International Trade in Services.pdf - DSpace at Khazar University

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Accounting Services:
Ensuring Good
Governance, Financial
Stability, and Economic
Growth through Trade
Olivier Cattaneo and Peter Walkenhorst
Introduction: Why Is Trade in Accounting
Services of Interest for Developing Countries
Accounting services can be defined as services that focus on the preparation and
analysis of the financial information reported to internal and external users via financial
statements. Auditing services involve evaluations of the reliability and credibility
of financial information, as well as“the systems and processes responsible for recording
and summarizing that information” (Messier, Glover, and Prawitt 2006, 5–6).
Accountants analyze, record, quantify, accumulate, summarize, classify, report, and
interpret numerous financial events and their cumulative effect on an organization.
Their activities are not confined to bookkeeping, that is, the measurement and
recording of financial flows; they also include tax preparation and auditing, that is,
the certification of the accuracy of the financial position of an enterprise.
Accounting services are vital for transparency, financial integrity, and good governance,
and they may accordingly provide considerable benefits for developing
countries. This is especially the case insofar as the major international accounting
firms rely on local members in developing countries to understand the language,
rules, and operating procedures of individual markets. As a consequence, developing
countries may be able to take advantage of training programs, knowledge
transfers, software applications, and timely staff support (World Bank 2007).
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