The Stock Market Crash of 1929 and the Great Depression are events which are often referenced. They exposed weaknesses in financial reporting and showed how devastating the consequences could be when information was inaccurate or misleading. I see this period as a harsh but crucial lesson in the importance of accounting.
The crash led to the Securities Act of 1934 and the creation of the SEC in the United States, which established oversight of accounting and auditing practices for public companies. These reforms were significant because they introduced transparency, accountability, and investor protection into financial markets.
Thinking about this era makes us realise that the role of the accountant extends beyond businesses - it affects society as a whole. Reliable financial information became essential for public confidence, and we should recognise how the profession had to rise to meet that responsibility.
Reflecting on the Great Depression reminds me that accounting is not just about numbers; it is about trust, ethics, and the functioning of the economy itself.
