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Slides Royal Bank Geng Ajan Punye
Slides Royal Bank Geng Ajan Punye
Slides Royal Bank Geng Ajan Punye
The Pursuers' Pleading The Defenders Submissions Court Decision Subsequent Event
The Third Party Royal Bank of Scotland The Defender The Auditor of APC company
The First Party APC & APC Civil
Briefing Case
The Bank provided working capital to two companies (APC & Civil) in term of : 1 ) Lending Money to the companies through overdraft facilities and term loans 2 ) purchase shares in the APC
Referring The Audit Report prepared by the Auditor
The Auditor prepare a negligence Audit Report which expenses of the company had been capitalised. Subsequently, APC goes to receivership and the bank suffered the losses : the shares bought by the auditor have no value and the bank suffer cash losses up to 19,629,000 The Bank intend to sue the auditor regarding their losses
CASUAL RELATIONSHIP
DAMAGES
The Pursuers' Pleadings The auditor have a duty of care to prepare audit report to the plaintiff since they know that the company heavily reliant on its bank overdrafts with the plaintiff. The plaintiff require audit report before grant any bank overdrafts. The defenders staff, Mr Mc Mahon transferred some of the purchases and expenses of the company to the balance sheet item and the defender finalized their audit report after that.
CASUAL RELATIONSHIP
The auditor report that prepared by auditor is using by the plaintiff as references for the loan facilities.
DAMAGES
The plaintiff incurred loss. The plaintiff share in APC have no value and the plaintiff suffer cash losses up to 19,629,000
Subsequent Events :
Disclaimer Pharagraph should be add in the auditor s report The International Audit Standard subsequently changed too.
it is our responsible to form an independent opinion, based on our audit, on the financial statements and to report to you as a body in accordance with Section 174 of the companies Act 1965 and for no other purposes. We do not assume responsibility to any other person for the content of this report
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