Civil liability of an auditor implies liability for?
a. Misappropriation of cash
b. Misappropriation of goods
c. Misfeasance
d. Fraud
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fraud is the right answer of this question.
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Civil liability of an auditor implies liability for?
a. Misappropriation of cash
b. Misappropriation of goods
c. Misfeasance
d. Fraud
The correct answer is :
c. Misfeasance
Explanation :
- Misfeasance refers to the act of wrongfully taking away an auditor's citizenship liability in an unlawful manner. causing misunderstanding or breach of trust.
- When an auditor fails to detect errors and frauds committed in the book of accounts, it is a breach of trust placed on him, as this is his duty he fails to do.
- He does this so as to misappropriate the company's money or assets.
- In such a situation, when the matter goes to court, the court may ask him to repay the money or property, or can also ask him to pay a reasonable rate of interest on the money or property misused. The court can decide on this at its discretion.
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