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
Describe the principal-agent framework In standard principal-agent framework an agent may be directed to maximize an objective function which may or may not be different from

Distribution of Surplus Assets: If the debts are paid in full the liquidator should apply what remains in repayment of capital paid on shares and then distribute any residue t

Question 1: (a) What do you meant by the term misconduct in employment law. How does the English definition of misconduct differ from the French definition of misconduct? (b

Recommendations for addressing phoenix activities Over the past two decades there have been a significant range of proposals for addressing phoenix activity. Most of these opt

QUESTION (a) What is a contract and what are the elements of a valid and enforceable contract according to English Law? (b) List down 5 main documents which form part of a b

Estate Planning Case Study Rich and his wife, Ruby, heard that you are an expert in the field of Estate Planning as a result of the superior education you received at WPU.  The

One of the critical tasks we have as empirical political scientists is to assess the validity of the comments people around us make about the socio-political world. For this assign

Explain the principle of absolute immunity The absolute immunity principle gradually eroded and restrictive immunity approach was followed. However, many developing countries r

1. set outs the differences between the reports in terms of range of issues dealt with in the report and the depth of the coverage. 2. Explain the differences between the two repor

John owns a 1951 Mercedes Sl that he wishes to sell. He instructs Ross to sell the car, and in return, will be paid £5,000 commission. Ross manages to find a buyer, Paul, Paul and