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PUBLIC ACCOUNTING IN THE UNITED STATES, 1896-1913.

James Don Edwards

Assistant Professor, Michigan State College. 1

The Accounting Review 1955

The late 1880's, in the U.S., represented a period of undoubted development and advancement in accountancy both in better knowledge of the profession and its requirements. Another trend that tended to further the development of the profession was the incorporation of industrial concerns under the laws of the various states. The securities of these corporations were issued and offered to the investing public. In many of these corporations, public accounting firms were employed to make examinations and reports on the financial condition and earnings of these corporations before their securities were offered for public subscription. The first industrial firm so incorporated whose securities were offered to the public with an accountant's certificate attached to the prospectus was the firm of John B. Stetson and Co. of Philadelphia, Pennsylvania. By 1909, the accountancy profession had gained such favor among businessmen that corporations of the better class were of their own volition adopting the practice which had become obligatory in England under the Companies Act of 1900, of retaining public accountants to make periodic audits.

DOI
10.2308/tar-7060711
Volume
30 (2)
Pages
240-251
Language
en
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