21 March 2012
The company is not defaulter, the auditor must take extra precaution wheather financial shows true & fair position, nothing else special for audit.
22 March 2012
If there is loss in the company then how the auditor is responsible? While auditing the accounts the auditor should look into the matter the loss is no due to manipulation of accounts by the directors or employees. If he detects so then he must report in his audit report. In case of losses the private limited company is in no manner a defaulter but if it is listed public company then yes from the point of view of Stock exchange it is defaulter company and it cannot come for public issue and it can be debarred from listing.
CAclubindia
