The Emergence of Public Accounting in the United States, 1748-1895.

Abstract It seems evident that more than seventy-five years ago some men in large cities called themselves public accountants. They audited or "checked up" books with the object mainly of discovering or preventing irregularities rather than for constructive work, although systems work was undertaken. Somewhat later the foreign shareholders and bondholders of a number of large enterprises, mainly but not exclusively railroads, desired that the accounts should be audited and sent out auditors front England to perform such services. This practice led to the opening of offices in the United States by English and Scotch auditors; some of the early firms were established in this way. American accountants gave increasing competition. The earliest accounting organization, The American Association, was formed with the purpose of raising the professional standards and "for social and benefit purposes." Early attempts to elevate the profession by means of collegiate instruction in accounting for those wishing to enter the profession were unsuccessful. Wharton's School of Finance and Economy, however, was formed in Philadelphia, and accounting was included in its curriculum. The desire on the part of the members of the profession to receive recognition was carried to the New York State Board of Regents. With the Board's willingness to administer examinations an attempt was made to secure legal recognition from the state. The first attempt in 1895 to get legislation for the legal recognition of Certified Public Accountants failed, but during the period to follow the public accountants continued their efforts with considerable success.