Question

what are an accountants Social Responsibilities and Diversity

Answer 1

An accountant is a key person of providing data and information regarding the performance of a firm. So many stakeholders (like, shareholders, suppliers, lenders, tax authority, etc) are concerned about such details, because their interests are involved. Therefore, an accountant must have social responsibilities for protecting such interest. These are as follows:

Point 1) True and fair statements: Information must be clearly stated which are based on true facts; such as net income for the year must not be manipulated by showing fewer amounts of expenses.

Point 2) Maintaining ethic: If there is any pressure from top management for doing unlawful work or transaction in the books of accounts, the accountant should not follow it but should follow ethic.

Point 3) Cooperative: An accountant must be cooperative enough; like, he should be helpful for auditor, should communicate with top management as and when required, etc.

   

Diversity: It means supplying more information, more facts, and more computation. It helps users getting more knowledge about the firm. An accountant must follow all the accounting principles while preparing accounts. This thing gradually improves supplying data in better way.