ng fraud and clerical error. In the area of verification, testing assumed a more prominent role, although the practice of 100 percent examination continued to be widely used. One significant user group was also added during this period government.
The real maturation of the auditing profession has occurred since 1933. In the context of verification, the practice of testing has assumed dominance over the practice of 100 percent examination. Labor unions and the Congress have been added to the list of user groups (prior to this time, government use of audited records use was limited to executive agencies), and the use of internal controls expanded significantly.
The reasons for the major changes in the auditing profession were closely related to the prevailing economic, sociological, and political environments. There developed a rising demand within most parts of the society for increased and more effective accountability. The nation's business and financial organizations were to become more accountable, as were their managers and executives. The nation's auditors were to become the vehicle of this increased and more effective accountability.
By 1940, it was generally accepted that the objectives of auditing "could not, and should not, be primarily concerned with the detection of fraud." Control and accountability assumed precedence over the detection of fraud.
In the context of verification, the increased magnitude of the task of the auditor made 100 percent examination in all cases an infeasible approach. Thus, tests were used in a growing proportion of audits. The degree to which tests were used depended largely upon the effectiveness of the internal control in place in an enterprise. The change
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