NAME : NOR ALYSA NAJLA BINTI MUHAMMAD ALI JANNATUL HUDA

NO. MATRIC : A23A2448

Reflective Summary on the Journey in Professional Accounting

My knowledge of the changing role of management accounting in the modern business
environment has greatly increased as a result of the recent discussion on environmental and
governance considerations in management accounting, with a particular emphasis on
PricewaterhouseCoopers. The inclusion of environmental costs in financial decision-making
and the focus on ethics and governance were two important takeaways.

First, a crucial component that was emphasized was the incorporation of environmental costs
into financial decision-making. In order to do this, environmental effects like waste
production, water use, and carbon emissions must be identified, measured, and added to the
costs of the business's financial procedures. It is essential for a multinational company like
PwC, which provides sustainability advice to many organizations, to incorporate these costs
into their own accounting procedures. This promotes sustainability by ensuring that financial
decisions accurately account for all costs, including those associated with environmental
impacts. This change benefits the company's long-term financial stability and reputation in
addition to being in line with worldwide trends toward sustainability.

Second, the discussion stressed the significance of strong governance and moral principles.
For PwC, giving clients trustworthy and objective advice requires upholding the highest
governance standards and ethical integrity. This entails following moral principles that forbid
conflicts of interest and guarantee accountability, as well as making sure that reporting and
decision-making procedures are transparent. Establishing and preserving trust with
customers, stakeholders, and the general public depends on these procedures. Several crucial
steps must be taken in order to apply these insights to management accounting principles. For
example, PwC can create and put into use new frameworks for forecasting and budgeting that
take environmental costs into account. Advanced cost allocation techniques, such as activity-
based costing, which precisely allocates environmental costs to particular services or
operations, can help achieve this. Furthermore, PwC can monitor and enhance its
environmental performance by expanding its performance measurement systems to
incorporate environmental KPIs, such as carbon footprint per client engagement.

To guarantee that environmental and social governance (ESG) metrics are incorporated into
financial reports, PwC can improve its internal controls and reporting frameworks. This
increases openness and shows the company's dedication to sustainability and moral business
conduct. Stakeholder trust is further strengthened when management accountants receive
thorough ethical training programs that guarantee all decisions are made with accountability
and integrity.

After giving the talk some thought, I now have a deeper understanding of management
accounting's place in professional accounting. I can now see that PwC's management
accounting focuses on promoting ethical and sustainable business practices in addition to
financial oversight. Management accountants can significantly contribute to determining the
strategic direction of the company and guaranteeing its long-term success by integrating
environmental and governance concerns into their accounting procedures. This all-
encompassing strategy not only strengthens the company's competitive edge but also fits in
with the larger cultural shift towards sustainability and moral business practices. This insight
emphasizes how crucial it is to keep learning and evolving in the ever-changing field of
management accounting.