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An Accountancy Education
for the 21st Century
Accounting and accountants over the last few decades have
been subjected to considerable pressures.
These include:
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· the increasing sophistication and complexity
of contemporary business
-
. the increasing internationalisation/globalisation of
business
-
· rapid improvements in communications and technology
-
· greater accountability demands on business by
societies
All of these pressures are closely interrelated and interdependent,
and as one increases is seems inevitable that the others will
too. In every country in the world, business practices are
becoming increasingly complex. This has resulted from the
increasingly complex forms of business ownership - amalgamations,
mergers and takeovers. In attempting to reduce competition
and win ever-increasing shares of markets, in some industries
some business entities are reaching sizes never imagined a
few decades ago. Some novel forms of business activities have
emerged, such as new forms of financial securities - the many
and varied derivatives and hedging techniques. Businesses
are being managed through new, sometimes merely fashionable,
management concepts. For example, total quality management,
total productive management, activity-based costing resulting
in greater demands on business advisors for risk assurance.
Business activity has transcended traditional demographic
boundaries; there is an increase in global commerce. Multi-national,
Transnational (TNC) and even global companies have emerged
as major players in the economic activities of all states.
Two thirds of international trade is currently undertaken
by only 500 companies. Business is transacted over national
boundaries, in many different currencies and expressed in
many different languages.
The most obvious source of change is one that has increasingly
affected all aspects of our lives, let alone business - computerisation.
The business community has been quick to see the benefits
of the electronic age, and computers are being used in a great
many businesses from small to large. More and more aspects
of business activity are now being computerised. E-commerce
is now an everyday expression. The internet is now used by
upwards of 100 million people, with numbers are doubling every
year. However, there are less visible changes brought about
by the increased electronic technology - in the area of communication.
The speed with which information can be transmitted has added
an urgency to business activity. Since the 1980s, telecommunications
traffic has been expanded by an average of 20% per year. The
information superhighway that Bill Gates talked of ten years
ago is now a multiple-lane freeway.
In many countries, there has been an increasing demand by
societies in general for decision-makers to be more accountable.
There is a greater awareness of the fact that resources are
ultimately scarce, so those who have charge over them should
use them in the most judicious way, for the greatest benefit
of those who provide the sanction of their use: the societies
in which they operate. Sometimes this has been the result
of dramatic or catastrophic events, such as the Bhopal gas
leak, the nuclear accident at Chernobyl, or the environmental
disaster of the Exxon Valdiz oil spill. Many more times, they
have come from an enhanced local awareness of living in a
new century. Governments as well as the commercial sector
have felt the pinch of this pressure. Accountability seems
to be the catchcry.
These are just some of the more obvious pressures on business
in the 21st century. Accountancy facilitates business activity
by providing information on the economic actors. The discipline
has to meet the needs of the economic decision-makers by continuing
to provide reliable, relevant, useful and timely information.
An effective accounting education program has to respond to,
and even anticipate, these new demands that have been placed
on accountants. Not all university accounting courses have
adapted to this need - but fortunately, some have. Programs
such as those from the Department of Accounting and Finance
at the University of Wollongong, where emphasis is placed
on student-centred learning. Students are encouraged to challenge
existing knowledge and present creative and innovative solutions
to contemporary problems facing the discipline. During the
learning process, students are required to reflect on what
they are learning, and how they will approach problems when
they face them in their professional careers.
The general problems described above are addressed in the
Department's accounting program. Extensive use is made of
computers and the Internet - global electronic business is
viewed as an essential element of accounting education. Thus,
graduates are fully aware of the global aspects of modern
business. Communication skills are developed as well as teamwork.
Not only does this enhance personal confidence, it makes graduates
more attractive to prospective employers, as the ability to
work in teams and communicate with clients, peers and superiors
in the work environment is crucial.
Students are increasingly combining other majors with accounting,
giving them an edge in the employment market. These other
majors include finance, information systems, marketing, international
business, electronic commerce and many others.
Those contemplating a career in accounting-related areas
should choose carefully the institution from which they will
gain their professional education. It should be one that fully
recognises the environment of 21st century business.
Author
Professor Michael Gaffikin
Dept. Accounting & Finance
University of Wollongong
www.uow.edu.au/commerce/accy/accy.html
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