If a company auditor does something inappropriate in his performance of duty which causes the financial loss to the company, he shall be held guilty

Solution (By Examveda Team)

Civil negligence occurs when a person, such as an auditor, fails to exercise the level of care and skill that a reasonably competent professional would be expected to apply in similar circumstances.

In the case of an auditor, if he performs his duties carelessly or without following proper auditing standards, and such negligence results in financial loss to the company, he can be held guilty of civil negligence.

This type of negligence does not imply criminal intent but represents a failure to meet professional obligations and due care expected under civil law.

Breach of duty is a broader concept that includes any failure to fulfill assigned responsibilities, whereas civil negligence specifically refers to such a failure caused by lack of due diligence or professional care.

Criminal negligence involves reckless or intentional misconduct leading to harm, which is more severe and not typically applicable to auditing errors.

Financial irregularities refer to errors or frauds in financial records, not the auditor’s failure to detect them.

Therefore, when an auditor’s improper actions or omissions cause financial loss to the company, he is held guilty of civil negligence.

Hence, the correct answer is Option A: Civil Negligence.