Professionalisation of Accounting: Part 2

Part 2: Conditions and dependencies of Professionalisation

According to Birkett & Evans (2005) (I hope you read them!) there are three conditions to professionalization:

1. Professional Power:

This condition talks about there being a power held by the group of professionals to push forth their agenda, to stand up for what is best for them, even in the face of intense resistance. Essentially this talks about the professional organisation’s ability to do what is right for the profession and not be pushed around by other parties (usually clients).

2. Associational Control:

When wielding professional power, the organisation must make sure that only a select few are given access to this power. These select few individuals must be individuals who are highly competent, skilled and knowledgeable so that they can wield the professional power in a proper and responsible manner. Clients will respect the organisation that can ensure only the most qualified individuals are allowed in as certified professionals.

3. Sustaining Ideologies:

Sustaining Ideologies talks about the strength of your belief in the ideals in which your profession is built upon. In terms of the accounting profession, this looks at how strongly do members of the accounting community believe in the standards of their profession, of their duty to provide true and fair views of the company’s financial situation and of their responsibility towards company stakeholders and society at large.

Similarly, Birkett & Evans (2005) provide for three major dependencies upon which the conditions rely:

1. Work:

Work is a dependency which defines the accountant’s job scope. Work also talks about the accounting industry, the demand for it and how accountants are required to perform their work for the clients. Work is essentially the working environment in which the accountants are working in.

2. Market:

Market speaks of the demand and supply of accounting services in the country. It primarily deals with the economic forces which spur the development of professional accounting services. Market is the trading environment in which accounting services are bought and sold and it also deals with consumer forces and supplier forces.

3. State:

State is the Government, the powers that be which govern our country. State primarily deals with how the government provides for the development of the accounting profession in our country. Does it nurture or neglect it? Are rules and laws put in place to promote or discourage the development of accounting? State is the political environment in which accounting operates in.

PART 3 HERE!