P7 Chapter 2 Professional Responsibility and Liability (part 2) Professional liability

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  1. Avatar of adxax adxax says:
    November 26, 2012 at 7:54 pm

    the student asked what is the usefulness of an audit report to an individual shareholder if there is no duty of care to an individual shareholder. as if whats the basic point of an audit report if no one can question on its credibility…i do understand that the answer could have been unprofessional but that’s something i still would want to know as making it a secret makes it more interesting

  2. Avatar of adxax adxax says:
    November 26, 2012 at 7:14 pm

    i wouldn’t want to know the answer but now i am eager to know as it was something special

    • Avatar of MikeLittle MikeLittle says:
      November 26, 2012 at 7:45 pm

      @adxax, I have no idea what led up to my comment about “I’ll talk to you later” As previously posted, it could have been a little escape of unprofessional language but equally it could have been a really stupid question and I didn’t want to point out in a recording just what a stupid question it was.

      If anyone is interested, and if you’re prepared to listen all the way through again and post the question which prompted my comment, then do so and I’ll try to remember what I said to that particular student

      • Avatar of adxax adxax says:
        November 26, 2012 at 8:05 pm

        @MikeLittle, the student asked what is the usefulness of an audit report to an individual shareholder if there is no duty of care to an individual shareholder. as if whats the basic point of an audit report if no one can question on its credibility…i do understand that the answer could have been unprofessional but that’s something i still would want to know as making it a secret makes it more interesting

        • Avatar of MikeLittle MikeLittle says:
          November 26, 2012 at 8:26 pm

          @adxax, An audit report expresses the opinion of a ( very professional ) person in terms of “having carried out the audit on a test basis the reporting auditor has gained reasonable assurance that the financial statements are free from material misstatement whether arising through fraud, error or other irregularity”

          Now, I appreciate the difficulties for an auditor to be any more definitive than that and institutional investors will appreciate too that it’s impracticable ( and expensive ) if an auditor were to be more certain.

          But just how much reassurance does Joe Public get from reading that audit report?

          Mind you, I could extend that point and say “How much does Joe Public get from the Financial Statements as a whole?” or even the “Annual report which includes the Financial Statements and a whole lot of other information?”

          I don’t know! Do you?

  3. Avatar of affera affera says:
    October 16, 2012 at 12:38 am

    if i were actually sitting in the class, i would ask the same question!! and as a member of Opentuition i guess i deserve to know the answer…
    Mike that was so not ethical to say you will tell him the answer in private!

    • Avatar of affera affera says:
      October 16, 2012 at 12:53 am

      @affera, Sorry Mike, didn’t mean to be rude, you are my favourite teacher at OT!

      that kinda came out as of first reaction… now i realize we can’t edit or delete a comment here!!

      • Avatar of MikeLittle MikeLittle says:
        October 16, 2012 at 10:47 am

        @affera, Hi

        I don’t know what the question was – I don’t want to sit hear and listen to myself – it’s bad enough having to be there when I’m talking!

        Whatever the question was, it’s likely that I was going to use some “unprofessional language” in my reply and therefore did not wish to go public on it.

        But anyway, I have a very thick skin and “rudeness” tends to slide off me so don’t worry about it :-)

  4. Avatar of ashebir2 ashebir2 says:
    April 9, 2012 at 1:38 pm

    This lecture is very interesting & it has given me a profound knowledge
    about the auditor liability

  5. Avatar of jenellv jenellv says:
    February 28, 2012 at 6:17 pm

    To Mike:
    I would like to hear the answer to that question. I believe it is a pertinent question!!

  6. Avatar of bshariff bshariff says:
    August 25, 2011 at 8:17 am

    please elaborate more on this issue of proximity in regard to the Caparo case.

  7. Avatar of rickhitch rickhitch says:
    May 2, 2011 at 12:52 pm

    I would love to know what the view was on the usefulness of the audit report to an individual shareholder – interesting point!

  8. Avatar of Tendai Tracy Tendai Tracy says:
    March 7, 2011 at 10:40 pm

    very good.

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