Wednesday, April 22, 2009

DECEIVED BY AUDITORS

In Caparo Industries PLC v Dickman (1990)the Company's accounts were audited in accordance with the Company's Act 1985.Some members decided to purchase more shares and take over the Company after seeing the accounts.The accounts turned out to be inaccurate.The members incurred a huge financial loss,which they blamed on the negligently audited accounts.They sued.The Court held that the onus was clearly on the shareholders in these circumstances to make their own independant inquiries,as it was unreasonable to rely on the auditors.Vijay- The Midnight Owl.

Advice from Uncle VJ- If the person before you seems to be overly persuasive or the documentation presented appears neat and perfect-pause.Something is wrong somewhere.

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Kuala Lumpur, Selangor, Malaysia
Origin- Penang.Came to KL in 80's to study theology.Threw away my religious books after 4 years to read Law.