Richard Brooks is the bloke who gets tax wrong for Private Eye. He now says this about accounting:
The demise of sound accounting became a critical cause of the early 21st-century financial crisis. Auditing limited companies, made mandatory in Britain around a hundred years earlier, was intended as a check on the so-called “principal/agent problem” inherent in the corporate form of business. As Adam Smith once pointed out, “managers of other people’s money” could not be trusted to be as prudent with it as they were with their own.
Audits are for shareholders.
Rather kills Ritchie’s ideas about stakeholders, doesn’t it?