Reviewed by J. C. Lehane The New University of Ulster

The firm of Thomson McLintock and Co. holds an honoured place in the accounting profession and its stature is increasing over the years. This volume traces its history and growth since its founda¬tion. In essence it is the story of two remarkable accountants, Mr. Thomson McLintock and his son Sir William McLintock. Linked with their story is the history of the development of accounting and more particularly that of auditing and investigation in the United Kingdom. The firm has its main emphasis on auditing and investigation. It has grown with its clients. The outstanding example being the growth of Grand Metropolitan Hotels (the British Hotels Group).

The expan¬sion overseas of this group convinced the sceptics in Thomson Mc¬Lintock that the firm had to go international. This led to the creation of McLintock Main Lafienz and Co. in 1966. The original purpose of many accounting firms was to carry out an investigation into the causes of bankruptcies and the failures of business firms and to act as liquidators. The founder of the firm, Thomson McLintock, made his reputation as a result of his handling of the catastrophes arising from the City of Glasgow Bank crash in 1878 – an event which had widespread repercussions in the administration of banking as well as in commerce generally. The firm developed in Scotland, concen¬trating its affairs there up to that momentous year 1914. Again it was an appointment as a liquidator which caused the firm to expand to London. Sir William McLintock — the eldest son of Thomson Mc-Lintock — had to come to London to wind up the affairs of the Northern Equitable Insurance Company which had been floated to take advantage of the widened scope for insurance created by the Workmen’s Compensation Act of 1906.

The opening up of the Lon¬don office gave rise to friction and conflict with the Glasgow office. Eventually the two offices separated in March 1934 only to come to-gether again in 1959. In the period following the first World War McLintock’s were mainly concerned with performing the same role as merchant banks do today, advising on and arranging mergers. In this way the firm helped the creation of that industrial giant, Im¬perial Chemical Industries. While this period was an age of com¬mercial growth and expansion, it was also a period where grave problems arose in Britain concerning the presentation and dis¬closure of information in published company reports. While there was an increase in the amount of information disclosed, that which was shown was not particularly informative. Sir William McLintock summed up the situation when he said in evidence to the 1925 Com¬pany Law Amendment Committee “there are companies whose an¬nual balance sheets are models of obscurity.”

It is a pity that a more detailed reference has not been made to Sir William’s evidence be¬fore this Committee, whose investigations paved the way to the 1929 Companies Act in the United Kingdom. The expertise of Sir William was called upon to clear up the affairs of the Kyslant Group after the famous Royal Mail Case. The onset of the 1939-1945 War only temporarily halted the advance of the firm. Expansion was the order of the day and this was accelerated after the re-union of the London and Glasgow offices. This expansion into other areas of the United Kingdom was based on a federal concept, giving local offices con-siderable autonomy while co-ordination is effected by cross-partner-ships and by joint committees on standards and policies. The phrase and policy “small is beautiful” was first put into practice by the firm. Since its foundation there has been a very close link by the firm with the Institute of Chartered Accountants in Scotland. Indeed the firm helped to bring the Institute in the same breath. It was a happy chance that the joint senior partner in the Glasgow office (Mr. J. Kirkpatrick) was president of the Institute in the centenary year of the firm. Sir William Slimmings, another senior partner, has sus¬tained the firm’s tradition of public service and the profession must deeply regret that his work on the integration of the profession proved abortive due to outside vested interests.

This is an interesting book showing the growth and development of accounting practice. It is a difficult subject on which to write as the author must aim to be objective and paint the subject “warts and all.” Mr. Winebury deserves our congratulations on the way he has done his task. One regrets the absence of an index.