Kingston cotton mill co case of 1896

An auditor must act with reasonable suspicion aka professional skepticism. The duties of auditors must not be rendered too onerous. It is no longer sufficient for an auditor to rest upon the honesty and accuracy of others.

re Kingston Cotton Mill Company (No.2) (1896)

The appeal will be allowed. It is said that it is easy to be wise after the event. Hopefully, future judgments will guide auditors by providing greater definition of these concepts. I agree that the section does not apply to all cases in which actions will lie by the company for the recovery of damages against the persons named; it is easy to imagine cases of breach of contract, trespasses, negligence, or other wrongs to which the section is inapplicable, and some such have been the subject of judicial decision; but I am not aware of any authority to the effect that the section does not apply to the case of an officer who has committed a breach of his duty to the company, the direct consequence of which has been a misapplication of its assets, for which he could be made responsible by an action at law or in equity.

It will be convenient to dispose of the second point first. To substitute the one expression for the other may easily lead to serious error. In the stock-in-trade was valued at 21,l.

REASONABLE CARE AND SKILL — THE MODERN SCOPE OF THE AUDITOR’S DUTY

Kingston Mill was about m east of Mersey Square. On May 12,The Woolen Mill was declared an historic building.

re Kingston Cotton Mill Company (No.2) (1896)

This was so, even though it appeared that the sale price was calculated on the basis of the value of the properties that was misunderstood by all concerned. We await with interest the Court's interpretation of the words "material conditions or transactions".

Kingston Cotton Mill

When may this summary procedure be adopted? It is an example of the problems which can arise with football clubs owned by limited companies, where some small shareholders see the club as essentially a community enterprise, and other more commercially-minded shareholders are concerned with what they see as underused premises ripe for profitable redevelopment.

At the end of it was raised to 29,l. One of the questions argued was that, even if the auditors had committed a breach of duty in not attempting to examine the correctness of the manager's figures, the remedy should be by action and not by a summary proceeding under s.

In the meanwhile, pressing questions which now arise are: A legal judgement that ruled in favour of a company's auditors, that they are meant to carry out the role of "watchdogs", rather than "bloodhounds", and thus cannot be liable for any wrongdoings which they had no reason to suspect were taking place.

The role of the modern auditor of banks and financial institutions was thereby effectively transformed from that of "watchdog" to "bloodhound". He must rely on other people for details of the stock-in-trade on hand.

The appeal is based on two grounds, namely-- 1. I think the auditors were justified in this case in relying on the honesty and accuracy of Jackson, and were not called upon to make further investigation., p.

5; October 10,p.

Duties of auditors, Business Law and Ethics

8) and at least one mill was completed; the Eagle Cotton Mill was located on the eastern side of the River Hull a little to the south-west of the Hull Flax and Cotton Mill (map held by Humberside County Council Archaeology Unit).

At the time of the Kingston Cotton Mills case init was considered appropriate for an auditor to rely on the representations of management.

However, by the midth century this was no longer considered adequate, as was stated in Thomas Gerrard & Son, indicating that reasonable care and skill changes over time%(3).

Kingston Mill, Stockport is a mid nineteenth century cotton spinning mill in Edgeley, Stockport, Greater Manchester. It was taken over by the Lancashire Cotton Corporation in the s and passed to Courtaulds in Production finished, it. In the case In Re Kingston Cotton Mill (No 2) [] 2 Ch it was famously pointed out that, “an auditor is a watchdog not a bloodhound and should not approach his work with suspicion or a foregone conclusion that there is something wrong.” This should not suggest a lax approach to auditing because the courts have generally favoured a.

case. Money laundering – the difference between low risk and simplified due diligence Nicky Swaisland provides clarification on common misinterpretation around due diligence in relation to money laundering.

Exposure Draft of update to Practice † Kingston Cotton Mills(). Erected on 'Farm Lot A' on a bank of the Cataraqui River known as the 'Inner Harbour', it functioned as a cotton mill for the Kingston Cotton Manufacturing Company, until about 50 years later when the City of Kingston purchased the property, intending for it to run as a woolen mill instead, under lease of the Hield Bros.

of England.

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Kingston cotton mill co case of 1896
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