6.—The Bill of 1909 was in fact subjected to such severe criticism, both by independent experts and by the Press, that it is a matter of some surprise that the promoters should have thought well to re-introduce the measure with most of its objectionable features unaltered. The present Bill has already been adversely criticised in the Daily Pres.-Set leading article of the "Financial Times” 17th March, 1911.
7.-The true object of the Bill is apparent. The members of the English Institute and Society, who, in the past formed themselves into their respective Associations, seek in effect to have the membership of their own particular bodies converted into a monopoly and allocate to themselves prohibitory powers, to the detriment of a large number of efficient and capable Accountants who have qualifed for membership of the Central Association of Accountants, and other bodies, who are now carrying on their businesses in an honorable manner, to the benefit both of their clients and of the community at large. (See Clauses 22, 25, 24, sto, of the Bill).
8. A further objection to the Bill is the marked preference which its provisions throughout give to the members of the Societics named therein. This fact alone should be sufficient to condemn it.
*
9. None of the existing bodies of Accountants named in the Bill can claim to speak for the profession as a whole. The English Institute" and "Society" do not embrace fifty per cent. of the members of the profession in England, and ought not to be the arbiters of its fate.
10. That the British legislature will allow such an arbitrary measure to pass into law is wholly inconceivable and inconsistent with the spirit of modern legislation.
MOORGATE STATION CHAMBERS,
LONDON, E.C.
Dated 21st March, 1911.
REPORT of the Committee of the Council of the Central Association of Accountants, on The Professional Accountants Bill, 1909.
The Committee have considered the provisions of the Professional Accountante Bill which was introduced into the House of Lords on the 23rd June, 1909, by the Earl of Chichester, and beg to submit the following Report:-
The Bill is promoted by The Institute of Chartered Accountanta in England and Wales and The Society of Incorporated Accountants and Auditors.
In order that the nature and object of the proposed legislation may be properly appreciated, and to remove any misapprehension which may exist as to the constitution, powers and authorities of the Institute and Society which are promoting the Bill, it is desirable to preface this Report by a short summary of the history of the profession of Accountant during the last century and also to show the origin and constitution of the two before-named Societies.
Accountants have no special legal status in any part of the United Kingdom and they differ in this respect from members of the legal and medical professions. It is open for anybody, man or woman, at the present time to practice accountaney either solely or in conjunction with any other business or calling.
The functions of an Accountant are of great and increasing importance and include, in addition to the investigation and audit of accounts of public companies, trading bodies, trustees and others, employment in the capacities of liquidators in the winding up of companies, trustees in bankruptcies and arrangements with -creditora, receivers under decrees and orders of the court, etc., etc.
Many Acts of Parliament relating to public companies and public authorities, provide that accounts shell be kept in a specified manner and shall be audited, but it is exceptional to find that the audit must be the work of an accountant (see, for example, the Metropolis Water Act, 1871, s. 37 to 42; Friendly Societies Act, 1875, s. 14; Industrial and Provident Societies Act, 1893, s. 13). The Companies Clauses Act, 1845, section 108, provides that the auditor may employ an accountant, but such accountant need not be a member of any Society of Accountants, nor need an auditor appointed under section 112 of the Companies (Consolida tion) Act, 1908. Under section 4 of the Building Societies Act, 1894, "an Accountant" may be appointed by the Registrar of Friendly Societies to inspect the books of the Society and report thereon. The Building Society Act, section 43, provides that one at least of the Auditors of the Society shall be a person who publicly carries on the business of an Accountant," and under section 11 of the Universities of Oxford and Cambridge Act, 1877, one of the auditors of the accounts of an Oxford College must be either "a professional accountant carrying on business in London or Westminster or a person conversant with accounts, approved by the Permanent Secretary of Her Majesty's Treasury." The words "a person who publicly carries on the basiness of an accountant" and "a professional accountant carrying on business" have not yet received judicial interpretation.
Parliament has recognised the fact that accountants are formed into incorporated bodies. As an instance may be cited the Revenue Act, 1903, section 13, which section gives an accountant the right to appear on appeals before the Commissioners of Inland Revenue. The section concludes with the words:-
"The term accountant in this section means a person who has been admitted a member of an "incorporated Society of Accountants."
Although accountants in England and Wales are not obliged to be members of any recognized society, the greater number of English professional accountants at the present day do in fact belong to one of three English Institutions. These are:--
(1) The Institute of Chartered Accountants in England and Wales.
(2) The Society of Incorporated Accountants and Auditors.
(3) The Central Association of Accountants, Ltd.
The following is a brief outline of the origin and constitution of these Institutions :—
(1) The Institute of Chartered Accountants in England and Wales.
The first step in the organization of the profession in England was taken in the year 1870 by the accountants of Liverpool who formed themselves into a small society known as "The Incorporated Society of Liverpool Accountants." This was followed in the same year by the formation of "The Institute of Accountants" in London, and in 1871 by the formation of "The Manchester Institute of Accountants." In 1873, another Society, called: "The Society of Accountants in England," was established in London, and a fifth Society known as "The Sheffield Institute of Accountants" was formed in Sheffield in the year 1877. In 1880, the membership of these Societies was as follows:-
The Liverpool Society
---
The Institute of Accountante (London)
The Manchester Institute
The Society of Accountants in England The Sheffield Institute
29 members.
188
JT
103
*E
286
12
32
P
2
Total
$38 member,
386