The auditors of PQR Ltd. accepted the Certificate of the Manager, a person of knowledge, competence and high reputation, as to the value of the stock in trade. The stock was grossly overstated for several years in the balance sheets of the company. As a result of this over valuation dividends were paid out of capital. The Auditors did not examine the books of account very minutely. If they had done so and compared the amount of stock at the beginning of the year, with the purchases and sales during the year, they would have noticed the over valuation. The company subsequently went into liquidation and the auditors were sued to make good the loss caused by the wrongful payment of dividends relying on the balance sheets figures. Based on the above facts, you are required to decide, with reference to the provisions of the Companies Act, 2013 and the decided case laws, the following issues: (i) Whether auditors of the company will be liable for the loss caused to the company by the wrong payment of dividends based on the Balance Sheets duly audited by the Auditors. (ii) What are statutory duties of the Auditors in this regard?