SYSTEMATIC AUDIT.

Auckland Star, Volume LXVI, Issue 121, 24 May 1935, Page 15

SYSTEMATIC AUDIT.

T»IEND OF THE TIMES. "In my opinion our efforts should in future be directed to making clearer and clearer to the public what our reports as auditors really mean," remarked Mr. E, Fiirnival Jones, F.C.A.. at a meeting of the English Institute of Chartered Accountants. "The Americans," he continued, "have developed rather move fully than we have the distinction between a full and a partial audit. Modern developments of business suggest that this distinction is bound to grow in the future. Large business concerne will probably extend the practice of having an internal audit department' which will concern itself with the control of details and check the honesty of employees, the professional auditor being concerned only to see that the internal system is adequate and Is being carried out. and with the preparation and the verification of final accounts and balance-sheets. "There will also, I suggest, be an increase in the tendency to specialise. Wo have seen tho growth of new societies of members and others who are concerned with special branches of our work or of work more or lose related to it. The company secretaries, the municipal accountants, cost and works accountants, and arbitrators each have their separate organisations. Others will doubtless arise ae time goes on. "Accountants will in future have to bo familiar with the methods and possibilities of mechanical accounting, and such methods necessarily give an added importance to internal controls and make it more difficult for an outside professional man to verify day to day transactions. "What ether developments of the profession may be expected 1 This is an age of transition. But the changes of tho last 50 years are a guide, and L think it is safe to say that the employment of professional accountants as advisers in certain recognised directions of those in control of business and finance will increase as the years go on. "Since this institute was founded, the work of professional accountants has covered an ever-widening field, and has become more ami more exacting. The standards of professional attainment which will be required in the future are not likely to be lower than in the past, the work is not likely to be less exacting, nor will the responsibilities diminish." ,