The Evolution of the Accounting Profession

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The Evolution of the Accounting Profession

By | April 2011
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The evolution in England of joint ventures into business corporations had influenced the development of accounting and brought reform to the accounting However, the Accounting profession has been dated way back in the third century B.C., and during that period of time there was no accounting theories and regulations established to regulate the financial statements recorded by accountants. Nevertheless, the statutory establishment of corporations in England in 1845 stimulated the development of accounting standards and laws to safeguard stockholders from improper actions by corporate officers (p.3). Meanwhile, railroads became a major economic influence in the United States and the need for trained accountants became very demanding. But during this period of time, anyone could claim to be an accountant because there were no restrictions and laws to determine who was qualified or ethical for the position. Companies began to grow due to large amount of immigrants and the need and the demand for accountant professional in the United States rose. In 1898 the Industrial Commission was formed to ask questions about business, immigration, agriculture, and business (Cathey et al., p.4, 2009). This commission did not directly refer to any accountants but it suggested that an opinion must be established in order to curb unethical behavior in the accounting field. In 1904, International Congress of Accountants which marked the initial development of the organized accounting profession was later become the American Institute of Accountants in 1916 (Cathey et al., p.5, 2009). The growth of the joint ventures in England and in the United States raised the need of the accounting profession in the business market. The progressive reform of the accounting rules was very slow, but the creation of the joint ventures in England and the United States laid the foundation for future accounting policies and standards.
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