International Journal of Accounting and Taxation

A Primer on the Condition of the Accounting and Auditing Profession
Cole J. Engel

Abstract
Never in its history has the accounting and auditing profession had to deal with the scale of challenges the 21st century brought to the table. Over the past 15 years, the accounting and auditing profession has undergone much change in terms of its standards. In June 2009, the FASB announced that the new Codification would now be the single source of authoritative literature for nongovernmental U.S. GAAP. In addition, there is movement to have IASB standards become GAAP for U.S. companies. Historically, the public considered the accounting and auditing profession a highly trustworthy vocation. However, over the past 15 years, that trustworthiness has been greatly challenged. Because of the many accounting scandals in the early 2000s, most notably Enron, three major changes occurred in the accounting and auditing profession. This article explores the condition of the accounting and auditing profession through a discussion of the early history of accounting, the current condition of standards, and the accounting scandals of the early 2000s.

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