Question

If an auditor does something wrongfully in the performance of his duties resulting in financial loss to the company he is guilty of

• A. Negligence
• B. Misfeasance
• C. Criminal liability
• D. Contractual liability

Answer 1

Answer:

B. Misfeasance

Misfeasance means breach of trust. If an auditor does something wrongfully in the performance of his duties resulting in a financial loss to the company, he is guilty of misfeasance. In such a case, the company can recover damages from the auditor or from any officer for breach of trust or misfeasance of the company.