Ideas
Accounting

The History of the Decline and Fall of the American Accounting Profession

Burgess COMMENTARY

Peter Burgess

The History of the Decline and Fall of the American Accounting Profession 227 Abstract:

I don’t trust doctors, dentists or auto mechanics because I don’t know what they are doing. I don’t trust lawyers or CPAs because I do know what they are doing.

There have been many articles and books published on the development of accounting and the accounting profession in the U.S., both historically and sociologically. Some have critically examined actions taken by the AICPA, and others that have studied the effects of legislation on the accounting profession such as the Sixteenth Amendment or the creation of the PCAOB. Still others have observed the decline in the American accounting profession‘s status and image as a result of various failures such as Enron. This is the first to combine systematically a sociological analysis of the accounting profession in the U.S. with the historical development of the profession‘s power and status, and the subsequent loss of its power and status. A sociological analysis of the American accounting profession strongly suggests that it is no longer a profession as conceived by sociologists.

NOTE: This is the working paper version of the paper that was subsequently published in International Journal of Economics and Accounting, 2013, Vol. 4, Iss. 4, 365-388.