The article discusses the revolution in the area of accounting which gives the beginners a firm foundation upon which to build a consistent, meaningful structure of accounting theory. Primarily, the "revolution" involves a willingness, whenever necessary, to modify the orthodox historical cost and realization "principles" of accounting. In addition to emphasizing the forward-looking aspects of accounting, a complete revolution will emphasize the importance of economic theory, historical accounting development, and a consistent theoretical construct. The utility of using the economists' forward-looking approach, when prices rise as well as when they fall, must be compared with the difficulties and possible errors of so-doing. Bases for a rational choice of methods, however, will have been developed. Choice will no longer have to be made solely on the basis of custom or reference to authority. The accountant, hopefully, will be prepared with an independent, analytical, approach to solving important accounting problems. A host of decisions, not just managerial decisions, may then be made by various groups in society, based on relevant data and sound, consistent accounting theory.

The article focuses on the definition of accounting. The author states that to the advanced accounting student or practicing accountant, the art of recording, classifying and summarizing business transactions conveys much more than simply the routine recording of business events in an accounting system, these activities would seem to be clearly in the realm of bookkeeping. Generally, an accounting system is designed to collect, classify and summarize business transactions, as well as business activities. An accounting system may be a manual system, a semi-mechanical system, or an electronic computer system. The study of the more recent developments in accounting systems, such as electronic systems, or computer systems, is especially interesting in regard to their potential in the area of analysis. Education for accounting must involve the study of all reasonable alternative systems, principles, standards and methods of measuring the effects of business activities. Accounting systems may be divided into two main types, financial accounting and administrative or managerial accounting.

In the quest for a more efficient way of reducing auditing costs, certified public accountants have become interested in statistics. They contend that if this statement is taken literally, a rigorous sampling requirement is imposed. Only through the application of statistical sampling techniques of the highest order could such a desirable objective be achieved. Many of the problems associated with the current use of statistics would be overcome. The question of the significance of a particular percentage of errors to the quality of the accounts involved would be avoided. The purpose of the test would be clearly established, enabling the audit supervisor adequately to plan and instruct his subordinates, tables and charts could be prepared. The use of the computer itself could aid in drawing the random sample of accounts to be circularized as an illustration, reducing human error. The tests would be simpler and more uniform when divorced from internal control. "Exploratory" sampling or error finding would not be the objective.