16.
was your next step?
305
A.
I had intended to aproach other auditors to do the work.
What did you do, did you &,prouch another firm of auditors?
Not yet.
Did you take any stops whatsoevol before you opene. your bank account
to comply with the requirements of section 14?
i did not taxo it as being required immediately.
said "before the opening of the bank account" for the reason that the
clause goes on to provide that every cheque drawn on your can account
shall be countersigned by a firm of auditors?
That has been modificč. Mr. Forrest and I reached and agreement tat
the cheques should be counter igned by ny secretary she is persenently
on tur premises.
That agreement has been varied in une reg.id and one reg.rd only, toat
is us to the trim of the agreement?
A. Yes.
A
i..
A.
Q.
I can find no other variation of it endorsed anywhere on tr
It was not enviorsed. 1 simply arranged matters verbally.
So you agreed not to vary the agreement but to ignore the provisions
of the agrement. You know that a verbul variation of a written
agrcement is worth nothing?
i did not think of int.
Do you consiner tout this parol agreement to vary clause 14 of way
agreement and to substitute us a counter sinature required on elch
cheque that of your secretary for that of approved fim of auditors
and accountants was to any degree a financial safeguardt
I thought it was.
Your secretary is an accountant?
No.
Still less an auditor? A. No.
I hope I am making myself cleur to you. it is very important. The
object of clause 14 is to sufeglid, i supest to you, in two directions
- one to suicquire tim, public in the charges whion the generi agent
is muxing on them in taut all entries in te book will be constantly
subject to examination by a skilled persun; and segundly to mufegurð t he
funds which we in the special account opened for the purpose of this
pre sat in that no monies Cul be lawn from it except on the
countersign. ture of a skilled person. You agre tint is to object