Multiple choice

An auditor is a watchdog. This was said in which of the following cases?

  1. London Oil Storage Company

  2. Kingston Cotton Mill Ltd

  3. London General Bank

  4. Delightful Cigarette Company

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The famous legal dictum that an auditor is a watchdog, but not a bloodhound, was established in the case of Kingston Cotton Mill Co. (1896). It defines the auditor's duty to exercise reasonable care without necessarily assuming dishonesty from the start.