ABSTRACT
This chapter defines the legal limitations of an auditor’s duty and responsibility. An auditor’s duties are too multifarious to be bounded by statutory restrictions or legal limitations. With his thorough knowledge of accounts and the experience of men and affairs gained from his association with a large variety of businesses, he is frequently in a position to suggest improvements in administration, and even to give advice on matters of general policy which is entirely outwith the legal requirements of his position. The auditor is presumed to have knowledge of the provisions of the various Acts of Parliament affecting his particular duties, and the articles of association cannot absolve him from such obligations. It would appear that an auditor’s duties are completed when he has audited the accounts and sent his report to the registered office of the company. The liability of an auditor certifying the profits at the inception of a company is considerable.
