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PROFESSIONALISATION OF ACCOUNTING IN THE UNITED KINGDOM. - Coggle Diagram
PROFESSIONALISATION OF ACCOUNTING IN THE UNITED KINGDOM.
CRITERIA FOR A PROFESSION
Body and its members observe a Code of Ethics
The body has a recognised status indicated by a licence or specific designation
Admission to body requires meeting certain criteria and achieving certain standards (eg entry exam)
Body and its members hold a position of trust and must meet this obligation by acting in the public interest
Body consists of individuals with specialised knowledge or relevant formal education
Community service is generally required as part of the training of ongoing membership of the body
Regulated by a body
Membership of a professional body is normally mandatory
DEFINITION OF A PROFESSION
It is an organisation of people with common background skills and interests
Professionals comply with a certain accepted corporate discipline
Requires that a certain ethical standard and social expectation are met
PROFESSIONALISATION IN THE UK
THE DRIVING FORCE BEHIND THE PROFESSIONALISATION
Industrial Revolution was the impetus for the Professionalisation of Accounting, both of which took place in the United Kingdom
Industrial Revolution produced a more advanced economy which demanded more formalised accounting practices
At the same time changes to bankruptcy legislation meant that lawyers were getting more involved in the accounting field and accountants demanded the same status and wealth as lawyers
PROFESSIONAL ACCOUNTING BODIES
SOCIETY OF ACCOUNTANTS, ABERDEEN, 1867
INSTITUTE OF ACCOUNTANTS AND ACTUARIES, GLASGOW, 1853
First professional accounting body -
SOCIETY OF ACCOUNTANTS, EDINBURGH, 1854
Five British professional bodies joined forces -
INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES, 1880
COUNTRIES MAKING UP THE UK
England, Wales, Ireland and Scotland
FEATURES OF PROFESSIONALISATION
Subjects required: BANKRUPTCY LAW, BOOKKEEPING, ACCOUNTS, PRACTICAL WORKING OF BANKRUPTCIES, TRUSTESTATES, VOLUNTARY AND JUDICIAL FACTORIES, ARITHMETIC, ALGEBRA
Articles of Clerkship required
Professionalisation increases public confidence and status, increases the demand for the services of accountants
Legal recognition and permission to use the designation of Chartered Accountant