What is the "south sea bubble" incident? Why is it an important watershed in the history of early corporate legislation in Britain and America?

South sea bubble was an economic bubble that occurred in Britain during the Spring and Autumn Period of 1720. It, together with the Mississippi bubble and tulip mania, is called the three early economic bubbles in Europe, and the word economic bubble originated from south sea bubble.

In the investigation of the South China Sea bubble incident, the Congressional Secret Committee appointed Charles snell to audit the accounts of the South China Sea. This is the first time in the history of Congress to entrust a private third-party independent accountant to conduct an audit investigation. As a result, Nanhai Company was successfully found to have serious fraud and false accounting. Later generations adopted the practice of appointing a third-party professional accountant, which successfully reduced the risk of enterprise fraud and greatly promoted the rapid development of certified public accountants and auditing industry in the future.