146 IOWA DEPARTMENT OP AGRICULTURE 



I didn't know that I had to deliver these notes to the secretary, for I 

 don't believe he will be able to read them after he gets them, and if I 

 make any mistake or hesitate at any time in the reading, it will be be- 

 cause I cannot read my own writing. 



I thought it would be only proper first to give you a little outline of 

 accountancy and the history of the development of accountancy, as well 

 as the development of recognition of accountancy as it is now accepted. 

 A great many people confuse an accountant with a bookkeeper or an 

 auditor. This is not the case. Accountancy is something more than 

 that. 



Accountancy is a science which treats of the proper presentation of 

 business facts, recording them in accordance with correct theory and prin- 

 ciples. 



In current use there is much confusion in the use of the word account- 

 ing. By many the term is used as synonymous with bookkeeping and 

 auditing. Accountancy is closely related to economics, being the ana- 

 lytical branch of the same. 



The principles of accounting are not new. As far back as the Babyl- 

 onian empire we find their use well defined while in ancient Egypt ac- 

 counts were kept upon papyrus and often cut into slabs of stone and 

 masonry. In the Middle Ages methods of accounting were used which 

 appear to have been very complete and accurate. 



To modern times, in fact very recent years, we owe the most progress 

 in matters of accountancy. To Italy we owe the origin of double-entry 

 bookkeeping which is almost universally used at this time. 



To England, however, we are indebted for placing accountancy in the 

 ranks of the professions. It was there that associations of chartered 

 accountants were formed, the members of which came to have a high 

 professional standing and public recognition of the profession became 

 thoroughly established. The examination was so complete and the 

 requirements so rigid that the holder of a chartered accountant's cer- 

 tificate is almost universally recognized throughout the world. , 



Similar influences were at work in the Uuited States. In 1896 the 

 first step towards legalizing accountants and regulating the profession 

 was taken by New York in the passage of a certified public accountant 

 law authorizing accountants with certain qualifications and under certain 

 conditions to practice as Certified Public Accountants, and use the 

 letters C. P. A. in connection with their name. Since then other states 

 have enacted similar laws until now nearly every state has some law 

 relating to Certified Public Accountants and the granting of certifi- 

 cates to those who qualify thereunder. 



A Public Accountant is one who is engaged in work of accountancy 

 for the business public. He is supposed to be skilled in all methods 

 of accounting demanded by business, commerce and finance. 



A Certified Public Accountant is one who has furnished proof to 'this 

 state of being possessed of such qualifications by complying with certain 

 statutory requirements. 



