Vaibhav Mehendirattavaibhav mehendiratta asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

it means if any fraud occurs at branch, branch auditor will be responsible and not company auditor who signed audit report for whole company.
so in this case work related to branch and responsibility related to branch is with branch auditor, as he is appointed by management and he is also a chartered accountant.
but if principal auditor had doubt or suspicion of fraud at branch and if ignored it, didnt work on it, didnt perform additional audit procedures then even he will be held responsible. as he didnt take any action, even though he was having indications of fraud.
ask for more clarification, below this answer by commenting here itself 🙂 

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