Reforming the Form of the Auditors’ Report: The Case of Building Societies, 1956-1960

Noguchi, Masayoshi and Batiz-Lazo, Bernardo (2007): Reforming the Form of the Auditors’ Report: The Case of Building Societies, 1956-1960.

Abstract

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)
• Language: English
• 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 ; Personnel Economics > M4 - Accounting and Auditing > M42 - Auditing; N - Economic History > N2 - Financial Markets and Institutions > N24 - Europe: 1913-

References

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.

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