Unrecorded liabilities means any liability of the companies of a type that is required under the accounting principles to be reflected on the closing balance sheet but that either was not reflected on the closing balance sheet or does not become known by the companies until after the third balance sheet guaranty true-up year and that has not been reflected in any final annual reconciliation, calculated in accordance with the accounting principles. Search for unrecorded liabilities involves reviewing payment vouchers issued after year-end and unpaid supplier invoices as at the date of audit to check that all material liabilities relating to the financial year have been recorded as at year-end.
Communication is a vital part of the accounting profession, especially for auditors. Andrew Millet FCA, a director of Middlesex-based accountancy firm Wisteria Ltd, is adamant that if candidates can demonstrate they can offer more than number-crunching, “it’s a big tick in the box. Unless they are an excellent communicator, I’m not interested” (“Skills of the future accountant”, 2016). Communication is a hot topic in the accounting industry, and justifiably so. Recent studies conducted by recruiter Randstad USA found that 48% of businesses say their accountant is their most trusted business adviser (“Skills of the future accountant”, 2016).
As the digital age progresses, businesses turn more and more to email as their main source of communication. Accounting firms are no strangers to this trend. Communication between auditors and their clients increasingly occurs through email for increased efficiency. However, whatever time is saved in gathering information via email comes at the cost of the ability to detect deception that could indicate fraud. Face-to-face interviews provide richer forms of communication and may help in more effective detection of deception and fraud. Therefore, while other industry professionals, such as tax and managerial accountants, are rapidly adopting electronic alternatives to organic conversation, auditors continue to resist the overhaul.
Lack of Millennial Job Satisfaction
According to Deloitte, “One of the biggest issues facing the accounting industry today is the lack of millennial loyalty in the workforce” (@Deloitte, 2016). General dissatisfaction among young professionals with their current organizations is increasing rapidly for a multitude of reasons. These employees perceive a lack of leadership development opportunities and thus see little future at their current place of employment. Surveys conducted by the “Deloitte Global Survey” in 2016 indicate that over 44% of respondents, if given the choice, would leave their current employer within the next two years (Wall Street Journal, 2016). The respondents who show the most loyalty to their employers explain that their organizations actively encourage younger employees to aim for leadership roles and offer support and training to those individuals. Companies that are more likely to overlook millennials when filling or building leadership roles are far less likely to retain these employees in the long run.
This is coupled with an increasing desire in America’s youth to work for a purpose. The survey results also suggest that millennials’ career moves may be driven by their desire to work for businesses that demonstrate a strong sense of purpose, rather than those that narrowly focus on financial results. 40% of res
