Article Abstract:
The Understanding a Changing Environment Group of the Institute of Chartered Accountants of England and Wales has been considering the future development of the accounting profession and its impact. Key forces in the environment which have influenced rapid changes in the profession include (1) technological change in manufacturing and design of products and well as information technology, (2) the shift from manufacturing to service, and (3) the changing structure of organizations - autonomy, divisionalism, etc. There has been and may continue increased litigation against accounting firms. Due to increased disclosure required by the Companies Act of 1967, more companies are requiring auditing services from both large and small firms. Recruitment into the field remains difficult even, in times of high unemployment. The professional bodies have a responsibility to set educational standards and regulations. As here will be a central core of those in the accounting profession who will stick to the old methods and train their new people in them, and there will be others who are more adaptable and will seek out new roles.
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Article Abstract:
Scenario planning, a concept originated before the Institute of Chartered Accountants in England and Wales with the presentation of a paper by Pierre Wack of the Harvard Business School, is described in detail. Scenario planning has been used by Wack in the 1970s to accurately predict the energy gap caused by oil demand and the willingness of oil producers to sell oil only at OPEC prices. Scenario planning involves the development of microcosms set in the future; to be effective, these microcosms must be realistic and thorough enough to encourage corporate managers to base decisions on them.
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Article Abstract:
The impact of financial deregulation on the British accounting profession is discussed. The main legislative Act of deregulation is the Financial Services Act of 1986. One effect of the act has been to increase the importance of self-regulatory bodies relative to government regulatory bodies. Other forces affecting the City of London include technological advances and the globalization of trade.
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