The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-04-22
PUBLIC ACCOUNTANCYI IS
PROFESSION OF. GROWING
AND OF VITAL INFLUENCE

instance was. IL - almost lmpOoof
BILE to imagine a duplicate situa-
tion. Certainly such practice can
not characterize the business world
OF today. even though such q situa,
ton might be desired.
pIaanostIcians Of eusInsss.,
In contrast to the foregoing. .
modern instance may be cited A
layman to the business. merely for
the sake OF general interest. was
being shown through one OF Amer
ica's greatest locomotive works. Az
ter he had seen Il all, his comment
was this: II don't see how they
can tell whether or not they are
making money!" That remark is
not at all q cryptic one to anyone
who knows anything OF the wide
qualifications OF locomotive building.
and of the thousand and one points
where capital might be wasted or
become tied up In needlessly expen-
sive processes, or in the ill-advised
purchase and use OF material. But
building and selling locomotives Is
q comparatively simple process az
compared with some undertakings
OF the modern business world. OF
many q modern business concern II
may well be asked, How can they
tell whether or not they are making
money? Well, II Is no easy ques-
10 In Mi - n
Der OF cases. Hence the public ac-
countant. He is called In, With
knowledge. and with the widest and
best judgment Of accountancy In
general. and with what Is perhaps
more important than all. wholly
unprejudiced view Of the situation.
The public accountant comes to pre-
pare comprehensive, technically
accurate. yet popularity understand
able. report concerning a business
concern and the status OF IT'S az
fairs. The difference between such
a report and concerns balance
sheet is difference that may be
more readily comprehended than
described In a brief, non-technical
statement. One OF Detroit's leading
accountants. however. has hit on
the province OF the public account
ant In word. 1T is the applica-
tion." says he. "of the basis princi-
pie OF double entry Bookkeeping.
through COMMON sense. and account
Ing intuition. to the largest aspects
OF business"
Another important province OF the
public accountant is the investiga-
ton Of intricate business situations
for the purpose OF adducing legal
evidence in those cases where great
business concerns are involved in
litigation. What an important field
this is viii readily come to mind
when one pauses to reflect how
constantly Investigations OF big cor
porate concerns are going on. and
how frequently corporate affairs are
made the subject of litigation.
Accountants o. X. Demanded
Somewhere above reference was
made to the growing concern OF the
public In business with respect to
whether or not business Is a matter
OF public service, or merely a con-
trivance for extracting undue pro-
fits. One phase Of this attitude.
wherein the public accountant is
to play most important
part, Is where the accountant stands
as umpire between borrowers and
lenders OF money. where great sums
are involved. The time was. within
easy remembrance, when the ar.
rangements q great corporation
might make with great bank were
q matter Of wholly private concern.
II an undue risk or an undue profit
was entailed that was none OF the
public's damn business. as II might
have been phrased a few years ago.
But that time is RAPIDLY passing.
In these days OF reformed corporate
and of higher public re-
sponsibility In the financial world.
lenders Of great funds are not TAX.
ing the borrowers unsupported
of their financial worth
and ability. but, on the contrary. a
request for funds must be o.. KID
by q competent and disinterested
public accountant.
The foregoing suggests In outline
some Of the provinces Of the public
accountant. Other instances where
In the accountant must play an i'm
portant part In the modern scheme
OF business will readily occur to
anyone at all familiar with the prac-
tees Of the business world.
Who Are Public Accountants7
Since the province of the public
accountant has been set forth above.
the question may naturally arise.
Who are these public accountants!
Who arc the men that hold them
selyes out az prominently capable
OF determining the actual, unbiased
status Of our great business con-
Germs? The, question Is. indeed. a
pertinent one. and the answer also
IA pertinent
The certified public accountant is
one who he's state credentials attest
ing the fact that under cognizance