Authentic assessment has emerged as a transformative approach in accounting education, addressing growing concerns regarding the mismatch between academic learning outcomes and professional practice requirements. Traditional assessment methods, such as written examinations and rote-based tests, often fail to capture students’ ability to apply accounting knowledge in real-world contexts. This study explores the concept, theoretical foundations, and pedagogical relevance of authentic assessment in accounting education. It examines key assessment methods, implementation strategies, challenges, and global best practices. Using an extensive review of contemporary literature, the paper argues that authentic assessment enhances critical thinking, professional judgment, ethical reasoning, and employability skills among accounting graduates. The study concludes with recommendations for educators, institutions, and policymakers to embed authentic assessment within accounting curricula to meet evolving professional and regulatory expectations.