Auditor's Lien

Question 1

Meaning of Auditor’s Lien

Answer 1

The term “Auditor’s Lien” refers to the right of an auditor to retain possession of a client’s books, documents, or records until their fees for Audit services have been paid. This Lien is a legal right that allows the Auditor’s to hold onto the client’s property as security for the payment of their professional fees.

Question 2

Key Features of Auditor’s Lien

Answer 2

1. Possessory Right
2. Applicability
3. Purpose
4. Legal Basis

Question 3

Conditions for Exercising Auditor’s Lien

Answer 3

1. Unpqaid Fees
2. Lawful Possession
3. Relevance to the Audit

Question 4

Limitation of Auditor’s Lien

Answer 4

1. No Right to Sell
2. No Right to Access
3. Legal Disputes
4. Third-Party Documents

Question 5

Practical Implications of Auditor’s Lien

Answer 5

1. Client-Auditor relationship
2. Legal Resource
3. Ethical Consideration