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              Bulletin HASKINS & SELLS 21
TECHNICAL procedure in the execu-tion
of engagements long has been
recognized as the most important phase of
accountancy practice. There is another
phase, however, which is so closely related
to technical procedure that it is difficult to
differentiate it therefrom if, indeed, it
needs to be so differentiated. This phase
might be described as the technique of
professional relations. A careful analysis
and strict classification of practice factors
probably would place this item in the group
of managerial functions. The proper clas­sification
of the item, however, is not so
important as a recognition of its signifi­cance,
a knowledge of what it compre­hends,
and prompt action in a situation
where it is involved.
The technique of professional relations
may be described in simpler words as
procedure in handling situations which
involve relations with clients and others
growing out of the practice of accountancy.
Accountancy practice, comparatively
speaking, is a new profession. It is
founded on a technical knowledge of ac­counting,
economics, finance, business law,
business organization, and business ad­ministration.
Having to do largely with
confidential affairs it requires, on the part
of those who practice, honesty, integrity,
and a high regard for the confidence which
clients must of necessity repose in those
whom they retain for professional service.
In addition, the practice of accountancy
calls for an understanding of human affairs,
of a variety and complexity of situations
which may arise, and ability to handle
these situations with prompt and unerring
judgment.
If the practitioner is unwilling to con­fess
a limited knowledge of the technical
side of his subject, if he bows to no other
profession in the matter of integrity and
appreciation of his responsible position,
he must at least admit he has much
to learn from experience in the matter
of dealing with clients and related par­ties
who become involved in the affairs
thereof.
The following incident will serve to
illustrate some of the foregoing philosophy
better, perhaps, than any other attempt
at elucidation. The officials of a certain
bank recommended us to a concern in
which the bank was interested through a
line of credit. Our services were en­gaged
to audit the client's accounts for a
period of six months and prepare a report
thereon. In the course of our work we
encountered a situation which precluded
the absolute verification of a certain item
without an extensive investigation which
the client preferred not to authorize, be­cause
of the time and expense involved and
his pressing need for the report.
Proceeding in our usual manner under
such circumstances, we qualified the item
in the balance sheet and explained the
situation in the comments of our report.
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