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With no regulations, management could choose which valuation and accounting methods to use without disclosure. Moreover, since audits were voluntary and accountants could only persuade management, it was common that auditors would support management's decisions.
Accounting professionals were state certified and services consisted of accounting, auditing and taxation...
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Various consulting services, such as installation of cost systems and review of possible business investments, were delivered in conjunction with audits. However, there were no standard accounting principles or standards for disclosures. Generally accepted principles were shared informally among the profession and consisted of norms developed in practice and influenced by case law...
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