London and County Securities: a case study in audit and regulatory failure

The purpose of this article is to look in detail into the collapse and its subsequent implications of the London and County Securities bank (L&C) in 1973, one of the most significant UK corporate fraud scandals and regulatory failures in recent decades. The article is a case study drawing on the...

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Bibliographic Details
Published in:	Accounting, auditing & accountability journal auditing & accountability journal, 2005-07, Vol.18 (4), p.518
Main Author:	Matthews, Derek
Format:	Article
Language:	eng
Subjects:	Accounting Auditing Audits Bank failures Banking industry Case studies Clearing banks Corporate governance Fraud Investigations Regulation of financial institutions Securities fraud Self regulation
Online Access:	Get full text
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Summary:	The purpose of this article is to look in detail into the collapse and its subsequent implications of the London and County Securities bank (L&C) in 1973, one of the most significant UK corporate fraud scandals and regulatory failures in recent decades. The article is a case study drawing on the report on L&C by the Department of Trade (DT) inspectors and the national and trade press, interviews with and the private papers of some of the major participants. The study identifies and explains the nature of the fraud, the shortcomings of the auditing of the bank, the poor performance of the DT inspectors, and the weaknesses of the subsequent changes in the regulatory system.
ISSN:	0951-3574 1758-4205