The Role of Accounting in Society

Running Head: THE ROLE OF ACCOUNTING IN SOCIETY
THE ROLE OF ACCOUNTING IN SOCIETY
Name of the Student
Name of the University
Author Note

1THE ROLE OF ACCOUNTING IN SOCIETY
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
1. Key Recommendations......................................................................................................2
2. Findings in respect of company.........................................................................................3
3. Accounting and Reporting for Ethical business conduct...................................................4
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6

2THE ROLE OF ACCOUNTING IN SOCIETY
Introduction
The aim of this report is the analysis of the ethical misconduct of the company within
the banking services, superannuation and financial sector. For this analysis, discussion will be
based on the final report of the ‘The Banking Royal Commission’ on 1 February 2019. This
is the royal commission, which was established by the government of Australia for inquiring
into and reporting on the misconduct of the banking, superannuation and financial services
sector (Financialservices.royalcommission.gov.au. 2019). Therefore, this report includes the
discussion on the recommendations based on the commissioner’s final report. In addition,
discussion will be based on ethical misconduct underlying the findings. Lastly, discussion
will be done on the how accounting and reporting is useful for the encouragement of the
ethical business conducts (Financialservices.royalcommission.gov.au. 2019).
Discussion
1. Key Recommendations
The final report of Kenneth Hayne’s in the service industry of banking and finance
have made 24 referrals to regulators Apra and Asic for taking actions for the misconduct.
They made 76 recommendations for fixing the problem as well as criticized the executives
for the misconduct. According to them, the entities, their senior management and board are
primarily responsible for the misconduct (Financialservices.royalcommission.gov.au. 2019).
These recommendations on the finding have highlighted governance, culture and
remuneration structures in the industry of banking, superannuation and financial services
(Financialservices.royalcommission.gov.au. 2019). Following are the recommendations
based on the findings of the report:
 Banking- The brokers of mortgage should act in the borrower’s best interests. Their
commission should be banned for 2-3 years. They are subjected to the same laws as