Company Legislation and Auditors

Dominion, Volume 27, Issue 32, 1 November 1933, Page 11

Company Legislation and Auditors

Sir. —I have read the defence of the ■secretary of the New Zealand Society of Accountants against the accusation that the operation of the clause in the proposed _ I Bill restricting the audit of public and . private-companies accounts to. members I of the society and allied bodies, does not tend in the direction of creating the society a close corporation. The truth is that the society has been steadily moving in this direction ever since its inception. The following facts prove, this to be, so:— The original membership was 2347. At the end of 1931 it had fallen to 18-43. and this despite the fact that as many as 2800 candidates sit the society's examinations in one year. Mr. Johnston states that during the 25 years since it was incorporated the sqciety has admitted 1200 examined men. In the 1928-29 Tear Book of the society the president stated that only 60 per cent, of the membership then were examined men, and I should be surprised to learn that the percentage ‘.i of men qualified by examination among practising accountants is as high to-day. Mr. Johnston lays stress on the contribution made bj- the society for educational purposes. This averages £240 per annum. What the general public, through the Education Department, has. contributed toward the support of accountancyclasses is not mentioned, and the society's contribution is a mere bagatelle compared with it. The proposed contribution to Victoria College University clafeses in accountancy is in the same category, is only fixed for three years, and with, the passing of such a clause as is contained iii Section 140 (2) of the Act would do away with the need of the subsidies to. any educational purpose whatever. These subsidies have placed the society in a position of importance with regard to university examinations altogether out of proportion to the importance of the profession in the business world. In regard to technical subjects of the examination for accountancy and B. Com. the university appoints members of the society to act as examiners, thus placing the society athwart the degree course. It cannot be too often stressed that there is no precedent for the proposed ( restriction in the English Company Act. The Chartered Accountants’ Societies of Great Britain attend to .their business in such a way as to command the esteem of the business world, and have no. need to resort to political action to obtain re- . cognition.-! am, , etc., AUDITORPalmerston North, October 26.