Liability of auditors, Business Law and Ethics

Assignment Help:

Liability of auditors:

It would cover any act of negligence - any actionable wrong by an officer of a company which did not involve any misapplication of the assets of the company.  Moreover the object of this section of the Act is to enable the liquidator to recover any assets of the company improperly dealt with by any officer of the company, and must be interpreted bearing which object in mind.  It doubtless covers any breach of duty by an officer of the company in his capacity of officer resulting in any improper misapplication of the assets or property of the company........ It is the duty of an auditor to bring to bear on the work he has to perform such skill, care, and caution that a reasonably competent, careful, and cautious auditor would utilize.  What is reasonable skill there, care and caution must depend on the particular circumstances of every each case.  Hence an auditor is not bound to be a inspection man, or, as was said like, to approach his work by suspicion or with a foregone conclusion that there is something wrong.  He is a watchdog, but not a blood bound.  He is justified in trusting, so tried servants of the company in whom confidence is placed through the company.  He is entitled to assume so that they are honest, and so rely upon their representations, just provided there, he takes reasonable care.  Whether there is anything calculated to excite suspicion than he should probe it to the bottom; therefore in the absence of anything like, he is only bound to be reasonably careful and cautious.  It is not the duty of an auditor to take stock; he is not a stock expert:, hence there are many matters in respect of that like he must rely on the honesty and accuracy of others.  He does not guarantee the innovation of all frauds.....  The duties of auditors must not be too onerous to rendered.  Therefore their work is responsible and laborious there, and the remuneration to moderate.


Related Discussions:- Liability of auditors

Rationale of centralized and decentralized bargaining, Question 1: i) ...

Question 1: i) What is the rationale of centralized and decentralized bargaining? ii) Give examples of benefits associated with centralized bargaining. iii) Give exam

What is cyber crime?, Question 1 Explain the sections 167 and 172 of the I...

Question 1 Explain the sections 167 and 172 of the Indian penal code Question 2 Write a note on the Cyber Regulations Appellate Tribunal Question 3 Write a note on Digit

What is the aim of the reviewing authority, QUESTION 1 Outline the hist...

QUESTION 1 Outline the history of Labour Laws in Mauritius QUESTION 2 a) In what circumstances can an employer raise the defence of abandonment of work? b) Section 1

Estate planning , Estate Planning Case Study Rich and his wife, Ruby, ...

Estate Planning Case Study Rich and his wife, Ruby, heard that you are an expert in the field of Estate Planning as a result of the superior education you received at WPU.  The

Reconstructions - mergers and winding up, Reconstructions, Mergers And Wind...

Reconstructions, Mergers And Winding Up: (a) Reconstructions, mergers and takeovers are not defined terms. A reconstruction may be an alternative of the structure of a group o

Explain about the stages model of policy outcome, Explain about the Stages ...

Explain about the Stages Model of Policy Outcome Dividing the policy process into discrete steps is also the analytic point of departure for much of the more recent work on pol

Domicile of choice, Domicile of Choice Therefore this is the domicile ...

Domicile of Choice Therefore this is the domicile a person acquires through choosing that country to make his permanent home. Well S.8(1) of the Act provides that whether a pe

Meaning of public, Meaning Of "Public":                    For the pur...

Meaning Of "Public":                    For the purposes of the prospectus issue the word "public" is declared by S.57 (1) to include "any section of the public, whether selec

Determine the focal point for coordination, Determine the focal point for c...

Determine the focal point for coordination The focal point for coordination is point C, which is the unique symmetrical Pareto efficient outcome. Compared to this outcome the N

Acceptance - law of contract, Acceptance - Law of Contract Converse...

Acceptance - Law of Contract Conversely an offer made to the general public can be established through anybody who fulfil that performs then the conditions stated therein.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd