Article Abstract:
Two rulings in 1997 on auditors' liability for negligent misrepresentation in their reports on audited financial statements have sparked debates among public accountants, plaintiffs and others in Canada. For their part, securities regulators are also looking for ways to include 'continuous disclosure' documents as auditors' liability. The cases of Kripps v Touche Ross & Co and Hercules Management Ltd v Ernst & Young have several implications on auditors' liability. The court ruled in the Kripps case that there was a misunderstanding of the role of generally accepted accounting principles in the presentation of financial statements. In Hercules, the court ruled that auditors owe a prima facie duty of care to a corporation's shareholders who suffered losses after relying on the audited financial statements and that some types of claims against auditors can only be brought by the corporation itself.
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Article Abstract:
The problems faced by accountants working in countries such as Russia with emerging markets are discussed, with focus on dealing with specific issues not covered by standards, for example, accounting for bartered transactions.
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Article Abstract:
Issues surrounding the provision of consultancy services to audit clients by small UK accountancy firms are discussed, with focus on how their clients value their advice and are not concerned about auditor independence.
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