Companies Act, 2013 does not seem to echo this thought! The dod do not start biting the stranger. NFRA “Auditor is a watchdog and not a bloodhound” is a serious misconception. He is a watch dog not a bloodhound. An auditor is not bound to be a detective, or, as was said, to approach his work with suspicion or with a foregone conclusion that there is something wrong. The kind of stringent measures prescribed against auditors gives the picture that the Act indeed expects the auditors to be bloodhounds in discharging their duties and not merely be watch dogs. Auditors are watchdogs, not bloodhounds. It is the duty of the owner to take action. Auditors, Watch Out!! Auditors like to say their role is that of a watchdog (who barks when they see something suspicious) rather than a bloodhound (who actually searches for something suspicious). "The PAC is known to grill people quite thoroughly," said Mr Mifsud. He is a watchdog, but not a bloodhound.” He will not assume that the management is always upto something and try to look for fraudulent activity. His limitations are just to warn you , like a watch dog when a stranger enter house of master he just barks & get it to the notice of his master than some unknown has entered the house. Answer (1 of 2): Sir it is rightly said that the auditor is a watchdog not a bloodhound. An Auditor is a Watchdog and Not a Bloodhound. Companies Act,2013 does not seem to echo this thought! Lord JusticeTopes had once famously remarked that The auditor is a watchdog and not a bloodhound. Bernard Agulhas, Independent Regulatory Board For Auditors. Audit regulator National Financial Reporting Authority (NFRA) has urged the audit fraternity to refrain from taking shelter under the adulated description of the auditor “being only a watchdog and not a bloodhound”. It means that while auditing he will keep a questioning mind and not a suspicious mind. An auditor is not bound to be a detective or; To approach his work with suspicion or; With the foregone conclusion that there is something wrong. Advertisement He is justified in believing tried servants of the company in … In 1971, when I studied the famous Kingston Cotton case where the jury said that “the auditor is a watchdog, not a bloodhound”. In the memorable judgement of Lord Justice Lopes in 1896: “An auditor is not bound to be a detective, or… to approach his work with suspicion or with a foregone conclusion that there is something wrong. Lord Justice Topes had once famously remarked that: “The auditor is a watchdog and not a bloodhound.”. He is a watchdog, but not a bloodhound.