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Who Left the Gates Unlocked? Reconciling the Duties of Auditors and Company Directors

Ang Cheng Hock & Kenneth Lim Tao Chung

(2008) 20 SAcLJ 171

Abstract:
In the context of annual statutory audits required of companies, this article explores the duty of care of statutory auditors, the standard of care expected of statutory auditors, causation, and the contributory negligence, if any, of the company’s own directors and officers in failing to detect or prevent cases of fraud. This article considers these questions in light of two recent decisions of the Singapore Court of Appeal, and highlights key conclusions as well as unresolved issues that will be of interest not only to legal scholars and practitioners, but also to members of the accounting profession and company directors.