Two excerpts;Pending legislation;News items;

              24 HASKINS & SELLS March
Two Excerpts
" D U R I N G the progress of our audit for
the year ended December 31, 1926,
we discussed with Messrs. Blank and
Blank the danger of cash irregularities
arising from the lack of adequate control
of cash disbursements. We were assured
that our fears were unnecessary and that
the company would not change any of their
accounting methods or practices and did
not desire any recommendations from us
on the subject.
"Within the last week the company has
discovered that the cashier has been com­mitting
irregularities and Mr. Blank has
requested us to submit our recommenda­tions
on methods to better safeguard the
company's interests."
"During a discussion on January 14,
which our Mr. Blank had with Mr. Blank,
vice-president of the above, we were
authorized to extend our engagement to
include the confirmation of accounts re­ceivable.
The necessity for this was de­veloped
by a discussion of the method of
application on the books of the company
of cash received on account of accounts
receivable and the shortage of certain
recorded cash. Employes of the company
are to prepare the itemized statements of
the various accounts and we are to check
the balances appearing on these statements
to the ledger accounts and mail with our
confirmation forms."
Pending Legislation
AN amendment to the penal code of the
State of New York in relation to the
proof, by books of account, of the falsity of
statements used to obtain property or
credit has been introduced in the Assembly.
This bill provides that "regular books of
account of any person, firm, association or
corporation, and any and all entries in such
books of account, may be introduced in
evidence to show the falsity of such state­ment
without any further proof than that
such books are the books of account regu­larly
kept and customarily used by such
person, firm, association or corporation."
A bill has been introduced in and passed
by the Senate of the State of Kentucky
which proposes to amend the Civil Code of
Practice of that state so that any communi­cation
made by a client to a certified public
accountant in his professional capacity, or
any facts obtained by the certified public
accountant from the books and records of
such client in his professional character will
be regarded as "privileged communica­tion,"
and the certified public accountant
cannot testify to such information without
the client's consent.
News Items
Dr. J. V. E. Westfall, who has been
giving his attention to the European prac­tice,
has resigned, effective February 29,
1928, on account of ill-health.
Mr. Rossetter recently was presented
with a gift of silver by the Chicago Associa­tion
of Commerce as an expression of appre­ciation
for his services as Chairman of the
Executive Committee of that organization.
Mr. F. E. Welch, of our Providence
office, is to be congratulated upon success­fully
passing the C. P. A. examination of
the State of Rhode Island.
Mr. Vernon Thompson, manager of our
Manila office, recently was granted a
certificate to practice as a Certified Public
Accountant in the Philippine Islands.
Mr. O. N. Hutchinson, manager of our
Charlotte office, has acquired the C. P. A.
certificate of the State of Tennessee.
Mr. Wildman addressed the student
body of the School of Accounting, Com­merce
and Finance of St. John's College, on
January 19, 1928, on the subject "Duties
of a Junior Accountant."
PRESS OF WILLIAM GREEN, NEW YORK