Reviewed by Frederic M. Stiner, Jr. The University of Maryland
Now back in print as one of the Accounting History Classic Series, this book is a milestone in accounting thought. This wealth of facts is organized so that Chapters I and II, after a brief intro¬duction, cover the Antecedents of American Public Accounting and Chapter Ill, Definition of American Public Accounting. Chapter IV covers the Emergence of Public Accounting in the United States, 1748-1895. Chapter V, Public Accounting in the United States, 1896-1913, begins with the time period of the first CPA law, in New York, to the time of passage of the Sixteenth Amendment. Chapter VI covers the period 1913-1928, a time of competing societies and important legislative precedents. The period 1928-1949, Chapter VII, discusses the impact of the securities acts, the extension of audit procedures, World War II, and litigation over unlawful practice of the law. Chapter VIll reports the 1950’s. The book concludes with a useful summary and a bibliography.
Two appendices show the first CPA exam, (1896) and original CPA Certificates issued by state and year. An extremely useful errata to the 1960 edition appears after the index.
The book is a useful primary and secondary source. Some docu-ments, which are difficult to obtain now, are reproduced in full, such as the Certificate of Incorporation for the American Association of Public Accountants, the first CPA law, the first CPA exam, and the 1917 Code of Ethics. Many fascinating incidents keep the nar¬rative alive: The first violator of the first CPA law was swiftly con¬victed nine days after the offense, and given a choice of a $35 fine or 10 days in jail. At one point in 1924, the Oklahoma State Board continued operating without a law to support it, after their original law was declared unconstitutional.
The book is a fertile source of leads for further research. Most useful is the discussion of the 1950’s, where Edwards becomes a primary source himself by spending 100 pages reporting the pro¬found developments of that time. Many original sources, such as letters to Edwards on permissive and regulatory state licensing statutes, are provided. We see the Accounting Principles Board created, and have its initial opinions. The material on the 1950’s is useful in understanding the subsequent history of the APB.
The book belongs in every college and university library, and should be considered as one reading in a graduate seminar. It is an excellent choice for the Accounting History Classics Series, and the Arthur Andersen &. Co. Foundation has done a great service to scholars everywhere by supporting the reprint of this important work.
