The following quote provides an overview of eighteenth century Britain as described in The Reckoning.

"The paintings of William Hogarth (1697-1764) have shaped the modern vision of the British eighteenth century and faithfully represent the contradictions of figures like Walpole. Accounting is prominent but ignored. This is a vivid portrayal of the ambivalent relationship the British elite to a tool they had come to master at a remarkable level. This tool, so respected, so connected to prosperity and salvation, could, like life itself, be wasted and thrown away. The story of Walpole and accounting explains how the English got out of the South Sea Company disaster, but at the same time, it explains how a culture of self-enrichment and political patronage prevented Britain from creating accountable, transparent government." (114 - 115)

In considering this quote, respond to the following questions (please respond to one of the questions in detail; another student then respond to a different question and so on, building on each other's work).

• What was the South Sea Company?
• What problem was the South Sea Company meant to address?
• Was the South Sea Company successful? If yes, in what way? If no, why not?
• What became of the South Sea Company?
• What were the political ramifications of the South Sea Company project?
• With regards to the quote above, how was accounting ignored, wasted and thrown away in Walpole's England?
• How effectively did the English use accounting for accountability - at the firm level (i.e., South Sea Company) and state level (i.e., British government)?