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

Doctrine of stare decisis, Doctrine of Stare Decisis However the doctr...

Doctrine of Stare Decisis However the doctrine of "stare Decisis" or "judicial precedent" is a legal rule which utilized a judge to refer to the earlier cases decided through

Chairman - meetings and resolutions, PROXIES - meetings and resolutions: ...

PROXIES - meetings and resolutions: By S.136(1), any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint one more person (

Illustration of business law and ethics, Myra, another student, was very ...

Myra, another student, was very unhappy with her grade on the midterm. The following week, she arrived at the class about 20 minutes early and waited for the instructor t

Commercial law, Commercial Law Alice is an 80 year old, illiterate, an...

Commercial Law Alice is an 80 year old, illiterate, and suffering from Alzheimer’s disease (a disease affecting short-term memory). Will is a social worker employed by the loc

Obiter dictum, Obiter Dictum Thus now  "by the way" statement made t...

Obiter Dictum Thus now  "by the way" statement made through a judge before delivering his judgement within  a view to  strengthening or re-enforcing his reasons to the decis

Statutory corporation and chartered corporation, Statutory Corporation a...

Statutory Corporation and Chartered Corporation Statutory Corporation However this is created through an Act of Parliament and comes in existence from the date of c

Article 33 - pacific settlement of disputes, Article 33 - Pacific settlemen...

Article 33 - Pacific settlement of disputes Article 33 the meaning of Negotiation is the same as in domestic law. It is a preferred mode and third party intervention is not nee

Nature and categorization of law, NATURE AND CATEGORIZATION OF LAW: He...

NATURE AND CATEGORIZATION OF LAW: Here the term "law" has no consigned meaning.  It is utilized in a variety of senses.  Nonetheless different writers have bond to explain the

Notice of resignation, Notice of resignation: Regarding clause (e) abo...

Notice of resignation: Regarding clause (e) above, it was held in Latchford Premier Cinema Co. V Ennion that a verbal notice of resignation which is given to, and is accepted

What are the elements in the tort of negligence, What are the elements in t...

What are the elements in the tort of negligence? There should be two elements, in tort as: a. The breach of legal duty or injuria. b. Loss suffered through defendant damn

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