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

Illustrate the example for policy convergence, Illustrate the example for P...

Illustrate the example for Policy Convergence Suppose there are two candidates, with known positions, policy proposal p A and policy proposal p B , representing policy offers

Complaints made against the auditors, Complaints made against the auditors:...

Complaints made against the auditors: These are the most simple principles that such have to be applied to cases of this description. I protest, however, against the notion

The acts of non-state actor, The acts of non-state actor More important...

The acts of non-state actor More importantly, the concept of non-state actor needs be discussed by the concept of state responsibility, that is to say how and to what extent a

Analyse and discuss to minority shareholders, "Within a company there are m...

"Within a company there are many areas of potential disagreement among members. As the range of potential disagreement is very broad, so also is the scope for exploitation and abus

Constructive notice - registered office, Doctrine of "Constructive Notice":...

Doctrine of "Constructive Notice":  The doctrine of "constructive notice" is a rule of company law to the effect that a person transacting business with a company is taken to

Values, V alues Basic convictions or beliefs which are specific beh...

V alues Basic convictions or beliefs which are specific behaviors and out- comes are more desirable compare to others. Values are judgmental in which they include our ideas

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

LAW-201, Ask questioMembers of Students for Fair Tuition (SFT) decide to pr...

Ask questioMembers of Students for Fair Tuition (SFT) decide to protest rising tuition costs at Gigantic State University (GSU) by taking over Dunfee Hall, the location of GSU pres

Discuss the sources of the mauritian law, QUESTION 1 Discuss the source...

QUESTION 1 Discuss the sources of the Mauritian law QUESTION 2 (a) Tom, Pim and Pam enter into a lease agreement. The agreement has already been signed by Pim and Pam.

Define the term- international implications of enforcement, Define the term...

Define the term- international implications of enforcement Agencies cooperate over time, they converge towards common principles that might then serve as the foundation for the

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