THE AUDIT OF PUBLIC COMPANIES BILL.

Otago Daily Times, Issue 11197, 20 August 1898, Page 7

THE AUDIT OF PUBLIC COMPANIES BILL.

The "New Zealand Insurance- and Finance Journal" has the following amusing yet withal trenchant criticism of the above bill: —

This bill places everything in the hands of the Governor-in-Council, The proposed Government auditor is to be licensed by him and is to hold office under his pleasure and with such powers and duties as the Governor-in-Courieil may determine. The proposed licensed valuer is to be also licensed by the Governor. The auditor's certificate's to be as prescribed by this act, '' prescribed" meaning prescribed by regulation under this act. These regulations (clause 15) may be made from time to time by the Governor-in-Council. The balance sheet is also to be in the " prescribed" form, and of course all balance sheets will require to be in the Governor's form whatever the character of the business may be, and the form by (clause 4—l) must include n ■"•full-account'of its receipts'and expenditure during its financial years"—that is, a copy or summary of its cash book, which is quite unimportant for balancing purposes, must accompany its balance sheet, together with such other particulars as may from time to time be prescribed. "Whilst a full account--of receipts and expenditure is thus made imperative, although unnecessary and undesirable, it would be sufficient under the bill to state only the nrofit and loss—that is, the balance only of the most vital account..

The Governor's balance sheet must be up to time and must be sent to the :GoArernment's Audit Office within 30 days from the end of the financial year. Verified by a statutory declaration from such responsible persons connected with the management of the company as1 may be "prescribed." An inspector under one act will be at hand to put down the tyranny of capital in insisting upon night work, and another under this act will require that such work be idone. The Audit Office then moves and causes such balance sheet to be audited with all convenient speed by a Government auditor. The bill of last year witheld from audit inspection any ledger which contained a record of. the private affairs of any other person unless under an order of a judge of the Supreme Court, and. ,as every ledger contains such records,' it would,follow that such an order would be requisite in almost every case. Now, however, it is proposed to enact that- the company shall furnish such books, vouchers, and documents as the Government auditor may require,.. and all ledgers and all private records will henceforth be, open to the Government auditor and practically the Government Audit Office. , The,i bill goes further and proyiiles, for,-{^penalty of £100, or three ..months' 'mv, prisonm l ent.. if any officer, or agent,.of ;t% company, refuses' to produce . them,..or,', to answer any -questions,; .and,.the.. Government auditors may .administer-.,.aii;,bath \, to any such officer, or „agent.'':.; ■[ ". ...' ". ■ . Now.comes in .the Governor'^ valuer at the instance of the auditor. His function is to ascertain, whether the value placed on the assets, as shown in the balance sheet, is correct, and he* shall forthwith :proceed to do so and to repdrt to the auditor. This other man is also' liable to a penalty of £100, with or without imprisonment for any term not exceeding one yeaif, if he is fbund guilty of granting any false or fraudulent certifil t cate.; He must not play with his duty. He j has to report to the auditor if his value doe's not come within a tenth of the 'value of the assets as shown in the balance sheet by the company's stocktaking and therefore must take stock again. , Fraud -may lurk imder quantities as well as under vahies, and lie had better take his coat oil and buckle to. But he.is not tied tp time, anil having got a job he can stick to it indefinitely; Meani tir-^ (-.Tip.-machinery of the business can stand still,-and the shar'eholdersVi'n whose interests all; this is proposed to be done, may bite their fihgefs : at;.the grievous delay and Squirm under, the coming cost. , .., ' As o.set-off against these grievances, however, shareholders will. have the , advantage of a cheap audit, rated oft the scale charged by the' Government Audit Office for the audit of local bodies.- * Jia 'everyone kn6ws, cneap ; commodities \%f^i what /i-p^Qple' run after j and, with riiariyi-it .dpes.' not. matter rfyhether nutmegs, are.,wood 'or .spice so long as they are cheap.,- / '£:■•"■: •■.-''"•. "'■'

,'.—So.-ea-Iled.I.cork, legs contain no.cqrk .wbo.'vever. The '.pane' arises from, the fact that, years ago,'.iearly all.;the fcgsxtsed in .Europe, came from, manufacturers, whose places' -of t;r. business "were ■in -Cork street, London< ■'■■ -.' ■.. ■'.- ■'■ :•■ ■VJ.'.. " '

:—The little black spots on gveen-'leiv/GB; which do not seem 'to arise froin':any. disease cf the plant, are caused1 by burning; the fays1 bf the-.sun-get foqussed-by the ..drops of -morning dew. : ■■■ ■ .■' '■•'-.. ■;•*>*:' '.''■ '■■■;- ''\ .I. . ■}~'■•:■: