Duhaime's Law Dictionary


Auditor Definition:

A private person who examine, inspects or verifies the accounts of another.

In Re Ontario Forge, Justice Roberton of the Ontario Chancery Court adopted these words:

"Auditor (is) a person appointed to examine a particular account and state or certify the result; or an officer whose business it is to examine and verify all accounts relating to the business of the government, corporation or other authority from which he receives his appointment....

"[A] private individual, or corporation, who examines periodically the accounts ... and reports the state of their accounts to his principal....

"[O]ne who officially examines and allows as proper and lawful, or rejects as unlawful, the items of an account or accounts....

"[T]he auditor is ... a person whose position is an independent one, whose duty it is to discover and point out the errors or mistakes of the directors (of a corporation) if any, the gains and losses of the company - to show in fact, exactly the true state of the accounts; so that he stands, as it were, between the directors and  as an independent investigator of all business transactions, in which the directors, as the managers of the affairs of the company, have been engaged for the previous year, or whatever period previously to the audit. He may be called upon to examine the books, vouchers and documents connected with the business. he is not a mere clerk, bookkeeper or accountant in the employment of the company...."

In In re London & General Bank, Justice Lopes added;

"An auditor is not bound to be a detective or ... approach his work with suspicion or with a foregone conclusion that there is something wrong.

"He is a watch dog, but not a bloodhound."

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