Internal Auditing in Mid-Nineteenth Century Railroad Companies: Comparing the Practices of American and British Railroads

20 Pages Posted: 3 Sep 2015

See all articles by Mitsunori Kasukabe

Mitsunori Kasukabe

Hokkaido University - Graduate School of Economics & Business Administration

Chie Sawanobori

Osaka Sangyo University

Motohiro Aihara

Hokkaido University

Date Written: September 2, 2015

Abstract

This paper examines internal auditing practices in American and British railroad companies in the mid-nineteenth century. It is a historical/empirical study based on annual reports, minutes and brochures released by those companies. Previous studies on internal auditing have not focused on its history in detail, especially on mid-nineteenth century practices. Some railroad companies had already started using internal auditors by the late 1850s. Their appointment may have been prompted by geographical expansion, the growing scope of operations, increased use of accounting and statistics to control businesses, or the need to detect fraud. This study addresses the following questions as we present the historical evidence: Who performed the audits? What was audited? How was it audited?

Keywords: internal audit, traveling auditor, railway accounting

JEL Classification: M41, N80, N81, N83

Suggested Citation

Kasukabe, Mitsunori and Sawanobori, Chie and Aihara, Motohiro, Internal Auditing in Mid-Nineteenth Century Railroad Companies: Comparing the Practices of American and British Railroads (September 2, 2015). Available at SSRN: https://ssrn.com/abstract=2655258 or http://dx.doi.org/10.2139/ssrn.2655258

Mitsunori Kasukabe (Contact Author)

Hokkaido University - Graduate School of Economics & Business Administration ( email )

Kita 9, Nishi 7, Kita-ku
Sapporo, Hokkaido, 060-0809
Japan

Chie Sawanobori

Osaka Sangyo University ( email )

Japan

Motohiro Aihara

Hokkaido University ( email )

5 Kita 8 Jonishi, Kita Ward
Hokkaido Prefecture
Sapporo, Hokkaido 060-0808
Japan

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
88
Abstract Views
598
rank
310,942
PlumX Metrics