3 practical risks

- Erroneous submission
o (after bsa)The most important thing about accountancy is the application of integrity in
the works we create. All of the necessary information needed to create a financial
statement with all of its values presented in the most exact amounts may not always be
achievable in the real world. This is why the concept of integrity matters as we must
inject our own judgement and make sure that the judgement we provide is as neutral as
possible and takes into consideration the stakeholders involved. The approach we
decide to take is always a risk as the information it would result in may not be what the
company wants to portray or be useful to the recipients of the information. As such, we
must be accountable to whatever information we decide to present.
- Wrong usage of standards
o The field of accounting is always evolving. New standards are being made that either
consolidate old standards or introduce new ways to record items. Due to this, it’s
important to stay well read as newer information is always created. With this in mind,
the risk of preparing financial statements using outdated information could become an
issue. Moreover, the interpretation of newer standards could also become an issue as
our interpretation may not be what the new standards intend.
- Obsoleteness
o With the creation of newer technologies, the job of accountants are at risk. Machines
can prepare statements faster and with lower risks of error than humans. With this in
mind, taking up the course of accounting is risky as we must ensure that we are able to
provide value in a way that machines cant. This falls in line with how we can analyze
financial statements and provide insights that machines would struggle to do.

The field of Accounting and business courses in general have many risks involved. However, with
Accounting specifically, three major risks can be identified. These are erroneous submission of financial
statements, misapplication of standards, and obsoleteness. First, it should be noted that one of the core
competencies every accountant has is integrity. It is through integrity that accountants can stand against
pressures from companies to make their statements appear better than it actually is and to fight against
opportunities to commit fraud. While it may be possible to get away with the aforementioned acts, no
reward is worth compromising ones own integrity. Second, the standards that we have to follow as
accountants are constantly evolving as older standards are combined and new standards are created.
With this in mind, there is always the risk of applying a standard that should no longer be used or be
unaware of the updated way of dealing with special items. As such, we must make sure that we are up
to date with new developments to ensure that the statements we prepare are as correct as possible.
Lastly, obsoletion is coming to replace the role accountants fill as newer technologies are developed.
Even today, there are already software that can prepare the financial statements of a company with
minimal human assistance. As such, to avoid the risk of being replaced, accountants must be able to
provide companies something that machines cannot. More often than not, that gap would be filled
through our ability to analyze the statements and provide information that cannot be programmed. To
summarize, the three risks that all Accountants and students of Accounting currently and will face focus
on the erroneous submission of financial statements, misunderstood or wrongly used standards, and
obsoletion. To counteract these risks, accountants must maintain their integrity, remain adaptable,
become well read, and provide value to businesses.