A PRACTICAL MANUAL FOR AUDITORS By LAWRENCE R. DICKSEE, M.Com., F.C.A. Formerly Professor of Accounting at the University of Birmingham, Edited by ROBERT H. MONTGOMERY, C.P.A. (of the firm of LYBRAND, ROSS BROS. & MONTGOMERY) AUTHORIZATION. To avoid misunderstanding I have thought it desirable to append a note to this volume, pointing out that it has been issued by arrangement with me, and that the various alterations and amendments that have been effected, with a view to making the work more suitable to the needs of American practitioners and accountant students, have all been submitted to me and have met with my entire approval. The numerous extracts from Acts of Parliament that appear in the English Edition have been omitted, and the somewhat voluminous reports of British legal decisions have been materially condensed; but the alterations in the body of the work are only such as appeared to be called for under the circumstances, and while condensation has taken place in some directions, in others the scope of the work has been considerably elaborated. I trust that the production of this Americanized Edition of my work will add to the popularity that it has already earned in the States during the past seventeen years. LAWRENCE R. DICKSEE. COPTHALL HOUSE, LONDON, E. C., ENGLAND. 24th September, 1909. UNIVERSITY OF CALIFORNIA PREFACE TO THE AMERICAN EDITION. It cannot be expected that any hard and fast rules will ever prevail, nor is it desirable that the personal element in an audit should be superseded by instruction prepared in advance, but it must be admitted that the experiences of one professional Auditor are of great value to others. It is the object of this work, therefore, to state as concisely as possible, the results of Mr. Dicksee's experience supplemented by suggestions from leading English and American accountants, and it is believed that some portion of this book, at least, will be found valuable to every American practitioner and student. Much of the matter herein contained is taken verbatim from Mr. Dicksee's English edition, which for many years. has been the standard work on Auditing both in Great Britain and America. The principal changes, therefore, are those which are caused by the numerous differences existing between accountancy nomenclature, laws and customs of Great Britain and the United States. The interchange of thought which has followed the various meetings of the English Societies, and which has been of great value to the profession at large, had no counterpart in the United States until the holding in September, 1904, of the Congress of Accountants at St. Louis. Discussion of the papers read on various accountancy topics did much to em 5 |