CPA Services to banks;

              CPA Services to Banks
by Louis A. MACKENZIE Partner, New York Office
Presented before the Annual Meeting of the Wisconsin Bankers Association, Milwaukee—June 1962; and before the Northeast Florida Chapter of the National Association of Bank Auditors and Comptrollers, Jacksonville—January 1963
THE public practice of accountancy began in the United States just before the turn of the century and since that time the world has turned over many times. The twentieth century has witnessed aston­ishing
changes in economic, social, and political conditions. Industrial expansion, mass production, and the rapid increases in public owner­ship
of business enterprises have brought special responsibilities to the certified public accountant. The early practice of public account­ancy
was generally that of detailed audits; occasionally the CPA was asked to make a special investigation. With the expansion of the economy, the practice of public accountancy gradually changed from detailed auditing and checking to examination of financial statements and the expression of an opinion on the over-all fairness of the repre­sentations
in the financial statements. Other services now offered by CPAs include, to name a few, tax services, budgetary controls, design and installation of accounting systems, efficiency and organ­ization
surveys, consultation and installation of electronic equipment for processing of information, special engagements in connection with mergers, consolidations, pricing studies, and related cost justifications as required by governmental bodies. Each new tax law, changes in laws relating to securities, price clauses, government procurement of defense items, sharpen the focus of the accountant's activities. Every­one
in this room, I know, will agree with me when I say that the certified public accountant is eminently qualified to render con­structive
services to the banking industry.
SERVICE TO LOAN AND CREDIT OFFICERS
As bankers you are custodians of other people's money and as business men you are investors of this money, and as such your decisions should be based on adequate and reliable information. Your borrowers are our clients and their financial statements are our com­mon
problems. The extent of the information required by the banker
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