The liability of a statutory auditor may be charted as under: 1. Contractual Liability: The Statutory Auditor is liable for nonfulfillment of the terms and conditions of an agreement between him and the company who appoints him. He may be held responsible under the Contract Act 'in failing to perform the duties' as laid down in agreement. In the absence [...]
In this article we will discuss about the statutory and general qualifications of an auditor. Statutory or Professional Qualifications of an Auditor: The Companies Act requires the annual accounts of every company registered under the Act to be audited by a qualified auditor, i.e., one who is a Chartered Accountant within the meaning of the Chartered Accountants Act with a [...]
An auditor should carefully go through all the important documents of a company and also various books before commencing actual audit work; otherwise he will be guilty of negligence in duty. A. Documents: The principal documents and books that an auditor should see and the special points that he should consider in respect of each are enumerated hereunder: 1. Memorandum [...]