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The two cases that formed the basis for most subsequent decisions as to the determination of auditor negligence were:
| | | AWA and HIH. |
| | | Caparo Industries and Esanda. |
| | | Pacific Acceptance and London and General Bank. |
| | | Kingston Cotton Mill and London and General Bank. |
Match the case with the ruling, and choose the correct matching: Cases: Rulings:
| Caparo Industries Pty Ltd v. Dickman | A. An auditor is a watchdog, but not a bloodhound |
| Kingston Cotton Mill Co. | B. Contributory negligence |
| AWA Ltd v. Daniels | C. An auditors duty of care is owed to shareholders as a group, not to individual shareholders |
| | | A, B, C |
| | | B, C, A |
| | | C, A, B |
| | | A, C, B |
The principles established by Justice Moffitt in the Pacific Acceptance case do not include:
| | | auditors have a duty to use reasonable skills and care. |
| | | auditors must properly document procedures used. |
| | | auditors are watchdogs but not bloodhounds. |
| | | auditors must audit the whole year. |
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