AUDITOR BLAMED

Feilding Star, Volume 6, Issue 1354, 14 March 1928, Page 5

AUDITOR BLAMED

MOTOR comranvs sriT (Per Press Association) Christchurch. .March 13. An unusual cast' was heard in the Supreme Court to-day by Mr Justice Adams. The Todd -Motor Company, following thefts from it hv an accountant. sued Aruthur R. Gray tor fUJH. alleging that he was the eompany’s auditor and was negligent in not; discovering the iln'lts. Ihi statement of claim set out that Uncompany employed Urey to audit its books and accounts and he continued to do so until April. 1327. On March ,31. 1327. the company discovered that

moneys hurt been stolen by an account anf named Aitchison. During the whole of the time Gray was the

company’s auditor he was nogligoul, failing to exercise ordinary skill and

eare and to discover tlie thefts. Tho defence was a denial ol the allegations.

It \v:is stilt('(l 1 1 v counsel lor plaintili tliat (no accountant made use ol £”80 worth of bills apparently in circulation but really paid off. Cray had accepted Ihe accountant's statement without, check. Counsel contended it was the auditor's duty to verify the

assets and that Cray’s failure to do

this amounted to negligence. After the evidence for the plaintiff was heard, the ease was adjourned until to-morrow.