Recognition of Cost Accounting As a Profession: Standard #4

Sep 30, 2014

The creation of an oversight board.

Another component that occurs frequently in other professional organizations is the creation of an oversight board as part of the overall entity controlling the profession. In my opinion, the overall goal of an oversight board can be divided into three possible functions.

The first possible function of an oversight board would be to oversee the recognition of achievement. This would have to do with the professional certification, both as an initial applicant to the profession, and then as a subsequent member. I would suspect this would relate to both the achievement of financial obligations to the profession, as well as ongoing acceptable completion of the continuing professional education required by the profession of cost accounting.

Close-up of magnifying glass focusing on two peopleSecondly, I also believe this board would be charged with the enforcement of the professional standards by its members. That is to say that if a member is proven to have ignored the professional standards, or materially misstated professional technical standards, then those failures to follow the guidance provided by the profession would result in some type of discipline. This discipline could be as severe as their removal from the profession, or possibly some form of corrective action required on their part to assure that such a violation will not happen again. This would most likely involve some re-education to confirm that they have the technical knowledge and background necessary to know what their obligations are and that they are willing to perform to fulfill those obligations.

Finally, the oversight board would also be charged with the function of assuring that the professional members of the organization are adhering to the personal code of conduct. This would be related to their willingness and ability to adhere to the standards of personal conduct related to ethics and their overall conduct of a professional life. This would most likely include disciplining members who perhaps were charged with other crimes related to moral aptitude, or having been convicted of some other crime that speaks to their integrity as individuals. Some examples would be intentionally not filing tax returns or being charged and convicted with fraud in their completion of their professional duties, etc.

It is important for the credibility of the organization as a whole to have a board that upholds the standards of the organization as well as continues to monitor the technical qualifications. This would assure a prestigious organization for the long future.

Categories: Cost Accounting