Hey Accountants! Do You Know When We Started?

The first human, who is known for his writing in history books, was not a poet, story-teller, warlord or king. He was an accountant in ancient Mesopotamia – present day Iraq, Kuwait, Syria and Turkey – who wrote on a clay tablet to record the crop harvest.

The history of accounting profession dates back to over 4,000 years ago in Mesopotamia when accountants used clay tablets and papyruses to keep the record for agriculture produce and tribute paid to the temples by people. The accounting record on these clay tablets was used to calculate profit and impose taxes. However, when the accountants and workers colluded, they kept the crop produce or temple tribute with themselves and changed the record on clay tablets. Those who embezzled, if caught, were subject to sever punishment which could range from a fine of 5 times the amount of embezzlement to death penalty.

Accountants in those times were as keen to exercise professional skepticism and devotions as we are today. So, they established their first internal control to safeguard the assets from fraud which started to take place because humans were as innovative then as they are today. Accountants started to wrap clay tablets and papyrus in clay envelops which could be opened only on the arrival at temples, the place physical goods were stored.

First audits took place around 400 BC in ancient Egypt, Babylon and India when a control was devised for the entrance and exit from the stores where the crop harvests and other valuable items were kept. A worker entering or exiting the stores would loudly announce about that so that government inspector could hear him. This oral system was, in fact, the first form of audit ( a word derived from the Latin word audire which means to hear). Although, technology has taken a giant leap since then, the role of accountants and auditors has not changed much which is to watch the interest of the business owners.