Abstract The most recent statement of basic postulates of accounting is contained in Accounting Research Study #1, prepared under the auspices of the American Institute of Certified Public Accountants. The 14 postulates presented therein have been grouped under three headings namely environment, field of accounting and imperatives. The attempt to present succinct descriptions of the basic postulates for accounting is meritorious. The philosophy underlying such a project would appear to be directed toward the establishment of a sound foundation for the advancement of accounting theory. However, continued analysis of these and alternative postulates must be undertaken to avoid the creation of a mausoleum from which there could be no escape. A chart has been developed which attempts to depict the interrelationship that appears to exist between these postulates. The heavy reliance upon the deductive process evidenced by this study suggests that a comparable exercise utilizing inductive reasoning should be undertaken for a verification or repudiation of these postulates.

Abstract The modern business-oriented computer is an adaptation, with minor modifications, of the earlier and more general notion of a stored-program, digital computer. Business-oriented computers have been developed largely as a result of a concerted effort on the part of computer manufacturers to develop equipment, which would be suitable to the requirements of business data processing. For the most part, however, accountants have had very little to say about the kind of equipment which has been made available to the business firms. Consequently, each installation has been approached on an ad hoc basis, and there appears to be a wide divergence in accomplishment. Business-oriented computer should be taken as a frame of reference, and instead of superimposing the computer on the business information system of the firm, that the systems designer should build or rebuild the entire system based upon the theoretical concepts inherent in the computer itself. Business-oriented computer becomes an adequate frame of reference for exploring the possibilities and ramifications of a normative business information system for the firm.

Abstract In recent years the California State Board of Accountancy has devoted considerable time to various problems that are involved in improving reporting standards. The California Board of Accountancy consists of eight members comprising of five certified public accountants, two public accountants and one public member not licensed or registered by the Board. The Board has only those powers and duties conferred on it by the Accountancy Act. These powers and duties are required in the administration of the Act. The Accountancy Act empowers the Board to adopt the rules and regulations necessary to carry out its responsibilities. Upon analysis it is obvious that the rule involves almost all of the basic background in the theory of auditing. Thus, accountants must be familiar with the literature of the American Institute of Certified Public Accountants to understand the meaning of auditing standards and to keep abreast of the changing concepts related to these standards. Rules of professional conduct that have been established as a result of the authority vested in the Board, are found in Article 9, Chapter 1, Title 16 of the California Administrative Code.