itted ▁of ▁f als ifying ▁records ▁and ▁accounts , ▁K yl s ant ▁was ▁found ▁guilty ▁of ▁f als ifying ▁the ▁trad ing ▁prospect us ▁and ▁sent enced ▁to ▁twelve ▁months ▁in ▁prison . ▁The ▁company ▁was ▁then ▁liquid ated , ▁and ▁reconst it uted ▁as ▁The ▁Royal ▁Mail ▁L ines ▁Ltd ▁with ▁the ▁backing ▁of ▁the ▁British ▁government . ▁ ▁As ▁well ▁as ▁its ▁immediate ▁impact , ▁the ▁case ▁inst ig ated ▁massive ▁changes ▁in ▁the ▁way ▁companies ▁were ▁aud ited . ▁The ▁case ▁highlight ed ▁fla ws ▁in ▁the ▁way ▁company ▁accounts ▁were ▁review ed , ▁and ▁" pro bably ▁had ▁a ▁greater ▁impact ▁on ▁the ▁quality ▁of ▁published ▁data ▁than ▁all ▁the ▁Comp an ies ▁Act s ▁passed ▁up ▁to ▁that ▁date ". ▁The ▁case ▁" f ell ▁like ▁an ▁atomic ▁bomb ▁and ▁prof ound ly ▁dist urbed ▁both ▁the ▁industrial ▁and ▁the ▁account ancy ▁world s ", ▁and ▁has ▁also ▁been ▁linked ▁to ▁reduced ▁public ▁trust ▁of ▁big ▁business es . ▁The ▁case ▁is ▁also ▁seen ▁as ▁the ▁reason ▁for ▁the ▁dem ise ▁of ▁account ing ▁with ▁the ▁aid ▁of ▁secret ▁res erves . ▁ ▁Background ▁The ▁Royal ▁Mail ▁Ste am ▁Pack et ▁Company ▁was ▁a ▁British ▁sh ipping ▁company ▁founded ▁in ▁London ▁in ▁ 1 8 3 9 ▁by ▁James ▁Mac Que en . ▁It ▁became ▁the ▁largest ▁sh ipping ▁group ▁in ▁the ▁world ▁when ▁it ▁took ▁over ▁the ▁White ▁Star ▁Line ▁in ▁ 1 9 2 7 . ▁Lord ▁K yl s ant ▁had ▁been ▁chairman ▁of