Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary Issues in Accounting
Name of the Student:
Name of the University:
Authors Note:

1
CONTEMPORARY ISSUES IN ACCOUNTING
Contents
Introduction:....................................................................................................................................2
Royal Commission issue:................................................................................................................2
Financial planning scandal:.............................................................................................................3
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

2
CONTEMPORARY ISSUES IN ACCOUNTING
Introduction:
Accounting is the process of identifying, recording and summarizing financial transactions in the
books of accounts of an organization. Accounting as a subject has evolved over the years to
improve the process of identification recording and summarization of financial transactions in
the books of accounts. With the objective of discussing contemporary issues in accounting,
certain incidents and event occurred in relation to Commonwealth Bank of Australia are
discussed here. It is important to mention that all these issues have negatively influenced the
accounting and financial reporting system in the Commonwealth Bank.
Royal Commission issue:
Commonwealth Bank of Australia’s (CBA) financial planning business, CFPL has been banned
by the Australian Securities and Investments Commission (ASIC) from providing paid financial
services and charging fees from customers for such services. This is after the regulatory body
determined that the issues have not yet been properly fixed by the bank (Abhayawansa and
Guthrie, 2014).
CBA has been in a bitter battle with ASIC regarding an issue of charging customers fees and not
providing services for such fees termed as fees for no service. The financial planning business of
CBA, i.e. CFPL had number of inadequacy in its system processes and controls resulting fess-
for-no-services. CBA despite submitting a written response to ASIC that remediation program
has been launched to get rid of the weaknesses in the system, controls and processes has failed to
convince ASIC. ASIC February 3, 2019 has provided CBA with four months’ deadline to fix all
the anomalies in the system, processes and controls (Botez, 2014).