Reviewed by Katherine S. Moffeit Wichita State University

This book, originally published in 1895, provides an enlightening view of the development of the accounting and auditing professions in England from the earliest writings to 1893. The author discusses the effect of such landmark events on the accounting profession as the “South Sea Bubble” (1720), the Bank Act of 1844, the Railways Companies Clauses Consolidation Act of 1845, the Companies Act of 1862 and the Bankruptcy Act of 1869, and provides a historical perspective by a person living during the time of many of these events. The author says, “lt will be seen that the commercial crises of the present century, which is deemed necessary to refer to hereafter in some detail as being explanatory of cause and effect, have largely augmented the business of professional Accountants.” (P. 13)

Worthington provides detailed information on the events leading up to the “South Sea Bubble” and subsequent to it. According to him, an investigation and report by an accountant of the records of Sawbridge and Company (Sawbridge was one of the directors of the South Sea Company) was perhaps the first existing record of an accountant being employed in an investigative capacity. The report by Charles Snell on his investigation, undated but probably prepared in late 1720 or early 1721, is discussed in detail and presented as Appendix I in the book.

The sketch of the development of the accounting profession is interjected with humorous quotes, anecdotes, and comments by the author. Included with information describing the Companies Act of 1867 (which provided for a “Liquidator” position usually filled by accountants) the author relates,
lt will not perhaps be considered invidious to remark that possibly Accountants, like other industrious people who are paid by time, are not so anxious as other sections of the public to be restricted to the eight hours system, for it is recorded, but the accuracy is not here vouched for, that a Liquidator, on one occasion, managed to get 148 hours out of a single week, which, not including Sunday, works out as the rate of 242/3 hours to the 24. If true, a paralysing feat of Accountancy! (p. 53)

The excerpts from early works by authors describing themselves as “Accountants” or “Accomptants” such as Richard Dafforne (1660), Richard Hayes (1793), and John London (1758) are sometimes amusing, and always interesting. The author’s descriptions of the early days of accountancy, although sketchy, contribute enough information to provide the reader with a special insight of the many developments which led to the profession’s growth in England.

Worthington traces the auditing profession from biblical days to his day, giving the effects of recent legislation on the growth of the profession. For example, the Railway Companies Clauses Consoli-dation Act of 1845, the Metropolitan Water Act of 1871, and other legislation all provided for auditors to be appointed. He also relates the circumstances of a then recent (probably 1893) legal judgment brought against auditors of the London and General Bank, thus demonstrating that auditors’ legal liability problems have existed for some time.

The author presents a very detailed account of the formation of The Institute of Chartered Accountants in 1880, as well as stating the rules of the Institute contained in its Charter. It appears a new concern faced the Institute of Chartered Accountants in its early days. As related by the author:
The ranks of the profession have lately been invaded by that irrepressible development of cheap education — the New Woman; and a memorial has been presented to the Institute, from the Society for Promoting the Employment of Women, asking for admission. This is not surprising in an age which encourages female doctors and lawyers, and agitates for female suffrage; (p. 92)

The fascinating aspect of this book is that, although written ninety years ago, some of the author’s comments could be made today. For example, the author states, “. . . Accountants should deal with figures as facts simply. It would be well to act strictly in accordance with this principle, gratuitously suggested here, in remembrance of threatened legislation to provide a Government Department to audit the accounts of public companies.” (p. 67) Many aspects of this book seem to call for additional research, whether to satisfy curiosity or to gain more information.

CAPSULE COMMENTS:

Barbara D. Merino North Texas State University

Edwards, J. R., ed. British Company Legislation and Company Accounts, 1844-1974, 2 vols. (New York: Arno Press, 1980, 242 pp., $60.00).
Professor Edwards has done an excellent job in providing a useful working tool for accounting historians. His objective is to give historical researchers the means of identifying the origins of current regulatory provisions of the Companies Act of 1948, as amended by the 1967 and 1976 Acts. The first volume of this set is divided into three parts — (1) tables with respect to accounting and auditing regulation (2) the accounting and auditing require-ments of the companies acts, 1844-1976 and (3) comparable data related to railroads. Readers should find Table V, which traces comparable regulatory provisions related to annual returns and ac-counting and auditing to each of the relevant companies acts, especially useful.

Volume II contains reproductions of accounting and auditing pro-visions in selected companies acts or amendments to companies acts (1844, 1895, 1906, 1918, 1926, 1945, 1962) and excerpts from evidence given before the various legislative committees. The editor has attempted to provide a representative sample of this testimony, but, warns that the selection is by no means comprehensive. However, for accounting historians, who do not have access to legislative records, these two volumes should be extremely useful, especially for comparative studies of how regulatory standards have evolved in different countries.
The Institute of Chartered Accountants in England and Wales Library Catalogue, 1913. 2 vols. (New York: Arno Press, 1980, paginated by volume, $80.00).
The Institute of Chartered Accountants in England and Wales Library Catalogue, 1937. (New York: Arno Press, 1980, paginated by volume, $45.00).

Anyone interested in the development of accounting during the last half of the nineteenth century will find the 1913 catalog invaluable. The catalog lists all items by both topic and author and includes a wide range of books, pamphlets, lectures and articles in the Institute library. For those interested in bookkeeping, the catalog is an especially rich source. Bookkeeping pamphlets and texts are arranged in chronological order, by language. The English language section is comprehensive; it begins with a pamphlet by John Mellis and the next 35 pages are devoted to texts published between 1588-1912.

The two volumes of the 1937 Catalogue are reprinted in one volume in the Arno series. Readers will find that Volume I of this catalog is less comprehensive, although updated, than the earlier work; but, Volume II “The Bibliography of Bookkeeping” is far more extensive, reflecting the Institute’s acquisition of banker Karel Petr Kheil’s 1,634 volume bookkeeping collection in December 1913. The first volume, arranged by both subjects and authors, includes references to selected books and pamphlets, but, unlike the earlier catalog it excludes articles and lectures. Limited selection provides some information about the perceived quality of books since the librarian attempted to include the “best’ books, regardless of age, on all subjects. The second volume contains a wealth of material for the accounting historian interested in bookkeeping. It starts with a 12 page listing of secondary sources, i.e., bookkeeping histories and bibliographies; the subsequent 201 pages contain a chronological listing of bookkeeping texts and pamphlets, starting with Pacioli’s 1494 text and continuing through 1937. There is a brief summary of each book and, for books, written prior to 1800, there is a bibliographic collation of various editions and translations. The Catalogues provide an excellent source for those interested in the history of bookkeeping.

Papers and Proceedings of the American Association of University Instructors in Accounting. 3 vols. (New York: Arno Press, 1980, irregular pagination, $99.00).
The three volumes contain the proceedings of the annual meetings of the American Association of University Professors from 1916 to 1925. The contents include papers presented, committee reports, minutes of business meetings, as well as occasional mem-bership rosters. Volume I [1916-1920] and Volume II [1921-1922] will be extremely useful to anyone examining the evolution of accounting education. The majority of the papers and committee re-ports deal with accounting instruction, i.e., curriculum standardization and correlation with other disciplines. Those interested in the history of taxation also will find some interesting material in these two volumes.

Volume III [1923-1925] reflects a broadening of the objectives of the association. While a significant percentage of the papers continue to deal with education, this volume contains a broader range of topics and indicates the concern of the association’s members with both development of accounting theory and practice. The three volumes should be in every university library; they add to our understanding of the “roots” of the academic accounting profession in the United States. They also may raise some interesting questions as to how far we have come.