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24 engagements undertaken to be fulfilled at once or in a future, however remote, may be recorded; and this science comprises a knowledge of the methods of preparing statistics, whether relating to finance or to any transactions or circumstances which can be stated by numeration, and of ascertaining or estimating on correct bases the cost of any operation whether in money, in commodities, in time, in life, or in any wasting property. Generally, accountancy may be described as being the science by means of which all operations, as far as they are capable of being shown in figures, are accurately recorded and their results ascertained and stated.

The origin of the profession of accountancy in Great Britain is difficult to trace; auditors of accounts were

naturally of very of early existence, being mentioned as officers importance in the statutes of Westminster in the reign of Edward I. The art of accountancy on a scientific principle must certainly have been understood in Italy before 1495, when Friar Lucas de Borga published at Venice his treatise on book-keeping; but the first known English book on the science was published in London by John Gouge or Gough in 1543. It is described as A Profitable Treatyce called the Instrument or Poke to learn to knowe the good order of the kepyng of the famouse reconynge, called in Latin, Dare and Habere, and, in Englyshe, Debitor and Creditor. A short book of instruction was also published in 1588 by John Mellis of Southwark, in which he says, “I am but the renuer and reviver of an auncient old copie printed here in London the 14 of August 1543: collected, published, made, and set forth by one Hugh Oldcastle, Scholemaster, who, as appeareth by his treatise, then taught Arithmetike, and this booke in Saint Ollaves parish in Marke Lane.” John Mellis refers to the fact that the principle of accounts he explains (which is a simple system of double entry) is “after the forme of Venice.” The very interesting and able book described as The Merchants Mirrour, or directions for the perfect ordering and keeping of his accounts; framed by way of Debitor and Creditor, after the (so tearmed) Italian manner, by Richard Dafforne, accountant, published in 1635, contains many references to early books on the science of accountancy. In a chapter in this book, headed “Opinion of Book-keeping’s Antiquity,” the author states, on the authority of another writer, that the form of book-keeping referred to had then been in use in Italy about two hundred years, “ but that the same, or one in many parts very like this, was used in the time of Julius Caesar, and in Rome long before.” He gives quotations of Latin book-keeping terms in use in ancient times, and refers to “ex Oratione Ciceronis pro Roscio Comaedo”; and he adds: “ That the one side of their booke was used for Debitor, the other for Creditor, is manifest in a certaine place, Naturalis Historiæ Plinii, lib. 2, cap. 7, where hee, speaking of Fortune, saith thus:

Hide Omnia Expensa, Hide Omnia Feruntur accepta et in tota Ratione mortalium sola Utramque Paginam facit.”

An early Dutch writer appears to have suggested that double entry book-keeping was even in existence among the Greeks, pointing to scientific accountancy having been invented in remote times.

There were several editions of Richard Dafforne’s book printed—the second edition having been published in 1636, the third in 1656, and another was issued in 1684. The book is a very complete treatise on scientific accountancy, it was beautifully prepared and contains elaborate explanations; the numerous editions tend to prove that the science was highly appreciated in the 17th century. From this time there has been a continuous supply of literature on the subject, many of the authors styling themselves accountants and teachers of the art} and thus proving that the professional accountant was then known and employed. Very early in the 18th century the services of an accountant practising in the City of London were made use of in the course of an investigation into the transactions of a director of the South Sea Company, who had been dealing in the Company’s stock. During this investigation the accountant appears to have examined the books of at least two firms of merchants. His report is described Observations made upon examining the books of Sawbridge and Company, by Charles Snell, Writing Master and Accountant in Foster Lane, London.

In 1799, when Holden’s Triennial Directory of London, Westminster, and Southwark was first published, 11 individuals and firms were therein described as accountants; in the same Directory, for the period 1809-11, the number had risen to 24; and in that for 1822-24, there were 73 firms of practising accountants recorded.

It will be noticed that the English books dealing with scientific book-keeping, to which reference has been made, were written at a time when the English and Dutch were very actively engaged in foreign trade, in succession to the Italian merchants of the 14th, 15th and 16th centuries; but it was not until the beginning

of the 19th century that, in consequence of the adoption of improved methods of manufacture and transit, resulting from the application of water and steam power to manufactures and methods of conveyance which largely increased the trade of Great Britain, the profession of an accountant became one which men of scientific knowledge and capacity adopted for their business career. Corporations and companies were formed to carry out large operations previously either left to the State or not undertaken, and for the development of trades and manufactures which were becoming less profitable when carried on by hand labour and with limited capital; and, for these, the services of public accountants were necessarily required to devise systems of accounts and methods of control, and to enable the results of the various transactions carried on to be ascertained with the least waste of power or chance of loss by negligence or fraud. The large number of companies formed in 1843 and 1844, when a great amount of capital was invested in railways and extensive speculation resulted, also added to the demand for the services of professional accountants. The Companies’ Clauses Consolidation Act made provision for the audit of the accounts of companies regulated by Act of Parliament and gave some extensive powers to the auditors, who are now, to a very large extent, selected from among professional accountants. The Companies Act of 1862 led to a large extension of the business of accountants, both as auditors and liquidators of companies; and the Acts relating to bankruptcy passed between the years 1831 and 1883 added to the work devolving on professional accountants. The Companies Act 1879, which affected banking companies, made provision for the audit of their accounts, and it has been found desirable, in most cases, to appoint professional accountants to this duty. The experience and professional knowledge of trained accountants have, in fact, been utilized by their appointment as auditors in the majority of joint-stock companies, whether manufacturing, banking, trading, or created for any other purpose. Until the Companies Act 1900 was passed there was no general obligation upon limited companies to have auditors; this Act not only requires that auditors shall be appointed in all cases, but provides for their remuneration, and to a limited extent defines their rights and duties. This modification of the law relating to companies will doubtless have a beneficial effect upon their management, as it pro-