ACCOUNTANCY AND AUDITING
(To the Editor.)
Sir, —May I ask for space for a, few words ill reply to '"1913" regarding the new Companies Bill? The correspondent states among other things that the auditor is a "glorified checker." Therein , "1913" discloses his ignorance o£ modern company auditing. From time immemorial the art of accounting and auditing has been practised by men skilled in business and figures. In 1543 A.D. a Latin work'by one Pacioli, entitled "De Computis et Scriptaires," setting the nucleus of modern accountancy, was translated into English;
Since then, and particularly after tlie creation of legislation authorising the forming of limited liability companies, the need for and responsibility of accountants and auditors became very great indeed. Men who had devoted lifetimes to stildy and practical accounting devised and improved methods of accountancy and auditing to meet the various needs of trading companies, manufacturers, banks, insurance'eompanies, and all the various organisations existing today. The different systems of accounting are as many and varied as the class of companies operating today—trade, commerce, investment, public utility,' etc.—and therefore it is clearly conceivable that only men thoroughly trained in all the various systems are competent to undertake the work of checking and keeping the accounts. Xot only must the ledgerkceper's, cashier's, etc., work be checked, but the movements of capital, creation of reserve, investments, etc.; must be watched, the company manager as well as the clerks. Tt is safe to say that the general public would not"-*o freely subscribe for shares
in numerous public companies were it not tor the fact that they know the auditor— a man skilled in finance, accounting, company law, and business methods generally and further, of the highest character, is there to watch their interests. The auditor must have something to lose— business reputation, honour, etc. The New Zealand Societyl of Accountants has recognised thi9 and has set its standard accordingly. The standard is not unattainable: 150 students completed the. course last year. Why not you, "1913"? Accountancy and auditing is a profession established by Act of Parliament throughout the world just as law, medicine, etc., ijnd as such is entitled to the, protection afforded in the Companies Act now before Parliament.—l am, etc.,
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https://paperspast.natlib.govt.nz/newspapers/EP19331106.2.63
Bibliographic details
Evening Post, Volume CXVI, Issue 110, 6 November 1933, Page 6
Word Count
367ACCOUNTANCY AND AUDITING Evening Post, Volume CXVI, Issue 110, 6 November 1933, Page 6
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