[Solved] The auditors are liable under

The auditors are liable under

a) Companies Act Only

b) Income Tax Act Only

c) All above

d) None of these

Answer: (c) The auditors are liable under Companies Act Only and Income Tax Act Only. The auditor’s liability represents the legal liability that is assumed when the auditor is performing professional duties. The auditor is liable for client accounting misstatements in the financial statements. There is always the risk of fraud and material misstatement in financial statements.

More MCQ and Answers on Auditing

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  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
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