Introduction
Research article on “Accounting majors’ financial reporting knowledge and their ability to identify and correct financial statement errors and omissions” (James, 2006, pp.1-21) in the Academy of Educational Leadership Journal offers findings on conflict resolution strategies that can be adopted when settling financial statement frauds occasioned by intentional errors and omissions. According to the author, lack of financial reporting knowledge, failure to observe full requirements when conducting overall reporting as well as breaking accounting rules results in financial statement frauds that may as well lead to conflict (James, 2006). Moreover, the financial reporting process and integrity are also impaired whenever such errors and omissions are encountered. This journal article suggests possible strategies that can be used to address areas of weaknesses in avoiding conflicts that may arise while out carrying financial reporting. Additionally, empirical research presented in the journal article is a case project that analyses courses on intermediate accounting. In the analysis, notes and financial statements were found to have intentional errors and omissions (James, 2006). Consequently, there has been needing for devising strategies for resolving accounting conflicts.
Analysis of author’s key points
James (2006) expresses deep concern over significant changes and challenges that have dogged the accounting profession in the recent past. It is imperative to underscore the fact that financial reporting scandals, audit failures and accounting frauds have plagued the accounting profession in many companies. One such victim of conflicting reporting in accounting is Enron. The article further showcases the relative importance of devising strategies such as imposing strict regulations, better instructional methods, use of applicable accounting concepts, supplementations and corrections. These strategies should be formulated due to the enhanced cognizance of financial reporting conflicts. In my opinion, I concur with the author that accounting professionals should be in a position to do financial reporting that is truthful and of high quality. As a matter of fact, they ought to be fully knowledgeable on matters regarding the preparation of notes and financial statements (James, 2006). Additionally, the author indicates that at the end of the accounting curriculum, there is a need for accounting majors to exhibit comprehensive knowledge of the fundamentals of financial reporting. I fully back this idea since it will be a potential solution to conflicts arising from errors and omissions when preparing financial statements. It will also tackle the issue of the inability of accounting professionals to follow generally accepted accounting principles (GAPP) (James, 2006). It will ensure that they prepare reliable and relevant financial statements and notes.
Personal application and conclusions
Individual accounting concepts and issues vary considerably and are equally important in avoiding and correcting financial errors and omissions. Additionally, it is evident that some of the conflicts that are occasioned by financial reporting emanate from weaknesses exhibited by accounting professionals in full disclosures, faithful reporting, classification of financial statements and mathematical errors. Furthermore, I have also understood the need of integrating basic conceptual frameworks and accounting rules to give a reliable and relevant financial report that has been done with proper articulation, full disclosure and matching standards as directed by GAPP.
To recap it all, it is pertinent to reiterate that integrity of the accounting profession in most organizations can be maintained when conflicts involving financial statement frauds are properly controlled and eliminated. This can be achieved by a thorough application of a set of measures and strategies that will address any weaknesses in financial reporting, intentional errors and omissions as well as disclosures and audit failures.
Reference
James, M. L. (2006). “Accounting majors’ financial reporting knowledge and their ability to identify and correct financial statement errors and omissions”. Academy of educational leadership journal, 10(3), 1-21.