The Role of Accounting in Organizational Control
THE ROLE OF ACCOUNTING IN ORGANIZATIONAL CONTROL
By: Abdur Rehman (IIUI)
Table of Contents
Introduction 3
Accounting 4
Key Theories in Organizational Control 6 * Key Theories 8
Role of Accounting in Organization’s Control 10 * Working of Control Theory at Workplace 12
Conclusion 13
References 14 online sources 15
Introduction
Accounting is the gathering and compilation of information for decision makers – including investors, managers, lenders, public and the regulators. Accounting schemes influence performance and management and have affects on organizations, departments, and even countries. Information controlled within an accounting scheme has the influence to manipulate actions. Accounting information systems are largely strong behavioral drivers in the perspective of a corporation - where bottom line and profits are every day concerns.
In this paper we will discuss the role of accounting plays in organizations control. Accounting has impact on each and every aspect of the organization from record keeping to manufacturing and from sales to further investment. It is accounting concepts and details in shape of Financial Accounting, Cost Accounting, Management Accounting or whatever you may call which gives insight of an organization for the stake holders to think and plan for future. Accounting prompt owners to expand, managers to plan, equity investors to invest, bankers to lend, tax officials to calculate and buyers to spend etc. we will briefly discuss different calculation concepts which are based on the accounting data which effect investment and leads to ultimate organizations control. Organizations are sets of agreements among persons or groups who are aggravated by self-interest for the collection of resources and contribute to the information to achieve control in the organization. Accounting and control provides a similar utility in organizations. We shall try to
By: Abdur Rehman (IIUI)
Table of Contents
Introduction 3
Accounting 4
Key Theories in Organizational Control 6 * Key Theories 8
Role of Accounting in Organization’s Control 10 * Working of Control Theory at Workplace 12
Conclusion 13
References 14 online sources 15
Introduction
Accounting is the gathering and compilation of information for decision makers – including investors, managers, lenders, public and the regulators. Accounting schemes influence performance and management and have affects on organizations, departments, and even countries. Information controlled within an accounting scheme has the influence to manipulate actions. Accounting information systems are largely strong behavioral drivers in the perspective of a corporation - where bottom line and profits are every day concerns.
In this paper we will discuss the role of accounting plays in organizations control. Accounting has impact on each and every aspect of the organization from record keeping to manufacturing and from sales to further investment. It is accounting concepts and details in shape of Financial Accounting, Cost Accounting, Management Accounting or whatever you may call which gives insight of an organization for the stake holders to think and plan for future. Accounting prompt owners to expand, managers to plan, equity investors to invest, bankers to lend, tax officials to calculate and buyers to spend etc. we will briefly discuss different calculation concepts which are based on the accounting data which effect investment and leads to ultimate organizations control. Organizations are sets of agreements among persons or groups who are aggravated by self-interest for the collection of resources and contribute to the information to achieve control in the organization. Accounting and control provides a similar utility in organizations. We shall try to
References: * Frank Wood (1997), Business Accounting 1, Pitman Publishing, pp 4 * Frank Wood (1997), Business Accounting 1, Pitman Publishing, pp 243 * Matz, Usry (1980), Cost Accounting, Planning and Control, South Western Publishing Co, Cincinnati, Ohio * Ronald W http://wiki.answers.com/Q/What_is_the_Role_of_accounts_in_an_organization (Accessed on August 25, 2012) * Internal Role of Accounting for Organizations http://www.ehow.com/info_8667611_internal-roles-accounting-organizations.html (Accessed on August 26, 2012) (Accessed on August 21, 2012) * What is the Role of Accounting in an Organization http://www.blurtit.com/q388112.html (Accessed on August 21, 2012) * Role of Accounting in Business Organizations http://voices.yahoo.com/the-role-accounting-business-organizations-492253.html (Accessed on August 21, 2012) * Organizational Control http://www.vibrantbootcamp.com/mcse_notes/techsol/Organizational%20Controls.htm (Accessed on August 25, 2012) (Accessed on August 25, 2012) * Accountancy http://en.wikipedia.org/wiki/Accountancy (Accessed on August 25, 2012) (Accessed on August 25, 2012) * The role of Accounting and Finance in Business http://cws.cengage.co.uk/ryan2/students/Chapter%20overviews/Chapter%201.pdf (Accessed on August 25, 2012) * Accounting and its role in Society http://nrupalia.hubpages.com/hub/Accounting-and-its-role-in-society (Accessed on August 25, 2012) (Accessed on September 2, 2012) * Const Accounting http://www.investopedia.com/terms/c/cost-accounting.asp#axzz25IBNeQWs (Accessed on September 2, 2012) (Accessed on September 2, 2012) * Organizational Control http://www.cambridge.org/aus/catalogue/catalogue.asp?isbn=9780521731973 (Accessed on September 2, 2012) (Accessed on September 2, 2012) * Role of Accounting in Management Control Systems http://herkules.oulu.fi/isbn9789514288814/isbn9789514288814.pdf (Accessed on September 2, 2012) * Theory of Accounting and Control http://faculty.som.yale.edu/shyamsunder/Books/accounting%20and%20control.hml (Accessed on September 2, 2012) (Accessed on September 1, 2012)