Negligence Flashcards
(7 cards)
1
Q
Auditors = “watchdogs not bloodhounds”; reasonable care and skill required
A
Re Kingston Cotton Mill Co (1896)
2
Q
Highlighted the auditor’s duty to verify the physical existence of distant assets
A
McKesson & Robbins (1938)
3
Q
Auditors must supervise, report issues, and not over-rely on mgmt in cases of fraud
A
Pacific Acceptance Corp v Forsyth (1970)
4
Q
Auditor failed on causation of loss (no causation)
A
Cambridge Credit (1985)
5
Q
No liability without proven reliance
A
Esanda v Peat Marwick (1997)
6
Q
Succeeded in 4 elements for negligence
A
Twomax v Dickson (1983)
7
Q
Auditor failed to act on red flags (negligence)
A
R v McKinnon (1998)
