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

Describe the social conditions of multiple streams, Describe the Social con...

Describe the Social conditions of multiple streams Social conditions that are not defined as problems, and for which alternatives are never proposed, never become policy issues

How an offer differ from an invitation to treat, Question 1: Write brie...

Question 1: Write brief notes on the following contractual terms:- (a) How an offer differ from an invitation to treat. (b) The principles governing goods wh

Theobald , Theobald: Conversely there such I take to be the duty of th...

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, reason

What are the disadvantages of delegated legislation, What are the disadvant...

What are the disadvantages of delegated legislation? Disadvantages of delegated legislation: • The delegated body that is responsible for the legislation is not represent

Presumed agency or from cohabitation, Presumed Agency or from Cohabitation ...

Presumed Agency or from Cohabitation Whether a woman who is living with a man is deemed that  be his agent for purposes of acquire necessaries to the family; marriage is not n

Meaning of public, Meaning Of "Public":                    For the pur...

Meaning Of "Public":                    For the purposes of the prospectus issue the word "public" is declared by S.57 (1) to include "any section of the public, whether selec

Lifting the veil under case law, Lifting the veil under Case Law:     ...

Lifting the veil under Case Law:                  Numerous English cases have been variously classified by English writers as instances of "lifting the veil of  incorporation"

Discuss about the inflationary bias in the economy, Discuss about the infla...

Discuss about the inflationary bias in the economy As the costs are lower, there is a greater incentive for the government to expand the money supply. Agents perceive this and s

Explain the term - policy change, Explain the term - Policy change The ...

Explain the term - Policy change The role of the policy entrepreneur has several implications for our understanding of the policy process. While social scientists often look to

Explain unsc resolution 1624 and when it is passed, Explain UNSC Resolutio...

Explain UNSC Resolution 1624  and when it is passed The most-recent such resolution is UNSC Resolution 1624 passed in the year 2005. It states: "1. Calls upon all States to

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