Duty and definition
Article Abstract:
Changes in the determination of third-party liabilities of accountants as reflected in key cases are discussed. The decision reached on the Candler v Crane Christmas and Co case in 1951, suggesting that accountants had responsibility not only to their employers and clients but also to third parties who will rely on the accounts, marked the initial step in widening accountants' duties. Moreover, the verdict arrived at on the Hedley Byrne and Company Ltd case against Heller and Partners Ltd expanded auditors' liabilities to non-trust and non-contractual dealings in instances when they ought to have known that third parties will rely on the accounts. However, judgment reached at the landmark Caparo Industries PLC case versus Dickman reversed the trend. It was decided that accountants would have duty of care only when it is established that they have knowledge of third parties' reliance.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Time to take the bull by the horns
Article Abstract:
The UK auditing profession must be responsive to the problems arising from the expectations gap, the gap in the perception of what audited financial statements promise and what they actually offer to interested publics. The courts have broadened the range of financial statement users to whom auditors owe a duty to, and there is a growing emphasis on the demands of users which the auditing profession cannot ignore. The problems arising from the expectation gap will be ameliorated by the new standard-setting apparatus that has been implemented: more effective regulations will reduce the chance of abuse. Auditors themselves should undertake a review of their profession to create a statement of legal responsibilities, and there should be a review of the profession's ethical code.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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The trouble with rules
Article Abstract:
The accountancy profession has rules to ensure its effective operation, but in addition to these there also needs to be acceptance of the principles that underpin the regulations.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2000
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