Discussant's response to "Accounting and auditing history: Major developments in England and the United States from ancient roots through the mid-twentieth century";

              Discussant's Response to "Accounting and Auditing History: Major Developments in England and the United States from Ancient Roots Through the Mid-Twentieth Century"
G. William Graham
Arthur Andersen LLP
Summary
Professor Stettler's paper on accounting and auditing history is a fascinating histor­ical
account. I believe it should be required reading for any business student; particularly those specializing in accounting. In fact, as a frequent lecturer and part-time faculty member, I would use this paper in my classes. This historical account is very well written. And, unlike many academic and research oriented papers, the grammar and terminology is very reader friendly.
I really liked this paper. It made me feel proud to be a member of the accounting profession. Indeed, the reader comes away with a rich understanding of the origins of the profession. However, while the paper certainly gives a thorough historical account through the 1970's, it does not develop the significant environmental changes facing the profession in the 1980's and 1990's. As a result, the student may be left wondering how this historical account relates to a current environment which looks so different.
Many believe, and I agree, that our profession is at a crossroads. With the dramatic changes in the environment in which we practice, accountants and auditors have little choice but to change their historical behavior described in this paper. Students will benefit greatly from a strong link of the historical base to the current environment. To do so gives the student an appreciation for the past, an enriched understanding of the present, and the tools to face the significant challenges that lie ahead.
This is an excellent historical account. Yet, there is an opportunity to make it even richer by expanding the discussion, bringing the historical account current, and linking the historical account to the challenges and opportunities of the profession. This will ensure the relevance of the paper to the business and accounting student.
A Fascinating Historical Account
The first known commercial records came from the Mesopotamian Valley around 4000 B.C. Some were scratched into stone; others were recorded on Egyptian papyrus. These records evidence the development of writing which evolved from a need for a record of economic goods. The "scribes" of the day were the forerunners of today's accountant. Later, financial statements were used by the Greeks. And, double entry bookkeeping emerged, attributed by many to Pacioli.
All of this, along with the many historical facts thoughtfully developed in this paper add a richness to the student's understanding of the roots of the accounting and auditing disciplines. Reading this paper helps to give a student perspective, a perspec­tive
that includes the role of the accountant in the capital formation process, the
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