Page 17 - Accountancy_F5

These types are briefly described below: R egulat ory frame w ork

Tax accounting: This type deals with taxes, go v erning financial
like figuring out how much tax someone accounting pr actices
or a company owes and helping them do Regulatory frameworks are legal
their tax returns. Tax accountants follow mechanisms established by the government
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the rules set by tax laws and regulations to or at international levels. The regulatory
help people and businesses pay the right framework comprises rules, regulations,
amount of tax. and contractual obligations designed to
enable businesses to operate ethically in
Forensic accounting: This is a specialised accordance with government laws. To
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area of accounting that involves investigating regulate something means to exercise control
financial discrepancies and potential fraud over it by way of directing or governing
or illegal activities within financial records. according to a given set of rules. The
This field combines accounting, auditing, regulation of the accountancy profession
and investigative skills to analyse financial covers several issues. These include,
data and provide evidence that may be used entry and licensing requirements (that is
in legal proceedings. education requirements), monitoring of

the behaviour and performance of
Social responsibility accounting: This is professional accountants; the accounting
also known as sustainability accounting standards (including ethical standards)
or corporate social responsibility (CSR) that professional accountants must adhere
accounting, involves the process of to, and disciplinary systems and procedures
measuring, monitoring, and reporting an for those who fail to meet the requirements.
organisation’s social and environmental For implementation and enforcement, there
performance. This type of accounting goes are different sources of rules, regulations
beyond traditional financial measures to and professional bodies, which oversee the
include factors such as environmental practice and development of accounting. For
impact, community involvement, employee example, sources of rules and regulations
welfare, and ethical practices. It aims to include the use of company laws and
provide stakeholders with information accounting standards. Different countries
about the organisation’s contributions to have their own company laws, which
society and the environment, as well as provide different conditions and rules
its commitment to ethical behaviour and for the establishment and operation of the
sustainable practices. companies.

Student’s Book Form Five
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