ABSTRACT
The development of British financial reporting was dominated, at first, by the position of the suppliers of financial information who were interested in providing only a limited amount of information. As with the tendency toward increased disclosure of financial information, the wording of the auditor's opinion is now closer to the requirements of the consumers. The early joint - stock companies, which existed in Britain as far back as rarely, communicated formal financial information to external parties. The proprietary interests of shareholders extended only to the receipt of dividends and the return of their capital in case of liquidation. Consequently, shareholders began exerting substantial pressure for audited financial information. Finally, under the increasing pressures for audited financial information and the increasing intervention of the Government in economic affairs, auditing was again made obligatory for joint-stock companies under the 1900 Companies Act.
