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Public accounting in Mississippi was first practiced by members of the profession from other states, who came mostly from offices in Memphis, New Orleans and Mobile. One early engagement by CPAs from Philadelphia working in Vicksburg is documented and describes working and living conditions as quite primitive. The few clients that existed were agriculture and timber-related.

Mississippi certified public accountants have served clients for almost all of the twentieth century beginning with a firm which was established in Meridian in 1904. Lewis E. Crook opened the first local office in what was then the state's largest city. Other accountants soon followed and noteworthy is the opening of an office in Jackson by W.Q. Sharp in 1909.

Accountants practiced under a variety of titles including expert accountant and public accountant - terms popularly used at the time by other states. The designation of certified public accountant was first used in New York in 1896 when the original public accountancy law was passed. In the contiguous states, Louisiana was first to pass CPA legislation in 1908.

In 1912 a small group of accountants led by Crook made the first attempt to pass CPA legislation in Mississippi. After organizing the Association of Certified Public Accountants of Mississippi, the group had a bill introduced in the state legislature to establish and regulate the profession. The bill died in committee and the organization ceased to exist.

By 1920 accountants in the state were more numerous and were better organized. In that year they were successful in gaining enactment of CPA legislation, thereby becoming one of the last four states to do so. The law established the Board of Public Accountancy and gave authority to issue certificates. Of the permissive type, the law allowed use of the CPA designation but did little to regulate practice.

Soon after passage of the act, W.Q. Sharp called a meeting of accountants for the same day the newly appointed board was scheduled to hold its organization meeting. On may 27,1920, fifteen accountants met at the Edwards Hotel in Jackson and formed the Association of Certified Public Accountants of the State of Mississippi, the original name for the society. Eight of the accountants were from Jackson, four were from Greenwood and one each was from Meridian, Natchez and Hattiesburg.

Elected as officers were Sharp, president, R.G. Wooten, vice-president, and H.H. Cleaver, secretary-treasurer. The society was incorporated by the state on August 17 with the officers and Nelson E. Taylor as incorporators.

Sharp made the following comments to the Jackson Daily News regarding the formation of the society:

Mississippi has some of the best accountants in the South. Prior to passage of the accountancy law, we had very little to do with one another - every fellow for himself, prospering in proportion to the public confidence gained through individual activities. With the passage of this accountancy law, carrying with it a certain "endorsement of the law" upon the qualification of those complying with its terms, we realize that a collective responsibility rests upon us to prove our worthiness. Determination and definition to standards and proficiency, to what constitutes the ethical in practice and profession- such matters are the proper province of an association. We represent ourselves to the public as professing certain superior qualifications; the accountancy law has , in a measure, endorsed this profession. We, therefore, owe it to ourselves to make good what we claim. This association has for its prime purpose the building of a profession upon the basis of our highest ideals.

One of the first acts by the State Board of Public Accountancy was to award CPA certificates under the grandfather clause allowing practicing accountants to become CPAs without taking the examination. Sixty-nine such certificates were issued, among which were numerous certificate issued to state bank examiners.

The first CPA examination in Mississippi was given on June 21 and 22, 1920, with six candidates. The examination was written and graded by the board. In May, 1924, the board adopted the AICPA examination for the first time. Some CPAs took the examination again for the additional percentage attaching to the Institute exam.

During the decade of the 1920s, the Society recognized the need for a stronger public accountancy law of the regulatory type to restrict practices of non-certified accountants. However the fledgling profession had a dismal record of accomplishments with the legislature, and a bill to strengthen the law in 1930 died in committee. Hence, an alternate route was taken and the accountants had a law revision accepted by a commission charged with recodifying laws of the state. This second public accountancy law was then ratified by the legislature as a part of the recodified laws of the state.

The 1930 law set the stage for conflict with non-certified or public accountants who by then enjoyed extensive practices. The new law restricted the practice of public accountancy, including tax return preparation, to CPAs and to the non-certified public accountants who registered with the board under a grandfather provision allowing them to continue in practice. After this "dying class" of public accountants expired, only CPAs could render professional accounting services.

Much conflict ensued and in 1949 the Mississippi Supreme Court ruled unconstitutional the provision limiting tax return preparation to CPAs. More conflict arose over the audits and statement preparation, and this conflict consumed much time and effort of the society for many years. The public accountants sought legislative recognition as a second class of regulated professionals which the society opposed vigorously. In each biennial session of the legislation from 1946 to 1960 , the bills were introduced and each time the CPAs were successful in defeating them, though sometimes narrowly.

Efforts to defeat unfavorable legislation by the public accountants prevented the society from sponsoring much needed revision in the state law. Hence the 1930 law was not replaced until 1983 when the board of accountancy was reviewed under the state's sunset review statue. The new act enlarge d the board, issued licenses to practice, required CPE and authorized hiring an executive director. Further revisions of the law were made later in the 1980s.

The society experienced steady growth over its first 75 years. From only 25 members in 1933, membership reached 57 in 1944, 123 in 1949, 261 in 1960, 530 in 1970, 1,168 in 1980, and 2,502 in 1995. From a once male dominated organization, the female gender now accounts for over 28% of the members.

The society first employed a part-time executive director in 1961. M.B. Swayze was hired as a consultant to open offices on a full-time executive director in 1972.

The society held annual fall and spring meetings for many years in various locations around the state. The society joined the Southern States Conference of CPAs in 1938 in an effort to boost attendance at meetings and get outstanding speakers. As state societies grew, interest in the organization diminished and it was dissolved in 1985. The society's fall meeting was discontinued after 1972 when the meeting was held in Puerto Rico. Biloxi became the site of most spring meetings, with the 1981 meeting in Lake Tahoe and the 1983 meeting in Nashville. Since 1986 the annual meeting has been held in Destin.

The society is governed by four officers elected annually at the general membership meeting and a Board of Governors. Board members are elected either by local chapters or by the membership at large. Officers serve for one year and Board members serve multiple year terms. A volunteer committee structure is in place to address matters of importance to members. The statewide office coordinates activities of the officers, board and members. The Society is represented by two members of Council of the American Institute of Certified Public Accountants.

The Society has always upheld the highest standards of practice for its members. It has sponsored legislation to create an appropriate environment in which members practice. The society provides continuing professional education and contributes to enhancing the image of the profession and professionals. It seeks to encourage outstanding students to enter the profession, and has an endowed educational foundation approaching $100,000 from which to grant scholarships.


By Dr. James W. Davis, CPA
University of Mississippi
May, 1995

  
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