ACCOUNTANTS’ CERTIFICATES

Wanganui Chronicle, Volume 80, Issue 254, 26 October 1937, Page 9

ACCOUNTANTS’ CERTIFICATES

DUTY OF VERIFICATION The subject of certificates issued by accounts for companies or promoters of companies is the subject of an important editorial article in the current issue of the New Zealand Accountants’ Journal. Verification is the prime duty of an accountant, and this remains so even though the Investigation may be in relation to audited accounts,” the writer states. “Where a client desires a report and there is not sufficient time to make a thorough examination, he should be told that an incomplete investigation is not only useless but may be dangerous. Far better for the practitioner to miss the appointment than to hurriedly prepare an incomplete statement which may have serious repercussions. Estimates should not be attempted nor is it desirable to tender an opinion or to prophesy future earnings. Even forecasts of results likely to be achieved display an optimism which may not afterwards be borne out by results. “The period covered by an investigation should always be stated and the actual profits for the year clearly shown. Reference to average profits is far from satisfactory. This was shown in the celebrated Royal Mail Steam Packet Company’s case where the certificate from the auditors in connection with the issue of a prospectus was strongly attacked by counsel for the prosecution. “Members of our profession should remember that they are not only responsible to clients for the work they