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Question
An auditor who conducts a negligent audit can only be contractually liable to the company, and not to third parties. True or False?
An auditor who conducts a negligent audit can only be contractually liable to the company, and not to third parties. True or False?
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Solution
The correct option is B False
Auditor is responsible to the society and not just to the management of the company.Auditor is expected to perform the audit work with due diligence and utmost care and any negligence is not acceptable since it is like a breach of the contract.
Auditor is responsible to the society and not just to the management of the company.
Auditor is expected to perform the audit work with due diligence and utmost care and any negligence is not acceptable since it is like a breach of the contract.
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