lT-Mobile LTE 12:05 AM What knowledge should an account... Detail Submission Gra

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lT-Mobile LTE 12:05 AM What knowledge should an account... Detail Submission Grade What knowledge should an accountant have? Due: Sep 24, 2018 at 11:59 PM Many accounting and accounting-related professionals are skilled in financial analysis, but most are not skilled in manufacturing. This is especially the case for process manufacturing environments (for example, a bottling plant or chemical factory). To provide professional accounting and financial services, one must understand the industry, product, and processes We have an ethical responsibility to develop this understanding before offering services to clients in these areas 1. How you would obtain an understanding of key business processes of a company that hires you to provide financial services. Please specify an industry, a product, and one selected process and draw on at least one reference, such as a professional journal or industry magazine Original discussion posts due by Monday, 11:59 pm, Dashboard Calendar TO DO Notifications Inbox

Explanation / Answer

As a provider of financial services (like accounting or auditing) a professional can obtain an understanding of key business processes of the company to which they will be providing their financial services through experience and training. When a financial service professional is new to an industry then the professional should get training to gain and acquire knowledge about that industry and its processes. Through this the financial service professional will be better able to understand the nuances of the processes of one industry to another. Besides experience and training an accountant will be able to gain understanding about an industry through observation, inspection and inquiries of management and other employees within the company.

With time the financial service professional will be able to learn more through on hand and on the job experience. It takes a lot of time to gain comprehensive and in-depth knowledge about an industry but when a financial service professional finally acquires and gets the knowledge then he/she will be able to maintain and apply that knowledge for a long period of time. (Davies, 2007).

Take the example of a paper processing industry in which paper is produced for different purposes like for the newspaper industry, for the stationary industry etc. In this industry the processes and the steps to manufacture paper is different from the processes of any other industry. Thus an accounting professional will have to gain an understanding of the different processes in order to better understand its key performance indicators, its segmental information and its budgets. It will enable the accountant to better develop an analytical procedure for the industry.

Reference: Davies, P (2007). Auditor specialization, perceived audit quality, and audit fees in the local government audit market. Journal of accounting and public policy.

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