External Influences on the Accounting Profession

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External Influences on the Accounting Profession The Accounting profession is distinguished by the heavy demand placed upon its practitioner to adhere to laws, standards, regulations and best practices. Any failure to do so may result in financial loss, economic oversights and even legal penalties. As a result, it is incumbent upon the accounting professional to recognize and abide the external influences that help to define the field. Distinct political, economic and cultural factors converge to define practice within the accounting profession. Today, accountants are subject to the same global economic changes that are impacting professional in every sector. With the deconstruction of global barriers, a whole new host of economic realities must drive accounting decisions, requiring knowledge of the economic practices not just in a domestic country of operation but also in a partner state or states. This combines with pointed domestic pressures emerging from political systems such as that in the United States. Quite to this point, a panel called the Investors Technical Advisory Committee (ITAC), according to Reuters (2009), roundly criticized the Financial Accounting Standards Board (FASB) for its clear vulnerability to outside pressures derived by political agendas. According to the Reuters article, the panel released a statement accusing the FASB of setting new accounting and financial reporting standards with a laxity sought by a coalition of government officials,
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