alleryStart learning →If partners of an audit firm collude in fraud, who bears the liability?
AThe company alone
BThe partners and the firm
CThe institute alone
DThe Registrar alone
Answer & Solution
Correct answer: B. The partners and the firm
Liability, civil or criminal, rests on the partner or partners concerned and on the firm jointly and severally.
Keep practising Ethics and Terms of Audit Engagements
Browse all Ethics and Terms of Audit Engagements questions for CA Inter, or explore more Auditing topics.
Related questions
Quoting very low audit fees to win repeat business threatens what?Independence in appearance is also known as what?Which is one of the five threats to independence in the IESBA Code?Why is independence called the cornerstone of the auditing profession?Which action does the principle of auditor independence rule out?A cost audit under section 148 relates to the section 143 audit how?Can the statutory auditor appointed under section 139 also do the cost audit?A cost audit under section 148 is conducted by whom?