ABSTRACT
The meeting of the Manchester Society of Accountants has been followed by the meeting of the Institute of Accountants; and the reports which we gave of the proceedings on both occasions cannot fail to prove highly gratifying to all who are interested in the well-being of the profession. There was the same strongly marked feeling that the time had come for the decided recognition of accountants as a body, and the same marked determination to uphold their position and their privileges. These meetings, and the publicity given to them, do much towards the great step of thorough union and consolidation. The remarks of the Chairman at the Institute gathering were especially valuable, as directing attention to one very important branch of an accountant’s duties, that of auditing. The cry against accountants is, that they are in reality a body of men who have sprung into existence since the Bankruptcy and Companies’ Acts, and flourish simply on the ruins of once prosperous undertakings, and the wrecks of private fortunes. This cry is echoed, not only in the columns of more professional organs, which may naturally be expected to utter shrieks of indignation at any thing which may threaten their interests, but obtains a wider publicity by letters to the daily press. It is true, of course, that the accountant is the man to whom is entrusted the task of saving as much as possible out of the fire; but there is another aspect of his duties to which we have frequently directed attention, and on which Mr. Kemp dwelt at some length,—that of protection of shareholders and creditors by means of fearless and rigorous auditing. Here Is a ground on which no professional jealousy can give rise to any hostility, and on which the public can yield to the profession a sincere and hearty support. It is not too much to say, that but few of the terrible financial scandals which have sprung into such disgraceful notoriety could have taken place, if a thorough and independent system of auditing had been in force. Let the Institute follow up the principles enunciated by Mr. Kemp. Let them hold the professional honour of an accountant to be so high, that it forces him to decline to certify to the correctness of any accounts where he has not been allowed the fullest means of investigation. Let them stand by the man whose fearless discharge of his duty has brought about his dismissal, and let them insist upon his reinstatement. In this course they will carry with them the warm sympathy of the public; and they will find that those whom it is most necessary to hold in check, will soon cease to contend against them. The fact of an auditor of any company having been dismissed, and all men of eminence and standing in their profession refusing, with the support of the general body, to succeed to his post, will be proof positive to the world that the affairs of the company in question are not able to bear the light of publicity, and the necessary inferences will be readily drawn. Moreover, shareholders and investors will scrutinise carefully the audited account, and see the first threatenings of an impending danger which they may avert or escape from in time. A sound and solvent company need not fear the closest scrutiny into its affairs; and in answer to any alarming or disquieting rumours as to its stability, may point calmly to the signed approval of the auditors. A shaky concern will dread submitting its accounts to the keen eyes of a trained investigator, for fear of having its instability exposed to the world; and the dread of independent examination will tell its own tale. If the Institute of Accountants will persist in directing attention to these points, they will have done a very great service to the world, and laid the foundations of a really sound commercial prosperity. But they must attempt to educate the mind of the public. The idea of the importance of the post of auditor must be thoroughly grasped; and the necessity of his utter independence of any influences which may colour his conclusions, must be insisted upon. Where the auditor or examiner is a mere official of the company, his results cannot invariably be implicitly relied on.
