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

What is the meaning of inertia of expectation, What is the meaning of Inert...

What is the meaning of Inertia of Expectation We now move a bit away from the political economy of policy process to look into the inherent currents responsible for inaction an

Concept of authority - agency law, Concept of Authority - Agency Law W...

Concept of Authority - Agency Law Whether this is the oral or written permission conferred on a person through another to do a particular thin.  Thus it is a factual concept a

Enumerate about the short-run phillips curve, Enumerate about the short-run...

Enumerate about the short-run Phillips curve Diagrammatically the short-run Phillips curve becomes flatter under coordination as opposed to no coordination. If one country expa

Pooling of assets and liabilities, In 2004 the Corporations and Markets Adv...

In 2004 the Corporations and Markets Advisory Committee proposed that assets and liabilities of companies be aggregated and creditors paid from a common pool which is commonly refe

What are the procedures that an employer needs to follow, QUESTION 1 Wi...

QUESTION 1 With the coming into force of the Employment Rights Act, how far has the freedom of the employer to unilaterally terminate contracts of employment been curtailed?

What do you understand by collective bargaining, QUESTION 1 Outline the...

QUESTION 1 Outline the procedure and criteria for the granting of recognition of representational status and recognition of negotiating rights QUESTION 2 (a) What do yo

Recognition of disputes, Recognition of disputes Recognition of dispute...

Recognition of disputes Recognition of disputes relates to a State not recognizing a certain dispute. However, if the whole world acknowledges a certain dispute then it is nece

Agency by ratification, Agency by Ratification So then Agency by ratif...

Agency by Ratification So then Agency by ratification can only arise whether: The agent purported for act to a principal and one is The alleged principal was in exi

Income statement, Frantic Fast Foods had earnings after taxes of $420,000 i...

Frantic Fast Foods had earnings after taxes of $420,000 in 2012 with 309,000 shares outstanding. On January 1, 2013, the firm issued 20,000 new shares. Because of the proceeds from

Explain the right of self determination, Explain the right of self determin...

Explain the right of self determination The right of self determination amounts to an exception in the sense that when fighting for self determination, the state can render as

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