Discuss four things that due care implies for an auditor.
Discuss four things that due care implies for an auditor.
Homework Answers
Auditors are treated as highly important people as they are ultimately enhancing the reliability of financial statements for all the external users (like shareholders, investors, creditors etc)
Due care generally implies:
- Auditor must possess a skill for evaluating a transaction or accounting entries
- Auditor must apply his possessed skills with a reasonable care and due diligence
- The task performed by auditor must be with good faith and integrity towards the audit report he was going to prepare for his financial statement
- Auditor will be liable for mistakes in terms of negligence, bad faith, dishonesty and will not liable for the mere errors of judgement
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