Noguchi, Masayoshi and Batiz-Lazo, Bernardo (2007): Reforming the Form of the Auditors’ Report: The Case of Building Societies, 1956-1960.
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The purpose of this study is to explore how the audit of building societies changed in the late 1950s in a reversion of audit objective from ‘fraud detection’ to ‘statement verification’ (Chandler et al., 1993: 452). Of particular interest is the analysis of the extended negotiations between the ICAEW and the Treasury over the reform of the form of the auditors’ report for building societies, which was implemented through the enactment of the Building Societies Act 1960 (BSA60) We show how change implemented through the BSA60 relieved chartered accountants from ‘out of tune’ (T233/1652) practice established by nineteenth century legislation, but to do so required them to take an alternative duty to report on internal control.
|Item Type:||MPRA Paper|
|Institution:||Tokyo Metropolitan University (Japan) and University of Leicester (UK)|
|Original Title:||Reforming the Form of the Auditors’ Report: The Case of Building Societies, 1956-1960|
|Keywords:||building societies; the form of the auditors’ report; the auditors’ reporting duty on internal control; the ICAEW; Building Societies Act 1960 (BSA60)|
|Subjects:||M - Business Administration and Business Economics; Marketing; Accounting > M4 - Accounting and Auditing > M42 - Auditing
N - Economic History > N2 - Financial Markets and Institutions > N24 - Europe: 1913-
|Depositing User:||Bernardo Batiz-Lazo|
|Date Deposited:||23. Jun 2007|
|Last Modified:||14. Feb 2013 01:07|
References Primary sources National Archives - Kew BT 58/483 - Board of Trade and successors: Companies Department: Correspondence and Papers: Proposed Amendments to Company Law. Data range 1949-1952. T 233/1652 – Treasury: Papers leading up to Accounting and Auditing Clauses of the Building Societies Bill 1960. T 233/2095 – Treasury: Building Societies Bill 1960 Proposed Amendment to Building Societies Acts 1874 to 1940.
ICAEW Archives – Milton Keynes Parliamentary and Law (P&L) Committee Minutes Books G-J. Taxation and Research (T&R) Committee Minutes Books B-C.
Secondary sources Bátiz-Lazo, B. (2006) ‘Accounting policy and management discretion in an English building society, circa 1959’ mimeo. Baxt, R. (1968) True and fair view: a legal analysis, Accountant’s Journal, April: 301-10. Billings, M. and Capie, F. (2008) Transparency and Financial Reporting in Mid-Twentieth Century British Banking, Accounting Forum, forthcoming. Board of Trade (1962), Report of the Company Law Committee (Cmnd. 1749). Chandler, R. A., Edwards, J. R., Anderson, M. (1993) ‘Changing Perceptions of the Role of the Company Auditor, 1840-1940’, Accounting & Business Research, 23, 92: 443-59. Coustan, Harvey, Leinicke, Linda M., Rexroad, W. Max, Ostrosky, Joyce A. (2004) ‘Sarbanes-Oxley: What It Means to the Marketplace’, Journal of Accountancy, 197, 2: 43-7. Dicksee, L. R. (1892) Auditing: A Practical Manual for Auditors, London, Gee, reprinted by Arno Press, New York, 1976. Drake, L. (1989) The Building Society Industry in Transition, London, Macmillan and Loughborough University. Drury, C. (1994) Survey of Management Accounting in UK Building Societies, London, ICAEW. Edey, H. C. (1950) Reflections on the accounting provisions of the Companies Act, 1948 - I, Accountancy (September): 308-10. ICAEW (1960) Audits of Building Societies, London, ICAEW. ICAS (1954) A History of the Chartered Accountants of Scotland from the Earliest Times to 1954, Edinburgh, ICAS. Kettle, R. (1954a) The auditor’s report – I (under the Companies Act, 1948, and qualifications thereof, The Accountant, 130 (March 6th): 248-54. Kettle, R. (1954b) The auditor’s report – II (under the Companies Act, 1948, and qualifications thereof, The Accountant, 130 (March 13th): 276-87. Kitchen, J. and Parker, R. H. (1980) Accounting Thought and Education: Six English Pioneers, London, ICAEW. Lee, T. A. (1977) The modern audit function: a study of radical change, in Carsberg, B. and Hope, T. (eds.) Current Issues in Accounting, Oxford, Phillip Allan: 87-106. Perks, R. W. (1977). Building Society Accounts and the Control of Operating Performance. Accounting and Finance. Glasgow, University of Strathclyde: 221. Phillips, B. H. (1983) Building Society Finance, London and Workingham, The Chartered Building Society Institute and Van Nostrand Reinhold (UK) Co. Ltd. Registry of Friendly Societies (1961) Part 5: Building Societies, Report of the Chief Registrar of Friendly Societies for the Year 1960, London, Her Majesty’s Stationary Office. Ryan, F. J. O. (1967) A true and fair view, Abacus, 3, 3: 95-108. Spicer, E. E. and Pegler, E. C. (1908) Audit Programmes, London, H. F. L.