Shrinaath Paravasthu
(Articles)
(62 Points)
Replied 06 May 2010
Na i did not give he is responsible.
I justified by saying may be got expert opinion or management representation and quoted kingston cotton mill case where judge said "auditors are entitled to believe the tried and trusted people of management provided there was no suspicion"
Aravind..
(CA)
(1262 Points)
Replied 06 May 2010
for that 8 mark questions there are two parts.
1. the company can contend that auditors are responsible owing to the materiality of the items involved.
2. the auditor can prove he is not guilty by reasons that are mentions in sa-230 audit documentation, by showing his sincerity and that the mistakes are buried and cannot be found in normal course of the audit.
chetan jain
(cj)
(203 Points)
Replied 06 May 2010
2 (c)- auditor is not liable coz mgt is responsible for preparing accounts...!! but if auditor doesn't take proper care then auditor can also be held liable...!!!
Shrinaath Paravasthu
(Articles)
(62 Points)
Replied 06 May 2010
what justification for joint auditor not to go by majority feeling ....
chetan jain
(cj)
(203 Points)
Replied 06 May 2010
joint auditor responsibility- auditor will present seperate opinion with seperate report...!!!
Aravind..
(CA)
(1262 Points)
Replied 06 May 2010
chetan jain
(cj)
(203 Points)
Replied 06 May 2010
yaar aravind last wala true kaise h??? give me xplanation..!!!
Aravind..
(CA)
(1262 Points)
Replied 06 May 2010
answer for ques.2 (a) - refer nov 07 question paper.
or padhukas page 16.33 , q.no.14
Shrinaath Paravasthu
(Articles)
(62 Points)
Replied 06 May 2010
except 6 where i think auditor not liable to disclose to regulatory and other authorities except cases of special audit for finding fraud
Rohitha.K
(A'cle Assistant)
(35 Points)
Replied 06 May 2010
| Originally posted by : Aravind | ||
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chetan gud question. but simple logic. as he has paid back the debt, he will be independent for the first part of the year also. |
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no no its not the point of just repayment there!!! But as on the date he should not be indebted to the company. I hope this point make a right answer.
CAclubindia
