Question

Expalin four things due care implies for an auditor?

Answer 1

Four things due care implies for an auditor are:

1. Due care implies that auditor should exercise degree of care that are expected from reasonable person i.e., degree of care any prudent person would take to complete the same assignment. Hence, he should perform his work professionally.

2. Auditor is not expected to take special care for any audit assignment. This means all the assignments require same degree of due care i.e., perform all the assignment with same care. No special care is required to be taken for any specific assignment.

3. Auditor should act in accordance with requirement of assignment, carefully, thoroughly and on timely basis. This implies that assignment need to be performed in accordance with requirements of assignment, with care, on thorough basis and with in given time limits.   

4. Auditor is expected to exercise due diligence which is part of due care. This means that due diligence should be exercised in completing the assignment. Due care is broader than due diligence. It includes due diligence in its scope.