Both the profession and education of accounting have been affected by globalisation.

The financial area has become a global marketplace because to technological advancements. The way businesses do business has been profoundly altered by globalisation. Consumer culture, economics, politics, and legal frameworks in other nations are just as important for companies as the information they have about their own customers. As a result of the impact that globalisation has had on organisations, the expectations placed on new business students and the education they get have altered. For accounting students in particular, globalisation has had a significant impact on market dynamics. Throughout their undergraduate years, these students are particularly challenged to master both GAAP (General Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) (International Financial Reporting Standards). There has been a strong emphasis in accounting on external reporting, which includes the creation of financial statements and an audit. Future accountants, however, must have viewpoints that impact both external and internal reporting in light of the ever-changing global market. Because of the rapid spread of knowledge, globalisation will play an increasingly significant role in accounting education going forward.

Most American businesses have adopted GAAP, which is a set of rules for preparing financial reports based on the information provided by their companies. Because it makes it easier for U.S. companies to interact with one another, GAAP has proven to be effective in recent years. GAAP, on the other hand, is cumbersome for most businesses in the global economy. In other countries, the International Financial Reporting Standards (IFRS) have been adopted as a standard for the production of financial information. The majority of countries base their business practises on IFRS. Due to the widespread adoption of IFRS, the United States is now forced to operate under two sets of accounting principles. To put it another way, according to Bruce Pounder’s article, “How Globalization is Affecting US Accountants,” “U.S. accountants will find themselves at a severe disadvantage to many foreign accountants who have already mastered international accounting standards and who are therefore much better-positioned to take advantage of rapidly growing career opportunities in China” (Pounder, 2007, p. 3). As IFRS takes over, he predicts that the skills and knowledge of US accountants would be rendered obsolete. As a result, IFRS is becoming increasingly prevalent in accounting schools. Students are expected to be familiar with both GAAP and IFRS, as well as the differences that arise while dealing with both. CPA Exams have recently been modified to include material about IFRS in the Financial Accounting and Reporting (FAR) section of the exam, and students will be well-prepared if they incorporate IFRS into their education. Students are becoming more employable and efficient in a globalised business environment because they are learning new skills and information.

Strong public accounting and auditing firms typically promote a flourishing financial sector in the United States. The emphasis has been on ensuring that accountants are proficient in accumulating data pertaining to a company’s assets, liabilities, equity, investments, and so on, in recent years. Globalization has led to a decrease in the value of external accounting methods if internal practises are not also taken into consideration. The way a company’s clients in the international market are reached is heavily influenced by its internal practises. Authors Richard L. Measelle and Paul Danos stated that “In a competitive global market place, the internal accountant must be sensitive to what drives costs of products and he or she must work with production and marketing people to rationalise all cost accounting procedures” in their article “Globalization of the Business Environment: Implications for Accounting Profession and Business Education” (Danos, 1990, p. 79). In today’s firms, the role of the internal auditor is becoming increasingly important. In order to accurately develop product price information, locate manufacturing facilities, select suppliers and other such things when a corporation is looking to expand into international area, cost accounting is often employed. Internal accountants must be aware of the rules and regulations that apply across borders, as well as the expenses of currency translation. Because “the world’s economies are becoming increasingly linked…,” according to Belverd E. Needles Jr., author of the essay “Accounting Education: The Impact of Globalization,” auditors must be well-versed in worldwide accounting standards. Because auditors only need to be conversant with a few regulations, the author recommends that they encourage worldwide standards for auditors. Students of accounting who want to succeed in today’s global marketplace should enrol in courses that focus on cultural, linguistic, and political diversity.

Many changes in the accounting profession and education have been influenced by globalisation. Students are being taught about global market issues and how to address them. Even if these students have an excellent grasp of mathematics, they are also required to have a good grasp of foreign consumer culture and the regulations that apply to each country they are studying in. Students will be able to succeed in the new corporate environment if they have these talents.