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The two cases that formed the basis for most subsequent decisions as to the determination of auditor negligence were: AWA and HIH. Caparo Industries and

The two cases that formed the basis for most subsequent decisions as to the determination of auditor negligence were:

AWA and HIH.

Caparo Industries and Esanda.

Pacific Acceptance and London and General Bank.

Kingston Cotton Mill and London and General Bank.

Match the case with the ruling, and choose the correct matching: Cases: Rulings:

Caparo Industries Pty Ltd v. Dickman A. An auditor is a watchdog, but not a bloodhound
Kingston Cotton Mill Co. B. Contributory negligence
AWA Ltd v. Daniels C. An auditors duty of care is owed to shareholders as a group, not to individual shareholders

A, B, C

B, C, A

C, A, B

A, C, B

The principles established by Justice Moffitt in the Pacific Acceptance case do not include:

auditors have a duty to use reasonable skills and care.

auditors must properly document procedures used.

auditors are watchdogs but not bloodhounds.

auditors must audit the whole year.

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