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

Financial year of holding company and subsidiary, Financial Year of Holding...

Financial Year of Holding Company and Subsidiary: S.153(1) provides that a holding company's directors shall ensure that, except where in their opinion there are good reasons

Functions of attorney general, Functions of Attorney general W...

Functions of Attorney general Whereas under sec 26(2) the Attorney General is the principal legal adviser for government of US And whereas he occupies a ministeria

Advantages of stare decisis - aptitude for growth, Advantages of Stare Deci...

Advantages of Stare Decisis - Aptitude for growth However process of 'distinguishing' cases facilitates the growth of detailed legal principles to deal by different factua

Show the suggested actions to address phoenix activity, Q. Show the Suggest...

Q. Show the Suggested actions to address phoenix activity? There have been a range of options identified by previous works on phoenix activity, such as the Cole Inquiry and Tre

Perpetual succession, Perpetual Succession:                      Accor...

Perpetual Succession:                      According to the Concise Oxford Dictionary, "perpetual" means, inter alia, "applicable, valid, for ever or for indefinite time " wh

Three main categories of international humanitarian laws, There are three m...

There are three main categories of international humanitarian laws: 1) The Hague conventions 2) The Geneva conventions 3) The additional protocols

Creditors voluntary winding up, CREDITORS' VOLUNTARY WINDING UP: If no...

CREDITORS' VOLUNTARY WINDING UP: If no declaration of solvency is made and delivered to the registrar, the liquidation process is a creditors' voluntary winding up even if i

Business and company law, ali send an offer to bakar on 13/9/2010 by fax.on...

ali send an offer to bakar on 13/9/2010 by fax.on 14/9/2010 ali change his mind and revoke the offer by fax unfortunately bakar''s fax machine not working and ali call for bakar. b

District magistrate''s court - civil jurisdiction, District Magistrate's Co...

District Magistrate's Court - Civil Jurisdiction Conversely the civil jurisdiction of the district magistrate's courts in claims not below customary law was changed through St

Exercising international rights and duties, Q. Exercising international rig...

Q. Exercising international rights and duties? Laws are the finest creation of human mind. They are intended not only to regulate our conduct and therefore our lives, but they

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