Solutions - relationship between auditors and shareholders, Finance Basics

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Solutions to the conflict - Relationship between Auditors and Shareholders

1. Firing

The auditors may be detached from office at the AGM via the shareholders.

2. Legal action

Shareholders be capable to institute legal proceedings against the auditors who question misleading reports leading to investment losses.

3. Disciplinary Action - ICPAK

Professional bodies have disciplinary methods and measures against their members who such are comprised in un-ethical practices. Hence disciplinary actions may comprise of:

The auditor' Suspension
Withdrawal of active certificate
Penalties and Fines
Reprimand

4. Employ of audit committees and audit reviews.

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