The governing bodies of accounting

From an evaluation of accounting in higher education

The governing organizations for each entity, financial and managerial; while separate, often work closely together to achieve their goals. The American Institute of Certified Public Accountants (AICPA) was developed as an oversight board to ensure the integrity of the professional Certified Public Accountants (CPAs) for financial reporting. The organization was created by the Financial Accounting Standards Board (FASB) and also ensures standard setting for the Certified Public Accountant examination within each state. The Financial Accounting Standards Board also developed the Generally Accepted Accounting Principles (GAAP). GAAP is also known as the rules for financial accountants to follow. These rules consist of three basic requirements; 1) the basic accounting principles and rules, 2) the detailed standards and rules issues by FASB and the predecessor of FASB, the Accounting Principles Board (APB), and 3) the generally accepted industry practices. The Certified Managerial Accountants (CMAs) are certified professionals specialized in financial and managerial accounting and generally works for a single company (www.ima.org). Managerial accountants are not required to adhere to the rules of GAAP because often the reports are prepared on specific parts of a company such as production, territorial, or departments with reporting prepared daily, weekly, or monthly basis. The Certified Managerial Accountant however must follow rules of ethical standards which includes principles of honesty, fairness, objectivity, and responsibility. The standard of ethical practice includes managerial accountants’ adherence to competency, confidentiality, integrity, and credibility. Managerial Accountants must also pass a uniform examination administered and governed by the Institute of Management Accountants, similar to the CPA examination which is standardized within each state or region, however the CMA certified is also recognized globally.

It is important finally to recognize the governing organization for the education of accountants within the United States. This governing body is the American Accounting Association (AAA), which is the largest organization of accountants in academia. The organization was formed in 1916 by combining Certified Public Accountants with Certified Managerial Accountants to produce a rich diversity of membership and governance. Their preamble states that their mission is to be the premier forum for scholarly interchange within the accounting profession as well as thought leaders in accounting education. (AAA.org). Members are encouraged to enhance learning within the discipline of accounting, to pursue and further advance accounting knowledge, and provide evidence of responsibility to society.

Through enhancement of learning, members seek to develop future leaders, accepting their responsibility as educators and mentors for students to develop specific skills and promote life-long learning. Members also recognize their influence in indirect ways by creating a fertile environment for collaboration and innovation in teaching, research and networking to ensure the following objections are met:

Develop students with an appreciation for the importance of ethics and professionalism as well as technical expertise.
Creating fair and honest classroom environments.
Insist that excellence is maintained while ensuring treatment of all individuals with dignity and respect.
Use of integrity while conducting academic, business, and professional affairs.

Scholarship obligations for AAA members also consists of the development of integration of ideas, the discovery of new ideas and the application of ideas to promote an understanding human interaction within the accounting profession and business activities. Members scholarship obligations should strive to match their professional abilities, including backgrounds, their interests while meeting their institutions' specific mission. Some aspects of that obligation include:

To establish and maintain a scholarship agenda directed to important societal and professional needs while increasing the member's knowledge.
To Maintain and strengthen a scholarly competency, which is consistent with requirements to meet member's research agenda.
To be accepting of criticism of one's own work as well as to provide an objective and constructive criticism to their colleagues.
To publish one's scholarly work in ways that will make results available to scholars and to the community at large.
To encourage and promote variety in scholarship approaches that will result in improved quality workmanship and enhance scholarship and the public good.

Association members should also contribute to society by performing services which promotes their institutions, their profession, the business community and their discipline. Such services may vary depending on the accountants’ unique background, skill set, and passions:

Member should seek opportunities for service that is consistent with their institution’s mission, the American Accounting Association’s mission, and with a recognition that members have an important role to play within our society as independent, objective evaluators of accounting activities.
Members should strive to complete service obligations which prove a commitment to excellence.
Members should always avoid conflicts of interest between the member's academic efforts, their business interests, and their service activities.

References

Albrecht, W. S. & Sack, R. J. 2000. Accounting education: Charting the course through a perilous future, American Accounting Association, Accounting Education Series, 16, accessed 20 Aug 2015, and retrieved from http://aaahq.org/pubs/AESv16/toc.htm

American Accounting Association, Thought Leaders in Accounting, retrieved from http://aaahq.org

American Institute of Certified Public Accountants (AICPA), 1998. CPA vision project: Focus on the horizon, accessed 20 August 24, 2015, retrieved fromhttp://www.cpavision.org/vision.htm

American Institute of Certified Management Accountants (IMA). 2015,

Retrieved from http://www.ima.org

Gleeson-White, J., (2012). Luca Pacioli Double Entry and the Birth of Financial Management, Chartered Institute of Management Accountants, and Retrieved from:

http://www.fm-magazine.com/feature/depth/luca-pacioli%E2%80%99s-double-entry-and-birth-financial-management#

Johnson, P., Duberly, J. (2001). Understanding Management Research, An introduction to epistemology, 1st ed. Sage Publications.

Zubrinic, D., (1995). History of Croatian Science, 15th – 19th Centuries, Retrieved from: http://www.croatianhistory.net/etf/et22a1.html

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