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

What are parliamentary procedures for passing legislation, What are parliam...

What are parliamentary procedures for passing legislation? Parliamentary procedure for passing legislation: A statute can simply be part of law while this has passed the

Determine the mean, A strong and fair health care system Today, I deli...

A strong and fair health care system Today, I delivered on my commitment to have a judicial inquiry into allegations of queue jumping in our health care system. The governm

Company law, # difference between variation of class right and variation of...

# difference between variation of class right and variation of enjoyment

Evaluate nature of phoenix activity, Q. Evaluate nature of phoenix activity...

Q. Evaluate nature of phoenix activity? The literature on phoenix activity and the stakeholders consulted in this project emphasised that phoenix activity has evolved significa

Breach of the rtl code, Question Note the behaviour of all parties wi...

Question Note the behaviour of all parties with respect to the Mitchell Jones scenario which is (or could potentially be) a breach of the RTL Code and why you believe the beh

Explain the steps in the decision-making process, Question 1: Describe ...

Question 1: Describe in what ways Henry Mintzberg, Kotler, Luthans and Stewart have identified the roles and skills of a manager? Question 2: Show how Maslow's hierarch

Ratification of corporate acts, Ratification of Corporate Acts: A numb...

Ratification of Corporate Acts: A number of English cases which are regarded as instances of lifting the veil are those relating to informal ratification by the members of act

Employment relations tribunal, QUESTION 1 Explain the composition and f...

QUESTION 1 Explain the composition and functions of the following institutions- (i) Employment Relations Tribunal (ii) Commission for Conciliation and Mediation QUEST

Restatement of the fundamental rule, Restatement of the fundamental rule: ...

Restatement of the fundamental rule: In Bray v Ford Lord Herschell stated that the aforesaid rule is not "founded upon principles of morality" but is based on the consideratio

The employment rights act provides, QUESTION The Employment Rights Act ...

QUESTION The Employment Rights Act provides- No employer shall terminate a worker's agreement for reasons related to the worker's misconduct unless the worker has been affor

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