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

Liability based definition of phoenix activity, Q. Liability based definiti...

Q. Liability based definition of phoenix activity? The definition used by Treasury, and used as a working definition for this project, focuses on the intent with which phoenix

Chairman - meetings and resolutions, PROXIES - meetings and resolutions: ...

PROXIES - meetings and resolutions: By S.136(1), any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint one more person (

Determine the expansionary monetary policy, Determine the expansionary mone...

Determine the expansionary monetary policy The possible spillover effects associated with expansionary monetary policy. In particular with fixed exchange rates expansionary mon

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

Realization of auditors, Realization of Auditors: it is a mere truism ...

Realization of Auditors: it is a mere truism to say that the value of loans and securities depends on their realization.  We were told that a statement to that effect, is so u

Market failures in the financial services industry, Question: State whe...

Question: State whether the following statements are TRUE, FALSE or UNCERTAIN. Briefly (two or three paragraphs) give reasons for your answer. (a) There are no market fail

Creation of a legally binding contract, Question 1: Define and explain ...

Question 1: Define and explain the essential conditions for the creation of a legally binding contract. You may attempt this question in French. Question 2: "Law is

Jurisdiction over your company, a) Determine which forum(s) Purchaser could...

a) Determine which forum(s) Purchaser could file her lawsuit in.   Personal Jurisdiction, b)  If Purchaser were to file in CA, could she formed specific jurisdiction over you

Termination of an offer - revocation, Termination of an Offer - Revocation ...

Termination of an Offer - Revocation Such offer is "revoked" whether the offeror changes his thinking and withdraws it as for expressly or impliedly.  However to be valid suc

All spark-producing devices, Mrs. Rusholme occupied the firm of Saunders an...

Mrs. Rusholme occupied the firm of Saunders and Watts to refinish floors in assured rooms of a home owned by her and her husband in Red Deer, Alberta. She told Mr. Saunders that sh

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