ABSTRACT
The purpose ofthis paper is three-fold and its divisions can broadly be enumerated as follows:
To examine the extent to which the internal organization of a business affects the certificate given by a public accountant in his capacity as auditor.
To study whether a ‘business organization’ is itself a suitable subject for appraisal,—that is to say, whether the organization, as distinct from the financial transactions and results thereof, can be evaluated or audited so that a certificate as to its efficiency could be given by a public accountant.
To discuss—if ‘business organization’ is found to be a suitable subject for auditing—whether it is practicable and or desirable for a public accountant to extend his customary audit in this respect; and whether such an extension of an audit ought to be made compulsory by law or whether it ought to be treated only as a possible additional service of the public accountant available if requested.
