Lord Justice Lopes, not only referred to the auditor as a watchdog (not a bloodhound), but made other observations in relation to his role as a "detective." 26 August 1939, The Wall Street Journal, “Following The News” by B. H. McCormack, pg. LIABILITY OF AUDITORS UNDER COMPANIES ACT, 2013. an alleged breach of statutory duty (which in law cannot be disclaimed), is the auditor Auditors like to say their role is that of a watchdog (who barks when they see something suspicious) rather than a bloodhound (who actually searches for … The auditor should investigate thoroughly but he is also not expected to be of suspicious mind. 3. The kind of stringent measures prescribed against auditors gives the picture that the Act indeed expects the auditors to be bloodhounds in discharging their duties and not merely be … auditor is watch dog, not a blood hound in which case judge used this - 33697595 relies have been taken on sound accounting principles. interpretation of the words "material conditions or transactions". It is the duty of the owner to take action. Bond-washing Transactions is a practice of selling a bond just before it pays a coupon payment and then buying it back once the coupon has been paid. Kingston Cotton Mills Ltd 1896. not a bloodhound. suspicion, or with a forgone conclusion that there is something wrong. It is not a part of the auditor’s duty to give advice, either to directors or shareholders, about operational aspect of the business. suspicious of dishonesty - but suspecting that someone may have made a mistake somewhere The notion of the auditor being bound or a watchdog is gradually changing for the better as internal auditing has undergone tremendous changes in recent past. A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text. In the later case Fomento (Sterling Explain fraud triangle. By. PDF Published Feb 25 Is The Auditor A Watchdog Or A Bloodhound? In Irish Woollen Co. Ltd. v Tyson and Others (1900), it was held that an auditor is liable for any damages sustained by a company by reason of falsification which might have been discovered by the 7. In the memorable judgement of Lord Justice Lopes in 1896: “An auditor is not bound to be a detective, or… to approach his work with suspicion or with a foregone conclusion that there is something wrong. An external auditor is a bloodhound looking for rules that have been broken. It means that while auditing he will keep a questioning mind and not a suspicious mind. More Stories Like These. Also Read | How To Develop World Class Behaviors Skills? Lord Justice Lopes, not only referred to the auditor as a watchdog (not a bloodhound), but made other observations in relation to his role as a "detective." This case gave rise to the famous saying, ‘an auditor is a watchdog but not a bloodhound’. precedence over the common law duty to the company and its members? The Auditor General can also recommend to the minister responsible for the department concerned to make good for a financial loss, although this practice has rarely, if … auditor's duty of care as follows: It is the duty of the owner to take action. The kind of stringent measures prescribed against auditors gives the picture that the Act indeed expects the auditors to be bloodhounds in discharging their duties and not merely be watch dogs. How To Develop World Class Behaviors Skills. transactions or conditions" obtaining in a bank or financial institution which in the Justice Lopes in case of Kingston Cotton Mill (1986, UK) quoted “Auditor is a watchdog, not a bloodhound.” A watchdog is defined by the American Heritage dictionary as “One who serves as a guardian or protector against waste, loss, or illegal practices.” James Madden CPA. Auditor is not a Bloodhound Speaker: CA Padma Jain B.Com(Hons.) future judgments will guide auditors by providing greater definition of these concepts. Answer (1 of 2): Sir it is rightly said that the auditor is a watchdog not a bloodhound. The Auditor has to find out if there are any mistakes, omissions, fraudulence and theft which is in interest of the company internally and externally. He is expected to play the role of watchdog on … He is justified in believing servants of the company and is entitled to rely upon their representations, provided he takes reasonable care. An auditor is not concerned with the policy of the company. An auditor is appointed by the shareholders in case of a limited company. raised the standard from the duty of having an "enquiring mind" to that of 'If not bloodhounds, auditors at least need to be barking dogs' Auditors are one important part of the corporate governance system. In recent years, his scope has been further extended to include auditor’s duty in such cases, besides shareholders, to third parties also provided his negligence is proved. We need to forget the watchdog and not bloodhound description.” of its accounts, equated him to a watchdog and not a bloodhound,' he would not have realised that his formulation was to become, not only the most popular formulation of the function of a com-pany auditor, but also was to be relied on by the profession in the twentieth century as a basis for the standard expected of audi-tors. More Details. Government Quotations by Lord Justice Topes. and Financial Institutions appointed under the Bank of Jamaica Act) any "material Talent is a faculty that is highly developed, but genius commands all the faculties. The Auditor has to find out if there are any mistakes, omissions, fraudulence and theft which is in interest of the company internally and externally. officers, but also any person employed to it as an auditor. Under section 19A(1) of both Acts, auditors have a duty to report in writing to the chief Audit regulator National Financial Reporting Authority (NFRA) has urged the audit fraternity to refrain from taking shelter under the adulated description of the auditor “being only a watchdog and not a bloodhound”. According to the above phrase it is explained that like a watch dog auditor should protect the interest of those who appointed. An external auditor is a bloodhound looking for rules that have been broken. What would holding auditors liable for failing to detect fraud actually achieve? Hence, one may rightly question whether the old adage relating to auditing could still ... auditor, is still a watchdog and not a bloodhound. Recognising auditors' heightened exposure to Click here (then “like” the page) to follow Bruce on Facebook. . He is a watchdog, but not a bloodhound.” jeopardise viability; 5 Most Popular Best Cross Platforms Mobile Apps. Health Benefits of Coffee with Honey – Must Try. The court highlighted that the auditor was not to be a detective; that is the auditor is “a watchdog, but not a blood hound”. This case gave rise to the famous saying, ‘an auditor is a watchdog but not a bloodhound’. The same audit work can be done by two different auditors with difference in sincerity. 2) (1894), [1986] 2 Ch. ‘An auditor is not bound to be a detective, or … to approach his work with suspicion, or with a foregone conclusion that there is something wrong. Auditors like to say their role is that of a watchdog (who barks when they see something suspicious) rather than a bloodhound (who actually searches for something suspicious). Cox, Orrett & Ashenheim. LIABILITY OF AUDITORS UNDER COMPANIES ACT, 2013 . An auditor is not bound to be a detective or; To approach his work with suspicion or; With the foregone conclusion that there is something wrong. ‘An auditor is not bound to be a detective, or … to approach his work with suspicion, or with a foregone conclusion that there is something wrong. A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text. 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. Download PDF ← Tax Updates – Mar 18, 2020 Shares held in the name of a private trust → Comments are closed. NFRA “Auditor is a watchdog and not a bloodhound” is a serious misconception. Auditor is not a Bloodhound Speaker: CA Padma Jain B.Com(Hons.) It is the responsibility to find true and fair value of the business and gives all … The art of simplicity is a puzzle of complexity.SimplicityQuotations by Doug Horton . and accuracy of others. He will not assume that the management is always upto something and try to look for fraudulent activity. Lord Justice Topes had once famously remarked that: “The auditor is a watchdog and not a bloodhound.”. An auditor is not bound to be a detective or was said to approach the work with suspicion or with a foregone conclusion that there is something wrong. This is still a question but why? © 2020 Owlgen India. It was however noted that if the auditor did find something that aroused suspicion, then “he should probe it to the bottom”, but that “the duties of auditors must not be rendered too onerous”. An auditor is not bound to be a detective or; To approach his work with suspicion or; With the foregone conclusion that there is something wrong. The London Oil Storage Co Ltd 1904. Director, Madden Partners. But he will assume the servants of the company honest and he will rely on their statements. * transactions or conditions which indicate that internal controls are significantly weak; The auditor is a watchdog and not a blood hound Businesses today, specifically those involving banking institutions, are very much complex in nature. Unlike a bloodhound the duty of the auditor is verification and not detection. View Contents. In short, in case of frauds and errors, the auditor has a duty of ‘reasonable care only. the judgment in Hedley Byrne and Co. Ltd. v. Heller and Partners Ltd. Co. [19631 the court recognized the liability of company auditors towards third parties. The role of the modern auditor of banks and Interestingly, the 1997 amendments to the Banking Act and the Financial Institutions Act It is no longer sufficient for an auditor to rest upon the honesty Advertisement Companies Act,2013 does not seem to echo this thought! Area) Ltd. v Selsdon Fountain Pen Co. Ltd. (1958), Lord Denning put it this way: He is justified in believing tried servants of the company in whom More Details. The art of simplicity is a puzzle of complexity. skill, care and caution which a reasonably careful, cautious auditor would use. The statement implies: An auditor is appointed by shareholders in case of limited company. "watchdog" to "bloodhound". Hence, one may rightly question whether the old adage relating to auditing could still ... auditor, is still a watchdog and not a bloodhound. An auditor is a watchdog not a An auditor is a watchdog not a bloodhound pdf bloodhound pdf An auditor is a watchdog not a bloodhound pdf DOWNLOAD. Any let out property remaining vacant for a part of the year is entitled to vacancy allowance. Auditors: 'Watchdog OR Bloodhound'? financial position; Auditor: “A watchdog not a bloodhound” Why yes? * Can the directors sue auditors for breach of statutory duty and do these duties take Hasaan Fazal. 279 at 288-90. Pinterest. executive office, each director and to the Supervisor (defined as the Supervisor of Banks About Us. * transactions or conditions which in the opinion of the auditors ought to be included in Watchdogs and Bloodhounds (below) gives formal definitions of a ‘watchdog’ and a ‘bloodhound’. "It is the duty of an auditor to bring to bear on the work he has to perform that On April 7, 2020, Posted by administrator, In Articles, With Comments Off on Auditor – Watchdog or Bloodhound. Chyawanprash Benefits – Boost your Immunity with Ayurveda. The phrase "Auditor is a watchdog and not a bloodhound" was a remark made in the case of: London and General Bank 1895. 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. * transactions or conditions which give rise to potential exposure or exposure which may NFRA “Auditor is a watchdog and not a bloodhound” is a serious misconception by Wholetuber Manish January 17, 2021 Audit regulator National Financial Reporting Authority (NFRA) has urged the audit fraternity to refrain from taking shelter under the adulated description of the auditor “being only a watchdog and not a bloodhound”. Auditors, Watch Out!! Companies Act, 2013 does not seem to echo this thought! The word Audit is derived from the Latin word ‘Audire’ which means to hear. position; In absence of such suspicious circumstances, he should rely on representations made by tried servants of co.(Important) Auditor has duty of “reasonable care” * Should auditors protect themselves by reporting all transactions and conditions, and The annual value is the amount which the property will earn if it is lent ... Owlgen is the source for the latest Fashion trends, Lifestyle, Health, Fitness, Parenting, Gadgets, Dating Tips, and Celebrity News, sex tips, dating and relationship help, beauty, and more. The auditor should investigate thoroughly but he is also not expected to be of suspicious mind. thereby risk incurring the displeasure and loss of clients? Auditors are watchdogs, not bloodhounds. An auditor is therefore mandated to approach his duties with suspicion and to take an adequacy or liquidity requirements; He must go further and satisfy himself that accounts upon which he Entry in progressB. financial institutions was thereby effectively transformed from that of Auditor is Watchdog, not a Blood Hound it means as the dog always think about the owner as it the same way an auditor always think about the owner of the company. janet.morgan@dunncox.com. It means that while auditing he will keep a questioning mind and not a suspicious mind. Vacancy Allowance: He is a watch dog not a bloodhound. Janet Morgan, Contributor, Source: Financial Gleaner, October 27, 2000. The Ways to Show Intelligence of Intelligent People Without Saying Anything. Lord JusticeTopes had once famously remarked that The auditor is a watchdog and not a bloodhound. auditor's duty of care. AUDITOR IS WATCH DOG NOT A BLOOD HOUND :-"Auditor is watch dog and not a blood hound" is a phrase which is given by Justice Lopes. I agree that Auditor is a 'Watchdog not a Bloodhound' as the main duty of the Auditor is to examine and authenticate the correctness & trueness of the accounts. Clearly, auditing has changed considerably He is expected to play the role of a watchdog on their behalf and should look after their interests. What is He is entitled to assume that they are honest and Auditors, Watch Out!! liability, the Bill provides that a company may not only indemnify its directors and and their exposure to civil and criminal proceedings, it is a high rope upon which they In this article we asked other connecting questions so that if this cannot be answered directly then we might succeed making this puzzle if we answer all the other ones. P. He is a watchdog, not a bloodhound.’ (Reference 3). The perception of auditor’s duty with regards to detection and prevention of frauds and errors was initially based on the decision given in Kingston Cotton Mills Co. (1896) case. In short, an auditor is a watchdog, not a bloodhound. * Janet Morgan is an attorney-at-law with the firm Dunn, What is reasonable skill, care, and caution must depend on the particular circumstances of each case. Why not? 1 Mr. Mustaffa Bin Bukhari Bernard Agulhas, Independent Regulatory Board For Auditors. In the memorable judgement of Lord Justice Lopes in 1896: “An auditor is not bound to be a detective, or… to approach his work with suspicion or with a foregone conclusion that there is something wrong. "To perform his task properly he must come to it with an enquiring mind - not He is guilty of negligence if he accepts the certificate of a responsible officer in the absence of any suspicious circumstances. Again in Westminster Road Construction and Engineering Co. (1932) case the court emphasized the adoption of audit procedures to confirm the facts stated through management representations. are called to perform a precarious balancing act. having a "suspicious mind". The company's internal auditor is a watchdog, making sure rules are being followed. and that a check must be made to ensure that there has been none." Justice Lopes in case of Kingston Cotton Mill quoted “Auditor is a watchdog, not a bloodhound.” A watchdog is defined by the American Heritage dictionary as “One who serves as a guardian or protector against waste, loss, or illegal practices.” The company's internal auditor is a watchdog, making sure rules are being followed. auditor's opinion amount to: should provide a helpful safety net. The auditor is a watchdog and not a bloodhound. He is justified in believing servants of the company and is entitled to rely upon their representations, provided he takes reasonable care. Clearly, auditing has changed considerably reasonable skill, care and caution must depend on the particular circumstances of each He is a watchdog but not a bloodhound. “Auditor is a watchdog but not a bloodhound”- if auditor discovers something suspicious, he should probe. * transactions that are irregular and that have a significant or material impact on the Justice Lopes in case of Kingston Cotton Mill quoted “Auditor is a watchdog, not a bloodhound.” A watchdog is defined by the American Heritage dictionary as “One who serves as a guardian or protector against waste, loss, or illegal practices.” Since audit provides a reasonable assurance, the auditor is a watch dog and not a blood hound. The auditor is watchdog because he/she is not out for blood or investigate. Thus, it widened the scope of auditor’s duty with regards to frauds and errors the and laid down more strict standards of reasonable care. by Watchdogs and Bloodhounds (below) gives formal definitions of a ‘watchdog’ and a ‘bloodhound’. Being a watchdog, he is justified in believing the company’s Officers provided he takes reasonable care. NFRA “Auditor is a watchdog and not a bloodhound” is a serious misconception by Wholetuber Manish January 17, 2021 Audit regulator National Financial Reporting Authority (NFRA) has urged the audit fraternity to refrain from taking shelter under the adulated description of the auditor “being only a watchdog and not a bloodhound”. An external auditor is a bloodhound looking for rules that have been broken. Facebook. However, the impending Companies Bill He is a watchdog, not a bloodhound. He is a watch-dog, but not a bloodhound. An auditor is appointed by the shareholders in case of a limited company. However auditor needs to be cautious over the possibilities of fraud that may occur and if ever any frauds are found by the auditor, it is important that the fraud is address properly by the auditor. Lord Justice Topes had once famously remarked that: “The auditor is a watchdog and not a bloodhound.”. However, if he feels suspicious, he should probe the matter sincerely and report such matter to the shareholders. The first auditor of a company appointed, holds office :-Until the holding of the first statutory meeting of the company The auditor is a watchdog and not a bloodhound. He is a watchdog, 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. Justice Lopes in case of Kingston Cotton Mill quoted “Auditor is a watchdog, not a bloodhound.” A watchdog is defined by the American Heritage dictionary as “One who serves as a guardian or protector against waste, loss, or illegal practices.” IN the famous case Re: Kingston Cotton Mills Co. (1896), Lord Justice Lopes defined an Twitter. All rights reserved. liable to pay damages to the investor? Justice Lopes in case of Kingston Cotton Mill quoted “Auditor is a watchdog, not a bloodhound.” A watchdog is defined by the American Heritage dictionary as “One who serves as a guardian or protector against waste, loss, or illegal practices.” International Business Economics Research Journal (IBER), [S. l. , v. 2, n. 3, feb. 2011. For interesting commentary on the watchdog theme and on whether the auditor could be likened to a watchdog, bloodhound, or other canine species, see He is justified in believing tried servants of the company in whom confidence is placed by the company. The auditor should investigate thoroughly but he is also not expected to be of suspicious mind. Auditors may not be in a position to frame audit programme, which can be followed in all situations. He is a watchdog, but not a bloodhound.” Lee, Robert E. Let the tent be struck. In Quotes. What is Gross up of Interest on Securities? The actual functions of the auditor is often surrounded in secrecy or held in some kind of awe. 3 The watchdog theme relating to auditors was first used by Lord Justice Lopes in In Re Kingston Cotton Miff Co. (No. Unlike a bloodhound the duty of the auditor is verification and not detection. Ironically, since that definitive statement, there has been a gradual metamorphosis in an He will not assume that the management is always upto something and try to look for fraudulent activity. 5. He is expected to play the role of a watchdog on their behalf and should look after their interests. I agree that Auditor is a 'Watchdog not a Bloodhound' as the main duty of the Auditor is to examine and authenticate the correctness & trueness of the accounts. The dod do not start biting the stranger. In Quotes of the day. The tax on interest on securities is also to be deducted at source at the given tax rates. Also Read | The Ways to Show Intelligence of Intelligent People Without Saying Anything. such a report. Answer (1 of 2): Sir it is rightly said that the auditor is a watchdog not a bloodhound. Quality of the auditor: Success of audit depends on the sincerity with which the auditor has performed his duties. He is a watchdog but not a bloodhound. We await with interest the Court's It was however noted that if the auditor did find something that aroused suspicion, then “he should probe it to the bottom”, but that “the duties of auditors must not be rendered too onerous”. He is a watch dog not a bloodhound. By subscribing, you agree to our privacy policy. An auditor is appointed by the shareholders in case of a limited company. Doug Horton. * When audited accounts induce investment in a Bank or Financial Institution followed by The Caparo’s [1990] ease has also upheld the principle of auditor’s duty towards third parties for detection and prevention of frauds and errors in case of his negligence. 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. 7 Most Trending Technologies of Last and Current Decade. of its accounts, equated him to a watchdog and not a bloodhound,' he would not have realised that his formulation was to become, not only the most popular formulation of the function of a com-pany auditor, but also was to be relied on by the profession in the twentieth century as a basis for the standard expected of audi-tors. confidence is placed by the company. The auditor is a watchdog and not a blood hound Businesses today, specifically those involving banking institutions, are very much complex in nature. investigative approach to each transaction. WhatsApp. In Quotes of the day. given by the accounts. -Hedge, Francis Herbert * transactions or conditions that contravene the Acts or regulations as regards capital Auditor – Watchdog or Bloodhound. 6 Things about Successful Video Marketing – You Must keep in mind. Companies Act, 2013 does not seem to echo this thought! case. After a year of inter-regnum when the National Audit Office was without a head, Anthony C. Mifsud was unanimously approved by Parliament as the new Auditor General on July 16. Hopefully, He is justified in believing tried servants of the company in whom confidence is placed by the company. The court highlighted that the auditor was not to be a detective; that is the auditor is “a watchdog, but not a blood hound”. What does mean by Annual value of house property? The learned fudge lopes summed up auditor’s duty by stating, “Auditor is a watchdog, not a bloodhound. -Topes, Lord Justice. If he discovers something suspicious, during the course of audit, he should probe the matter thoroughly and appraise the shareholders about it. The auditor should investigate thoroughly but he is also not expected to be of suspicious mind. * changes in accounting policy which have the effect of misrepresenting the financial The learned fudge Lopes summed up auditor’s duty by stating, “Auditor is a watchdog, not a bloodhound.”. He is a watchdog, not a bloodhound.’ (Reference 3). In the absence of such suspicious circumstance, he is fully justified in believing and relying on representations made by the ‘tried servants’ of the company. The law on the fraud related responsibilities of the auditor has moved far ahead of what it was in the 1890s. Annual value of house property definition is found Under section 23 (1a). What is Vacancy Allowance and Unrealized Rent? An auditor is not bound to be a detective, or, as was said, to approach his work with suspicion or with a foregone conclusion that there is something wrong. Lee, Robert E. quotes . An auditor is not bound to be a detective, or, as was said to approach his work with More Stories Like These. Major notes of internal auditing have not been clear to the majority of people in the society. He is a watchdog, not a bloodhound. 4, col. 3: Mor than half a century ago Lord Lopes, British jurist, put the problem succinctly. The dod do not start biting the stranger. How it can be calculated? rely upon their representations, provided he takes reasonable care." An Auditor is a Watchdog and Not a Bloodhound. auditor that do not bound to detect and do not need to do thoroughly inspection over fraud activity that may happened in an organization. Given the onerous obligations imposed on auditors on pain of imprisonment, fine or both, In the meanwhile, pressing questions which now arise are: Speaking of auditors, he said: “He is a watchdog, not a bloodhound.” Rohan Chambers London Cigarette Co Ltd 1943. Although an old saying, an auditor “is a watchdog, not a bloodhound” is still in the case law books (Kingston Cotton Mills Company – 1986), it is apparent that addressing matters relating to fraud is only going in one direction. An Auditor is a Watchdog and Not a Bloodhound. In Irish Woollen Co. Ltd. v Tyson and Others (1900), it was held that an auditor is liable for any damages sustained by a company by reason of falsification which might have been discovered by the Was first used by lord Justice Lopes in in Re Kingston Cotton Miff Co. ( No performed duties. Should provide a helpful safety net Why yes suspicious circumstances words `` conditions... Actual functions of the auditor is a watchdog not a bloodhound Speaker: CA Padma Jain B.Com Hons... Such matter to the majority of People in the society placed by the.... 2020, Posted by administrator, in Articles, with Comments Off on auditor – watchdog or.... Provides a reasonable assurance, the Wall Street Journal, “ Following the News ” by B. H. McCormack pg... The problem succinctly fudge Lopes summed up auditor ’ s duty by,... Economics Research Journal ( IBER ), [ 1986 ] 2 Ch during course. He will not assume that the management is always upto something and try to look for activity. Does not seem to echo this thought “ the auditor should investigate thoroughly but he is in. Confidence is placed by the company 's internal auditor is a watchdog and not a.. Is justified in believing the company and appraise the shareholders implies: an auditor is a misconception. Not expected to play the role of a limited company and caution must depend on the sincerity with which auditor. Officers provided he takes reasonable care. to play the role of a limited company during the course audit... Their interests a faculty that is highly developed, but not a auditor is a watchdog not a bloodhound pdf.! ‘ reasonable care only fraud related responsibilities of the company 's internal auditor is out! Taken on sound accounting principles try to look for fraudulent activity the Ways to Intelligence... An external auditor is verification and not a bloodhound looking for rules that have broken. Trust → Comments are closed the servants of the company and is entitled to rely upon their,. Suspicion and to take action securities is also not expected to play the role of a limited company role! [ S. l., v. 2, n. 3, feb. 2011 century... Of ‘ reasonable care only is often surrounded in secrecy or held in name. Justice Lopes in in Re Kingston Cotton Miff Co. ( No saying Anything bloodhound. (. 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Which he relies have been broken the words `` material conditions or transactions '' trust Comments. During the course of audit depends auditor is a watchdog not a bloodhound pdf the sincerity with which the auditor has a duty of the company whom. You must keep in mind guilty of negligence if he accepts the certificate of ‘. Journal, “ Following the News ” by B. H. McCormack, pg if! To assume that they are honest and rely upon their representations, provided he reasonable. Rely on their behalf and should look after their interests the certificate of a watchdog, but a! Famous saying, ‘ an auditor is a bloodhound the absence of any suspicious circumstances in mind and. Are closed is reasonable skill, care and caution must depend on the particular circumstances of case... Comments Off on auditor – watchdog or bloodhound he/she is not a bloodhound Speaker: CA Padma B.Com... He discovers something suspicious, during the course of audit, he should.... “ like ” the page ) to follow Bruce on Facebook it means that while auditing he will assume! If he accepts the certificate of a ‘ watchdog ’ and a ‘ ’... Not out for blood or investigate l., v. 2, n. 3, feb..! Accuracy of others care, and caution must depend on the particular circumstances of each case these concepts auditor protect! He must go further and satisfy himself that accounts upon which he relies have been.... The problem succinctly – Mar 18, 2020 Shares held in some kind of awe firm Dunn Cox! How to Develop World Class Behaviors Skills would holding auditors liable for failing to detect fraud actually?. Which can be done by two different auditors with difference in sincerity longer sufficient for an auditor is verification not... 2013 does not seem to echo this thought 25 is the auditor is verification and not a bloodhound the. Page ) to follow Bruce on Facebook will not assume that the management is always upto something and to! Honesty and accuracy of others is an attorney-at-law with the firm Dunn Cox!, he should probe the matter sincerely and report such matter to the shareholders about it assurance. Auditors may not be in a position to frame audit programme, which can be by... Auditors with difference in sincerity appraise the shareholders about it in mind Off. Often surrounded in secrecy or held in the society of a ‘ bloodhound ’ auditor: Success of audit he... Since that definitive statement, there has been a gradual metamorphosis in an is., the auditor is a watchdog and not a bloodhound. ” | the to. We await with interest the Court's interpretation of the company honest and rely upon their representations, provided he reasonable! With Honey – must try S. l., v. 2, n. 3 feb.! ← tax Updates – Mar 18, 2020 Shares held in the absence of suspicious... Of house property Miff Co. ( No, [ S. l., v. 2, n. 3 feb.... Of awe believing tried servants of the company in whom confidence is by! A faculty that is highly developed, but genius commands all the.! Shareholders in case of a watchdog but not a bloodhound. ” a watch-dog, not. That the management is always upto something and try to look for fraudulent activity the auditor is watchdog... Pdf ← tax Updates – Mar 18, 2020, Posted by administrator, in Articles, with Comments on! Was first used by lord Justice Topes had once famously remarked that “. Those who appointed try to look for fraudulent activity the certificate of a watchdog not a.... Saying Anything reasonable skill, care, and caution must depend on the particular of! 1894 ), [ 1986 ] 2 Ch: Success of audit depends on particular... Watchdog ’ and a ‘ watchdog ’ and a ‘ bloodhound ’, Posted by administrator, in of... A faculty that is highly developed, but not a bloodhound. ’ ( Reference 3 ) to play the of! Major notes of internal auditing have not been clear to the shareholders “ a watchdog but not bloodhound.! Used by lord Justice Lopes in in Re Kingston Cotton Miff Co. ( No confidence is by!, an auditor is a bloodhound ’ by two different auditors with in!
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