[Solved] Civil liability of an auditor implies liability for

Civil liability of an auditor implies liability for

a) Misappropriation of cash

b) Misappropriation of goods

c) Fraud

d) Misfeasance

Answer: (d) Civil liability of an auditor implies liability for Misfeasance. An auditor is liable to the following persons for negligence while discharging his duties. To his client, with whom he has a contractual relationship. To Third parties, if the auditor knows or had a reasonable opportunity to know that he (the third party) is relying on the skill and judgment of the auditor.

More MCQ and Answers on Auditing

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  6. Internal auditor has to submit report to
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