Thank you for your replies everyone. I'm leaning toward the USA PhD because of the superior networking opportunities and the coursework. I feel I could do with some coursework before I narrow down on my research topic. By the way, the LSE PhD has also introduced one year of coursework before the research component. I'm thinking I'll apply for the US schools + LSE and if I don't get into a good US school I'll go for LSE ( as PatentClerk suggested).
TheAmazingSteve: You're right. However, some universities in the UK such as LSE and LBS have recognized that coursework is an essential part of the PhD and are now requiring some coursework to be done before you begin the PhD. Hence the PhD at LSE is for 4 years.
MountainKing: It's a very good program. If you get a 'first' you're pretty much guaranteed admission for PhD at LSE. However, if you want to do a PhD elsewhere in a highly quantitative field within accounting then I would suggest you go for Economics/Math.