Case B- Auditor Liability

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

The financial statement of a company is such a adroit document which may be difficult to be noneffervescent by the unprofessional shareholder and can only be dumb by minority shareholders who may therefore scram upper hand over the other investors . Also individual 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 determination . Financial statement is such a complicated and intrepid to comprehend document which in most cases is best silent 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 limpidi ty in financial disclosure and the complexit! y of the principle...If you want to demoralise a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay