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Professionalisation of the accountancy in the United States of America -…
Professionalisation of the accountancy in the United States of America
Late 1880s
Population expansion
Industrialisation
Railroad competition
Agricultural boom
Emergence of professional middle-class
UK companies investments & migration to USA by experienced Scottish and English chartered accountants
Institutionalisation and organisation of UK chartered accountants into firms
20th Century: Certified Public Accountant
Regulated by State Legislation & Societies
Self-interest v/s public interest
American Institute of Accountants: modelled on Scottish & UK chartered accountancy bodies
Standards of examination and experience
Membership open to all accountants; not limited to CPAs
1882 = Institute of Accounts formed
Membership open to accountant passing admission test
Court protection
Duality: responsibility to the State & Professional Body
1921: American Society of CPA founded
Objectives: Protect CPA title
Merger of Institute and Society in 1936 = American Institute of (Certified) Public Accountants
Membership limited to CPAs and adoption of uniform exams (adopted by all US states by 1952)
Use of Journals to signal knowledge-based accountancy and intellectualism of US profession
Branched out into audit, tax, and advisory services
Move from part-time professional committees to full-time quasi-independent boards (eg FASB)
Securities Exchange Commission: 1930
Left accountancy profession to independently manage standards processes
Competition for control between SEC and American Institute of CPAs for standards setting, and improving of auditing and accounting practices
1960s: Quest for intellectual basis; attempts to legitimise accounting education in the early 1990s
2000s: Accountancy went global = growth of multinational firms
1980s: American Institute of CPAs changes statement of mission to make explicit 'public interest' commitment
1994: Growth of LLPs
American Institute of CPAs permits non-accountancy ownership interests in accountancy firms
Pressure of professionalism: economic self-interest