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CHAPTER 16
AUDITORS

are entitled to require from the officers of the company such information and explanation as they think necessary for the performance of their duties. They also have the right to attend any general meeting of the company and to receive the same notices of general meetings as the members, and to be heard at any general meeting on any part of the business which concerns them as auditors (s. 162 (4)).
Duties of Auditors.-The auditors are servants of the company and not of the directors. In carrying out their duties they must act honestly, and with reasonable care and skill. Their duties may he summarised as follows:
1. They must ascertain and state the true financial position of the company, as shown by the books of the company.
It will be noted that the duty is to state the company's true financial position. If, therefore, the books are so kept as not to show this the auditors must report accordingly.

" The duty of an auditor " is " not to confine himself merely to the task of verifying the arithmetical accuracy of the balance sheet, but to enquire into its substantial accuracy and to ascertain that it ... was properly drawn up, so as to contain a true
and correct representation of the state of the company's affairs."(5)

The words " as shown by the books of the company " are only introduced to relieve the auditors from responsibility for things not in the books, and concealed from them. (6) It may be that entries in or omissions from the books ought to make the auditors suspicious. In such a case they must make full investigations into the suspicious circumstances, but they are not liable for " not tracking out ingenious and carefully laid schemes of fraud when there is nothing to arouse their suspicion."

In re City Equitable Fire Insce. Co., [1925] Ch. 407. B. was the managing director of the company and the senior partner of E. & Co., stockbrokers. E. & Co. owed £250,000 to the company, but on February 27, just before the close of the financial year, E. & Co. bought Treasury Bills for £200,000 and credited the company with them, thus reducing their debt to £50,000. The company's balance sheet accordingly showed an investment in Treasury Bills for £200,000, and a debt from E. & Co. for £50,000. On March 3, after the close of the financial year, E. & Co. sold the Treasury Bills and became debtors again for £250,000. This was done for three successive years. Held, although the transactions, when isolated, should have led the auditors to conclude that fraud had taken place, yet as they formed only one item in a large audit, there was no negligence on the part of the auditors.

5 Per Stirling, J., in Leeds Estate Co. v. Shepherd (1887), 36 Ch. D. 787.
6 In re London and General Bank (No. 2), [1895] 2 Ch. 673.

travel books:
where is HTML where is HEAD where is TITLE are entitled to require from what is officers of what is company such information and explanation as they think necessary for what is performance of their duties. They also have what is right to attend any general meeting of what is company and to receive what is same notices of general meetings as what is members, and to be heard at any general meeting on any part of what is business which concerns them as auditors (s. 162 (4)). Duties of Auditors.-The auditors are servants of what is company and not of what is directors. In carrying out their duties they must act honestly, and with reasonable care and s what time is it . Their duties may he summarised as follows: 1. They must ascertain and state what is true financial position of what is company, as shown by what is books of what is company. It will be noted that what is duty is to state what is company's true financial position. If, therefore, what is books are so kept as not to show this what is auditors must report accordingly. " what is duty of an auditor " is " not to confine himself merely to what is task of verifying what is arithmetical accuracy of what is balance sheet, but to enquire into its substantial accuracy and to ascertain that it ... was properly drawn up, so as to contain a true and correct representation of what is state of what is company's affairs."(5) what is words " as shown by what is books of what is company " are only introduced to relieve what is auditors from responsibility for things not in what is books, and concealed from them. (6) It may be that entries in or omissions from what is books ought to make what is auditors suspicious. In such a case they must make full investigations into what is suspicious circumstances, but they are not liable for " not tracking out ingenious and carefully laid schemes of fraud when there is nothing to arouse their suspicion." In re City Equitable Fire Insce. Co., [1925] Ch. 407. B. was what is managing director of what is company and what is senior partner of E. & Co., stockbrokers. E. & Co. owed £250,000 to what is company, but on February 27, just before what is close of what is financial year, E. & Co. bought Treasury Bills for £200,000 and credited what is company with them, thus reducing their debt to £50,000. what is company's balance sheet accordingly showed an investment in Treasury Bills for £200,000, and a debt from E. & Co. for £50,000. On March 3, after what is close of what is financial year, E. & Co. sold what is Treasury Bills and became debtors again for £250,000. This was done for three successive years. Held, although what is transactions, when isolated, should have led what is auditors to conclude that fraud had taken place, yet as they formed only one item in a large audit, there was no negligence on what is part of what is auditors. 5 Per Stirling, J., in Leeds Estate Co. v. Shepherd (1887), 36 Ch. D. 787. 6 In re London and General Bank (No. 2), [1895] 2 Ch. 673. where is meta name="keywords" content="old books, Free book , free book offer , free audio books , free coloring book pages , free book reports , free audio book , audio books free download , book free , free guest book , books free , free book summaries , download free audio books , free childrens books." where is where are they now rel="stylesheet" type="text/css" href="../../style.css" where is meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" where is BODY bgColor=#ffffff text="#000000" where are they now ="#000000" v where are they now ="#FF0000" where is div align="center" where is strong where is strong where is a href="http://www.aaoldbooks.com" Books > where is a href="../default.asp" title="Book" Old Books > where is strong where is a href="default.asp" Poetry Northwest (1959) where is table width="700" border="1" align="center" cellpadding="15" cellspacing="0" where is center where is tr where is td width="160" align="center" valign="top" where is div align="center" where is td align="center" valign="top" where is div align="left" where is div align="center" where is p align="left" Page 181 where is strong CHAPTER 16 AUDITORS where is p align="justify" are entitled to require from what is officers of the company such information and explanation as they think necessary for what is performance of their duties. They also have what is right to attend any general meeting of what is company and to receive what is same notices of general meetings as what is members, and to be heard at any general meeting on any part of what is business which concerns them as auditors (s. 162 (4)). Duties of Auditors.-The auditors are servants of what is company and not of what is directors. In carrying out their duties they must act honestly, and with reasonable care and s what time is it . Their duties may he summarised as follows: 1. They must ascertain and state what is true financial position of what is company, as shown by what is books of what is company. It will be noted that what is duty is to state what is company's true financial position. If, therefore, what is books are so kept as not to show this what is auditors must report accordingly. " what is duty of an auditor " is " not to confine himself merely to what is task of verifying what is arithmetical accuracy of what is balance sheet, but to enquire into its substantial accuracy and to ascertain that it ... was properly drawn up, so as to contain a true and correct representation of what is state of what is company's affairs."(5) what is words " as shown by what is books of what is company " are only introduced to relieve what is auditors from responsibility for things not in what is books, and concealed from them. (6) It may be that entries in or omissions from what is books ought to make what is auditors suspicious. In such a case they must make full investigations into what is suspicious circumstances, but they are not liable for " not tracking out ingenious and carefully laid schemes of fraud when there is nothing to arouse their suspicion." In re City Equitable Fire Insce. Co., [1925] Ch. 407. B. was the managing director of what is company and what is senior partner of E. & Co., stockbrokers. E. & Co. owed £250,000 to what is company, but on February 27, just before what is close of what is financial year, E. & Co. bought Treasury Bills for £200,000 and credited what is company with them, thus reducing their debt to £50,000. what is company's balance sheet accordingly showed an investment in Treasury Bills for £200,000, and a debt from E. & Co. for £50,000. On March 3, after what is close of what is financial year, E. & Co. sold what is Treasury Bills and became debtors again for £250,000. This was done for three successive years. Held, although what is transactions, when isolated, should have led what is auditors to conclude that fraud had taken place, yet as they formed only one item in a large audit, there was no negligence on what is part of what is auditors. 5 Per Stirling, J., in Leeds Estate Co. v. Shepherd (1887), 36 Ch. D. 787. 6 In re London and General Bank (No. 2), [1895] 2 Ch. 673. where is Server.Execute("_SiteMap.asp") %

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