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CHAPTER 16
AUDITORS

2. They must acquaint themselves with their duties as set out in the articles and the Companies Act.(7)
If payments are made or sums borrowed by the company, the auditors should see that they are authorised and made in accordance with the articles and the Act. (8)
" When it is shown that audited balance sheets do not show the true financial condition of the company, and that damage has resulted, the onus is on the auditors to show that this is not the result of any breach of duty on their part."

3. They must satisfy themselves that the securities of the company in fact exist and are in safe custody.
This duty is discharged by their making a personal inspection of the securities in question. If, however, the securities are in the possession of a person who in the ordinary course of his business keeps securities for his customers, e.g., a banker, and that person is regarded as trustworthy, the auditors may safely accept his certificate that the securities are in his custody.

In re City Equitable Fire Znsce. Co., Ltd., [1925] Ch. 407. The auditor accepted the certificate of the company's stockbrokers that they held securities on the company's behalf. In fact they did not hold the securities, and the company suffered heavy loss. Held, by Romer, J., the auditor was negligent, as he should have inspected the securities and either insisted on their being put in proper custody or reported the matter to the shareholders. (10)
4. They must check the cash in hand and also the balance at the bank, by inspecting the pass book or obtaining a certificate from the bank. (11)
5. They are not concerned with the policy of the company or whether the company is well or ill managed.
" It is no part of an auditor's duty to give advice, either to directors or shareholders, as to what they ought to do. An auditor has nothing to do with the prudence or imprudence of making loans with or without security. It is nothing to him whether the business of a company is being conducted prudently or imprudently, profitably or unprofitably. It is nothing to him whether dividends are properly or improperly declared, provided he discharges his duty to the shareholders." (12)
6. They are under no duty to take stock.
This is part of the wider question of the auditors' duty as to the valuee of the assets.

7 Republic of Bolivia Exploration Syndicate, [1914] 1 Ch. 139.
8 See Thomas v. Devonport Corpn., [1900] 1 Q. B. 16.
9 Per Astbury, J., [1914] 1 Ch, at p. 173.
10 The Court of Appeal expressed no concluded opinion on this point.
11 Fox v. Morrish, Grant & Co. (1918), 35 T. L. Y. 126.
12 Per Lindley, L.J., in In re London and General Bask (No. 2), [1895] 2 Ch. at p. 682.

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where is HTML where is HEAD where is TITLE 2. They must acquaint themselves with their duties as set out in what is articles and what is Companies Act.(7) If payments are made or sums borrowed by what is company, what is auditors should see that they are authorised and made in accordance with what is articles and what is Act. (8) " When it is shown that audited balance sheets do not show what is true financial condition of what is company, and that damage has resulted, what is onus is on what is auditors to show that this is not what is result of any breach of duty on their part." 3. They must satisfy themselves that what is securities of what is company in fact exist and are in safe custody. This duty is discharged by their making a personal inspection of what is securities in question. If, however, what is securities are in what is possession of a person who in what is ordinary course of his business keeps securities for his customers, e.g., a banker, and that person is regarded as trustworthy, what is auditors may safely accept his certificate that what is securities are in his custody. In re City Equitable Fire Znsce. Co., Ltd., [1925] Ch. 407. what is auditor accepted what is certificate of what is company's stockbrokers that they held securities on what is company's behalf. In fact they did not hold what is securities, and what is company suffered heavy loss. Held, by Romer, J., what is auditor was negligent, as he should have inspected what is securities and either insisted on their being put in proper custody or reported what is matter to what is shareholders. (10) 4. They must check what is cash in hand and also what is balance at what is bank, by inspecting what is pass book or obtaining a certificate from what is bank. (11) 5. They are not concerned with what is policy of what is company or whether what is company is well or ill managed. " It is no part of an auditor's duty to give advice, either to directors or shareholders, as to what they ought to do. An auditor has nothing to do with what is prudence or imprudence of making loans with or without security. It is nothing to him whether what is business of a company is being conducted prudently or imprudently, profitably or unprofitably. It is nothing to him whether dividends are properly or improperly declared, provided he discharges his duty to what is shareholders." (12) 6. They are under no duty to take stock. This is part of what is wider question of what is auditors' duty as to what is valuee of what is assets. 7 Republic of Bolivia Exploration Syndicate, [1914] 1 Ch. 139. 8 See Thomas v. Devonport Corpn., [1900] 1 Q. B. 16. 9 Per Astbury, J., [1914] 1 Ch, at p. 173. 10 what is Court of Appeal expressed no concluded opinion on this point. 11 Fox v. Morrish, Grant & Co. (1918), 35 T. L. Y. 126. 12 Per Lindley, L.J., in In re London and General Bask (No. 2), [1895] 2 Ch. at p. 682. 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 182 where is strong CHAPTER 16 AUDITORS where is p align="justify" 2. They must acquaint themselves with their duties as set out in what is articles and what is Companies Act.(7) If payments are made or sums borrowed by what is company, what is auditors should see that they are authorised and made in accordance with what is articles and what is Act. (8) " When it is shown that audited balance sheets do not show what is true financial condition of what is company, and that damage has resulted, what is onus is on what is auditors to show that this is not what is result of any breach of duty on their part." 3. They must satisfy themselves that what is securities of what is company in fact exist and are in safe custody. This duty is discharged by their making a personal inspection of what is securities in question. If, however, what is securities are in what is possession of a person who in what is ordinary course of his business keeps securities for his customers, e.g., a banker, and that person is regarded as trustworthy, what is auditors may safely accept his certificate that what is securities are in his custody. In re City Equitable Fire Znsce. Co., Ltd., [1925] Ch. 407. The auditor accepted what is certificate of what is company's stockbrokers that they held securities on what is company's behalf. In fact they did not hold what is securities, and what is company suffered heavy loss. Held, by Romer, J., what is auditor was negligent, as he should have inspected what is securities and either insisted on their being put in proper custody or reported what is matter to what is shareholders. (10) 4. They must check what is cash in hand and also what is balance at the bank, by inspecting what is pass book or obtaining a certificate from what is bank. (11) 5. They are not concerned with what is policy of what is company or whether what is company is well or ill managed. " It is no part of an auditor's duty to give advice, either to directors or shareholders, as to what they ought to do. An auditor has nothing to do with what is prudence or imprudence of making loans with or without security. It is nothing to him whether what is business of a company is being conducted prudently or imprudently, profitably or unprofitably. It is nothing to him whether dividends are properly or improperly declared, provided he discharges his duty to what is shareholders." (12) 6. They are under no duty to take stock. This is part of what is wider question of what is auditors' duty as to what is valuee of what is assets. 7 Republic of Bolivia Exploration Syndicate, [1914] 1 Ch. 139. 8 See Thomas v. Devonport Corpn., [1900] 1 Q. B. 16. 9 Per Astbury, J., [1914] 1 Ch, at p. 173. 10 what is Court of Appeal expressed no concluded opinion on this point. 11 Fox v. Morrish, Grant & Co. (1918), 35 T. L. Y. 126. 12 Per Lindley, L.J., in In re London and General Bask (No. 2), [1895] 2 Ch. at p. 682. where is Server.Execute("_SiteMap.asp") %

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