Auditor is a watchdog, not a blood hound
It the famous case of Kingston cotton  Mills company  the above reference was made by the learned Judge Loose L. J.
   "An auditor is not bound to be detective or to approach his work with suspicion, or with the foregone conclusion that there is something wrong. He is a watchdog but not a blood-hound. He is justified in believing tried servants of the company and is entitled to rely upon their representation provided he takes reasonable care. "
          The following conclusions  can be drawn from the judgement :

1. An auditor is a watch dog:The auditor must take care of interests of the owners of the business The watch dog is kept by its owners to remain alert and inform the owners whenever any suspicion arises. Same is the position of an auditor, he should make every effort to detect errors and frauds so that he can protect the interest of his client. All this should be conducted by the auditor honestly and tactfully. 
2. Auditor is not a blood-hound. Duty of auditor is not that of blood-hound. He is fully justified in believing the tried servants of the company and is entitled to rely upon their representation provided he takes reasonable care. It is not the part of his duty to harm those who have been found guilty or are found responsible for negligence or misappropriation. He shall not harm the persons whose work he is to certify. The auditor must be systematic, sincere and honest while conducting his work.