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?