The festive spirit is among us.
Remember the case of Gaelic Inns of Muddy Murphy’s Irish Pub and Penny Black vs Patrick Lee Public Accounting Corp for $1mio of negligence.
Judge Belinda Ang had found the auditors guilty of negligence for not alerting management earlier of possible discrepancy in the cash balances of up to $672,253. $775,000 was awarded.
In yesterday’s ST, Judge Ang explained her judgement. She said directors cannot “siam” or abdicate their duties by engaging experts and reasonably competent employees.
Duties such as asking for and analysing bank reconciliation statements. The managment has to take some level of responsibilities for contributing to the negligence.
Patrick Lee PAC is appealing.