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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:
4. Employ of audit committees and audit reviews.
Baumol's Model - Optimal Cash Balance An application of the EOQ is the Baumol's model which is inventory model to cash management. Its statements are as: The firm emplo
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