(a) The audit firm AB& Co. has been the auditor for W Ltd. for last seven years. This year, A one of the partners of the firm, has instructed the audit team not to make a new audit programme and conduct audit on the basis of prior experience. Comment. (b) Raju and Sunny invested in the shares of M India Ltd. They lost their investment. They sued the auditors on the plea that auditors have given a clean audit report for last few years for the said entity. Comment.
(a) The audit firm AB& Co. has been the auditor for W Ltd. for last seven years. This year, A one of the partners of the firm, has instructed the audit team not to make a new audit programme and conduct audit on the basis of prior experience. Comment. (b) Raju and Sunny invested in the shares of M India Ltd. They lost their investment. They sued the auditors on the plea that auditors have given a clean audit report for last few years for the said entity. Comment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q.5 (a) The audit firm AB& Co. has been the auditor for W Ltd. for last seven years. This
year, A one of the partners of the firm, has instructed the audit team not to make a new audit
programme and conduct audit on the basis of prior experience. Comment.
(b) Raju and Sunny invested in the shares of M India Ltd. They lost their investment. They
sued the auditors on the plea that auditors have given a clean audit report for last few years
for the said entity. Comment.
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