Very interesting in connection with the Pennsylvania examination papers is the circular of information issued by the State Board of Examiners.

The Board does not follow the traditional custom in use since the passage of C. P. A. laws in various States, of dividing the examination into four subjects (Theory of Accounts, Practical Accounting, Auditing, and Commercial Law), but expects the candidate to answer questions grouped under two heads-Commercial Law and General Accounting. The latter contains not only Theory of Accounts, Practical Accounting, and Auditing, but also Banking, Governmental Administration, Transportation, etc. This division is advisable. At the present time one will find a question given by a board of one State under Theory of Accounts, while another board will give the same question under Auditing; in some instances an antiquated board will give it under Practical Accounting, as if Auditing or Theory of Accounts were not Accounting. In England we find in the majority of examination papers given by Societies or Institutes questions under the heading of “General Business of an Accountant." Under this heading is included Practical Accounting as well as Theory of Accounts, Auditing or any other matter pertaining to an accountant's work. We find the same order in the case of the examination papers of the Holland Society of Accountants. Among the other subjects required of the applicant, we find the subject Accountancy, the latter including: (a) Literature; (b) Bookkeeping; (c) Systems; (d) Administrative Statistics; (e) Auditing; (f) Estimating; (g) Statements.

Why should we be an exception to the general rule? It is deplorable that wherever a bill is presented for the enactment of a C. P. A. law, the old routine is followed and a copy of some neighboring State's enacted bill is secured and imitated, regardless of the fact that we progress and should keep abreast with the times.

Another feature to notice in the Pennsylvania examinations is that the papers contain exactly what the syllabus calls for, which is not the case in the majority of the other States, especially in the State of New York.

To be sure, the average standard of the recent examination papers of the State of New York is commendable, more so than the standard of some of the other States-although rather specialized than general, chiefly in Practical Accounting. The examinations, however, are not based on the syllabus issued by the State. This method, a syllabus of one standard (1896) and examinations of another standard (1908), is an injustice to the applicants taking the examinations. What was more than enough in the early outline of the scope of examinations in accounting (1896) is not the standard of the present (1908).

Compare, for instance, some of the descriptions of the requirements in the New York Syllabus with those of the Pennsylvania Syllabus:

New York Syllabus:

"BANKING.-Treatment of moneys received from depositors; pass books; receiving teller's records; listing check and draft deposits; deposits from other banks; receiving teller's proof. Paying teller's duties; certified check book; effect of certification on indorsements; limit of

certification by national banks; record of paid checks; paying teller's proof. Loans: legal procedure for national banks; offering book; discount register; charge ticket; regular dealers, other borrowers; discount tickler; time and 'call' loans; loan tickets; collection; protest; collection register; remittance register; certificate of deposit; customs check; cashier's check; bank drafts; third teller's proofs. Procedure of general bookkeeper; general debit and credit books; general balance ledger; dealer's ledger; dealer's balance ledger; the 'Boston' ledger; general ledger; general proof; daily statement. The clearing house. Reserve required for national banks."

Pennsylvania Syllabus:

"BANKING.—(1) National Banking System. (2) State Banks in Pennsylvania. (3) Savings Banks and Building and Loan Associations in Pennsylvania. (4) Trust Companies in Pennsylvania. (5) Private Bankers and Brokers (Stock, Bond, and Note). (6) Foreign Exchange. (7) Clearing Houses (Bank, Stock, and Bond).

"(a) Accounting Organization and Administration. (b) Nature of accounts in each and the distinctions between the accounts of the different classes of banking institutions. (c) Nature of Bank audits and method

of procedure in each of 1 to 6, inclusive."

New York Syllabus: "MANUFACTURING

ACCOUNTS.-Accounts

to indicate causes of loss by a firm whose sales and cost calculations indicated a profit; statement showing cost per machine of manufactured output, the gross manufacturing profit and the final net result; manufacturing and loss and gain accounts and balance sheet (writing off for depreciation and making allowance for bad debts) from trial balance and inventories furnished; from the cost sheet suitable for a manufacturing business and detailing the items of expenditure."

Pennsylvania Syllabus:

"MANUFACTURING.—(1)

Accounting Organization and Administration of Factories. (2) Financial Accounts of Factories. (3) Manufacturing Costs. (4) Audits."

The descriptions in the New York Syllabus cover the bookkeeping side, the elementary part, but they certainly do not reach the standard expected of a C. P. A. who must audit a modern banking institution or a modern factory.

Although recognizing the difficulty of being original in questions or problems, yet the frequency with which some questions in Theory of Accounts of Auditing recur is to be greatly regretted. Some questions in these subjects at recent examinations in some States put a premium on cram" work.

The Pennsylvania Syllabus, however, is not free from errors. In recommending some good text books, treating of elementary principles of accounts, the Board suggest Williams and Rogers' "Complete Book

keeping," Goodwin's "Improved Bookkeeping," etc. A recommendation and official endorsement given to these books is inexcusable, at least in the latter instance. A deplorable practice prevalent with all State Boards is the secrecy they maintain with regard to examination results. We see that in other countries there are published statements about the accounting profession, as well as about examination results, while here the strictest secrecy rules; one finds it occasionally difficult even to secure copies of previous examinations. What mystery the Board has to conceal no one can tell.

To sum up then the lesson we could derive from the Pennsylvania and English papers:

(1) The time allowed for answering questions should not be too restricted. The analytical ability of an applicant is not disclosed by a strict time limit.

(2) Examinations in accounting should rather be treated under one heading than subdivided into three or more divisions; this single heading, however, to include not only accounting proper, but other matter which is pertinent to an Accountant's practice as well.

(3) State Boards should from time to time revise their syllabi so as to keep abreast with the commerce and trade of the day.

(4) Publicity should be given to all matters regarding the accounting profession as well as regarding the examinations held from time to time, and their results, so as to raise the professional standing and acquaint the public in general with the usefulness of the profession.

Firm Changes.

Mr. Richard Smethurst and Mr. George R. Lamb, Fellows of The American Association of Public Accountants, and of The Ohio State Society of Public Accountants, have become associated with the American Audit Company in the company's Cincinnati office.