The accountor gives the mandate and delegates the power, while the accountee receives power.
#ACCOUNTOR VS ACCOUNTEE PROFESSIONAL#
Accountability commands care, knowledge, and skills during accounting practice since a slight omission or an act is tantamount to professional negligence. The auditor is, therefore, legally and criminally liable for fraud or breach of contract resulting from the audited financial statements. The benefit of accountability is that it assures that an auditor presented an accurate and fair view of a company’s financial health. The concept is further dependent on the ethical behavior of the party held to account for the activity and influence of regulations. Still, it is the accountor who takes responsibility and goes the extra mile to put measures in place to prevent future reoccurrence of a mistake.
It is commonly practiced in the financial sector and the business world in its entirety.įor example, the two elements of accountability can be seen in a case where an accountor delegates the power to the accountee. The principal party delegates roles to other parties but remains liable if an action is not executed well or in the event of a loss. Essentially, the accountable party is responsible for the execution of the desired role. Accountability is the concept of answerability by an individual or a department for the performance or outcomes of specific activities.
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