The History of Deprofessionalization in U.S. Public Accountancy, Part II

Abstract

The time period from the mid-1980s through 2002 is described in this series of research as a “pre-SOX” era of rapid deprofessionalization in U.S. pubic accountancy resulting in the loss of professional status. This was a period, however, when all professions were suffering some deprofessionalization. During the pre-SOX period it appears that leadership in public accountancy responded to a nearly perfect storm of changes confronting the profession with a corporate mentality of management by objectives, commercialization, and profit maximization resulting in constant and substantial net deprofessionalization greater than that of other professions. Starting in the late-1970s and continuing through 2001, some critics of public accountancy have asserted that leaders in the profession either lost or forgot what was required for public accountancy to be recognized as a profession. The conclusion stated in this paper is that public accountancy has lost its professional status in or before 2002. The reasons and events leading to this conclusion are presented and discussed. In the United States it appears as though once professional status is lost, regaining the elite status is more difficult. The question is if public accountancy can learn from history going into the substantial changes to be confronted in the post-SOX era of public accountancy and regain or at least make progress toward regaining professional status.

Citation

Lampe, J.C. and Garcia, A. (2013), "The History of Deprofessionalization in U.S. Public Accountancy, Part II", Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 1-45. https://doi.org/10.1108/S1574-0765(2013)000017004