ABSTRACT
If companies are to function properly as vehicles for investment, in which passive investors and creditors can have confidence, then there has to be an accurate, rigorous and verifiable system of accounts. This was recognised from the inception of the registered company in the mid-19th century and, indeed, the growth of the registered company in the second half of the century was significant in the growth of the accountancy profession during the same period. There has been an enormous growth, during the 20th century, in the volume of provisions relating to the preparation and disclosure of accounts. It is not appropriate, for the purposes of this book, to examine in detail the accounting requirements of the Companies Acts but it is important to appreciate in outline what those requirements are. It is also important to examine the role, duties and liabilities of the company’s auditor, who is, of course, closely linked with the company’s accounts.
