Theobald , Business Law and Ethics

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".

Posted Date: 1/15/2013 2:39:04 AM | Location : United States







Related Discussions:- Theobald , Assignment Help, Ask Question on Theobald , Get Answer, Expert's Help, Theobald Discussions

Write discussion on Theobald
Your posts are moderated
Related Questions
RULE IN FOSS v HARBOTTLE:  What has come to be recognized in company law as "the rule in Foss v Harbottle" is the decision of Vice-Chancellor Wigram in the case of Foss v Harb

"Detriment" as consideration  An example of a 'detriment' that will legally suffice like the consideration for a promise is provided with the case of Carlill v. Carbolic Smoke

Qualification Shares: S.183(1) provides that it shall be the duty of every director who is by the articles of the company required to hold a specified qualification, and who i

3 ways in which the restaurant can engage in socially responsive activities in the community within which it operates.

It has been estimated that about 6,000 phoenix companies operate in Australia, costing government and the community hundreds of millions of dollars per year and impacting on indi

how can a receiving order be rescinded?

Partnership Property Partnership property comprises all property originally brought in the partnership as well like acquired for the purposes of such the firm's businesses. Th

I have a contract for employment, its is for a CTO position, giving me equity stake in the company, I do not agree with the offer and I have a counter offer, I need a experts opini

QUESTION 1 Describe the Public Procurement Legal Framework of Mauritius QUESTION 2 Explain the following, within the meaning of the Competition Act: a. collusive agreem

Powers: The ultra vires doctrine limits a company's powers to the attainment of the company's objects under its  memorandum of association. Partnerships are not  affected by t