Genesis of Accountability and its Impact on Accounting

Abstract

Accountability stems from late Latin accomptare (to account), a prefixed form of computare (to calculate), which in turn derived from putare (to reckon). The word itself did not appear in English until its use in 13th century Norman England. The concept of accountability has ancient roots in record keeping activities related to governance and money-lending systems that first developed in Ancient Egypt, Israel, Babylon, Greece, and later, Rome. Accountability engenders performance with a focus on results. Every institution or organisation knows that accountability is concept which governments are only beginning to come to grips with. This study examines the genesis of accountability: a global view. The concept of accountability has been viewed from various disciplinary lenses in order to develop an integrated understanding of the term. Special attention is devoted to principal — agent perspectives from political science and economics. An integrated framework is developed, based on four central observations. (1) Accountability is relational in nature and is constructed through inter- and intra-organizational relationships. (2) Accountability is complicated by the dual role of nonprofits as both principals and agents in their relationships with other actors. (3) Characteristics of accountability necessarily vary with the type of nonprofit organization being examined. (4) Accountability operates through external as well as internal processes, such that an emphasis on external oversight and control misses other dimensions of accountability essential to nonprofit organizations. The time has come for individuals, organisations, stakeholders, establishments, institutions and governments to focus on reporting on their programme results. Being clear about intentions, measuring and understanding results, and making adjustments where necessary, would help assure taxpayers/stakeholders that their money is being spent wisely. A focus on results would also help to ensure that limited public resources are being applied in a way that provides the most value to all concerned.