Faculty of Business & Law-School of Management Assignment 2022

Running Head: Business & Law
Faculty of Business & Law-School of Management (MET)
[Name of Writer]
[Name of Institution]

1 Introduction
1.1 Background
It can be seen that with time as technology innovation entered the world the theme of working in
corporate companies is revolutionized with that. Different companies are trying to find modern
ways and methods to introduce innovation in their framework to bring betterment and digital
change for maintaining the competition in the market (Gibassier & Alcouffe.,2018). In the same
manner, the 21st century brings with it the element of profitability to be maintained and to keep
sustainability up to the mark as well. Numerous issues related to management accounting were
raised with time as the strategic management wants to operate by implementing best practices in
their operational process. The factor of globalization brings in with it for adopting new methods
in the framework of digital technology (Bonsón & Bednárová., 2019). As the preferences of the
people have changed therefore the demand for accounting management changes as well due to
which certain issues in the management accountant increased.
It becomes an important element for the corporations to make use of the technology in such a
manner to become cost-effective and maintain sustainability as well. Companies need to focus on
generating productivity in such a manner that the surrounding environment should not get
affected by the production and operational process (Saberi et al., 2019). It is significant for the
managers to give relative importance to the management accounting as with the help of it the
management can evaluate their business processing with the help of which they can develop
short and long term plans. As the focus of the managers towards management accounting brings
in certain issues that include ineffective regulatory practices, lack of knowledge and skills, the
ineffective implementation of environmental accounting which hinders the sustainability of the
companies in the context of accounting (Knudsen., 2020). In the 21st century as the companies
are running towards bringing innovation which brings in with it accounting fraudulent activities
as well which raises the need for bringing in more new methods for adopting new technological
advancements for making the company's accounting system stronger than before.
The financial world has gone through great scandals in the past which includes ENRON, World
Com, etc. due to which it becomes important for the companies for maintaining accuracy and
transparency in their financial information which requires proper governance and check and
balance. Many companies in the world are facing issues related to ineffective regulatory
practices within their framework which are arising due to a lack of knowledge and skills in the
individuals (Sachs et al., 2019). It can be resolved by the implementation of digital technology
solely within the companies which helps in identifying the lacking and the areas which require
the need for a change. Many organizations are still using ineffective methods related to
management accounting due to which it becomes difficult for them to survive in the market. It is
significant for the corporations to focus on doing a cost analysis to evaluate their expenses for
becoming cost-effective which will help them in becoming more focused on using their
resources in an effective manner which will be helpful for them for survival in their future as
well (Llopis-Albert et al.,2021). The use of digital technological aspects, effective corporate

governance, and maintaining the sustainability ratio helps the companies for emerging into the
world and it will help in eradicating the issues which arise in management accounting (Okorie et
al., 2018). Therefore managers need to focus on bringing skillful labor and upgraded technology
within the internal environment of the corporation.
1.2 Rationale
It becomes important for the companies to bring in new methods of technological aspects for
overcoming the issues that arise within management accounting. The reasoning behind selecting
this topic is that it becomes a general issue in almost every company that the workforce doesn’t
possess certain knowledge and skills due to which lacking from employee end brings in
unnecessary impact on the organizational performance (Lee et al., 2020). There arises a need
from the management end for maintaining proper planning and controlling on the management
accounting principles to bring professionalism and for maintaining the ethics as well. The main
reason behind focusing on management accounting principles is that it helps in shaping the
overall budget planning and helps in effectively maintaining internal business processes and
capacity utilization becomes easy with the help of it (Papadopoulos et al., 2020). Although
catering to the issues is a difficult task and it requires time and effective corporate management
which will bring in skillful labor with the organization who possess certain knowledge of how to
make use of regulatory practices and bring in innovation.
Those companies in which ineffective regulatory practices are at their peak level fail to perform
in the long run and their reputation decreases in the market. Moreover, they are not able to
survive in front of their competitors and face a competitive edge in front of them (Oliveira et al.,
2020). Hiring experienced personnel who possess certain knowledge regarding accounting
principles and how to maintain check and balance and for making the company cost-effective it
is necessary for the management to make use of the best people for the job.
1.2 Research Aim, Objectives, and Questions
The research aims to study the emerging issues in management accounting while relating the
impact with governance, sustainability, and the use of digital technology in corporations.
The objectives of the research are as follows:
 To examine the impact of digital technology on overcoming the lack of skilled labor.
 To analyze the impact of corporate governance on ineffective regulatory practices within
the organization.
 To find the role of sustainability for bringing effective environmental accounting in the
corporations.
The questions posed by this study include:
 What is the impact of digital technology on overcoming the lack of skilled labor?

 What is the impact of corporate governance on ineffective regulatory practices within the
organization?
 What is the role of sustainability in bringing effective environmental accounting in
corporations?