The auditor once hired by the shareholders has the obligation of carrying out his duties as per the contract signed and this involves protecting the interests of the owners of the company. He is to carry out his duties with the competence and independence required by his profession.
The auditor enters into a contract with the owners of the client company. This means that he is answerable to them for any matter connected with the audit of the client‘s accounts. He therefore owes the owners of the business(shareholders) a duty of care since he is expected to perform his duty with diligence.
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