The Concept of Accountability in Accounting

Accountability can be defined as the responsibility of accountants or the accounts department of a particular business to keep finances of a business clear and transparent. Each individual or department is given a particular function related to accounting or some other financial matter and it is the liability of that person or the department to perform and accomplish that function fairly. For example the accountability of an auditor auditing a company or a financial institution is to analyze financial statement of a company in such a way that there must not be any instance of fraud or illegality in the statements. Accountability creates a sense of responsibility among the accountants and accounting firms as they know any kind of negligence and carelessness can make them legally responsible.

The major reason behind applying accountability to accounting operations is to create integrated and error free accounting statements of a business. A number of personals such as managers can manipulate the financial statements and reports of the company to show growth and profit regarding company’s performance. This can be done without the knowledge of accountants. With the tool of accountability an accountant can find out such manipulative and scheming practices and make sure that the performance of a company is documented fairly and accurately. The government and other financial institutions make sure that there must be an inspection from outside and independent accountants that must analyze company’s financial statements analytically to ensure that there are no malpractices in the business.

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