THE EXPANDING BORDERS OF ACCOUNTING - ARE WE TRYING TO MEASURE THE IMMEASURABLE?

“In the present lies the past and in our time lie they roots for the future.” This well-known Dutch saying is extremely applicable to the subject of the expanding borders of accounting and, in connection therewith, the role of the accountant. It is a theme that has been reflected more and more clearly in a number of topics dealt with by three successive Jerusalem Conferences on accountancy. The first conference in 1971 addressed itself to “the educational and training requirements of the accountant of to-morrow”. One of the conclusions of the first speaker, Dr. J. M. S. Risk, was: “Accountancy is part of the general science of meas urement and control, fundamental to the effective use of the world’s resources. Accountancy has a major contribution to make to the well-being of humanity. Whether engaged in the practice of public accountancy or in some other field, the accountant of to-day and of to-morrow has great opportunities within his reach.” In other words, great opportunities for measurement and control of the use of the world’s resources. A topic in the second Jerusalem Conference 1974 on accountancy was “Auditor’s report-Society’s expectations versus realities.” I quote Dr. M. Knoll: “Social audit is a novel topic and covers the responsibility of companies to the community, employees, consumers and the general public . . . We seem to think that it is too early at this stage to extend the attest function to this area”, and Mr. E. A. Weinstein: “The idea of social auditing is completely new. It is a dream at the moment, without enough current methodology and beyond judgmental capacity as it now exists.” We see developing a new concept “social audit” and a certain description of it but we note also apprehension for the future and an attitude of reserve in relation to the primary functions of the accountant, attitude of reserve in relation to the primary functions of the accountant. And to-day, at the thirdjerusalem Conference, the theme is “future shock”, and one of the three topics is fully dedicated to the measurement of the immeasura ble. Thus the three successive conferences are connected with invisible threads. This is not a mere matter of chance it is unavoidable: the development of our thinking on the subject cannot be dissociated from the ideas of the recent past, and future conclusions will be drawn from the considerations of to-day. With this notion in mind, I will now follow the invitation of the Congress Committee and try to give a critical survey of present trends in my country as they manifest them selves in theory and in practice.