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The relationship between law and standards
Companies act formed in 1900 - compulsory audit of the balance sheet - not the director.
Bigger business, role of directors determined by shareholders - appointing auditors, the requirement for a consistent approach.
1948 Companies act - balance sheet and profit loss account must give a true and fair view, disclosure levels introduced, audit requirements established. The accounting profession took on more responsibility. From 1948 because of SCANDALS (Pollypeck) - present, more and more principles, measurement and valuation rules, extended dis…
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