Question
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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