auditor duty of care

On April 3, 2018, the Receiver also brought an action against BDO alleging negligence, negligent misrepresentation, breach of contract, and gross negligence with respect to the audit of the 2014 and 2015 financial statements of two of the mutual funds. Whether providing services as an accountant or auditor, a certified public accountant (CPA) owes a duty of care to the client and third parties who foreseeably rely on the accountant's work. She has what you would consider to be a ... Yola Ventresca, Sarah Martens and Natalie Carrothers review the Divisional Court decision in College of Nurses of Ontario v Mark Dumchin and the unanswered questions the decision ... Consulted and recognized province wide in Ontario. The former occur when individuals or organisations breach a government imposed law; in other words criminal law governs relationships between entities and the state. audit … <> Crystal Wealth was a discretionary portfolio management firm that specialized in creating and managing alternative investment strategies that were outside traditional stock and bond portfolios. �B�J���B��V�FL!A��u�Fl!A�$E:qe�L1�H'M!A� ͍⑀��; ,9����~C>u��@�[�;y�Ŋ�E)y��ͮ�h�j��@D$v[�p"x��#U�"_e ������ ���A`7t��n���:�Hy�v� u�QC�B8&��6A��&�C��nN�:�A Those standards do not make auditor guarantors of the accuracy of the financial statements or liable to investors who suffer a loss caused by a fraud of management which is not detected by the auditors. It was registered with the OSC as an Exempt Market Dealer, Investment Fund Manager, Portfolio Manager, and Commodity Trading Manager. 2 0 obj Those allegations included assumed “facts” that were not present in the Lavender case that would seem to be significant – the BDO audit reports were addressed directly to the unitholders; BDO knew the identities of all the unitholders and the unitholders relied upon the audited financial reports. Nevertheless, a duty of care to third parties, such view the … The Auditor’s duty of care: The Auditor has a duty of care to the assurance client (company) automatically under the law. LERN what matters today from Lerners Lawyers. External financial users completely rely on auditors … “Class Members” were investors in Crystal Wealth mutual funds in the period April 12, 2007, to April 7, 2017. She has named you as estate trustee (or executor) of her estate. … Here, culture, values and commitment aren't abstract concepts. Feel free to reach out directly by visiting my Lerners Profile, Stretching the Limits of Statutory Interpretation: The implications of College of Nurses of Ontario v Mark Dumchin on the jurisdiction of regulated health colleges over former members, Junior Law Clerk, Plaintiff Personal Injury, Litigation by the PGT to protect vulnerable individuals: more important than ever in this age of COVID-19, No Clucks Given: Ontario Court of Appeal Expands Scope of Anti-SLAPP Provisions in Subway v CBC, A Self-Represented Litigant’s Entitlement to Costs: Girao v. Cunningham, 2021 ONCA 18, tbk Creative | Web Design & Digital Marketing. Crystal Wealth created 5 more mutual funds in 2016. On September 5 the Court of Appeal for Ontario issued its decision in Lavender v. Miller Bernstein LLP, 2018 ONCA 729. This … In the Caparo case, the court held that the auditor owes a duty of care … <>>> ��VV� I�V�v���V;�* ����l�� (P�aJ������5��g�U����� >��Q��̠�_��� Toronto, ON M5H 3P5. According to the Supreme Court of Canada, recognition of a duty of care in a claim for pure economic loss requires more scrutiny than other negligence claims. The auditor may also carry his search outside the books by conducting any … }FW�"��B���V�GY�3R�pU�3ˢ�b��H�#��Z���iu��e�ψ�)�u���y��gL�u]�3��R]����w��U������Z���x��U������*����2��>������>�a^d��e8��y���>b3�YI��َ�O�&C���$um���L���/�ڗ��-n�#;�B֮�v����p�ʧXD�k�m8R��%~�����E�.��i�ܽ)���(I�]�+�3��}���Q�;����"�19K8a��5��2b��FjR�bsc��,״�o������k��n�����g~\�c���XŚP���J��:��*#�ҏ�jIm� We look forward to speaking to you. The Statement of Claim seeks a declaration that BDO had a duty of care to the Class Members, which it breached in negligently performing professional services, thereby causing damages of over $150 million. As both the Whitehouse and Lavender decisions demonstrate, the Supreme Court of Canada’s Livent decision has brought greater rigour to the legal analysis of whether there is a relationship of sufficient proximity to ground a duty of care in cases in which auditors are sued by third parties. whose reliance is FORESEEN by the auditor. To access the Duty of Care Document head to … �T_:? Arguably, the effect has been to narrow the categories in which auditors have been held  owe duty of care to third parties and bring the case law into conformity with both the principles that were articulated in Hercules Managements and also the professional standards to which auditors must adhere. However, by that time, the unit holders had already suffered losses of over $100 million. �����%%6�������[U}͐�E)�E��������G'�����d�^�8:Y�Ɠ��%�xt1������vz�n|u3�n泣�w�V���t|9]�ӗg����*m��e���VB��j[L>|�f�[k��Z��G�8sU������j��3��F@[S(� The motion judge determined that the statutory scheme could not be seen as the basis for a duty of care to ensure that Crystal Wealth complied with Ontario’s securities laws such that the OSC would permit it to continue to offer and redeem units in the mutual funds. They brought a class action against Buckingham Securities’ auditor Miller Bernstein LLP. This approach generally includes considerations of the risk of indeterminacy. 48. There was no pleading of any direct relationship, undertaking, or representation by BDO to the investors and no allegation of any direct contact between BDO and the investors. Therefore, on April 7, 2017, the OSC issued a temporary cease trade order. The Receiver reported to the court that Crystal Wealth had manipulated the Net Asset Values of the mutual funds, causing them to be materially overstated, and that interfund investments gave a false sense of liquidity to meet investor distributions and/or redemptions. Further, it is the duty of an auditor to verity with skill, care and caution which a reasonably competent, careful and cautious auditor would use. The auditor must take reasonable care to ascertain that books furnished by the company show the company's true position. Please search again. For example, a duty of care is … Blog Home » Jonathan’s Jots » Auditor’s Duty of Care. Therefore, in. Pursuant to the Ontario Securities Act, Crystal Wealth was required to file annual audited financial statements with the OSC and send them to every unit holder or face suspension. Accordingly, unless you are currently a client of Lerners LLP, we ask that you do not include any confidential information in this email. Under Hercules Managements, the court recognized that there were lots of third parties who would reasonably and foreseeably rely upon an audit report and to whom the auditors would owe a prima facie duty of care. They lost their life savings and blamed BDO Canada LLP, which audited Crystal Wealth’s financial statements and issued clean audit opinions in the years 2009 to 2016. 165; Deloitte & Touche v Livent Inc. (Receiver of), 2017 SCC 63 ; and Lavender v Miller Bernstein LLP, 2018 ONCA 729, leave refused, [2018] S.C.C.A. As a result of the failure of Crystal Wealth’s CEO to provide information and documents requested by BDO, Crystal Wealth did not file or deliver December 31, 2016, audited financial statements to the OSC within the March 31, 2017, deadline. Auditor’s Duty of Care. Management’s responsibilities in an audit . In 2017, the Plaintiffs brought an action under the Ontario Class Proceedings Act, 1992, alleging the negligent provision of auditing services and that had BDO done proper audits, the fraud would have been detected earlier and they would not have suffered the losses they did. Your aunt has just died. In this case, the auditors should be put upon enquiry or be suspicious that the inventories balance have increased tremendously over a period of one month. C. auditors are only liable for the proportion of damages attributable to their actions. Reliance and legal responsibility and what the parties knew or ought to have known or what the parties could rely on is based upon the statutory provisions of the Securities Act. Dsposal helps you by creating an easy to use document that you can use to audit your waste management contractors. This Duty of Care document is semi-populated by the data held on the Dsposal platform. On June 15, 2018, the Plaintiffs brought a motion to certify the class action. We will listen until you are sure we’ve heard you. The only possible reliance would be in the unitholders expecting that the OSC would police Crystal Wealth’s compliance with securities laws. In order for a duty of care to arise in negligence: harm must be reasonably foreseeable as a result of the defendant's conduct (as established in Donoghue v Stevenson), the parties must be in a relationship of … Therefore, the relationship between the investors and BDO was too remote. Also, there was no contract between BDO and the unitholders. While an accountant normally is not considered to be a fiduciary to his or her clients, the AICPA Professional Code of … BDO provided clean audit opinions for the 10 Crystal Wealth mutual funds that were in existence in 2015. Please note that by sending this email, you will not automatically become a client of Lerners LLP unless and until Lerners LLP confirms that it will agree to be retained on your matter. Under the Livent analysis there is not sufficient proximity between the unitholders and BDO to found a duty of care on the basis of the statutory scheme. All rights reserved. This theory of a duty of care did not depend upon the unitholders relying on, or even seeing, the audited financial statements. more likely to result in an auditor being subject to a law suit. By way of contrast, Whitehouse was decided on a certification motion, based solely upon the allegations made in the Amended Statement of Claim. endobj Buckingham’s Form 9 Reports in 1988, 1999, and 2000 had falsely stated that Buckingham was in compliance with the regulatory segregation and minimum capital requirements of the Securities Act. %PDF-1.5 For example, due care is expected when someone mails a package. Criminal offences Like any individual or organisation auditors are bound by the laws in the countries in which they operate. Therefore, in New Zealand auditor reports, the Auditor’s Responsibilities for the Audit … The Plaintiffs alleged that, unbeknownst to them, the management of Crystal Wealth was misappropriating assets and that BDO did not detect the fraud. The relationship between BDO and the unitholders is a conceit of the Securities Act and involves the interposition of the OSC. However, the duty of care analysis allowed for a consideration of public policy factors, primarily the risk of indeterminate liability, to negate the duty of care by auditors to third parties in many circumstances. 8�w��H��4�t `�M��. Should that come to pass, the test for the existence of a duty of care owed by the auditor to a third-party user of audited financial information would essentially be that enunciated in Caparo, … endobj Failure to uphold the duty of care may result in legal action … Ultimately, the court found that the plaintiffs had no claim against BDO because it did not owe them a duty of care. %���� The motion judge considered this case to be within the category of economic loss cases dealing with the negligent performance of a service. Although the investors were provided with copies of BDO’s reports to the OSC, BDO gave no undertaking to the investors to assist them with their investment decisions or to safeguard them from Crystal Wealth’s non-compliance with OSC requirements. Lord Bridge commented that cases where duty of care did arise10 was illustrated in Smith v … On June 20, 2017, the Plaintiffs commenced a class proceeding against BDO for negligence with respect to the clean audit reports. ��-���U One significant difference between the Whitehouse and the Lavender cases is the stage at which the court decided the duty of care issue. In Hercules Managements, the Supreme Court of Canada held that an auditor performing a statutory audit does not owe a duty of care to shareholders in relation to their personal investment decisions. Those professional standards require auditors use appropriate accounting procedures to obtain “reasonable assurance” that the financial statements, as a whole, are free from material misstatement, whether caused by error or fraud. A fiduciary has a legal duty to act solely in the best interests of the beneficiary. The duty of care also applies to other roles within the financial industry including accountants, auditors, and manufacturers. We're sorry, We cannot locate any lawyers with that criteria. An accountant may be liable for negligence, not only in contract but in tort, if a person to whom he or she owed a duty of care has suffered loss as a result of the accountant’s negligence. ��{}f����Z�~b/T3/t��B=�Bg1ҕ)�:��PӼ�[ץ�.tS�RU��nD��=F;^��B�QNV���B�QVT��zD��(SW��b������%]FI�e�"��>��gxSD��gW��.�+'QF��gd�+[��B����D�f As pleaded in the Amended Statement of Claim, the two purposes of BDO’s statutory audits are: (a) to assist the investors in making investment decisions; and (b) to ensure that Crystal Wealth was compliant with Ontario securities laws. (a) No duty of care to assist the investors in making investment decisions. So under current criminal law auditors could be prosecuted for acts suc… The duty of care is owed to the auditor’s client with which it has a contract, the corporation. THE AUDIT REPORT AND AUDITORS’ DUTY OF CARE TO THIRD PARTIES May 2018 This guidance was issued by the Audit and Assurance Faculty of the Institute of Chartered Accountants in England and Wales in January 2003, to assist auditors in managing the risk of inadvertently assuming a duty of care to third parties in relation to their audit reports. Therefore, for want of proximity, it was plain and obvious that the Plaintiffs did not have a legally viable cause of action against BDO for auditor’s negligence in performing a statutory audit based on an alleged duty of care to unitholders with respect to their investment decisions. Paragraph 41(c) of ISA (NZ) 700 (Revised) allows the description of the auditor’s responsibilities to be moved out of the auditor’s report and referred instead to a website of an appropriate authority.. @��;�� The Plaintiffs were individual unitholders in the mutual funds of Crystal Wealth Management System Ltd. Nonetheless, the motion judge found that certain elements of the Amended Statement of Claim were fatal to a finding of a duty of care. 1 0 obj Civil law, in contrast, deals with disputes between individuals and/or organisations. Let us consider the possible entities that may sue an auditor and the possible reason for a lawsuit. The Auditor owed a duty of care to the Class, under previously recognized legal analysis, to conduct an audit of Buckingham’s Form 9’s with the skill and care of a competent practitioner; The Auditor breached that duty of care; The Auditor’s breach of that duty … Furthermore, this survey has practical implications for auditors because the explicit clarification of the auditors’ responsibility may motivate auditors to increase due professional care and take more responsibility for fraud detection in the audit … While shareholders may be able to pursue misrepresentation claims against auditors under the Ontario Securities Act, those claims are generally subject to checks and balances. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.56 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> <> The only duty of care the auditor`s owed was to the governance of the firm. The current position under hong kong law is that, generally, auditors only owe a duty of care to their clients, being the company ther are auditing. 4 0 obj Under Hercules Managements, the court recognized that there were lots of third parties … The Plaintiffs do not plead that the two purposes of BDO’s audits arise from any directly proximate relationship between the unitholders and BDO. Auditor owes a duty of care to ensure that accounts are correctly described in the financial reports High standard of care of auditors providing services to SMSF trustees, particularly when such trustees lack … Auditors are potentially liable for both criminal and civil offences. The more information that your contractor has on Dsposal, the quicker and easier it is for you to complete. There was not a sufficient relationship of proximity because: The motion judge in Whitehouse v BDO found that the duty of care analysis was the same as in the Lavender case, and he was bound by it. The duty of care is owed to the auditor’s client with which it has a contract, the corporation. The only direct relationship in the immediate case is between BDO and Crystal Wealth. … ������jyx _��!��Ã�/�Z�c��8=6���0Y�㑨1CK���/���Y(�ͱ>U�2R�����Z�n��K��ݢ����>O��Y-�����m��h|��*�͆��i�b}�g "O1�T��=�U/� ����7v����9��O���i;R6o��C&� e�����v�������|���w�W����Z�J[��늋-�A�ܮJ^8��\e�a+#��q^��K��+}5[\m��� ��u��a(�"E%۬�ĺ�4���3��;; �I͔�DÀ��P�_�?���8�% The Ontario Court of Appeal held that the auditors did not owe a duty of care to the investors. Rather, the relationship between the unitholders and BDO was said to arise out of the statutory regime set out in the Ontario Securities Act: … Thus the Plaintiffs submit that BDO had a duty of care to investors because the OSC permitted Crystal Wealth to continue offering its mutual funds and the OSC did so because it relied on receiving properly audited financial statements from BDO. ��J���ǁ�Y���\����ꦪͮ��N AL�M��Hc������뗬>z3�]��t6����� �iw�뼚6ܠ������hAQH��j����z It was not relevant that the auditor knew the identities of the investors. An Auditor’s Duty of Care The court identified the core dispute as whether Miller Bernstein owed a duty of care to Buckingham’s clients. �:H�CˮQ����c�zO�m ��$J����� In many cases, those third parties are the investors or shareholders of the corporation, who had no contractual relationship with the auditors to provide audit services. We will explain all your options until you say you understand them, The purpose of the Form 9 Reports was to allow the OSC to regulate securities dealers and protect investors, but did not create a relationship of proximity between Miller Bernstein and the class members. Historically, an auditor's duty of care to individuals or entities beyond its audit clients (in the context of public companies) has been limited by the Courts due to policy concerns surrounding indeterminate liability: … No general duty of care has been recognized between an auditor and the company’s investors for the purpose of auditing financial reports that are required to be filed pursuant to a statutory securities regime; This means that in each case, the court must undertake a full. In May, 2018, the CEO of Crystal Wealth admitted to having misappropriated millions of dollars of investors’ money and to having misled both BDO and the OSC. 130 Adelaide Street West, Suite 2400 D. auditors have a duty of care only to the shareholders as a group. The Court of Appeal held that an auditor does not owe a duty of care to account … In the vast majority of employment law cases it is clear whether the employee resigned or was fired. As with the rest of the Dsposal software it can be used on a smart phone, tablet, laptop or desktop computer. Caparo sued and although the Court of Appeal stated that there was a duty of care owed by the auditor, this was overturned by the House of Lords who felt that whilst the auditor owed a duty of care to the shareholders as a body, he did not owe a duty of care … endobj (b) No duty of care to ensure that Crystal Wealth was compliant with Ontario securities laws. 3 0 obj The words, “The financial statements are the responsibility of management,” appear prominently in an auditor’s communications, including the audit report. It focussed on the proximity of the relationship between the plaintiff and the auditor to determine whether a duty of care existed (specifically, the scope of the defendant’s undertaking of responsibility and the plaintiff’s reasonable reliance). Although the Supreme Court was deeply divided on key issues, it confirmed that its 1997 decision in Hercules remains the law regarding there generally being no duty of care of an auditor to persons other than its client (e.g., shareholders) in relation to an audit. The motion judge noted that the Statement of Claim did not plead any direct relationship, undertaking, or representation by BDO to the unitholders. None of those facts created a relationship of proximity to the class for the purpose of assisting them in making their individual investment decisions; and. The class members did not see or rely upon the Form 9 Reports, which were submitted to the OSC confidentially. Thus, for example, the Plaintiffs plead….that “accordingly” BDO conducted its audits for two purposes associated with the Securities Act. It was found that three factors had to exist for there to be a duty of care which where: Proximity, Knowledge of who the report would have been communicated to and for what purposes it would have been used. Copyright © 2021 Lerners LLP. Duty to take reasonable care not to cause harm to another person that could be reasonably foreseen. The value of all units in the funds was thereby impaired. Under common law, auditor owes a duty of care and should exercise reasonable care and skill when … In the Amended Statement of Claim, the Plaintiffs plead that BDO breached the duty of care it owed the unitholders based on the duty of care that is grounded on these two purposes of the statutory audits. They alleged that the auditors had negligently audited Buckingham’s annual registration renewal form (the Form 9 Report). Do you have any questions about your unique scenario? A duty of care is the legal responsibility of a person or organization to avoid any behaviors or omissions that could reasonably be foreseen to cause harm to others. x��\YoG~��Џd�M�=�! BDO did not audit the financial statements of these mutual funds. (ii) Duty of Care According to Caparo case in the UK, the auditors owe a duty of care … stream Accountants can … According to Lavender, these circumstances do to not give rise to a duty of care. We’ll be happy to match you to the right qualified Lerners Lawyer. The OSC terminated Buckingham’s licence and put it into receivership for non-compliance with these regulatory requirements, as result of which the investors lost the value of their investments. Twenty years later, in Livent, the Supreme Court of Canada refined the duty of care test. The Form 9 Reports therefore were submitted purely for regulatory purposes and not for informing or inducing class members to make decisions; The auditors did not even know the identities of the investors; The statutory scheme required Buckingham to segregate assets, maintain net free capital, and file a Form 9 to confirm that it had met the regulatory requirements. On April 26, 2017, the OSC applied to have Grant Thornton LLP appointed as Receiver over all of the assets of Crystal Wealth. Rather, the fraud was discovered only when the Ontario Securities Commission appointed a Receiver after Crystal Wealth failed to deliver its audited financial statements for 2016. January 10, 2017; jpitblado; Uncategorised; 0 Comments; For almost 20 years now, pursuant to a 1998 Supreme Court case, auditors … He found that the motion could be decided by a consideration of the current three leading cases in Ontario on the duty of care owed by auditors to third parties: Hercules Managements Ltd. v Ernst & Young, [1997] 2 S.C.R. An accountant will … However, before we can assist you, we must first ensure that we do not have a conflict of interest. In Lavender, the plaintiffs invested in the securities of Buckingham Securities. Doing a Duty of Care Audit is essential. There is no reliance upon the audited financial reports by the investors. Click Submit to send your email or click Previous to revise it. “Due care” is a term used to refer to the degree of care that a “reasonable person” would take in a particular situation. auditor generally owes a duty of care to the third parties who are part of a limited group of persons. 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The proximity analysis requires the court to embark upon a fact-specific inquiry to identify all relevant factors that arise from the relationship between the parties; The relevant factors vary from case to case and may include reliance, expectations, representations, property or other interests, and statutory obligations; In cases of pure economic loss arising from negligent misrepresentation or negligent performance of a service, the auditor’s undertaking and the investors’ reliance are determinative; The plaintiff investors must establish that the relationship between the parties was such that the auditor may be said to be under an obligation to be mindful of the investors’ legitimate interests; The following factors militate against a finding of proximity: The auditor has made no undertaking to assist the investors in making investment decisions; The auditor has made no representations to the investors; There is no direct connection between the auditor and the investors (such as when there is an interposition of a securities regulator and the corporation between the auditor and the investors); and. The House of Lords reversed the decision of the COA and held that no duty of care had arisen in relation to existing or potential shareholders. The decision is now the leading judgment by Ontario’s highest court on the duty of care owed by auditors. It was considered the duty of an auditor to perform to the level of the skill, care and caution which a reasonably competent, careful and cautious auditor would.15What is reasonable skill, … The motion was dismissed and the the motion judge declined to certify the action as a class proceeding on the basis that the Plaintiffs could not meet the first element of the five-part test in s.5 of the Ontario Class Proceedings Act, 1992; the Statement of Claim did not disclose a cause of action because BDO did not owe the Class Members/ unitholders a duty of care in negligence. An auditor must act honestly and with reasonable care and skill; otherwise he may be sued for damages. negligence. When success matters, there is no substitute for the advantage that comes from experience. Here we set out the auditor's responsibilities that apply to the context of an audit engagement. Duty of care Auditors are liable and can be sued due to the fact that they automatically owe external users of audited statements legal duty of care. In Lavender, the issue was decided on a summary judgment motion, as a result of which the court had a full evidentiary record. What is reasonable skill, care … The Whitehouse and the Lavender cases are instructive in that they make it clear that: The Livent analysis, in the context of actions brought against auditors by third parties, has introduced a more principled approach to the determination of whether a duty of care exists, and also greater predictability as to outcome. Not give rise to a duty of care to ascertain that books furnished the! Lawyers with that criteria court of Appeal held that the OSC as an Exempt Market Dealer, Investment Fund,... 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Potentially liable for both criminal and civil offences contract, the corporation a minimum level of net capital! 9 reports, which were submitted to the auditor ’ s client with which it has a,... Can be used on a smart phone, tablet, laptop or desktop computer on, or even seeing the. Contract, the corporation which the court decided the duty of care to the OSC police... As a group the unitholders Ontario court of Canada refined the duty of care is owed to auditor! Under the Ontario Securities laws care audit is essential Dsposal software it can be on! Possible reason for a lawsuit generally includes considerations of the investors and BDO was too remote values... The motion judge considered this case to be within the category of economic loss cases dealing with the Securities,. Rise to a law suit 9 reports, which were submitted to shareholders! By publishing high-quality and industry-leading content it can be used on a smart phone, tablet, or. It was not relevant that the OSC issued a temporary cease trade order in the vast majority of law! Plaintiffs brought a class action to complete Members ” were investors in Crystal Wealth created more! Crystal Wealth mutual funds that were in existence in 2015 any questions about your unique scenario ensure Crystal. Accountant will … Doing a duty of care the auditor knew the identities of the firm class proceeding BDO. To you the right qualified Lerners lawyer auditor must take reasonable care to that., there is no substitute for the 10 Crystal Wealth ’ s compliance with Securities laws both... No substitute for the 10 Crystal Wealth was compliant with Ontario Securities laws its for! And commitment are n't abstract concepts, and Commodity Trading Manager was registered with the negligent performance of service... Ontario Securities laws commenced a class proceeding against BDO because it did audit! By creating an easy to use document that you can use to audit your waste management.. All by publishing high-quality and industry-leading content majority of employment law cases is... Of Buckingham Securities to not give rise to a law suit d. auditors have a of. And the unitholders expecting that the OSC would police Crystal Wealth to match you the... Software it can be used on a smart phone, tablet, laptop or computer. The relationship between BDO and Crystal Wealth not see or rely upon the Form 9 Report ) a proceeding... The countries in which they operate be within the category of economic loss cases dealing the! Court on the duty of care did not owe a duty of is. Mails a package rely upon the audited financial reports by the laws in the funds... Only possible reliance would be in the countries in which they operate result in an auditor and possible... Existence in 2015 Investment Fund Manager, and Commodity Trading Manager there is no substitute for the Crystal... Care owed by auditors with that criteria investors ’ assets and maintain a minimum level net! No duty of care to ascertain that books furnished by the data held the... We do not have a duty of care owed by auditors cases is stage... Individual unitholders in the mutual funds Dsposal software it can be used on a smart phone, auditor duty of care laptop... Criminal offences Like any individual or organisation auditors are potentially liable for both criminal and civil offences law to..., the Plaintiffs had no claim against BDO for negligence with respect to the clean audit reports helps by! Or rely upon the Form 9 Report ) funds of Crystal Wealth mutual funds in 2016 direct in... Not give rise to a law suit employee resigned or was fired of employment law it...

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