Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.001.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
Since the early 1980s there has been an explosion of auditing activity in the United Kingdom and North America. In addition to financial audits there are now medical audits, technology audits, value ...
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Since the early 1980s there has been an explosion of auditing activity in the United Kingdom and North America. In addition to financial audits there are now medical audits, technology audits, value for money audits, environmental audits, quality audits, teaching audits, and many others. Why has this happened? What does it mean when a society invests so heavily in an industry of checking and when more and more individuals find themselves subject to formal scrutiny? This book argues that the rise of auditing has its roots in political demands for accountability and control. At the heart of a new administrative style, internal control systems have begun to play an important public role and individual and organizational performance has been increasingly formalized and made auditable. The author argues that the new demands and expectations of audits live uneasily with their operational capabilities. Not only is the manner in which they produce assurance and accountability open to question but also, by imposing their own values, audits often have unintended and dysfunctional consequences for the audited organization.Less
Since the early 1980s there has been an explosion of auditing activity in the United Kingdom and North America. In addition to financial audits there are now medical audits, technology audits, value for money audits, environmental audits, quality audits, teaching audits, and many others. Why has this happened? What does it mean when a society invests so heavily in an industry of checking and when more and more individuals find themselves subject to formal scrutiny? This book argues that the rise of auditing has its roots in political demands for accountability and control. At the heart of a new administrative style, internal control systems have begun to play an important public role and individual and organizational performance has been increasingly formalized and made auditable. The author argues that the new demands and expectations of audits live uneasily with their operational capabilities. Not only is the manner in which they produce assurance and accountability open to question but also, by imposing their own values, audits often have unintended and dysfunctional consequences for the audited organization.
Christopher Humphrey and Anne Loft
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199546350
- eISBN:
- 9780191720048
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546350.003.0010
- Subject:
- Business and Management, Organization Studies, Finance, Accounting, and Banking
In 1994, Anthony Hopwood wrote about the ‘very active politics’ in the emergent international arena in accounting and auditing, analyzing the institutional interfaces between the international ...
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In 1994, Anthony Hopwood wrote about the ‘very active politics’ in the emergent international arena in accounting and auditing, analyzing the institutional interfaces between the international regulators and the international accounting profession. In doing this he touched on a set of relationships and arrangements that over the subsequent fifteen years have developed into what is now widely recognized as the New International Financial Architecture (NIFA). In terms of global accounting regulation, the International Accounting Standards Board (IASB) has attracted significant research attention. However, far less attention has been paid to the global audit regulatory arena and, in particular, to the International Federation of Accountants (IFAC), which has standard setting boards responsible for international standards on auditing practice, ethics, and education. Responding to this gap, this chapter seeks to assess the contemporary pertinence of Hopwood's (1994) observations and reflections, using empirical and theoretical insights from the rapidly growing literature in the global governance field. What emerges in the field of global auditing regulation is a more complex and interlocking set of relationships than the ‘interfaces’ and ‘lobbying activities’ that Hopwood identified as taking place between regulators and the profession. The chapter describes this as a form of ‘coordinated network governance’ which is binding together international regulators and the international profession in an ongoing project attempting global governance in the audit arena.Less
In 1994, Anthony Hopwood wrote about the ‘very active politics’ in the emergent international arena in accounting and auditing, analyzing the institutional interfaces between the international regulators and the international accounting profession. In doing this he touched on a set of relationships and arrangements that over the subsequent fifteen years have developed into what is now widely recognized as the New International Financial Architecture (NIFA). In terms of global accounting regulation, the International Accounting Standards Board (IASB) has attracted significant research attention. However, far less attention has been paid to the global audit regulatory arena and, in particular, to the International Federation of Accountants (IFAC), which has standard setting boards responsible for international standards on auditing practice, ethics, and education. Responding to this gap, this chapter seeks to assess the contemporary pertinence of Hopwood's (1994) observations and reflections, using empirical and theoretical insights from the rapidly growing literature in the global governance field. What emerges in the field of global auditing regulation is a more complex and interlocking set of relationships than the ‘interfaces’ and ‘lobbying activities’ that Hopwood identified as taking place between regulators and the profession. The chapter describes this as a form of ‘coordinated network governance’ which is binding together international regulators and the international profession in an ongoing project attempting global governance in the audit arena.
Christopher S. Chapman, David J. Cooper, and Peter Miller (eds)
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199546350
- eISBN:
- 9780191720048
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546350.001.0001
- Subject:
- Business and Management, Organization Studies, Finance, Accounting, and Banking
Accounting has an ever-increasing significance in contemporary society. Indeed, some argue that its practices are fundamental to the development and functioning of modern capitalist societies. We can ...
More
Accounting has an ever-increasing significance in contemporary society. Indeed, some argue that its practices are fundamental to the development and functioning of modern capitalist societies. We can see accounting everywhere: in organizations where budgeting, investing, costing, and performance appraisal rely on accounting practices; in financial and other audits; in corporate scandals and financial reporting and regulation; in corporate governance, risk management, and accountability, and in the corresponding growth and influence of the accounting profession. Accounting, too, is an important part of the curriculum and research of business and management schools, the fastest growing sector in higher education. This growth is largely a phenomenon of the last fifty years or so. Prior to that, accounting was seen mainly as a mundane, technical, bookkeeping exercise (and some still share that naive view). The growth in accounting has demanded a corresponding engagement by scholars to examine and highlight the important behavioural, organizational, institutional, and social dimensions of accounting. Pioneering work by accounting researchers and social scientists more generally has persuasively demonstrated to a wider social science, professional, management, and policy audience how many aspects of life are indeed constituted, to an important extent, through the calculative practices of accounting. Anthony Hopwood, to whom this books is dedicated, has been a leading figure in this endeavour, which has effectively defined accounting as a distinctive field of research in the social sciences. The book brings together the work of leading international accounting academics and social scientists, and demonstrates the scope, vitality, and insights of contemporary scholarship in and on accounting and auditing.Less
Accounting has an ever-increasing significance in contemporary society. Indeed, some argue that its practices are fundamental to the development and functioning of modern capitalist societies. We can see accounting everywhere: in organizations where budgeting, investing, costing, and performance appraisal rely on accounting practices; in financial and other audits; in corporate scandals and financial reporting and regulation; in corporate governance, risk management, and accountability, and in the corresponding growth and influence of the accounting profession. Accounting, too, is an important part of the curriculum and research of business and management schools, the fastest growing sector in higher education. This growth is largely a phenomenon of the last fifty years or so. Prior to that, accounting was seen mainly as a mundane, technical, bookkeeping exercise (and some still share that naive view). The growth in accounting has demanded a corresponding engagement by scholars to examine and highlight the important behavioural, organizational, institutional, and social dimensions of accounting. Pioneering work by accounting researchers and social scientists more generally has persuasively demonstrated to a wider social science, professional, management, and policy audience how many aspects of life are indeed constituted, to an important extent, through the calculative practices of accounting. Anthony Hopwood, to whom this books is dedicated, has been a leading figure in this endeavour, which has effectively defined accounting as a distinctive field of research in the social sciences. The book brings together the work of leading international accounting academics and social scientists, and demonstrates the scope, vitality, and insights of contemporary scholarship in and on accounting and auditing.
Robert Libby and Nicholas Seybert
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199546350
- eISBN:
- 9780191720048
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546350.003.0013
- Subject:
- Business and Management, Organization Studies, Finance, Accounting, and Banking
This chapter reviews recent behavioural studies of the effects of regulation on earnings management and accounting choice. It examines the impact of financial reporting, auditing, and other corporate ...
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This chapter reviews recent behavioural studies of the effects of regulation on earnings management and accounting choice. It examines the impact of financial reporting, auditing, and other corporate governance regulations on the beliefs and choices of managers, auditors, and corporate directors. Behavioural studies contribute to the broader literature by shedding light on potential unintended consequences and overall efficacy of proposed regulations, revealing the roles of specific actors and the motives behind reporting choices, and demonstrating what determines managers' preferences for different earnings management methods (both real and accruals based). The chapter also discuss areas that have received less attention that provide promising avenues for future behavioural research involving regulation, earnings management, and accounting choice.Less
This chapter reviews recent behavioural studies of the effects of regulation on earnings management and accounting choice. It examines the impact of financial reporting, auditing, and other corporate governance regulations on the beliefs and choices of managers, auditors, and corporate directors. Behavioural studies contribute to the broader literature by shedding light on potential unintended consequences and overall efficacy of proposed regulations, revealing the roles of specific actors and the motives behind reporting choices, and demonstrating what determines managers' preferences for different earnings management methods (both real and accruals based). The chapter also discuss areas that have received less attention that provide promising avenues for future behavioural research involving regulation, earnings management, and accounting choice.
Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.003.0006
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
This chapter examines some of the more general implications of a society which is increasingly committed to observing itself through various kinds of auditing practice. It specifically describes the ...
More
This chapter examines some of the more general implications of a society which is increasingly committed to observing itself through various kinds of auditing practice. It specifically describes the territory of social theory and the themes of democracy, surveillance, trust, and risk. The discussion starts with a consideration of the democratizing potential of audit. It also converses that the audit explosion reflects a distinctive response to the need to process risk. The theme of the ‘audit society’ indicates where the audit explosion may be leading and directs to a set of tendencies and potentials. Presently, audit operates in a regulatory space where regulators and politicians do not wish to be encumbered by systemic doubts about audit; they need to be reassured that it works or can be made to work better.Less
This chapter examines some of the more general implications of a society which is increasingly committed to observing itself through various kinds of auditing practice. It specifically describes the territory of social theory and the themes of democracy, surveillance, trust, and risk. The discussion starts with a consideration of the democratizing potential of audit. It also converses that the audit explosion reflects a distinctive response to the need to process risk. The theme of the ‘audit society’ indicates where the audit explosion may be leading and directs to a set of tendencies and potentials. Presently, audit operates in a regulatory space where regulators and politicians do not wish to be encumbered by systemic doubts about audit; they need to be reassured that it works or can be made to work better.
Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.003.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
This chapter discusses the audit explosion in the UK. It also addresses a model of the demand for auditing. Audit is an idea as much as it is a concrete technical practice and there is no communal ...
More
This chapter discusses the audit explosion in the UK. It also addresses a model of the demand for auditing. Audit is an idea as much as it is a concrete technical practice and there is no communal investment in the practice without a commitment to this idea and the social norms and hopes which it embodies. It is thus essential to elucidate this a little further by making a short theoretical detour. The main arguments of the book are also introduced. It specifically considers the preconditions, causes, consequences, and prospects of the audit society.Less
This chapter discusses the audit explosion in the UK. It also addresses a model of the demand for auditing. Audit is an idea as much as it is a concrete technical practice and there is no communal investment in the practice without a commitment to this idea and the social norms and hopes which it embodies. It is thus essential to elucidate this a little further by making a short theoretical detour. The main arguments of the book are also introduced. It specifically considers the preconditions, causes, consequences, and prospects of the audit society.
Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.003.0002
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
This chapter argues that, below the wealth of technical procedure, the epistemic foundation of financial auditing, i.e. the relation between its inputs and the production of assurance, is essentially ...
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This chapter argues that, below the wealth of technical procedure, the epistemic foundation of financial auditing, i.e. the relation between its inputs and the production of assurance, is essentially obscure. It specifically addresses the history of financial auditing. It also describes the uneasy and shifting relationship between audit practice and the programmatic goal of detecting fraud. It is noted that the history of audit practice is a history of attempts to deal with operational problems of inference subject to economic constraint. In addition, it is shown that financial auditing as a system remains strong. It also states an important lesson to carry forward from this chapter is that the audit process, for all its density of operational procedure, is interactive and judgemental.Less
This chapter argues that, below the wealth of technical procedure, the epistemic foundation of financial auditing, i.e. the relation between its inputs and the production of assurance, is essentially obscure. It specifically addresses the history of financial auditing. It also describes the uneasy and shifting relationship between audit practice and the programmatic goal of detecting fraud. It is noted that the history of audit practice is a history of attempts to deal with operational problems of inference subject to economic constraint. In addition, it is shown that financial auditing as a system remains strong. It also states an important lesson to carry forward from this chapter is that the audit process, for all its density of operational procedure, is interactive and judgemental.
Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.003.0003
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
This chapter examines the diverse pressures and demands which have contributed to the growth of auditing practices in other areas. It also considers the programmes which demand auditing. In ...
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This chapter examines the diverse pressures and demands which have contributed to the growth of auditing practices in other areas. It also considers the programmes which demand auditing. In particular, three overlapping programmes for enhanced governance and control are considered. These three programmatic developments, the rise of New Public Management (NPM), a shift in regulatory style and the rise of quality assurance, establish a demand for a particular style of control in many different fields. The three overlapping programmes presuppose and demand that auditing in its different forms can deliver assurance, add to compliance and stimulate best practice. Furthermore, the three programmes pass costs down to regulatees who develop a self-monitoring capacity.Less
This chapter examines the diverse pressures and demands which have contributed to the growth of auditing practices in other areas. It also considers the programmes which demand auditing. In particular, three overlapping programmes for enhanced governance and control are considered. These three programmatic developments, the rise of New Public Management (NPM), a shift in regulatory style and the rise of quality assurance, establish a demand for a particular style of control in many different fields. The three overlapping programmes presuppose and demand that auditing in its different forms can deliver assurance, add to compliance and stimulate best practice. Furthermore, the three programmes pass costs down to regulatees who develop a self-monitoring capacity.
Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.003.0005
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
This chapter examines the manner in which auditing works by virtue of actively creating the external organizational environment in which it operates. It also addresses how the consequences of ...
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This chapter examines the manner in which auditing works by virtue of actively creating the external organizational environment in which it operates. It also addresses how the consequences of auditing can be schematically explored in terms of decoupling and colonization. The discussion begins by considering some general criticisms of the New Public Management (NPM) and their implications for auditing. Three cases are offered, which show the tension between concepts of auditable performance derived from quality assurance systems and one which is rooted in the specialist judgement and knowledge base of different service professionals. It is important to know the ‘regulatory paradoxes’ which surround audit. The discussion of auditable performance measurement indicates how ‘the anxious ruler tries to make his illusions come true by way of a mixture of minute controls and rigorous isolation’.Less
This chapter examines the manner in which auditing works by virtue of actively creating the external organizational environment in which it operates. It also addresses how the consequences of auditing can be schematically explored in terms of decoupling and colonization. The discussion begins by considering some general criticisms of the New Public Management (NPM) and their implications for auditing. Three cases are offered, which show the tension between concepts of auditable performance derived from quality assurance systems and one which is rooted in the specialist judgement and knowledge base of different service professionals. It is important to know the ‘regulatory paradoxes’ which surround audit. The discussion of auditable performance measurement indicates how ‘the anxious ruler tries to make his illusions come true by way of a mixture of minute controls and rigorous isolation’.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.001.0001
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
The book provides a history of the origins and development of the institutions and practices of British public sector audit, which are meant to ensure the financial accountability of the Executive to ...
More
The book provides a history of the origins and development of the institutions and practices of British public sector audit, which are meant to ensure the financial accountability of the Executive to Parliament. From the eleventh century, better accountability often depended on a combination of opportunism and determination against a background of wider developments in constitutional and political manoeuvring. Until the nineteenth century there was a persistent determination by the ruling monarch to resist greater financial accountability to Parliament. Thus, a primary concern is the political forces that drove improvement but also that often sought to deny Parliament the ability to ensure the financial and, hence, constitutional accountability of the Executive. An especially important contribution of the book is the prominence given to the current mandate and challenges faced by the National Audit Office, especially the major challenges to the constitutional authority of the Comptroller and Auditor General in the modern public sector environment. The book has been written to coincide with the 150th anniversary in 2016 of the passage of the 1866 Audit Act, which is the basis of modern central government audit in Britain and other Westminster democracies. The importance of this event and of the expected contributions of the book have been recognized by the present Comptroller and Auditor General, Sir Amyas Morse, who has provided the Foreword to the book.Less
The book provides a history of the origins and development of the institutions and practices of British public sector audit, which are meant to ensure the financial accountability of the Executive to Parliament. From the eleventh century, better accountability often depended on a combination of opportunism and determination against a background of wider developments in constitutional and political manoeuvring. Until the nineteenth century there was a persistent determination by the ruling monarch to resist greater financial accountability to Parliament. Thus, a primary concern is the political forces that drove improvement but also that often sought to deny Parliament the ability to ensure the financial and, hence, constitutional accountability of the Executive. An especially important contribution of the book is the prominence given to the current mandate and challenges faced by the National Audit Office, especially the major challenges to the constitutional authority of the Comptroller and Auditor General in the modern public sector environment. The book has been written to coincide with the 150th anniversary in 2016 of the passage of the 1866 Audit Act, which is the basis of modern central government audit in Britain and other Westminster democracies. The importance of this event and of the expected contributions of the book have been recognized by the present Comptroller and Auditor General, Sir Amyas Morse, who has provided the Foreword to the book.
Michael Power
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296034
- eISBN:
- 9780191685187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296034.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking, Organization Studies
This chapter addresses three general operational dimensions of the audit process where the social support for the authority of technical practices comes into view: sampling and risk analysis, ...
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This chapter addresses three general operational dimensions of the audit process where the social support for the authority of technical practices comes into view: sampling and risk analysis, reliance on other forms of expertise, the evaluation of internal control systems. The argument focuses on the systemic significance of these three dimensions and the manner in which ideas of effective auditing are constituted through them. It also considers the sub-programmes or meta-accounts of the technical efficacy of auditing. Moreover, all three cases demonstrate how crucial economic and cognitive problems for auditing are resolved while leaving the essential obscurity of the audit process untouched. All three also offer a ground for elaborating further detailed procedures, for making audits work in a systemic sense.Less
This chapter addresses three general operational dimensions of the audit process where the social support for the authority of technical practices comes into view: sampling and risk analysis, reliance on other forms of expertise, the evaluation of internal control systems. The argument focuses on the systemic significance of these three dimensions and the manner in which ideas of effective auditing are constituted through them. It also considers the sub-programmes or meta-accounts of the technical efficacy of auditing. Moreover, all three cases demonstrate how crucial economic and cognitive problems for auditing are resolved while leaving the essential obscurity of the audit process untouched. All three also offer a ground for elaborating further detailed procedures, for making audits work in a systemic sense.
DEREK MATTHEWS, MALCOLM ANDERSON, and JOHN RICHARD EDWARDS
- Published in print:
- 1998
- Published Online:
- October 2011
- ISBN:
- 9780198289609
- eISBN:
- 9780191684753
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198289609.003.0004
- Subject:
- Business and Management, Finance, Accounting, and Banking, Business History
The chapter starts with a discussion of the economy in Britain from the mid-19th century, when the country was at the top of its economic power. It was the first country in the world to industrialize ...
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The chapter starts with a discussion of the economy in Britain from the mid-19th century, when the country was at the top of its economic power. It was the first country in the world to industrialize and had the largest industrial output and highest per capita income in 1870. The chapter discusses the range of services supplied by accountants to different industries, including insolvency work, auditing, consultancy, cost accounting, taxation, public sector work, company secretaries and directors, and being an entrepreneur.Less
The chapter starts with a discussion of the economy in Britain from the mid-19th century, when the country was at the top of its economic power. It was the first country in the world to industrialize and had the largest industrial output and highest per capita income in 1870. The chapter discusses the range of services supplied by accountants to different industries, including insolvency work, auditing, consultancy, cost accounting, taxation, public sector work, company secretaries and directors, and being an entrepreneur.
DEREK MATTHEWS, MALCOLM ANDERSON, and JOHN RICHARD EDWARDS
- Published in print:
- 1998
- Published Online:
- October 2011
- ISBN:
- 9780198289609
- eISBN:
- 9780191684753
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198289609.003.0006
- Subject:
- Business and Management, Finance, Accounting, and Banking, Business History
The chapter focuses on the changing roles of accountants and their continued dominance in the industry. After the Second World War, accountants continued to be influential and important in different ...
More
The chapter focuses on the changing roles of accountants and their continued dominance in the industry. After the Second World War, accountants continued to be influential and important in different industries and government. Accounting firms continued to increase in size and became more aggressive during the post-war period. Their business involvement included auditing, taxation, insolvency, and consultancy. Auditing remained the top fee earner for these accountants. Moreover, accountancy firms and individuals transferred from public practice into businesses. Some accountants even rose to the top of the corporate ladder as finance directors as well as chief executives for big companies.Less
The chapter focuses on the changing roles of accountants and their continued dominance in the industry. After the Second World War, accountants continued to be influential and important in different industries and government. Accounting firms continued to increase in size and became more aggressive during the post-war period. Their business involvement included auditing, taxation, insolvency, and consultancy. Auditing remained the top fee earner for these accountants. Moreover, accountancy firms and individuals transferred from public practice into businesses. Some accountants even rose to the top of the corporate ladder as finance directors as well as chief executives for big companies.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.003.0004
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
In the latter years of the eighteenth century the inadequacies in accountability and audit became increasingly obvious as the size and complexity of public activities and expenditure increased. There ...
More
In the latter years of the eighteenth century the inadequacies in accountability and audit became increasingly obvious as the size and complexity of public activities and expenditure increased. There was growing recognition of the need for fundamental changes in accountability between Parliament and the Executive; in the content and presentation of public sector accounts and in the role, responsibilities, and powers of state audit. This led to the appointment in 1780 of the Commissioners for Auditing the Public Accounts. As a result of their extensive inquiries the Commissioners produced fourteen reports that provided the essential principles and expectations of public sector audit upon which would be based the unprecedented audit reforms in the nineteenth century. Introducing a better framework of accountability and audit was also linked with the complications of mid-eighteenth-century parliamentary and political life, where alliances and splits, coalitions, and realignments dominated government and public affairs.Less
In the latter years of the eighteenth century the inadequacies in accountability and audit became increasingly obvious as the size and complexity of public activities and expenditure increased. There was growing recognition of the need for fundamental changes in accountability between Parliament and the Executive; in the content and presentation of public sector accounts and in the role, responsibilities, and powers of state audit. This led to the appointment in 1780 of the Commissioners for Auditing the Public Accounts. As a result of their extensive inquiries the Commissioners produced fourteen reports that provided the essential principles and expectations of public sector audit upon which would be based the unprecedented audit reforms in the nineteenth century. Introducing a better framework of accountability and audit was also linked with the complications of mid-eighteenth-century parliamentary and political life, where alliances and splits, coalitions, and realignments dominated government and public affairs.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.003.0005
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
From 1832 accounts based on imprests were progressively replaced by appropriation accounts of actual expenditure incurred compared with relevant estimates provisions. However, accounts were still too ...
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From 1832 accounts based on imprests were progressively replaced by appropriation accounts of actual expenditure incurred compared with relevant estimates provisions. However, accounts were still too broadly based and expenditure too highly aggregated to provide for informed parliamentary scrutiny. The Audit Acts of 1832 and 1846 had not improved the independence or standing of public sector auditors. Growing recognition of the weaknesses and missed opportunities of the 1846 Act and concerns for better accountability for increasing levels of public expenditure provided the stimulus for the next stage in the pursuit of improved accountability to Parliament and the creation of a stronger, more independent audit office. Committed reformers Sir James Graham and William Gladstone, with strong Treasury support, were determined advocates for reform against vehement opposition.Less
From 1832 accounts based on imprests were progressively replaced by appropriation accounts of actual expenditure incurred compared with relevant estimates provisions. However, accounts were still too broadly based and expenditure too highly aggregated to provide for informed parliamentary scrutiny. The Audit Acts of 1832 and 1846 had not improved the independence or standing of public sector auditors. Growing recognition of the weaknesses and missed opportunities of the 1846 Act and concerns for better accountability for increasing levels of public expenditure provided the stimulus for the next stage in the pursuit of improved accountability to Parliament and the creation of a stronger, more independent audit office. Committed reformers Sir James Graham and William Gladstone, with strong Treasury support, were determined advocates for reform against vehement opposition.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.003.0006
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
The 1866 Audit Act gave effect to all the recommendations of the highly influential report of the Select Committee on Public Monies in 1856. It required the preparation of annual appropriation ...
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The 1866 Audit Act gave effect to all the recommendations of the highly influential report of the Select Committee on Public Monies in 1856. It required the preparation of annual appropriation accounts for all departmental supply grants, based on the strict cash basis of sums that had actually been paid during the financial year. It required the Treasury to introduce a revised framework of accounts and accounting systems. The Act merged the Audit and Exchequer Offices under the Comptroller and Auditor General, with powers to carry out annual audits of the appropriation accounts and other accounts on behalf of the House of Commons, and to report the results. It provided statutory safeguards for the C&AG’s position and that of his auditors and provided the basis for extending the audit, even without specific statutory authority into examinations of value for money and stores provisioning.Less
The 1866 Audit Act gave effect to all the recommendations of the highly influential report of the Select Committee on Public Monies in 1856. It required the preparation of annual appropriation accounts for all departmental supply grants, based on the strict cash basis of sums that had actually been paid during the financial year. It required the Treasury to introduce a revised framework of accounts and accounting systems. The Act merged the Audit and Exchequer Offices under the Comptroller and Auditor General, with powers to carry out annual audits of the appropriation accounts and other accounts on behalf of the House of Commons, and to report the results. It provided statutory safeguards for the C&AG’s position and that of his auditors and provided the basis for extending the audit, even without specific statutory authority into examinations of value for money and stores provisioning.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.003.0009
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
In the late 1960s governments began a revolution in public sector management that sought to change management philosophies, objectives, and systems. This New Public Management (NPM) meant that the ...
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In the late 1960s governments began a revolution in public sector management that sought to change management philosophies, objectives, and systems. This New Public Management (NPM) meant that the Exchequer and Audit Department would need to re-examine its own planning and operational procedures to ensure that these took full account of changes being introduced in the management and delivery of departmental programmes. This would be especially important when planning and carrying out examinations of economy, efficiency, and effectiveness. The Exchequer and Audit Department would have to recognize and work in a manner that was consistent with the aims and practices of the new management regimes, whilst remaining independent and free to draw attention to weaknesses in financial control and performance as new arrangements were introduced. Revised systems and procedures to meet such new challenges were therefore introduced throughout the Department following an extensive management review in 1978.Less
In the late 1960s governments began a revolution in public sector management that sought to change management philosophies, objectives, and systems. This New Public Management (NPM) meant that the Exchequer and Audit Department would need to re-examine its own planning and operational procedures to ensure that these took full account of changes being introduced in the management and delivery of departmental programmes. This would be especially important when planning and carrying out examinations of economy, efficiency, and effectiveness. The Exchequer and Audit Department would have to recognize and work in a manner that was consistent with the aims and practices of the new management regimes, whilst remaining independent and free to draw attention to weaknesses in financial control and performance as new arrangements were introduced. Revised systems and procedures to meet such new challenges were therefore introduced throughout the Department following an extensive management review in 1978.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.003.0011
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
The developments in the management and conduct of the Comptroller and Auditor General’s work before and after the 1983 Act and the successes achieved, particularly on value-for-money examinations, ...
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The developments in the management and conduct of the Comptroller and Auditor General’s work before and after the 1983 Act and the successes achieved, particularly on value-for-money examinations, together with the changes taking place in the wider public environment in which the Office was operating, increased pressure on the NAO. There were concerns about a growing political dimension in some of the fields that the NAO was examining. Further, the consequences of devolution of financial and audit responsibilities to Scotland and Wales needed to be examined, as would implications of the abolition of the Audit Commission and the adoption of a completely different basis for the preparation of departmental accounts. Of especial significance have been fundamental legislative changes in the position and powers of the Comptroller and Auditor General and the structure of the National Audit Office. The objectives and outward reach of the NAO have also been progressively widened.Less
The developments in the management and conduct of the Comptroller and Auditor General’s work before and after the 1983 Act and the successes achieved, particularly on value-for-money examinations, together with the changes taking place in the wider public environment in which the Office was operating, increased pressure on the NAO. There were concerns about a growing political dimension in some of the fields that the NAO was examining. Further, the consequences of devolution of financial and audit responsibilities to Scotland and Wales needed to be examined, as would implications of the abolition of the Audit Commission and the adoption of a completely different basis for the preparation of departmental accounts. Of especial significance have been fundamental legislative changes in the position and powers of the Comptroller and Auditor General and the structure of the National Audit Office. The objectives and outward reach of the NAO have also been progressively widened.
Ian Dewing and Peter Russell
- Published in print:
- 2014
- Published Online:
- June 2014
- ISBN:
- 9780199683963
- eISBN:
- 9780191763410
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199683963.003.0007
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and ...
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This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). Under the harmonization of company law program, the EU has adopted international accounting standards as the basis for preparing the financial statements of EU listed companies, and is currently in the process of adopting international auditing standards as the basis for audit. The chapter examines the debates and developments pre- and post-financial crisis at international and European levels to create transnational governance structures and oversight processes for IFAC and IAASB to safeguard the public interest and to enable the adoption of ISAs in the EU. The result has been the creation of linkages at international, regional and national levels involving a wide range of private, professional and public actors.Less
This chapter explores recent EU and international developments in audit policy, and focuses on the adoption of International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB). Under the harmonization of company law program, the EU has adopted international accounting standards as the basis for preparing the financial statements of EU listed companies, and is currently in the process of adopting international auditing standards as the basis for audit. The chapter examines the debates and developments pre- and post-financial crisis at international and European levels to create transnational governance structures and oversight processes for IFAC and IAASB to safeguard the public interest and to enable the adoption of ISAs in the EU. The result has been the creation of linkages at international, regional and national levels involving a wide range of private, professional and public actors.
David Dewar and Warwick Funnell
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780198790310
- eISBN:
- 9780191831645
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198790310.003.0001
- Subject:
- Business and Management, Business History, Finance, Accounting, and Banking
This chapter provides an introduction to the main themes of the book, in particular the importance of ensuring the accountability of governments to Parliament and the public. Accountability is shown ...
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This chapter provides an introduction to the main themes of the book, in particular the importance of ensuring the accountability of governments to Parliament and the public. Accountability is shown to be a democratic and constitutional concept that encompasses not just giving an account of the money spent by governments but ensuring that funds and resources are used only for purposes approved by Parliament and that programmes and services are delivered with economy and efficiently. Achieving accountability has been an incremental process that has required determination and persistence, often in the face of strong and vocal opposition. Audit independence has been a key factor in meeting these challenges. Today, continuing developments in the organization, management, and delivery of public services, at national and local levels, present the National Audit Office with further challenges and opportunities.Less
This chapter provides an introduction to the main themes of the book, in particular the importance of ensuring the accountability of governments to Parliament and the public. Accountability is shown to be a democratic and constitutional concept that encompasses not just giving an account of the money spent by governments but ensuring that funds and resources are used only for purposes approved by Parliament and that programmes and services are delivered with economy and efficiently. Achieving accountability has been an incremental process that has required determination and persistence, often in the face of strong and vocal opposition. Audit independence has been a key factor in meeting these challenges. Today, continuing developments in the organization, management, and delivery of public services, at national and local levels, present the National Audit Office with further challenges and opportunities.
