Professional Liability of Accountants and Auditors
Article Abstract:
In order to reduce the risk of claims against practicing chartered accountants in the United Kingdom, areas of common trouble and suggestions for protection are outlined. Negligence is defined and defenses needed pointed out. Letters to document the scope of responsibilities contracted between the accountant and the client are discussed. The extent of liability to the client and to a third party is pointed out according to different cases. excluding or restricting liability in several instances is discussed. Giving advice with incomplete information is a practice more commonly expected of accountants, as are forecasts of future success. Protective measures are listed to limit liability under these circumstances. Also included are liabilities incurred through specialist's advice, accountant's inclusion on a document developed by the client, and responsibilities concerning receiverships, trust, and secretarial work. A list of conclusions in included.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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Law at PE I: Perpetuities, Accumulations
Article Abstract:
A trust can be used to further the undesirable objectives by giving property to trustees and postponing for a long period the time when the property becomes owned by the beneficiaries and by giving property to trustees and vesting it in the beneficiaries but without giving them the power to dispose of their interest in a perpetual trust. To prevent this, the common law devised two rules. The trust must vest within a period of some life in being at the date when the trust takes effect plus twenty-one years and a private trust is void if it lasts for a period in excess of some life in being at the start of it plus twenty-one years. The income is said to be accumulated when it is reserved for the benefit of some person in the future. A direction to accumulate income beyond a permitted period but within the perpetuity period, is not totally void. It is only void as to the excess over a permitted period.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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Law at PE I: Duration of Partner's Liability
Article Abstract:
Students of law at PE I are often writing their law paper on the topic concerning liability of a retiring partner in a firm. According to the Partnership Act of 1890, a partner is generally only liable for debts and obligations incurred while he was a partner. However, subsections of the Partnership Act of 1980 point out exceptions and clarifications of that general rule. A variety of cases tried on the basis of this Act are included to illustrate these subsections. Examples are also used to clarify the legal issues.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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