The Role of Chartered Accountant in the Formation, Acquisition and Liquidation of Companies
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To ascertain the role of chartered accountant in the information, acquisition and liquidation of companies
- To ascertain the notice of the public particularly potential investors and entrepreneurs, the services the professional accountants can provide them.
- To examine the problems firms will undergo at infancy and highlighting those areas where the public accountants will readily provide succor.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THE ROLE OF THE ACCOUNTANT
Society’s pressures on organizations for disclosure of the effects of social efforts in their financial statements place the behavioral relationship between society and accounting under stress today This stress is strong enough to change prior relationships, affecting the accounting profession today, and influencing its future direction as well. It seems most likely that the accounting profession will meet these new social demands adequately by extending its services and its traditional mode of communication. As a result, accounting itself will progress through further significant development. The interdependent behavioral relationship between society and accounting will surely persist. We can expect a response to the progress in accounting with changes, not now predictable, which will further improve the quality of our society. Specifically, what should be the accountant’s role in response to these social demands? It should be a significantly expanded one for the following reasons
- Much environmental information is of a quantitative financial nature that significantly affects asset valuation, costs, revenues, expenses, liabilities, and income. Accountants must consider this information so that the financial position and performance of firms are accurately and adequately reported.
- Although many environmental costs have been considered traditionally as social costs and not as private production costs for the firm, costs ’of maintaining the environment are now generally viewed as the responsibility of the company concerned. This evolution in social philosophy is placing environmental information, both financial and non-financial, squarely within the realm of the accounting function.
- Accounting has evolved to its present status as a profession through meeting the need for measuring economic and financial activity and communicating this information to society. Society is now demanding environmental information from organizations. Accountants must communicate needed ecological information to interested parties in order to continue to receive professional support from society.
- It is probable that in the not too distant future, reporting of environmental information will be part of generally accepted accounting and auditing standards.
- If accountants continue to take a passive, indirect, role in reporting ecological information, they may actually aid and abet the worst pollution offenders. This is because offending organizations report relatively larger net incomes, larger current assets, lower liabilities, and other relatively greater measures of success, in contrast to those companies which make substantial financial commitments to improving the environment. Such action is not in line with the desired goals of society. Through aiding such an undesirable situation, the status of accounting would probably be lowered, and more desirable practices would probably be forced upon the profession.
’ 6. Accountants have a chance, at this time, to expand their services and increase their economic rewards. For example, increased opportunities for accountants are now available in management service activities. Expanded audit programs are an example of such opportunities. The team approach necessitated by many environmental problems-requiring working with various other professions-is likely to lead to increased recognition and expanded horizons for accountants.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to a the role of charted accountant in the formation, acquisition and liquidation of companies
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information the role of charted accountant in the formation, acquisition and liquidation of companies. 200 staff of selected companies in Lagos state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the role of chartered accountant in the formation, acquisition and liquidation of companies.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of chartered accountant in the formation, acquisition and liquidation of companies
Summary
This study aimed at the role of chartered accountant in the formation, acquisition and liquidation of companies. Three objectives were raised which included: To ascertain the role of chartered accountant in the information, acquisition and liquidation of companies, to ascertain the notice of the public particularly potential investors and entrepreneurs, the services the professional accountants can provide them, to examine the problems firms will undergo at infancy and highlighting those areas where the public accountants will readily provide succor. On the line with the objectives two null and alternate hypotheses were formulated
Conclusion
Lambert and Sponem (2012) call the modern role a “myth”. As such, it is to be expected that roles such as the “hybrid accountant” will continue to describe management accountants’ actual role, that is, a mixture of responsibilities defined by the needs and characteristics of the organization they belong to and their individual and personal strengths (Burns & Baldvinsdottir, 2005). Organizations should also understand the normative background of the calls for more business orientation (Vaivio, 1999; Goretzki et al., 2013): role change projects should always be based on organizational requirements and conditions, not to trends advertised in trade journals or professional literature.
Recommendation
Further, more research is needed in the area of matrix organizations: situations, where top management is running change projects that directly impact the roles of management accountants at the subsidiary level could benefit from the proposed accounting change model. In addition, dynamics between the parent-subsidiary relationships in the role change context remain largely an uncharted territory finally, more and more organizations are resorting to virtual relationships: employees interact via modern communication technologies and physical face-to-face interaction is losing importance.
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