 The unit was redesignated No.1 (Bomber) Squadron in August 1937.Towards the end of the year, it was plagued by several Demon accidents, resulting in a series of inquiries and a review of RAAF procedures in 1938 by Marshal of the RAF Sir Edward Ellington; the so-called Ellington Report and its criticism of air safety standards led to the removal of Air Vice-Marshal Richard Williams from his position as Chief of the Air Staff, which he had held since the formation of the Air Force.