accountability

31 views2 pages
29 Jan 2013
School
Department
Professor

For unlimited access to Class Notes, a Class+ subscription is required.

The table below provides examples of different types of organisations and how accountability is
linked to their differing organisational objectives:
Organisation
Objectives
Accountable to (examples)
Private or public
company
(e.g. BP, Tesco)
- Making of profit
- Creation of wealth
- Shareholders
- Other stakeholders (e.g.
employees, customers, suppliers)
Charities
(e.g. Save the Children)
- Achievement of charitable aims
- Maximise spending on
activities
- Charity commissioners
- Donors
Local Authorities
(e.g. Leeds City
Council)
- Provision of local services
- Optimal allocation of spending
budget
- Local electorate
- Government departments
Public services (e.g.
transport, health)
(e.g. National Health
Service, Prison Service)
- Provision of public service
(often required by law)
- High quality and reliability of
services
- Government ministers
- Consumers
Quasi-governmental
agencies
(e.g. Data Protection
Registrar, Scottish Arts
Council)
- Regulation or instigation of
some public action
- Coordination of public sector
investments
- Government ministers
- Consumers
All of the above organisations have a significant roles to play in society and have multiple
stakeholders to whom they are accountable.
All require systems of financial management to enable them to produce accounting information.
How accounting information helps businesses be accountable
As we have said in our introductory definition, accounting is essentially an "information
process" that serves several purposes:
- Providing a record of assets owned, amounts owed to others and monies invested;
- Providing reports showing the financial position of an organisation and the profitability of its
operations
- Helps management actually manage the organisation
Unlock document

This preview shows half of the first page of the document.
Unlock all 2 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class