Q4"Auditor is a watch dog, not a Blood
hound" in which case Judge used these
words
ఏ కేసులో జ, ఈ వాక్యాలను అన్నారు "ఆడిటర్
జాగరూక శునకమే గాని జాగిలము కాదు"
Answers
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Explanation:
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. The learned fudge Lopes summed up auditor’s duty by stating, “Auditor is a watchdog, not a bloodhound.”
Answer:
The Kingston Cotton Mill Company caseIn the Kingston Cotton Mill Company case, Justice Lopes observed: “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. He is a watchdog, but not a bloodhound.
An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.
Explanation:
The perception of the 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. The learned fudge Lopes summed up the auditor's duty by stating, “Auditor is a watchdog, not a bloodhound.”
Many companies view auditing as a necessary regulatory evil and an unnecessary cost to be minimized. 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).
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. He is a watchdog, but not a bloodhound. He is justified in believing tried servants of the company in whom confidence is placed by the company.
The audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organization.