Search Language
+98 21-22144470-71 bilan.gozareshgar@yahoo.com

Legal responsibilities of auditors

مسئولیت‌های قانونی حسابرسان

Definitions of legal responsibilities of auditors:

Auditors’ legal responsibilities may be the result of negligence, defects, fraud and failure to fully implement the contract by auditors.

The definitions of each of the mentioned items are as follows:

Negligence: Negligence of auditors is violation of legal duties and not performing duties according to professional standards.

In fact, negligence can also be interpreted as the lack of professional care.

Malpractice: Auditors’ malpractices include lack of accuracy in handling financial statements, complete disregard for their professional responsibilities, or serious damage to the users of the report.

Failure to fully implement the contract: In case the auditing firm as one of the parties to the contract refuses to implement the provisions of the contract.

Or those who do not fully implement the terms of the contract can be prosecuted by the law.

One of the important things in the implementation of the contract is the timely delivery of the audit report.

So that the audit firm fails to submit the report on the date specified in the audit contract.

The employer can sue him in court.

For example, companies are required to submit a tax declaration to the relevant tax authority within four months after the end of the financial year along with the minutes of the annual general meeting of the owners in which the financial statements of the financial year in question have been decided.

Therefore, if the audit firm that audits the employer’s financial statements.

unable to prepare and deliver his report within the deadline as described above.

Therefore, the employer cannot initiate the assembly to approve the financial statements.

Finally, due to the failure to convene the assembly on time, it will not be able to submit the minutes of the meeting to the tax department on time, and the tax declaration may not be accepted.

In other words, the taxable income is recognized and calculated on top of that, which may impose additional tax on the company.

Fraud: Fraud is the distortion of important facts by someone who knows that what he is saying is not true.

or presenting facts with complete disregard for the speech and its meaning with the intention of deceiving others and as a result causing losses to the users of the report and the actions of the auditors.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *