Case B- Auditor Liability

Case B-Auditor LiabilityCase B -Auditor LiabilityQuestion 1Do you agree with the ruling in the Hercules counseling caseYes I agree with Supreme Court finish and the debate that the essence of audit reports is for shareholders to assess the performance of oversight . til now the distinction drawn by the court with respect to the purposes for which monetary statements are prepared is tenable . This is because one s investment cannot be used as one s oversight and evaluation of management s performance . Nevertheless , Hercules provides authoritative precedent for future courts to nullify a prima facie duty of care once schematic on the basis of policy . Hercules has however rendered future litigation useless and difficult to win by so doing .

The fiscal statement of a company is such a expert document which may be difficult to be soundless by the unprofessional shareholder and can only be dumb by minority shareholders who may therefore arrive upper hand over the other investors . Also soulfulness investor do not have all the time as to analyze this corporate disclosure documents including the financial statements which the Hercules had erred by use it as a standard for making their investment decision . Financial statement is such a complicated and sturdy to comprehend document which in most cases is best understood by the corporation and the auditor as well as the sophiscated few of the investors which the Hercules do not belong to . The lack of clearness in financial disclosure and the complexity of the principle...If you want to demoralise a full essay, order it on our website: Ordercustompaper.com

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