Theobald , Business Law and Ethics

Assignment Help:

Theobald:

Conversely there such I take to be the duty of the auditor; then he must be honest.... i.e. like he must not certify that what he does not believe to be true, reasonable care and skill, before he believes there what he certifies is true.  What is so reasonable care in any particular case depend upon the circumstances of that case.

Whereas there is nothing to excite suspicion very little inquiry will be reasonably sufficient, and hence there in practice I believe businessmen select a few cases at haphazard, further see that they are right, and guess that others like them are correct also.  Where ever suspicion is aroused more care is obviously essential; but still an auditor is not bound to exercise more than reasonable care and skill, whereas in a case even of suspicion, and he is appropriately justified in acting on the opinion of an expert where special knowledge is required.......  It is satisfactory to find that the legal standard of duty is not too high for business purposes, and is recognized as correct by businessmen.....  A person whose duty it is to convey information to others does not discharge that duty by simply giving them so much information as is calculated to induce them,or some of them, to ask more.  So therefore information and means of information are by no means equivalent terms.... The auditor is to make a report to the shareholders, but the mode of doing so and the form of the report are not prescribed..... an auditor who gives shareholders means of information instead of information respecting a company's financial position does so at his peril and runs the very serious risk of being held judicially to have failed to discharge his duty .  In this case I have no hesitation in saying like.. Mr. Theobald did fail to discharge his duty to the shareholders in certifying and laying before them the balance sheet...... without any reference to the report which he laid before the directors and with no other warning than is conveyed with the words, as like "The value of the assets as shown on the balance sheet is dependent upon realization".


Related Discussions:- Theobald

Manage the currency risks using the futures contract, Question 1: (a) "...

Question 1: (a) "A tourist resort which does business in a single currency is not exposed to currency risk." Discuss (use example to support your answer). (b) Case: Hedging

Identify the issues which have created negative impact, Mr. Andrew is the C...

Mr. Andrew is the Chairman of Board of Directors of Stylish Garments plc. He believes that the success of the business depends mainly on a committed, loyal work force. Therefore th

Illustration of rules relating to consideration, Illustrtaion of Rules rela...

Illustrtaion of Rules relating to consideration Foakes v Beer (1884) Actually On the date 11th of August, 1875 Mrs Beer wrapped judgment next to Dr. Foakes for £2,077 1

Legal liability for laboratory accidents, LEGAL LIABILITY FOR LABORATORY AC...

LEGAL LIABILITY FOR LABORATORY ACCIDENTS IN EDUCATIONAL INSTITUTIONS : As mentioned in some of the earlier sections, law is not directly available to decide legal liability for la

State in brief about the term - reputations, State in brief about the term ...

State in brief about the term - Reputations Reputations can be defined as the actions an agent and expected to take. If he takes it up, he establishes his reputation or otherwi

Legal protection of minorities, LEGAL PROTECTION OF MINORITIES: Accord...

LEGAL PROTECTION OF MINORITIES: According to decisions of English courts, companies are democratic organisations whose affairs are to be managed by the directors according to

Registered office clause, Registered Office Clause:                   ...

Registered Office Clause:                          Section 5(1) (b) provides that the memorandum of association shall state that "the registered office of the company is to be

Describe the four-step planning process, Question 1: One important caus...

Question 1: One important cause of ineffective public relations efforts is the lack of planning. Using evidence from any organization, describe the four-step planning process t

Self-control in entrepreneurship development, Self-Control : Most entrepre...

Self-Control : Most entrepreneurs believe they can do the job better than anyone else and will strive for maximum responsibility and accountability. An entrepreneur needs to maint

Assignment, hi there, we are looking forward your assistance to do our busi...

hi there, we are looking forward your assistance to do our business law assignment as we have 4 legal issue and we have to use law in commerce (5th edition) text book for that assi

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