Knowledge that Transforms

The training of students in auditing courses for the passing of the CPA examination in auditing is, of course, considered secondary to the successful training of those students to the extent that they are enabled to enter the public accounting profession well qualified to perform expeditiously the auditing tasks assigned to them. While this examination is not the major objective of the students or their instructors, it does provide the accepted measurable means by which the technical knowledge of the applicants is judged. This article, presented from the viewpoint of one who has had years of public accounting experience and who is a teacher of auditing in a metropolitan university; reviews this medium, the auditing phase of the CPA examination, in an objective manner, and presents material for consideration and discussion on various phases relating to the subject. This paper has made a review of the examinations prepared by the Board of Examiners of the American Institute of Accountants as presented from 1942 to May, 1946.

The role of accounting in public utility regulation is merely one aspect of the role of accounting in the broader field of economic control. Of course, the general development of accounting is a process of evolution which has gone on for many centuries whereas the use of accounts in public utility regulation is a matter of recent origin, as of July 1947. It is, in fact, considerably less than 100 years old. Nevertheless, the use of accounts as a tool of regulation is, in a sense, a forerunner of the current dominant trend in general accounting. The procedure in this article will be to consider first, public-utility regulation and some of the accounting problems associated with it. On the basis of that discussion the author shall turn to the broader problem of general economic control in the expectation that the broader view will help to appraise better the place of accounts in public utility regulation. The regulation of public utilities developed as a practical expedient designed to correct certain injustices and abuses which had arisen in the prevailing economic system of competitive control. From the start regulating commissions have been heavily dependent upon accounts.

Reviews the book "Investment Analysis," by John H. Prime.

Reviews the book "Embezzlement and Internal Control," by Albert K. Keller.

Women in any field or profession have problems and responsibilities that are peculiarly their own. This is especially true in accounting where women form a smaller minority group than in any of the other leading professions or executive groups. To fill the need for work that could not be expected of existing accounting organizations, and was not their responsibility, the American Woman's Society of Certified Public Accounts was organized to advance the professional interest of women certified public accountants. Though of necessity small in membership, it renders a unique service to the profession and to business and industry, as well as to women. To provide an effective medium, the American Woman's Society of Certified Public Accountants organized an affiliate, the American Society of Women Accountants, which through different classifications, provides membership for women who are actively engaged in any phase of accounting, who are instructors or students of accounts or who otherwise have a substantial interest in accounting. Through well-organized and regularly conducted monthly meetings, local chapters in larger cities of the U.S. offer technical and educational programs that are of material aid in improving efficiency of its members, good fellowship and exchange of ideas among women with mutual interests.

Accounting as it is commonly understood is the art of recording, classifying, summarizing and interpreting transactions and events which are, in part at least, of a financial character. The roles which the art of accounting plays in taxation are both varied and important. Only the most elementary estimates of revenue needs can be made unless they are supported by comprehensive accounting classifications of expenditures by the taxing unit for a period of prior years together with similar classifications of the estimates of its current needs. In controlling and reporting upon the collection and disposition of public revenues, accounting is, of course, a commonplace. But it is in the field of income taxation, the revenues from which play such a dominant part in the financial programs of the Federal Government and of many of the states, that the role of accounting in the taxing process attains its greatest importance. Without accounting, the administration of an income-tax program would be impossible.

During the wartime years and now during the reconversion period a number of arguments have been advanced that seem strange to accountants and to businessmen. Like the unicorn, deferred maintenance is sometimes said to exist only in the minds of highly imaginative individuals-individuals, it might be added, who are acutely motivated by a profit incentive. While the conclusion stated in this bald fashion without qualification is obviously extreme, businessmen have found themselves hard pressed to find convincing arguments. It is the purpose of this paper to examine the conditions necessary for the existence of deferred maintenance, to investigate the propriety of taking a deduction from income to cover this item in advance of the actual expenditure, and to offer criticisms of some prevailing methods of measuring such deductions. In the course of this work it is necessary to review the relationship of maintenance to methods of depreciation apportionment. From the economic viewpoint, the accountant by making periodic reductions of income for depreciation is attempting, perhaps crudely; to provide for capital consumption or utilization.

Reviews the book "Some Specialized Phases of Accounting Practice," by Mvron M. Strain and Floyd P. Karg.

Reviews the book "Financial Administration of Municipal Utilities," by Irving Tenner.

Reviews the book "Studies in Income and Wealth," Vol.8.