08-04-2004, 03:09 AM
<pre id=code><font face=courier size=2 id=code> "This certificate is being issued upon specific request of our customer without any risk, responsiblity, liability or guarantee onpart of the bank or any of its employees."</font id=code></pre id=code>
1 Does all the banks use this statement?
2 Depends what are the discloures in the audit letter. I mean if bank say client has one bank account and later transpires that it had another one. Or bank failed to disclose the personal gurantees for the directors son mortgage and as such financail statements did not have all the disclosures and public was misled, I think the PI insurers of the auditors and the bank are up for a costly battle.
So basically, bank can write whatever they like but if they are negligent they are negligent. see the BJM VS Bank of Scotland its a landmark case in the modern auditing.
1 Does all the banks use this statement?
2 Depends what are the discloures in the audit letter. I mean if bank say client has one bank account and later transpires that it had another one. Or bank failed to disclose the personal gurantees for the directors son mortgage and as such financail statements did not have all the disclosures and public was misled, I think the PI insurers of the auditors and the bank are up for a costly battle.
So basically, bank can write whatever they like but if they are negligent they are negligent. see the BJM VS Bank of Scotland its a landmark case in the modern auditing.
