Accounting is as old as money itself. It has evolved, as have medicines, law and most other fields fo human activity in reponse tot hesocial and economics needs of society. People in all civilizations have maintained various types of records of business acitvities. The oldest known are clay tablet records of the payment of wages in Babylonia around 600 B.C. Accounting was practiced in india 24 centuries ago as is clear from KAutilya's book " Arthsastrs" which clearly indicates the existense and need of propeer accounting and audit.
For the most part, early accounting dealt only withlimnited aspects of the financial operatons of private of governal enterprises. Complete accounting system for an enterprises which came to be called " Double Entry System" was developed in italy in the 15th Centuary. The first known description of the system was published there in 1494 by a Franciscan monk by the name Luca pacioli. The expanded business operations intiated by the industrial Revolution required increasingly large amounts of money which in turn resulted in the development of the corporations from of organizations. As corporations became larger. An increaing number of individual and institutions looked to accountants to provide economics information about these enterprises.
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