ARTICLE REVIEW 1

Ahid, M., & Augustine, A. (2012). The Roles and Responsibilities of Management Accountants
in the Era of Globalization, 12(15).

The article written by Ahid, M., & Augustine, A. (2012), entitled “The Roles and
Responsibilities of Management Accountants in the Era of Globalization” discussed the roles and
responsibilities of management accountants, their challenges and the perception of the public
towards accountants in the era of globalization. Clearly stated in this article that management
accounting in era globalization is not only providing information to management, but it even
need to be part of the organization in the process of decison making and strategic planning. The
function of management accounting becomes more crucial in the organization and it has
expanded into the areas of strategic management, performance management and risk
management. This article also explains that management accountants involved in four main
activity in the organization which is planning, directing, controlling and decision making. By
carrying out this activities, thay can help the top management to run the organization effectively
and efficiently.

Through the middle until the end of this article, Ahid, M., & Augustine, A. (2012), make
a clear comparison of the differences in functionality, position and role of accountant managers
before and after globalization. During globalization, management accountant is located
throughout the company and works in the cross functional teams which consist of employees
presenting various function of the organization. Compared to previous, the role of accountant
managers is limited to work in the accounting department and they used to report to the
controller who is responsible of general financial accounting, managerial accounting and tax
reporting. Additionally, advancement in technology such as software and other tools have
improved management accounting activities at companies and help businesses go to global. The
improvement of technology also helps businesses operated systematically and automatically.
Compared to business before globalization, the scope of accounting management task only need
to provide report for internal use of an organization with only a little or no interaction with
customer. Therefore it does not requires a complicated technologies or tools. Furthermore,
globalization has also changed the role and image of accountants. Previously they were seen as

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 ordinary position in organization but now they play a bigger role of strategic management
accounting and resource management. With these new concepts of roles, management
accountants give more values to organization by providing more extensive information as well as
managing resources, activities and people effectively to fulfill the organization objectives. In the
conclusion part, the author summarized the article by mentioning again that the role of
management accountant is not only book keeper or information provider. So that they should
have enough training and equiped with knowledge and skills in order to become significant
decision maker, strategic planner and market analytic.

This study source was downloaded by 100000832211403 from CourseHero.com on 02-21-2023 18:31:58 GMT -06:00

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