Evolution of the CPA PROFESSION
I TA G E
The First 100 Years
The Past 25 Years
100 years,
254,910 members!
1990: 295,633 members!
Nearly 386,000
members!
337,454 members!
H
ER
1,150 members!
1905
1887
Federation of Societies of
Public Accountants merger
1916
1957
1936
1917
Institute of Public
Accountants
1987
American Institute
of Certified Public Accountants
American Society of Certified
Public Accountants merger
American Institute
of Accountants
The AICPA approves personal
financial planning as the first
area in which CPAs can be
credentialed as experts.
PA
AIC
LE
1887
The AAPA is
created and
begins issuing
certificates,
based on
experience.
1894
The AAPA
passes a
resolution
advancing its
first standard,
this one
regarding the
balance sheet.
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OF
ESSIO
N
12. 3
The Journal of
Accountancy’s first
issue appears.
The AIA approves rules of
professional conduct and
offers state boards a written
test for aspiring accountants.
1906
“Uniform Accounting,” a
project spearheaded by the
AIA and published in the
Federal Reserve Bulletin, is
the first authoritative written
guidance regarding the
income statement.
The AAPA forms a
committee to create
ethics standards
for members.
1922
1919
The AIA bans contingent
fees and most advertising
by public accountants
and their firms. The ban
on advertising lingers
until 1978.
The Beta Alpha
Psi honor society
is formed.
P
1899
Christine
Ross
becomes
the first
female
CPA.
1938
1917
1905
1936
The phrase
“generally
accepted
accounting
principles”
is first used.
1932
1921
The New York Stock
Exchange requires its listed
companies to have audits.
John Cromwell
becomes the
first black CPA.
1913 Federal Reserve
1914 FTC
1921 GAO
1934 SEC
1959
The Institute’s
Committee on
Accounting
Procedure
effectively
becomes the first
U.S. accounting
standard-setting
body in the
private sector.
1939
After the highly
publicized McKesson
& Robbins fraud case,
the AIA sets up a
standing committee
on generally accepted
auditing standards.
1943
Mary T.
Washington
Wylie is the
first black
woman to pass
the CPA Exam.
The Accounting
Principles
Board replaces
the CAP as
the Institute’s
authoritative
financial
accounting
body.
1953
1988
1972
1956
Thomas Coleman
Andrews is the
first CPA to
head the Internal
Revenue Service.
The Commission on
Standards of Education
and Experience for
CPAs recommends a
five-year accounting
degree as a qualification
to become a CPA.
1940–50
1973
The Wheat Committee,
led by Francis Wheat,
calls for an alternative
to the APB. The AICPA
endorses the proposal.
The accounting profession thrives. In 1940, there is
one professional accountant for every 406 workers.
By 1950 there is one for every 283 workers.
The AICPA’s Trueblood
Committee, headed by Robert
Trueblood, concludes that
providing information to
outside users is the primary
purpose of financial reports.
1973
The Financial
Accounting
Standards
Board replaces
the APB.
The International
Accounting
Standards
Committee is
formed.
1986
The American
Accounting
Association
publishes the
Bedford Report,
which is critical
of accounting
education.
The AICPA votes
to require 150
hours of education
for new members,
targeting after
2000.
1995
For the first time,
more AICPA members
are employed in
industry than in public
accounting firms.
The AICPA
makes peer
review program
mandatory.
2002
FASB and the International Accounting
Standards Board agree to remove
differences between
international
standards and
U.S. GAAP.
1997
The AICPA offers
the first exam for its
Accredited in Business
Valuation credential.
CPA2Biz is formed, and
the Certified Information
Technology Professional
credential launches.
2008
The Certified in
Financial Forensics
credential launches.
2006
Feed the Pig launches as part of
a financial literacy campaign
targeting
25- to 34year-olds.
2012
2011
The Horizons 2025 report
outlines opportunities and
challenges for the profession.
1996
The Institute launches the
CPA Vision Project to define
the future of the profession.
2004
A new, computerized Uniform CPA
Examination, focused more on
research skills and problem-solving,
replaces the paper-and-pencil version.
The AICPA launches 360 Degrees of
Financial Literacy.
2008
The first International
Financial Reporting
Standards-based
statements are filed
with the SEC.
2006
The AICPA and the National Association of State Boards
of Accountancy start an initiative that, by 2012, would
result in 50 of 55 jurisdictions enacting mobility legislation.
2002 Public Company Accounting Oversight Board
1945 GAO Corp. Audits Division
2000
2009
FASB issues
the Accounting
Standards
Codification as
the single source
of U.S. generally
accepted
accounting
principles.
A joint venture
between the
AICPA and the
Chartered Institute
of Management
Accountants creates
a new designation:
the Chartered
Global Management
Accountant.
2011
For the first time,
the CPA Exam is
offered outside
of the U.S. — in
Japan, Bahrain,
Kuwait, Lebanon
and the United
Arab Emirates,
with Brazil joining
the list in 2012.
2011
A blue-ribbon
panel on private
companies
recommends a
new board and
modifications
to GAAP that
recognize the
unique purposes
of private-company
financial statements.
2010 Financial Stability Oversight Council
RNME
N
T
O
VE
1905
G
1896
New York Gov.
Levi P. Morton
signs the first
CPA bill into law.
The Interstate
Commerce
Commission
seeks to set up
a uniform system
of accounting for
the railroads.
TO N E
S
Tax
WS
ES
NE
IL
The new Federal Trade
Commission puts
increased government
focus on private-sector
audits and promotes
official standards and
independent audits.
1909
A federal excise
tax is levied on
corporate income.
1933–34
The New Deal creates
extensive banking
regulations and federal
programs requiring
accounting oversight.
New laws require
independent audits but
also limit accountants’
control over standards.
1913
The 16th Amendment
is ratified, permitting a
federal income tax.
1941–45
Wartime wage
and price controls
require extensive cost
calculations.
Excess profits taxes
are levied, with rates
as high as 95%.
1943
The United States
begins income tax
withholding.
1965
Congress creates
Medicare and other
Great Society
programs involving
very complex cost
allocations.
1965
CPAs can now
represent clients
before the IRS.
1976
Congress’ Moss and
Metcalf committees
recommend increased
federal regulation
of private-sector
standard setting.
1969
Tax Reform
Act of 1969
enacts AMT.
1984
1985–88
The Single Audit
Act requires a
single audit for
state and local
governments
receiving federal
money.
1986
Tax Reform Act
of 1986 overhauls
tax code.
After hundreds of
savings and loan
institutions collapse,
Rep. John Dingell,
D-Mich., holds hearings
investigating accounting
standard setting and
oversight of auditors.
1986
The IRS launches a pilot
program for the electronic
filing of tax returns.
2002
Among other actions, the
Sarbanes-Oxley Act creates the
PCAOB to set public company
auditing standards. Its most
contentious area is Section
404, which requires an external
auditor’s opinion on internal
controls over financial reporting.
1990
IRS e-file goes
live; 4.2 million
returns are e-filed.
2004
Accelerated filers
must comply with
SOX Section 404 by
including an external
auditor’s opinion on the
effectiveness of their
internal controls over
financial reporting.
The Ford Motor Co.
is formed, as the
U.S. automobile
industry begins
to blossom.
M
The Comptometer, one of the first
key-driven calculators with a full
numeric keyboard, is patented.
1929
1941
The United States enters
World War II. CPAs in
civilian and military roles
support defense, military
and industrial efforts to win
the war. Many CPAs are
decorated and serve in key
positions throughout the
armed services.
Enron restates its earnings
back to 1997 and files
for bankruptcy.
1979
VisiCalc, the first electronic spreadsheet
software, is introduced.
2005
The SEC
allows voluntary
submission of
XBRL-formatted
files as exhibits to
periodic reports.
2008
In response to the financial crisis,
FASB and the SEC release guidance
on fair-value accounting, including
how to measure fair value when no
relevant market evidence exists. The
Emergency Economic Stabilization
Act allows the U.S. Treasury to buy
problem assets in an effort to improve
balance sheets of financial institutions
and keep credit flowing.
2008
Bear Stearns becomes the first major casualty
of the subprime mortgage crisis. Soon Lehman
Brothers and Washington Mutual are in bankruptcy.
2012
1982–83
Lotus 1-2-3 revolutionizes
accounting for small and
midsize businesses.
2010
The Dodd-Frank Wall Street
Reform and Consumer
Protection Act is passed. It
permanently exempts smallcap firms from SOX Section
404(b) requirements.
The U.S. Supreme Court
upholds the constitutionality
of the PCAOB.
2012
The IRS requires preparers
of 11 or more returns to
file electronically.
2002
Electronic
signatures allowed
for e-filed returns.
2001
1903
1887
1914
The AICPA launches the Journal of
Accountancy News App for iPad.
Photo credits
Wheat: courtesy of the Virtual Museum
and Archive of the History of Financial
Regulation, sechistorical.org/SEC
Historical Society. Ross: AICPA
Collection, University of Mississippi.
Cromwell: by George Scurlock, courtesy
of Anthony C. Hill. Comptometer: by
Sean McCormick/Sean McCormick
Photography.
Timeline by Infinia Group, infiniagroup.com
Copyright © 2012 American Institute of
CPAs. All rights reserved.
12544-312
G A CY
American Association
of Public Accountants