I need you to answer my peer's discussion post in a detailed manner with sources/references/citations, please. State if you agree or disagree. Answer each post separately.

Post 1

Hello Class,

I agree with the author's argument that managerial accountants operate with fewer rules compared to those of financial accountants, it is imperative to remember that this does not excuse them of their responsibilities as they still must provide accurate and honest information to support the managerial decisions. Managerial accounting, by nature, is less regulated because it is primarily used for internal decision making and is not subject to the same external analysis as financial accounting. While managerial accountants may be like that of independent cowboys, their role is critical in steering their organization to success. The cowboy metaphor serves to empathize the need for a balance between freedom and responsibility in the realm of managerial accounting.

Integrating some of the information from the textbook, one could argue that the principals of ethical conduct in accounting such as integrity, objectivity, and professional competence, are crucial regardless of the level of regulation. These principals should guide managerial accountants in their work to ensure that their analysis and reports are both useful and ethical and serve the best interests of the organization and its stakeholders.

Reference:

Bell, T. (2013, January 18). Job order costing: Part 1: Management [Video]. YouTube. https://www.youtube.com/watch?v=HJMFaygeGP0

Cokins, G. (2013, March 4). Cowboy accountantsThe lawless frontier [Blog]. TRG International. http://blog.trginternational.com/bid/172474/Cowboy-Accountants-The-Lawless-Frontier

Garrison, R. H., Libby, T., & Webb, A. (2020). Managerial accounting (12th ed.). McGraw-Hill Ryerson Ltd.

Post 2

Good day, Class

I don't agree with the author's statement suggesting that management accountants operate without norms and procedures likening them to cowboys, in the Wild West. Managerial accountants adhere to standards and an internal control framework although financial accountants operate in a regulated environment due to past scandals, like Enron and WorldCom.

In our BUSI 1043 course, we explored the importance of accounting focusing on providing financial data to support organizational decision making. Companies implement controls and policies to ensure the accuracy and reliability of accounting information even without specific external regulations governing managerial accounting processes.According to RiskOptics' July 2023 article, "These internal controls are implemented, maintained, and monitored by the company's senior management and the board."

It is inaccurate to infer a lack of professionalism and accountability from the comparison of managerial accountants to Wild West cowboys. Managerial accountants are required by ethics to support management decisions with accurate and pertinent information. "Embracing ethical principles in accounting holds the potential to elevate your organization's integrity." Johnson, B. (2024).They also frequently participate in internal audits and reviews to verify that corporate policies and procedures are being followed. Overall, even while the parallel could provide a visually appealing metaphor, it undervalues the significance of internal controls and ethical standards in the work of managerial accountants and oversimplifies their tasks and responsibilities.

Reference:

RiskOptics, (2023). "5 Most Common Types of Internal Accounting Controls" Retrieved from:https://reciprocity.com/blog/5-most-common-types-of-internal-accounting-controls/

Johnson, B. (2024)."Ethics in Accounting: Why They Are Important and 6 Principles You Need to Know" Retrieved from:https://www.highradius.com/resources/Blog/accounting-ethics-and-integrity/

Post 3

Hello all,

In contrast to strict financial accounting rules, I agree with the author's analysis regarding the opportunity of increasing company complications in a "no rule" managerial accounting practice. As Cokins (2013) points out, a lack of law enforcement for compliance in managerial accounting eases the need for best effort and results in the laziness of the information provided (Cokins, 2013). However, as Garrison et al. (2020) explain, managerial accounting focuses on the benefit of information depending on the size and age of the company (pg.9). In addition, managerial accounting can be responsible for reporting on many different company segments, in contrast to financial accounting where the reporting focuses on the company as a whole (Garrison et al. 2020, pg.9). Therefore, managerial accountants may appear "lazy"; however, it seems that managerial accounting can have a lot more information, data, and processes to work through.

Therefore, despite the author's concerns, I feel the managerial accounting industry is still compliant in a time of higher business standards, business ethics, corporate social responsibility, and leadership (Garrison et al. 2020, pp. 11-12). According to Garrison et al. (2020), "a company that is not trusted by its customers, employees, and suppliers will eventually suffer" (pg.11). Therefore, managerial accounting regulations could be added; however, despite concerns, strong business ethics, positive rapport, corporate social responsibility and the critical role of strategic management make managerial accounting a process that cannot afford risky behaviour of a wild and dangerous "cowboy" managerial accountant (Cokins, 2013). Perhaps a continuing emphasis on leadership and organizational relationships could be the place for long-term future resolution. Would you agree?

Thanks,

References

Cokins, G. (2013, March 4). Cowboy accountantsThe lawless frontier [Blog]. TRG International. http://blog.trginternational.com/bid/172474/Cowboy-Accountants-The-Lawless-Frontier

Garrison, R. H, Webb, A., & Libby, T. (2020). Managerial accounting (12th ed.). McGraw-Hill Ryerson Ltd.