The two cases that formed the basis for most subsequent decisions as to the determination of auditor negligence were:

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Kingston Cotton Mill and London and General Bank are two landmark cases that have significantly influenced the determination of auditor negligence. Kingston Cotton Mill (1896) is often cited for the principle that an auditor is a watchdog, not a bloodhound, setting the expectation for the level of scrutiny required in audits. London and General Bank (1895) further clarified the responsibilities of auditors in detecting fraud, emphasizing the limits of their duties. These cases have been foundational in shaping the legal framework surrounding auditor responsibilities and negligence.

The Two Cases That Formed the Basis for Most Subsequent