Answer to Question #78977 in Accounting for Owen Marsden

Question

Why is it necessary for boards to delegate financial responsibilities or accountabilities? Is there a difference between responsibility and accountability in this context?

Answer 1

The boards may delegate financial responsibilities so that the organization can function effectively and efficiently, acting lawfully.
The basic difference between responsibility and accountability is that the former is assumed, whereas the latter is imposed. That is, responsibility means the obligation to perform a specific task, and under accountability is the responsibility to perform the task that is assigned to the senior.
Accountability makes the person responsible for the consequences of actions or decisions that he has taken, but the consequences are not necessarily related to responsibility. In addition, accountability requires the employee (or department) to be responsible and accountable for everything that he (it) does. Conversely, responsibility implies that a person will properly perform the tasks assigned to him.