Fraudulent concealment of a book, Business Law and Ethics

Fraudulent concealment of a book:

Hence it is nothing to him where dividends are properly or improperly declared, and provided he discharges his own duty to the shareholders.  In fact his business is to ascertain and state the true financial position of the company at the time of the audit, and his duty is confined to that.  But still then comes the question, that how is he to ascertain that position?  Therefore the answer is, regarding to examining the books of the company.  Further he does not discharge his duty by doing this without including inquiry and without including take any trouble to see that the books themselves show the company's true position.  Hence he must take reasonable care to ascertain that they do so.  Except he does this his audit would be worse than idle farce. 

Assuming the books to be so kept as to show the company's true financial position, the auditor has to frame a balance showing that position according to the books and to certify that the balance sheet represented is correct in that sense. Therefore his first responsibility is to examine the books, not merely for the purposes of ascertaining what they do show, but also for the purposes of satisfying himself that they show the true financial position of the company.......  An auditor, conversely is not bound to do more than exercise reasonable care and skill in making inquiries there, and investigations.  However he is not an insurer; he does not guarantee that the books do correctly show the true position of the company's affairs; he does not even guarantee that his balance sheet is accurate according to the books of the company.  Whenever he did so, he would be responsible for error on his part, even whether he were himself deceived without any want of reasonable care on his part, speak through the fraudulent concealment of a book from him.  So his obligation is not so onerous as this.

Posted Date: 1/15/2013 2:37:42 AM | Location : United States







Related Discussions:- Fraudulent concealment of a book, Assignment Help, Ask Question on Fraudulent concealment of a book, Get Answer, Expert's Help, Fraudulent concealment of a book Discussions

Write discussion on Fraudulent concealment of a book
Your posts are moderated
Related Questions
QUESTION a) How is the term "investor" defined in the Investment Promotion Act? b) In what ways can the Board of Investment (BOI) assist in business facilitation and Public-Pr

Reports and balance sheets: The reports and balance sheets for the years ending June 30, 1925, and, June 30, 1926, were signed by two directors.  The reports annexed to these

A company seeing the prevalence of HIV transmission due to unprotected sexual intercourse in a country and the societal norms preventing the open use of condoms sees an opportunity

QUESTION 1 (a) Briefly explain 4 functions involved in ensuring compliance with contract requirements (b) Explain how changes regarding variations and price adjustments are

Q. Show the Number of phoenix operators ? A key challenge in quantifying phoenix activity is estimating the number of companies engaging in the activity. In 2001/02, 1.6% of co

State about the Security Council of United Nations? The Security Council: The Security Council has main responsibility for the preservation of international peace and sec

Analyze the differences between a proposal and an invitation to treat and discuss the rules to determine the point of time on which an agreement is reached. Using the latest Malays

Subrogation - Void Contracts       However in Re National Permanent Benefit Building Society would the court stated that where an infant obtains a loan for necessaries and real

QUESTION 1 Your mother makes delicious cakes and your wife suggests the idea of setting up a business to market these products. The cakes will be prepared by your mother and a

What is the Flexible Exchange Rates With a fully flexible exchange rate adjustment toward the long run equilibrium occurs via a change in relative prices. This effect is shown