“Indicate the precise nature of auditor’s liability in the following situations and support your
views with authority, if any
Based upon the legal opinion of a leading advocate, X Ltd. made a provision of
Rs 5 crores towards Income Tax liability. The assessing authority has worked out the
liability at Rs 5 crores. It is observed that the opinion of the advocate was inconsistent
with legal position with regard to certain revenue items.”
How to identify whether the advocate is a mgmt expert or auditor’s expert?