and by whom they were deposited in bank and disbursed. The
office was abolished by the Chancery Funds Act 1872, and
the duties transferred to the paymaster-general (q.v.).
ACCOUNTANTS. The term ``accountant'' is one to which, of
late years, its original meaning has been more generally
attributed---that of an expert in the science of book-keeping.
It is sometimes adopted by book-keepers, but this is an
erroneous application of the term; it properly describes those
competent to design and control the systems of accounts required
for the record of the multifarious and rapid transactions
of trade and finance. It assumes the possession of a wide
knowledge of the principles upon which accountancy is based,
which may be shortly described as constituting a science by
means of which all mercantile and financial transactions,
whether in money or in money's worth, including operations
completed and 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.
History.
The origin of the profession of accountancy in Great Britain
is difficult to trace; auditors of accounts were naturally
of very early existence, being mentioned as officers of
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 Luca dal Borgo 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 Boke 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 Marko Lane.'' John
Melfis 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 af his accounts formed by
way of Debitor and Creditor, after the (so termed) 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 Historiae Plinii,
lib. 2, cap. 7, where hee, speaking of Fortune, saith thus:
Huic Omnia Expensa.
Huic 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 1809-1811, the
number had risen to 24; and in that for 1822--1824,
there were 73 firms of practising accountants recorded.
Modern development.
The earliest English books dealing with scientific book-keeping
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 1845
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. The
legislature evidently did not find it easy to formulate at
all clearly the duties of auditors, and it seems reasonable
to suppose that any general definition will prove an
impossibility, as the work which auditors undertake must
vary very widely, and depends largely upon the scope of
the operations the accounts of which are to be examined.
Duties.
The duties of practising accountants cover a very wide area:
they act as trustees, liquidators, receivers and managers of
businesses, the owners of which are in default or their
affairs in liquidation, both under the direction of the courts
and by appointment of creditors and others; they are largely
engaged as arbitrators, umpires and referees in differences
relating to matters of account or finance; they prepare
the accounts of executors and trustees, and the necessary
statements of affairs in cases of bankruptcy, both of firms
and companies; they prepare accounts for prosecutions in cases
of fraud and misconduct; and they are constantly called upon
to unravel and properly state the accounts of complicated
transactions. Their services are commonly required to certify
the profits of businesses intended to be sold, either privately
or to companies by means of a published prospectus; and,
in cases of compulsory purchases of businesses by railway
companies and public bodies, the statements of the profits
of the businesses to be acquired are generally made by
them. In a very large number of financial operations they
are called upon to give advice and prepare accounts, and
in few business matters requiring arithmetical calculations
or involving the investigation of figures, and particularly
where a considerable acquaintanceship with the principles
of law is needed, are their services not utilized.
Auditors.
One of the most important duties undertaken by accountants
is the audit of accounts, and this duty has, of late years,
been widely extended. Originally, auditors were appointed
to examine and vouch statements of receipts and payments;
but the provisions made in acts of parliament in relation to
audit, and the requirements of most articles of association
of limited companies, put much graver responsibilities on
auditors, who are now generally required to certify to the
accuracy of balance sheets and of revenue and other accounts,
the performance of which duties involves far more knowledge
of accounts than was once required. The efficiency, in
most cases, of audits conducted by skilled accountants has
led the public to attach exceptional value to their audit
certificates, and to demand extensive knowledge and ability
in the conduct of the audit of the accounts of public
companies. One other requirement which is generally regarded
as indispensable, is that the work of audit should be very
expeditiously performed; for it is easy to understand that,
were the presentation of the accounts of a company and the
distribution of dividends materially delayed in consequence
of the audit, much inconvenience would result, while the value
of the criticism of the accounts of business operations would
be much deteriorated if it could not be made very shortly
