Analysis of Finance and Accounting Based Outsourcing: Researching the Ethical and Economic Dimensions of Accounting and Financial Outsourcing in UK

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 01: INTRODUCTION1

Background of the Research1

Problem Statement2

Research Questions2

Rationale of the study2

CHAPTER 02: LITERATURE REVIEW4

Scope of Financial Outsourcing4

Motivations for Financial Outsourcing4

Risks in Financial Outsourcing4

Ethics and Professionalism in Accounting and Auditing Outsourcing5

Ethical Conduct in Accounting and Auditing5

CHAPTER 03: RESEARCH METHODOLOGY7

Research Design7

Secondary Data Collection7

REFERENCES8

CHAPTER 01: INTRODUCTION

Background of the Research

According to Johar (2005) profession is designed not only to facilitate its member, but for the betterment of the society as a whole. According to Sims and Brinkman (2003) profession is a combination of common values, norms, behaviour which different individual shares in a same industry. Profession provides a framework, according to which individual adjust its behaviour and perform his duties in the industry (Sims & Brinkman 2003, 69). Profession of accounting, auditing and finance exhibits high standards of ethics and morality, these professions are designed to ensure authenticity of information provided to stake holders, that is why, the accountants are demanded to perform their duties with high moral grounds.

Today outsourcing of different services by enterprises is emerged as a smart solution, which has been proven by cost reduction and effective management. Today many organizations outsource its accounting and financial services. This research aims to aanalyze the finance and accounting based outsourcing, and discusses the ethical and economic dimensions of accounting and financial outsourcing in UK Ward, Ward & Wilson 1996, 147). The scandal of Enron occurred in early 2000, leads Enron toward bankruptcy and also become the reason of downfall of accountancy firm Arthur Andersen. This scandal put a big question mark on the performance of independent accounting firms, which claims of providing neutral judgment of company financial performance. It was observed that event of Enron; put the moral reasoning of auditors and accountants in the lame light, the moral reasoning significantly increased. Therefore, this thesis will analyze the finance and accounting based outsourcing and discusses the ethical and economic dimensions of accounting and financial outsourcing in UK.

Problem Statement

The concept of Ethics and professional responsibilities is very important in every field; especially, in the field of accounting and auditing (Verkerk, Lindemann, Maeckelberghe & Fennstra 2004, 31). However, over the past few decades we have seen a deviation in the theory and practise in these fields but no one analyze the dimensions of accounting and financial outsourcing, therefore, this thesis will analyze the finance and accounting ...