M/s Brahmi and Associates have been appointed as the statutory auditor of Prompton Leaves Limited, a

M/s Brahmi and Associates have been appointed as the statutory auditor of Prompton Leaves
Limited, a manufacturer of gas geysers for the FY 2021-22. During the course of audit, the auditor
found that two customer complaints have been filed against the company in the FY 2021-22, for
the use of sub standard pipes and wires in manufacture of gas geysers. The gas geyser blasted at
high temperature leading to severe injuries to the family of complainant along with damage to
their property. They have sought a demand of rupees 10 crore. However, the lawyer of Prompton
Leaves Limited believes that such claim is unsustainable as the incident occurred due to short
circuit at both the complainants place. The management of Prompton Leaves Limited accordingly
did not include any reference to the litigation in the financial statements. The auditor obtained
legal advice from some independent lawyer according to whom the outcome of the case is not
ascertainable as of now:

a) The statutory auditor should give an unqualified opinion.

B)The statutory auditor should give an unqualified opinion with Emphasis of Matter paragraph.

C) The statutory auditor should withdraw from the audit engagement.

D) The statutory auditor should give a qualified opinion.