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Duty of an auditor:
The duty of an auditor generally was very carefully considered by this court in RE: LONDON AND GENERAL BANK (1895) and I cannot usefully add anything to what will be found there. It was there pointed out that an auditor's duty is to examine the books, ascertain such like they are right, and to get to ready a balance sheet showing the true financial position of the company at the occasion to that such the balance sheet refers. Further but it was also pointed out that an auditor is not an insurer, and such that in the discharge of his task he is only bound to exercise a reasonable amount of care and skill. Therefore it was further pointed out that what in any particular case is a reasonable amount of care and skill depends on the circumstances of the case; that if there is nothing which ought to excite suspicion, less care may or ought to have been aroused. These are the most simple principles that such have to be applied to cases of this description.
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