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Guest
Guest
(Querist)
16 March 2010
Auditor is a watch dog not a blood hound?Plz rply meaning of above line
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.
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.
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