Zuhai is an auditor of Seri Cemerlang Sdn Bhd.

While carrying out some audit

work on the company's account, he discovered some irregularity with the
company's cheques and invoices. Zuhai then sought explanation from the officer
in charge of preparing the documents. The officer concerned told Zuhai that there
were some errors on the cheques and invoices, but the matter should not be taken
seriously. When Zuhai asked further, the officer refused to cooperate. Zuhai then
proceeded with her work and detected more errors and irregularities in the
company's accounting documents. Zuhai believed the matter was very serious,
and she suspected that the irregularities were done by a few of the company's
officers at the upper level of management. Zuhal however, refused to disclose the
matter in the report and decided to verify the account as true and fair for fear that
her contract will not be renewed by the company in future if she does so. Based on
the above scenario, discuss the duties and liabilities of Zuhai as an auditor of Seri
Cemerlang Sdn Bhd.Zuhai is an auditor of Seri Cemerlang Sdn Bhd. While carrying
out some audit work on the company's account, he discovered some irregularity
with the company's cheques and invoices. Zuhai then sought explanation from the
officer in charge of preparing the documents. The officer concerned told Zuhai
that there were some errors on the cheques and invoices, but the matter should
not be taken seriously. When Zuhai asked further, the officer refused to cooperate.
Zuhai then proceeded with her work and detected more errors and irregularities in
the company's accounting documents. Zuhai believed the matter was very serious,
and she suspected that the irregularities were done by a few of the company's
officers at the upper level of management. Zuhal however, refused to disclose the
matter in the report and decided to verify the account as true and fair for fear that
her contract will not be renewed by the company in future if she does so. Based on
the above scenario, discuss the duties and liabilities of Zuhai as an auditor of Seri
Cemerlang Sdn Bhd.

Answer:

Duties of Zuhai as an auditor:

1. To detect fruad, error, misinterpretations etc..

2. review the financial records and verify them

3. Perform reconcillations
4. To give a report at the end of the audit stating the findings after evaluatings the
accounts and various documents of the company without any fruad or
misinterpretation.

5. the auditor must assert reasonable care and skill while auditing and preparing the
audit report.

Liabilities of Zuhai as an auditor:

1. liability for fraud.

2. Liability for negligence.

3. Liability for mistatement in the audit report or in the prospectus.

4. liability for Misfeasance (If the company incurs any loss because the auditor
performed his duties wrongly).