Corporate Critical Perspectives on Accounting

Question: Discuss about the Corporate Critical Perspectives on Accounting. Answer: Introduction: Corporate failure is identified to be common for both the readings. Both the article readings basically introduce accounting and regulation rules in response to the occurrence of corporate failure (Carnegie OConnell, 2014, pp. 461-463; Rankin et al., 2012, pp. 370-371). Also, highlights the fact that often the audit process is responsible for corporate failure. However, readings differ with one another as Rankin et al. (2012, pp. 366-379) is about indicators and causes leading to the incidence of corporate failure along with case study on global crisis. On the other hand, Carnegie and OConnell (2014, pp. 451-459) is identified to be mentioning about four main periods in Australia with respect to various issues associated with failure of accounting in different sectors and corporate collapse. While, Rankin et al.(2012, p. 369) state the main issue to be as practices of corporate governance that ultimately leads to the corporate failure due to various factors like failed internal cont rols, ineffective board meetings and decisions, audit process and illuminated cash flow. In the article by Carnegie and OConnell (2014, pp. 459-464), it has been argued that failure in following any rules of accounting include factors like financial reporting, audit reformed. These two major factors of accounting failure are also responsible for causing corporate failure. So, basically both the readings point out to the fact that indeed the audit process is a major influencing factor in the process of management and accounting. According to Rankin Et al (2012) audit independence can be an important solution to corporate failure. This is because audit independence can lead to avoid greed for power (Hamilton Micklethwait, 2006, p. 11). However, despite brining about audit independence some other factors of corporate failure would still exist like poor strategic decisions taken by the ineffective board members making an impact on governance (Hamilton Micklethwait, 2006, p. 11). Therefore, keeping these factors in mind regulation in accounting should be taken as another measure for tackling corporate failure. References Carnegie, G. D., OConnell, B. T. (2014). A longitudinal study of the interplay of corporate collapse, accounting failure and governance change in Australia: Early 1890s to early 2000s. Critical Perspectives on Accounting, 25(6), 446-468. Hamilton, S., Micklethwait, A. (2006). Greed and corporate failure. The Lessons from Recent. Rankin, M., Stanton, P. A., McGowan, S. C., Ferlauto, K., Tilling, M. (2012). Contemporary issues in accounting: Wiley.