Question

This discussion focuses on the core value of Integrity. Students should be able to describe how this fits in with the field of Managerial Accounting. Explain how Saint Leo’s core value of Integrity is relevant to Managerial Accounting.

Answer 1

Generally, managers are mainly responsible for efficient and effective business control in any business organisation. This is the responsibility of managers to maintain proper control over the resources and policies of the organization. Therefore, the planning, implementing, supervising and monitoring are the basic components of any successful internal control system.

Effective and efficient internal control system and management provides a reasonable assurance of safeguarding of resources of government from fraud, implementation of rules and regulations, and develops reliable financial and management information etc. Auditors are also considered as the part of Internal Control Framework but responsible only for implementing the efficient internal controls in audited organisation.

Therefore, the performance of organisation can be improved by proper evaluation of performance of the organisation and reviewing the internal control systems. The performance of organisation can be improved by the examining the financial operation of the organisation, efficiency and economy in the management of funds, and the effectiveness of the organisation to achieve the objectives of the organisation.

Finally, if there is proper management and control over the flow of funds & every activity of organisation then it is easier for any organization to grow even in competitive business environment. Management system of organization must be efficient and effective towards performing their responsibilities for achieving the targets of the organization. Further, Financial Accounting Standard Board (FASB) has also issued accounting standards and framework guidelines for preparation and presentation of financial statements in order to reduce the conflicts and to protect the rights of all stakeholders. Managers also have to follow these standards and guidelines while preparing the financial statements of the organisation. Therefore, there are always so many different risks and incentives that managers, accountants, and any expert has to face like meeting the timelines of production and financial reporting, to meet out all the expectation of organisation regarding improving production along with regular and timely compliance with all the reporting requirements, and constant updating the knowledge relating to present competitive environment and reporting requirement etc. Apart from these risks, accountants, managers, and experts are considered as the key person for the information of exact performance of the organization, and are considered as most respectable person in the organization. Hence, Saint Leo’s core value of Integrity is relevant to Managerial Accounting in order to achieve the efficient and effective internal control system in management accounting so that they portrait themselves as organisation that works towards changing the world through teamwork and creative involvement of all management.