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Fincash » Accountant Responsibility

Accountant Responsibility

Updated on November 27, 2022 , 9529 views

What is Accountant Responsibility?

Just as the name suggests, Accountant responsibility is the moral liability that an accountant has towards those who rely on his work. Basically, accountants have the responsibility to uphold the public trust and serve the public interest as per their profession.

Accountant

The daily duties of an accountant involve pledging towards anybody he is working for, be it a client, company’s manager, creditor, investor, or even an outside regulatory body. They have to make sure that the financial statement they are working on is valid and that their duties are executed according to the laws, standards, and principles.

Knowing Accountant Responsibility

On the Basis of the relationship with the business or tax filer, the responsibilities of an accountant vary tremendously. If an independent accountant has a client, he would be indulged in confidential information such as personal social security numbers, business sales data, and more.

And, if there is an accountant who is working for a firm, he would have to keep every information private and track the working hours as well as the tasks completed. For instance, if an accountant is auditing a document, he should only record the things that he has achieved.

On the other hand, duties of an accountant in an organization, as an In-House employee, allow him to get the access to information that a lot of people wouldn’t have, including staff layoffs, payroll figures, and more.

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Indian Revenue Service

Although accountants hold a massive responsibility towards their clients; however, if the Indian Revenue Service discovers an error in the Tax Return, the accountant doesn’t hold the liability for the mishap.

Rather, the IRS would make adjustments and would hold the taxpayer responsible for fees, penalties, or additional tax whatsoever. However, if somebody has been wronged by the misconduct of the accountant can claim negligence against him on the basis of the fact that the accountant breached his ethics and created financial or personal losses.

External Audits

Accordingly, accountants who are performing external audits have an Obligation to acquire reasonable guarantee regarding whether the financial statement of the client is free of misstatements or whether it comprises any fraud or error.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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