Fundamentals of Auditing

Annexure A

Important Case Decisions

1. Allen Craig & Co. (London) Ltd. (1934)

   Subject: The company auditor's responsibility to submit the audit report of the company to the concerned officials.

   Fact: The company made a loss in each year of its existence, and there was as deficiency of assets to meet liabilities of over £40,000. In submitting the accounts for the year to 30th June 1924, the auditor sent a letter to the company drawing attention to the serious position of the company, this being quite apart from the normal audit report. In 1927, in submitting the accounts for the years to 30th June 1925 and 1926 respectively, the auditor sent further letters, showing that there was a deficiency as regards creditors of nearly £11,000.

   The Liquidator ...