Is it True??

Accroding to SA 240

Auditor is not a nuzzle dog. Auditor responsbilites only to represent true and fair view on financial statement.

true and fair means :- Follow the accounting policy. Disclouse all material fact. Follow rule and regulation
 

hi

the primary responsibility of an auditior is to express his opinion on the finanicial statements whether it reflects true and fair view.

but as a part of his duty he is obiliged to perform his duty up to his level best.

detecting errors and frauds may not be possible all the time.

so we cant conclude in such a way.

of course not...its not auditors duty to detect errors and frauds.....his duty is to express an opinion on whether the financial statements express true and fair view of financial financial position and all statutory disclosures are made.....

I agree with Devendra

Originally posted by : Ankur Garg
	Originally posted by : Lakshmi Unless an auditor is able to discover all frauds and errors, he has not performed its main fuction. Is this true?? Pls explain.. Thank you No it is not true... Here the word "All frauds is crucial"...It is not possible for auditor to check all fraudes and errors...and accordingly he can not be held responsible if he missed any fraud during his checking bcoz some frauds are planned very claverly. But he must be able to prove that he tried his best to locate the error. In other words he should not be careless in his approach. But he should be very careful during his checking. For an apprent error auditor may be held liable and guilty of negligence.

sir is right .........

As per case of "Kingston cotton mills company"unles doubtful situation are there, auditor is totally justified in relying upon the management of client.

Auditor is watch dog not blood hound...