Abstract The article focuses on the myths associated with accountancy. The myths associated with accountancy prevents one from seeing the reality which in turn produces gaps between perception and fact. The study presented in this article considers some of these divergencies. The first is what the author describes as the "gap in generally accepted accounting principles (GAAP)," whereby generally accepted accounting principles, fails to serve as an effective medium for common understanding. The linguistic gap precludes the comprehension of the message being communicated to those who require this understanding as an incident to their decision making in a great many areas of the economic existence. The second such contrast between perception and fact can be discerned in the presuppositions on the part of even the sophisticated members of the financial community regarding the nature and extent of the auditor's involvement in the determination of the statements of financial condition and operations.
Abraham J. Briloff (Fri,) studied this question.