The case "London Oil Storage Company Ltd. V/s Seer Hasluck and Company 1904" was related with ___________.

Payment of bonus or dividends

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Payment of Income Tax

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Negligence in auditing

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Negligence in recruitment

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Solution

The correct option is C Negligence in auditing
In this case, it was held that the auditor was liable for damage sustained by a company that resulted from their omission to verify the existence of assets that were stated in the balance sheet.
It was established that the auditor was required to check accuracy as well as the data in the books (i.e. go beyond the books).
Therefore, auditors were held liable for negligence in auditing.

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