IDEAS home Printed from https://ideas.repec.org/a/taf/acbsfi/v20y2010i1p41-66.html
   My bibliography  Save this article

The auditors' reporting duty on internal control: the case of building societies, 1956-1960

Author

Listed:
  • Masayoshi Noguchi
  • Bernardo Batiz-Lazo

Abstract

In this article, informed by corporatist theory, we explore the transition from 'fraud detection' to 'statement verification' (Chandler, Edwards, and Anderson 1993, 452) in terms of the audit objectives of building societies in the late 1950s. The study proceeds by analysing negotiations between the Institute of Chartered Accountants in England and Wales and state authorities, such as the Treasury, the Chief Registrar of Friendly Societies and the Board of Trade. These discussions eventually resulted in a change in the audit procedure applied to building societies (as documented in the Building Societies Act 1960). We show how the regulatory change allowed chartered accountants to discontinue outmoded practices under which auditors rather than directors had been expected to take responsibility for safeguarding the financial assets of building societies. Regulatory changes also resulted in auditors being required to assume a new duty; namely, to report on the system of internal control.

Suggested Citation

  • Masayoshi Noguchi & Bernardo Batiz-Lazo, 2010. "The auditors' reporting duty on internal control: the case of building societies, 1956-1960," Accounting History Review, Taylor & Francis Journals, vol. 20(1), pages 41-66.
    • Handle: RePEc:taf:acbsfi:v:20:y:2010:i:1:p:41-66
    DOI: 10.1080/09585200903504249
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09585200903504249
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09585200903504249?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acbsfi:v:20:y:2010:i:1:p:41-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RABF21 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.