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 [...]
Some of the frequently asked exam questions on audit of limited companies are as follows: Q.1. Indicate the Important points to be considered if you are appointed: (a) As the First Auditor, (b) as the Auditor in place of the Retiring Auditor, and (c) as the Auditor through an order of the Government. Ans. (a) As the First Auditor: The [...]
Some of the most frequently asked questions on valuation of assets and liabilities of a company are as follows: Q.1. Examine the Factors that Effects the Valuation of Goodwill. Ans. The factors affecting goodwill valuation are: 1. Profitability: One who pays for goodwill looks to the future profits. The future profits which depend on a variety of factors (such as, [...]