ABSTRACT
The Modern Corporation and Private Property may well have been a blueprint for the Securities Act. An example of the pressure for accounting reform was a statement by the American Management Association in 1932 advocating such action as may be necessary to secure the appointment, by the leading professional accounting societies. Mr. Berle suggested that the first approach must be made by accountants themselves, acting through such organizations as the American Institute. The influence of the SEC on accounting and auditing standards and practice was tremendous. Without doubt the Securities Acts strengthened the position of independent auditors in insisting that clients follow sound principles and make adequate disclosures. The president of the exchange, Seymour L. Cromwell, made a speech in that year advocating full publicity in connection with the issuance of securities. The Institute's committee on co-operation with stock exchanges pointed out that these developments require auditors to accept a larger responsibility to stockholders.
