How to distinguish between civil and criminal liability in liabilities of auditor

Questions › How to distinguish between civil and criminal liability in liabilities of auditor

arjun mohnani asked 3 years ago

I’m unable to understand how to understand when civil liability will occur and when criminal liability will occur for prospectus issues

1 Answers

0 Vote Up Vote Down

Ravi Staff answered 3 years ago

civil liability — monetary punishment
criminal liability — involves imprisonment
Sec 34 is for criminal liability
Sec 35 is for civil liability
if ca gives false, misleading information is prospectus then he is liable under sec 34 for criminal liability as per section 447 and if investor looses money then he will get liable to pay damages under sec 35 also.
so both are not mutually exclusive, both may applicable together and both have different exceptions