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

Penalty for improper appointment, PENALTY FOR IMPROPER APPOINTMENT:  ...

PENALTY FOR IMPROPER APPOINTMENT:           S.161 (4) provides that if any unqualified person is appointed as auditor, the person appointed, the company and every officer i

Evaluate anti-discrimination law, As you think about the rights of workers ...

As you think about the rights of workers enhanced by anti-discrimination laws, have society and organizations become more tolerant and competitive due to less discrimination in the

Effects or consequences of illegality, Effects or Consequences of Illegalit...

Effects or Consequences of Illegality Misdemeanour Or Illegality renders a contract unenforceable.  However the contract creates no rights and imposes no obligations at the pa

Explain the elements necessary for formation of a contract, Question 1: ...

Question 1: List out and explain the elements necessary for the formation of a contract. Question 2: What are the advantages and disadvantages of choosing a company ov

Explain the meaning of the term reverse logistics, Question 1: (a) What...

Question 1: (a) What do you understand by the term Logistics Management? (b) What are the three types of costing which come under storage? (c) Explain the role of Public

Several rules for fraudulent trading, Several rules for Fraudulent trading:...

Several rules for Fraudulent trading: Various rules have been established to determine what is fraudulent trading: (a) Only persons who take the decision to carry on the co

Explain about the inflationary bias, Inflationary Bias Another potentia...

Inflationary Bias Another potential problem with the coordination of monetary policy is that it can worsen the inflationary bias within each country. If the costs associated wi

Duties of the principal - agency law, Duties of the Principal - Agency Law ...

Duties of the Principal - Agency Law However the duties of the principal for the agent are like: Remuneration Whether to pay the agreed commission where it becomes du

Companys debts, Companys debts: In case a company is unable to pay its...

Companys debts: In case a company is unable to pay its debts the creditors, or a creditor, may petition the High Court for an order to wind it up. During the winding up the me

State article 16 of international law, State Article 16 of international la...

State Article 16 of international law Article 16, states that a newly independent State is not bound to maintain in force, or to become a party to, any treaty by reason only of

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