In 1849, Edwin Waterhouse and Samuel Price established separate accounting firms that would go on to become part of one of the world’s largest professional services organisations, PricewaterhouseCoopers (PwC). Their work helped professionalise auditing and accounting during the Industrial Revolution, when businesses were expanding rapidly and financial accountability became increasingly important. This moment sits prominently within the history of 19th century accounting, illustrating how transformative forces during the Industrial Revolution reshaped practice and governance. In fact, this episode is frequently cited as a turning point that connected emerging corporate needs with formalised oversight.
Waterhouse and Price championed independent auditing, accurate bookkeeping and consistent financial reporting at a time when investors, lenders, and business owners required greater confidence in company accounts. Their firms developed rigorous audit methodologies that improved the reliability of financial statements and strengthened corporate governance. These developments aligned emergent practices with the needs of industrial enterprises and capital markets that were expanding at unprecedented speed.
Throughout the nineteenth century, firms like those founded by Waterhouse and Price codified practices that could be replicated across industries, creating comparability and consistency in financial reporting and embedding those norms within the accounting profession and the audit profession alike. As industry and commerce grew, the principles they promoted became fundamental to the accounting profession. Standardised audit procedures, ethical practice and independent assurance helped establish public trust in financial reporting and laid the foundations for the modern audit profession.
Within this accounting landscape, the emergence of professional bodies, examinations and codes of conduct progressively distinguished qualified accountants from bookkeepers, marking a watershed in the history of accounting. The audit profession, in particular, gained legitimacy as it demonstrated its capacity to detect error, deter fraud and enhance investor confidence, a hallmark achievement often highlighted in narratives about 19th century accounting advances and their role in the history of accounting. Ultimately, the work of Edwin Waterhouse and Samuel Price exemplifies how the demands of the Industrial Revolution helped transform accounting from a largely administrative practice into a professional discipline, leaving a legacy that continues through PwC even today.
