistemology are the diagnosis of the main causes of why accounting as a scientific discipline does not achieve greater developments and socio-technological impact as a social science. They belong to sociology because they detach themselves from the human relations that construct the accounting phenomenon and, therefore, it is incumbent to explain them from this perspective; Are all a consequence of the effects that variables external to the accounting science itself determine their situation. Recommendations Scientific community: the main problems around this category, is whether accounting researchers share minimum elements of methodology and there is agreement on what is or should occupy accounting? For many years there has been debate and writing on this subject, without finding any exit, given the high ideological component that occurs in the answers and proposals. Is there any consensus as to object and method? In thi s sense, apparently basic questions, but with little real impact in both research practice and academia, consensus should not necessarily be imperative. What is really required is clarity in relation to what is investigated and is intended to intervene with the investigation, in order not to invade spaces that other disciplines and sciences already of tradition do much better(Management accounting, 2010). Does the formation of the accountant support the same purposes and share the same literature? The tension in the formation of the counter, inheritance of several decades, more than diversifying approaches, alternatives and generating plurality, has been a dissociating element. What is relevant in this aspect of the problem is whether there is an understanding and understanding of opposing approaches and postures that enable academic debates of scientific rigor that contribute to a dynamic of progress. Does the community handle the same language? The semantic differences within the accounting community are evident as it arises, the distance in the members of the accounting community is not only in the language, but in the valuation and importance of the research activity and the Impact that this must have. Market: the space where accounting functions and the accounting profession properly imposes challenges on us to be able to understand the relationships that must be established between science and economics. It is an external variable of consideration because it conditions the educational system and thus the type of training that is privileged. Is accounting education contingent on the needs of the market? Is accounting research important to the market? Is there research, more for the disciplinary need than for meeting quality standards? The problems of research in accounting are a sample of the potential possibilities of disciplinary development, and are evidence that it is possible to speak of research in workplace accounting. Not only from the application of methodologies of scientific rigor, but also from the perspective of building knowledge about realities built and understood interdisciplinary, on objects and phenomena in the world that revert human, economic and social importance, from accounting as a discipline social, to build forms of recognition, measurement and accounting representation that facilitate society a much more comprehensive understanding of economic and social reality. However, the difficulties jump immediately, but they are the ones that motivate from an epistemological vision, the possibilities, the scope, the character and utility of the same, difficulties that also are object of investigation(Bowie and Werhane, 2006). This situation permeates the relationships in the accounting community, the institutions, the market and the practical utility that derives from it. The, far from being discouraging, invites us to think of research not as a problem in itself, but rather to understand it as the articulating axis that allows us to develop accounting as a dynamic social knowledge and discipline, useful to mankind, not only professionally, But in a sense of understanding of the world and of society that re-establishes it in its social value Anandarajan, M. and Simmers, C. (2002). Managing web usage in the workplace. 1st ed. Hershey, Pa.: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). Bowie, N. and Werhane, P. (2006). Management ethics. Malden, Mass.: Blackwell. Bragg, S. (2001). Cost accounting. 1st ed. New York: John Wiley. Careers in accounting. (2008). 1st ed. San Francisco, CA: WetFeet. Duska, R., Duska, B. and Ragatz, J. (2011). Accounting ethics. Chichester, West Sussex, U.K.: Wiley-Blackwell. Jeffrey, C. (2004). Research on professional responsibility and ethics in accounting. Bingley, U.K: Emerald. Jeffrey, C. (2008). Research on Professional Responsibility and Ethics in Accounting. Burlington: Emerald Group Pub. Jeffrey, C. (2010). Research on professional responsibility and ethics in accounting. Bingley, U.K.: Emerald. Jeffrey, C. (2014). Research on professional responsibility and ethics in accounting. Bingley, U.K.: Emerald. Jeffrey, C. (2016). Research on professional responsibility and ethics in accounting. Bingley, U.K.: Emerald. Management accounting. (2010). Wokingham, Berkshire: Kaplan Financial Ltd. Professional ethics in accounting and finance. (2012). London: BPP Learning Media Ltd. Test of professional competence in management accounting. (2013). 1st ed. London: BPP Learning Media Ltd. Weetman, P. (2016). Financial and management accounting. Harlow: Pearson