General

This query is : Resolved

Share Report Follow Query Ask a Query

Guest

Guest (Querist)

16 March 2010 Auditor is a watch dog not a blood hound?Plz rply meaning of above line

Rasesh

Rasesh (Expert)
Follow

17 March 2010 The reply is formed on the basis of information compiled from various sources:

In the famous case Re: Kingston Cotton Mills Co. (1896), Lord Justice Lopes defined an auditor's duty of care as follows:

"It is the duty of an auditor to bring to bear on the work he has to perform that skill, care and caution which a reasonably careful, cautious auditor would use. What is reasonable skill, care and caution must depend on the particular circumstances of each case. An auditor is not bound to be a detective, or, as was said to approach his work with suspicion, or with a forgone conclusion that there is something wrong. He is a watchdog, not a bloodhound. He is justified in believing tried servants of the company in whom confidence is placed by the company. He is entitled to assume that they are honest and rely upon their representations, provided he takes reasonable care."

In simple words: The auditor is a watchdog not a bloodhound. His limitations are just to warn you, like a watch dog when a stranger enter house of master he just barks & get it to the notice of his master than some unknown has entered the house. The dog do not start biting the stranger. It is the duty of the owner to take action.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

CA. Urmila Mahalwal

Dalbir Singh Wadhera

Rajesh

RAGHUNATH KASIBHOTLA

SARAVANAN PALANISAMY

Subscribe Now

General

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

Article Assistant

GST CONSULTANCY

GST CONSULTANT