Abstracts » Business

Auditors in court: lessons from the case of Littlejohn

Article Abstract:

The case of Lloyd Cheyham Ltd. v. Littlejohn & Co. has important implications for the legal liability of auditors in Great Britain. The plaintiff in this case maintained that it lost money on an investment because the defendant did not accurately assess the financial condition of the investment. The auditing firm maintained that it followed proper standards when conducting the audit. The court ruled in favor of the defendant because the accounting methods used were consistent with current standards of practice.

United Kingdom, Auditing, Judicial opinions, Great Britain, Littlejohn and Co., Lloyd Cheyham Ltd.

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Wrong again!

Article Abstract:

Issues concerning the legal implications for accountants who give bad advice are discussed. Examples are given of claims made against accountants who gave poor advice on tax and other financial matters and who failed to report satisfactorily on their professional clients.

Tax consultants, Malpractice

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Routes to court

Article Abstract:

Guidance on accountants' liability is presented. The responsibility of auditors to report a case of suspected fraud at a senior level in a company, or to exercise their right to resign, is examined.

Practice, Fraud, Employee discipline

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