Professor Adams' Lecture Materials - ACC478-M03A-LO1

Professor Adams' Lecture Materials

Learning Objective M03A-01: Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes.

Changing Roles of Accountants in Business

In the past accountants focused on:

Stewardship and reporting functions.
Preparing financial reports.
Auditing.

Now accountants also take active role in:

Helping enterprises optimize processes.
Achieving competitive advantage.
Maximizing shareholder value.

Rapid changes in technology increase availability of data.

Business intelligence systems.
ERP systems.

Information produced by systems must support the information requirements of the enterprise’s decision makers.

Accountants involved in supporting evidence-based decision making.

Strategic planning.
Process improvement.
Compliance management.

Source: The Changing Role and Mandate of Finance: Creating a Vision for the Future (New York: CGMA and AICPA 2018).

Framework Defines 6 Skills for Accounting Professionals

Strategic management.

Able to lead the strategic planning process, guide decision making, manage organizational risks, and monitor performance.

Reporting and control.

Able to measure and report organizational performance in compliance with appropriate standards.

Technology and analytics.

Able to manage technology and analyze data to enhance organizational success.

Business acumen and operations.

Able to contribute as a cross-functional business partner.

Leadership.

Able to facilitate collaboration and inspire others to achieve organizational goals.

Professional ethics and values.

Demonstrate commitment to professional values, ethical behavior, and legal compliance critical to a sustainable business model.

Changing Roles of Accountants in Business

Accountants must now:

Understand the business and how it collects summarizes and communicates business information.
Understand how the business delivers value to its customers.
Understand the risks that the business faces and the internal controls in place to mitigate those risks.
Understand how accounting information systems collect summarize and report business process information.

Page updated

Google Sites

Report abuse