liability of an employee of a auditor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 Please tell me that do the employee of a ca firm has any liability for any wrongfull act of his employer who audits a very risky and fraud company.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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30 June 2011 Audit report is issued by the CA and signed by him. There is no liability of the audit team because CA himself is responsible for his opinion on Financial Statements. This can be verified with the Standard on Auditing viz is using the work of experts and Relying on the work of others

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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01 July 2011 While drawing the audit programme the name of all concerned people and the team is mentioned. If anything goes wrong all the team members are equally responsible but the C. A. looses is certificate.

If in the court of law it is proved that the mistake is done by the employee he will also be responsible for not bringing the material facts to the knowledge of the C.A signing the Balance Sheet.

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