Here is a list of pointers relating to the history of accounting.
Accounting can be found as early as the ancient Mesopotamia. Auditing systems can be traced back to the Egyptians.
Luca Pacioli is generally credited with the proliferation of accounting as we know it. He is often called the “Farther of accounting and bookkeeping.” He has published work on the double-entry bookkeeping, which is even used today.
The profession of accounting emerged and developed in the United States since the last quarter of the nineteenth century.
American Association of Public Accountants was the first major recognized accounting body to be established in the United States. It was established in the year 1887.
The Certified Public Accountant was recognized as a qualification first in 1896, after a law was passed by New York State.
Even though the field of accounting was developing through the years, there was no law or regulation regarding the need for a corporation to go for any financial audit.
The Revenue Acts of 1913 and 1918 made it profitable for companies to record depreciation as it was made deductable for tax purposes.
The Federal Trade Commission (FTC) promoted “uniform accounting,” which included recommendations regarding auditing procedures. These auditing procedures were republished in 1929.
Before the 1930s, no laws or regulations obliged corporations to have their financial statements audited.
The Securities Act of 1933 and the Security Exchange Act of 1934 (the latter created the Securities and Exchange Commission) made it mandatory for companies to have an independent CPA do their financial audit. This boosted the interest and demand for the field of accounting.
The American Society of Certified Public Accountants was established in 1936.
The interest in accounting kept growing, which led to the development of various specializations in accounting itself.
Nowadays, it is very important for a company’s financial health to have an accountant manage its finances and dealings. Independent audits are not just required but also important as they lead to the discoveries of any inconsistencies in the finances of a company. Consequently, a good audit report helps in creating a positive outlook among the shareholders and the customers.
*this is directly from edmentum
