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Professionalisation of Accounting: United Kingdom - Coggle Diagram
Professionalisation of Accounting:
United Kingdom
Professionalization - a natural consequence of economical and organizational changes of Industrial Revolution
Scotland
More sophisticated economy
Changes in Bankrupcy Laws added more competition from lawyers
Accountants desired same status and public recognition as other professions
In 1853 the first Society of Accountants in Edinburgh - SOE was established
Accountants wanted to protect their economic self-interest by forming institutions and proclaimed public interest as focus point
Work had to be done by qualified individuals as a result which lead to the Glasgow body charter in 1855
Created organized profession to provide market control of their services
Sought legitimacy in royal charters and permission to self-regulate
Described members as chartered accountants - deliberate act to build public confidence
Professionalization strenghthened through entry, education, examination and training requirements
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Independency followed by Royal Charter in 1854
Scottish Societies co-operated
Issued a national directory of charteres accountants in 1896
Published a joint journal in 1897
Merged in 1951
Joint national examination system in 1893
Successfully defended the exclusive use of the invented abbreviation title C.A when challenged from 1854 to 1914
England
Incorporated Society of Liverpool Accountants and the Institutes of Accountants in London kicked off societies in England
Copy catting the Scots as they sought their credibility and authority as presumably it had positive economic benefits
Disputes between London bodies and other regions followed
Elitism and concerntration of power by accountants working in London firms the centre of disputes
Resulted in the merge of 5 English bodies into The Institute of Chartered Accountants in England and Wales (ICAEW) in 1880
Involved in influencing changes in law relating to accounting, bankruptcies & municipal auditing
The Society of Incorporated Accountants in England 1885 established in response to conditions of entry by the ICAEW
Institue imposed standards of entry, examination and training
UK
Conceptual framwork was published in 1975, shelved and re-appeared in 1991
Published journals which provided means of publicizing and criticizing the accountancy body of knowledge
Found libraries and depositories of accountance knowledge and erected buildings
Uk accountancy's drive to respectibility and social standing
John L. Carey's 7 criteria of a profession (1969)
A code of ehtics
A recognized status indicated by a license or spcial designation
Standards governing admission
A Public interest in the work that practitioners perform
A formal education process
Recognition of their social obligation
A body of specialized knowledge