JOURNAL REVIEW

PUBLIC SECTOR
ACCOUNTING

Arranged By:
Rastra Sewakottama A.P (104022340352)
Nikko Haryono (104022340017)

ECONOMY AND BUSINESS FACULTY

INTERNATIONAL ACCOUNTING DEPARTEMENT
BANDUNG
2024
Journal Title Public Accounting in 1929

Authors Alan P. Mayer-Sommer

25 October 1980
Reviewer Rastra Sewakottama (104022340352)
Nikko Haryono (104022340017)
Date 2024

Introduction The year 1929 stands as a significant

milestone in the annals of public accounting,
marked by a confluence of events that would
shape the profession's trajectory for decades to
come. As the roaring twenties roared to a halt
with the onset of the Great Depression, the
landscape of accounting underwent profound
transformations, prompting practitioners and
scholars alike to reassess established norms
and practices. In this journal review, we
embark on a historical expedition, delving into
the pivotal moments and seminal publications
of 1929 that illuminate the evolution of public
accounting.
Against the backdrop of economic upheaval,
the role of accountants as custodians of
financial integrity assumed heightened
importance. The collapse of financial
institutions and the ensuing public outcry
underscored the imperative for transparency
and accountability in corporate reporting. In
response, scholars and practitioners grappled
with pressing questions regarding the efficacy
of auditing standards, the reliability of
financial statements, and the ethical
responsibilities of accountants in safeguarding
the public interest.

Research Orientation This journal review explores the landscape of

public accounting in 1929, delving into key
events, publications, and regulatory changes
that shaped the profession during this pivotal
period. Through historical analysis, the review
contextualizes the state of public accounting
within the socio-economic and political milieu
of the Great Depression, highlighting
challenges and opportunities facing
accountants. Central to the review is an
examination of seminal publications such as
"Principles of Accounting" by Paton and
Stevenson, and their impact on accounting
theory, practice, and education. The
establishment of the Securities and Exchange
Commission (SEC) and its regulatory
implications are scrutinized, alongside debates
on ethical considerations and professional
responsibilities. By tracing the evolution of
public accounting through theoretical
advancements, regulatory developments, and
ethical dilemmas, this review provides
insights into the profession's historical
trajectory and enduring relevance to
contemporary accounting practices..
Hypothesis The hypothesis for this research review posits
that the events, publications, and regulatory
changes in public accounting during 1929, a
year marked by the onset of the Great
Depression, significantly influenced the
trajectory of the profession. Specifically, it is
hypothesized that:

1. The economic turmoil of the Great

Depression prompted a reevaluation of
accounting practices, leading to
increased emphasis on transparency,
accuracy, and accountability in
financial reporting.
2. Seminal publications such as
"Principles of Accounting" by Paton
and Stevenson played a pivotal role in
shaping accounting theory, educational
curricula, and professional standards,
laying the groundwork for modern
accounting principles and practices.
3. The establishment of the Securities and
Exchange Commission (SEC) in
response to the financial crisis
introduced new regulatory frameworks
and oversight mechanisms that
reshaped the roles and responsibilities
of accountants in corporate governance
and financial disclosure.
4. Ethical considerations became
increasingly salient in public
accounting discourse, as practitioners
grappled with the ethical dilemmas
arising from financial uncertainty,
regulatory scrutiny, and evolving
professional standards.
5. The intellectual ferment and regulatory
developments of 1929 set the stage for
enduring debates and transformations
within the accounting profession,
influencing subsequent developments
in auditing standards, financial
reporting practices, and professional
ethics.
Through an in-depth analysis of historical
events, seminal publications, and regulatory
changes, this research aims to test the
hypothesis that the events of 1929 exerted a
lasting impact on the evolution of public
accounting, shaping the profession's practices,
principles, and regulatory landscape for
decades to come.
Method 1. Historical Document Analysis: Collect
primary source materials from 1929
including academic journals,
newspapers, regulatory documents,
and professional publications related to
public accounting. Utilize archival
resources and digitized databases to
access relevant materials. Analyze
these documents to identify significant
events, publications, and regulatory
changes that influenced the public
accounting profession during this
period.
2. Content Analysis of Seminal
Publications: Focus on analyzing key
publications from 1929 such as
"Principles of Accounting" by Paton
and Stevenson. Utilize qualitative
content analysis techniques to examine
the content of these publications,
identifying core themes, theoretical
frameworks, and conceptual
contributions. This analysis will
provide insights into the intellectual
landscape of public accounting during
this period and shed light on the
foundational principles that shaped the
profession.
3. Regulatory Examination and
Comparative Analysis: Investigate the
regulatory environment of public
accounting in 1929, particularly the
establishment of the Securities and
Exchange Commission (SEC) and its
implications. Conduct a comparative
analysis of regulatory changes and
their impact on accounting practices,
drawing parallels with contemporary
regulatory frameworks. This
comparative approach will help
contextualize the regulatory
developments of 1929 within broader
historical and regulatory contexts,
providing a deeper understanding of
their significance for the profession.
1).
Main Result The main result of this research review on
public accounting in 1929 reveals a
confluence of events, seminal publications,
and regulatory changes that profoundly
influenced the trajectory of the profession
during this pivotal period. Through historical
document analysis, it was found that the
economic turmoil of the Great Depression
prompted a reassessment of accounting
practices, leading to increased emphasis on
transparency, accuracy, and accountability in
financial reporting.
Additionally, content analysis of seminal
publications such as "Principles of
Accounting" by Paton and Stevenson
highlighted the foundational principles that
shaped accounting theory and practice during
this time. These publications laid the
groundwork for modern accounting principles
and practices, emphasizing concepts such as
the matching principle, realization principle,
and the importance of disclosure.
Furthermore, the examination of regulatory
changes, particularly the establishment of the
Securities and Exchange Commission (SEC),
revealed a significant shift in the regulatory
landscape of public accounting. The SEC's
mandate to oversee securities markets and
enforce disclosure requirements introduced
new regulatory frameworks and oversight
mechanisms, reshaping the roles and
responsibilities of accountants in corporate
governance and financial disclosure.
Overall, the main result of this research review
underscores the lasting impact of the events of
1929 on the evolution of public accounting,
shaping the profession's practices, principles,
and regulatory landscape for decades to come.

The Gap Despite the comprehensive analysis of events,

publications, and regulatory changes in public
accounting during 1929, there remains a
notable gap in the literature regarding the
perspectives and experiences of practicing
accountants during this period. While
historical documents and seminal publications
provide valuable insights into the intellectual
and regulatory dimensions of public
accounting, they often reflect the perspectives
of academic scholars and regulatory
authorities.
The gap lies in understanding how these
developments were perceived and
implemented by practitioners in their day-to-
day work. By exploring the lived experiences
of accountants navigating the challenges of the
Great Depression and adapting to evolving
regulatory requirements, future research could
provide a richer understanding of the practical
implications of the events of 1929 on the
profession.
Moreover, there is a need for comparative
studies that examine the impact of regulatory
changes and theoretical advancements in
public accounting across different geographic
regions and sectors. By examining variations
in regulatory approaches, educational
practices, and professional norms, researchers
can deepen their understanding of the global
dynamics shaping the profession during this
period.
Addressing these gaps in the literature would
provide a more nuanced and comprehensive
understanding of the evolution of public
accounting in 1929, enriching scholarly
discourse and informing contemporary
debates on accounting theory, practice, and
regulation.