https://www.taxtmi.com/caselaws?id=101311 An auditor must exercise reasonable skill and care, but is not required to begin with suspicion or act as a detective. On the facts presented, selective verification, confirmation of debts, and scrutiny of documents were treated as proper audit methods, and the alleged warning signs were not enough to put the auditors on inquiry. The plaintiffs also failed to prove that any breach caused recoverable loss: alleged damage to reputation, goodwill, business, and tax-related loss was not shown to flow from the audit, and the tax settlement was unconnected to the auditors' conduct. The commentary therefore states that liability depends on both negligent breach and causally proved loss. en-us Thu, 24 Oct 1985 00:00:00 +0530 Thu, 09 Feb 2012 13:13:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101311 An auditor must exercise reasonable skill and care, but is not required to begin with suspicion or act as a detective. On the facts presented, selective verification, confirmation of debts, and scrutiny of documents were treated as proper audit methods, and the alleged warning signs were not enough to put the auditors on inquiry. The plaintiffs also failed to prove that any breach caused recoverable loss: alleged damage to reputation, goodwill, business, and tax-related loss was not shown to flow from the audit, and the tax settlement was unconnected to the auditors' conduct. The commentary therefore states that liability depends on both negligent breach and causally proved loss. Case-Laws Companies Law Thu, 24 Oct 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101311