1.4 Organization That Influence Current Practice

We noted that the accounting profession provides valuable information to a number of decision makers. The importance of providing reliable information was also underscored. We learnt that accountants are guided by professional code of conduct which requires them to be ethical, objective, confidential, professional, and uphold to high technical standards among others. There are a number of watchdog organisations to the profession. They include both government bodies as well as associations that have been set up by accountants to provide guidance in the profession.

Each country has its own accounting practice and regulations therefore differ from one country to another or from one region to another. However, some countries have adopted international practices. One of the renowned international accounting standard setters is International Accounting Standards Board (IASB). This is a nongovernmental organisation whose role is primarily of harmonizing the measurement basis used by accountants as well as the manner in which transactions are captured. They also provide guidance in respect to reporting. They provide guidelines commonly referred to as international accounting standards (IAS) which require accountants to follow certain policies.

Except for the IASB, most countries have regulatory bodies that license practicing accountants as formulate ethical code of conduct for them. Such organisations also provide training to members aimed at improving their technical standards. Punishment is meted to errant accountants in form of fines, warnings, suspension from the list of practicing accountants or even deregistration and revocation of practicing certificate.