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Summarise the fundamental aspects of the duty owed by the auditor to the client, as expressed in each of the following cases. a) Donoghue vs

Summarise the fundamental aspects

of the duty owed by the auditor to the

client, as expressed in each of the

following cases.

a)Donoghue vs Stevenson [1932]

AC 562

b)Candler vs Crane Christmas & Co

[1951] All ER 426

c)Hedley Byrne & Co Ltd vs Heller &

Partners Ltd [1963] 2 All ER 575

d)Pacific Acceptance vs Forsyth [1970]

92 WN (NSW)

e)Yue Xiu Finance Co Ltd & Another vs

Dermot Agnew & Others, formerly t/a

Deloitte Haskins and Sells (a firm) &

Another [1996] 1 HKLR 137.

Briefly comment on the following

questions or statements.

a)It seems that every time a legal

challenge is made to an audit, auditors

either lose the audit or are

embarrassed about the facts uncovered

during the audit.

b)Is it possible to audit a company's

financial report if top management

decides to be dishonest with the

auditor?

c)Can financial reports be in accord

with the Approved Malaysia Accounting

Standards and not be fair?

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