AUDITORS PENALISED.

Waikato Times, Volume 116, Issue 19450, 14 December 1934, Page 9

AUDITORS PENALISED.

RESENTMENT OF DIRECTORS.

“It is more than a matter of protection of the accountancy profession; it is a case for protection of the public,” said Mr F.-B. Foote (Timaru) at a recent meeting of the executive of the New Zealand Society of .Accountants in reference to two oom* plaints against members of the society who: had accepted appointment as auditors without consulting the retiring auditors, as they . should have done, in accordance with the code of ethios. '

In one of these cases it was'Veported that the retiring auditor had not been re-appointed because, acting on strict auditing principles, he had Issued a report which was not acceptable to soms of the shareholders in the company concerned. The_ auditor submitted that he was penalised for a conscientious performance of his duty, but his successor had accepted the appointment without ‘consulting him. Mr M. S. Spenco (Napier) remarked that his firm had recently had an auditing engagement terminated because it had put in a qualified report on the balance sheet.

It was decided to lodge a formal complaint against the person concerned In orie of the cases.

Reports froin England Indicate the growth of a powerful body of opinion In favour of a strengthening of the position of auditors, In the name of public interest.