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Procedures or practices that were identified in the ruling

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Reference no: EM13510765

Question 5.

A. Explain the impact that the Pacific Acceptance case had on existing auditing practice.

B. List four of the procedures or practices that were identified in the ruling as being part of a competent audit.

Question 6.

Match the case with the ruling:

Cases:   Rulings:

Caparo Industries Pty Ltd v. Dickman

Duty of Care owed to third parties in the absence of a contract where the plaintiff has suffered physical injury

Kingston Cotton Mill Co.

The standards for an auditor's level of skill and care are more exacting today than in 1896

Segenhoe Ltd v. Akins & Ors

Third party liability for auditors under the tort of negligence

AWA Ltd v. Daniels

An auditor's duty of care is owed to shareholders as a group, not to individual shareholders

Donoghue v. Stevenson

An auditor is a watchdog, but not a bloodhound

Twomax Ltd v. Dickson, McFarlane & Robinson

Contributory negligence

Pacific Acceptance Corporation Ltd v. Forsyth

Auditors are liable for any dividends paid out of capital due to auditor negligence

Reference no: EM13510765

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