Finance and accounting - Essay Example

As a result, auditors in this case are required to review the accounting information in order to determine how well the business is doing. It requires proper financial statements which provide a clear insight on the economic health of these accounting companies. Generally, it gives an insight on the company’s soundness in the short and long term. As a result, financial analysts, investors and also the members of the public are in a position to try and gauge a company’s competitiveness in the market place.

KPMG in accounting business is trying to strengthen its legal function in trying to ensure that our structure, processes, and policies meet the highest levels of the accounting profession. Challenges that accounting companies face Bad debts: In his presentation, Judge Holmes, for example in the year 2011, the financial markets witnessed negative vibes mostly on the currency markets after their investors shunned risky assets which eventually led to the low yielding assets. This was witnessed by one German representative who said that the European mounting debt crisis could not be easily cured during that month since its leaders had to meet and discuss how to prevent the debt crisis from even getting worse (Skinner 97) Unemployment is still another challenge in Europe which is mostly affecting the accounting companies at the moment. . (Skinner 99) The Greek debts have also increased and this has also affected the European countries.

When it comes to the U.S. economy, without funds and investments, there are no ways the country can survive in this economy since unemployment rates has risen to shocking numbers and as a result, the economic uncertainties have led to political pressure and lack of leadership (Skinner 109) How to solve these problems According to Holmes, in trying to solve these challenges, a survey can be done whereby the businesses can be broken into six sections which are; the current firm condition and its prospects for its growth, the company’s growth strategies as well as its tactics, the businesses challenges and its threats, the profitability management, the existing client retention and the company’s profit margin.

Through this survey, the companies can drive growth in the coming decades, for example by selling most of their existing services to both current and also the new clients. Accounting specialists (professionals) are also more needed, because it is with the help of the accounting specialists that most of the accounting companies will be in a position to reduce all these debts hence leading to their growth. Strong internal accounting/audit is also highly needed in trying to curb these problems. The accounting companies need to hire both the external and the internal auditors with auditing experience, as it is with the help of these auditors that the company can review accounting information to determine how well the business is doing.

Risk management methodology is also a measure which can be applied to control these accounting business challenges. This methodology involves the use of certain rules that are used to drive action in a particular business. Many