17 March 2012
1. Auditor should have knowledge about the management officials who are incharged of the governance of the company. That is why auditor is advised to have a look at the Register of Directors, MD, Manager and Secretary.
2. A CA cannot act as both the liquidator as well as the Auditor of the company becoz he has to give his independent opinion about the affairs of the company. Acting as liquidator can adversely affect his independence as auditor. People can question his genuineness as auditor if he accepts other posts of the company.
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