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CSS Audit Tax Finance P-II QUESTION #1213
Question 1
An auditor is like a:
  • Blood hound
  • Watch dog✔️
  • May both (A) & (B) according to situation
  • None of these
Correct Answer Explanation
According to the classic legal position (Lopes LJ in Kingston Cotton Mill case, 1896), an auditor is a watchdog, not a bloodhound. A watchdog is alert and watches for errors/fraud but is not required to actively hunt down fraud. The auditor's duty is to verify, not to be a detective searching out fraud.