Accounting Firm Held Liable for Negligence

Accounting firm for CL Financial in the region.

The split decision handed down recently by the Supreme Court of Canada (Deloitte & Touche v. Livent Inc. (Receiver of)  ) held the accounting house- albeit conditionally- responsible to extend a duty of care to clients.

By negligently conducting the audit, and impairing Livent’s shareholders’ ability to oversee management, Deloitte exposed Livent to reasonably foreseeable risks, including losses that would have been avoided with a proper audit…. Deloitte owed Livent a duty of care, which it breached.

The landmark ruling which started in 1998 will now exert a focus on accounting firms everywhere to be held liability for negligence.

The decision brings into sharp focus the ‘free pass’ accounting firms in Barbados and the region have been given in the CL Financial and CLICO debacle as one glaring example. Clearly the confidence of the public in financial institutions is significantly stoked by the work oversight agencies are expected to deliver. They should represent a solid  line of defense and have a fiduciary responsibility to protect the interest of the public. It s amazing given the revelations coming out of the Colman Commission of Enquiry in Trinidad and Deloitte Forensic Report into local operations of CLICO not a single management letter issued by the accounting firm of CLICO noted any serious breach in the financial affairs that we are aware.

Who will bell the cat?

Related link: – Supreme Court says Livent auditors liable but sets conditions

 

109 comments

  • Thomas Lynley December 23, 2017 at 2:39 AM #
    @ BU

    I thought this tread was about deficiencies in auditing and effects on businesses?

    Why are contributors and BU allowing John to HIJACK every tread to talk about what he wants to discuss?

    And why respond to an abusive narcissistic individual for him to spew insults at everyone here?

    WHAT DID YOU THINK WITH SIR
    IF YOU WANT TO DISCUSS deficiencies in auditing and effects on businesses WHY DONT YOU JUST DO THAT……….IF YOU CAN?

    THE Abusive narcissistic individual spewS insults at everyone here WHO THINK THEY CAN THEMSELVES INSDULT HIM AND GET AWAY WITH IT..OK

    Like

  • ” The worrying flow of raw sewage on south coast roads has not led to any reported disease outbreaks, according to Minister of Health John Boyce.”

    Former Minister of Health Elizabeth Liz Thompson ” She also raised concerns about the likely

    impact of the situation on drinking water, pointing out that “if the sewage is visible above

    ground and is bubbling up through any space available, it must be worse underground where water pipes are located ”.

    Where the puck did these people go to University ?

    Barbados….. a Nation of cants. ( my spelling ent too good )

    Like

  • @ Hants
    Barbados….. a Nation of cants.
    +++++++++++++++++++++++++
    Brass bowl cants.
    …and your spelling is fine.

    Like

  • RE Hants December 23, 2017 at 10:02 AM #
    ” The worrying flow of raw sewage on south coast roads has not led to any reported disease outbreaks, according to Minister of Health John Boyce.”

    HERE IS AN EXCEPTIONAL FOOL!
    THE NEW NORM IN PUBLIC HEALTH IS NOW NOT PREVENTION BUT TO WAIT UNTIL THERE ARE REPORTED DISEASE OUTBREAKS. AMAZING!

    HERE IS THE LACK OF WISDOM AND KNOWLEDGE FROM ANOTHER MORON
    Former Minister of Health Elizabeth Liz Thompson ” She also raised concerns about the likely

    impact of the situation on drinking water, pointing out that “if the sewage is visible above

    ground and is bubbling up through any space available, it must be worse underground where water pipes are located ”.

    WHAT A NON SEQUITUR!
    WHAT KIND OF WATER PIPES DO YOU HAVE THAT WILL ALLOW THIS?
    ARE WE TO BELIEVE THAT THE BACTERIA IN THE SEWAGE WILL DIFFUSE INTO THE WATER PIPES BY OSMOSIS?……..OR WHAT?

    Like

  • Georgie Porgie

    You claimed that Minister John Boyce is an exceptional fool. You really feel that we did not already know that? Here is a man who loaded up on antibiotics and took a swim in the sewage filled sea.

    As I said before, I expect enlightenment from you. On this point, you failed to deliver. LOL!

    Sent from my iPad

    Like

  • Caswell Franklyn December 23, 2017 at 11:38 AM #
    Georgie Porgie

    You claimed that Minister John Boyce is an exceptional fool. You really feel that we did not already know that?

    HE WAS SO AT HC
    HE WAS SO AT BANKS BREWERY
    HE CONTINUES TO BE SO……….A LEOPARD CAN NOT CHANGE ITS SPOTS

    SIR I DEEPLY APOLOGIZE FOR FAILING TO DELIVER AS YOU EXPECTED

    Like

  • Liz in her prime!!

    Think she was the Ministress of Health when the sewage project got built.

    Seem to remember the original contractor was replaced … Inversiones something or the other was the second contractor …. Venezuelan.

    Bare problems from the start.

    Also she was responsible I seem to remember for Greenland!!!

    Accident waiting to happen.

    A blessing when the UN gave her a job and got her out on Barbados.

    I was thinking how is the sewage on the south coast going to travel into the St. George Valley and affect the drinking water … or up to Bowmanston.

    I just figured she had no concept of how gravity works.

    Now I realise it is the water pipes underground that engaged her attention.

    Osmosis … we can rule that out.

    If the pipes had leaks the positive pressure would or should keep the sewage out,

    Possibility of the Venturi effect sucking in sewage through a hole … naaaa, more likely the water in the pipe will be forced out!!

    Now, it might be possible when fixing the leak with the water turned off for some to get in.

    That could happen.

    When the water is turned back on it travels through the repaired pipe.

    Always get rust and mud after repairs so in theory, sewage is possible too.

    But that would more than likely cause an isolated problem, not an epidemic … but … who knows.

    I suspect there have been problems from the start of the project and the current Minister of Health reckons nothing for all those past years so cross your fingers, it will be ok in the future.

    Hopefully old Murphy isn’t lurking around.

    His law is a b!tch.

    …. and those old Irish folks are buried all over Barbados …. by the thousands!

    Just need one Murphy!!

    Like

  • If there was a water leak, it would have two effects on any bacteria in sewage present.

    It would reduce the concentration and thus the likelihood of someone getting it.

    But even better, the water is chlorinated … the bacteria concentration could be reduced to zero.

    My guess is infiltrations due to leaks is going to of minor import.

    Of the two, Liz and John Boyce, I would think John Boyce would have the better chance of being right …… once Murphy doesn’t upset his apple cart!!

    Like

  • For me the concern would be walking around on a rainy day and not knowing what you are stepping into as you walk.

    It was bad at Big B the other night and alI I could think of is how people’s shoes bring into the supermarket what ever is on them as they traipse around.

    Then they go home and traipse through their house in their shoes.

    … and then they walk about barefoot.

    But, so far, nothing seems to be amiss!!

    So John Boyce’s gamble hasn’t gone awry … guess Murphy still sleeping.

    Like

Join in the discussion, you never know how expressing your view may make a difference.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s