Hello sIr …In ch 7_Q 1_part (iii) of PM, it seems while reading question that the advocate is management expert while in answer reference of auditor\’s expert is given. So kindly clarify

1 answer

Ravi Staff March 2, 2017

Question where advocate suggest tax of 5 crore and actual liability of tax is 50 crore (misprinted in pm as 5 crore)
Hello Richi
You are absolutely correct. This is PM question, Way question is drafted it is apparent that advocate has been appointed by management. But in answer they have used SA 620 which is in appropriate. 
Further they have given vague answer where they say auditor was not alert and he didn’t check experts work so he is liable.
Proper points from SA 500 should have been explained. These are weird questions. PM has many such questions, simply note key points rectify things and revise with key points.

#1

Please login here to Submit Answer