Solutions - relationship between auditors and shareholders, Finance Basics

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:

  1. The auditor' Suspension
  2. Withdrawal of active certificate
  3. Penalties and Fines
  4. Reprimand

4. Employ of audit committees and audit reviews.

Posted Date: 1/29/2013 1:57:11 AM | Location : United States







Related Discussions:- Solutions - relationship between auditors and shareholders, Assignment Help, Ask Question on Solutions - relationship between auditors and shareholders, Get Answer, Expert's Help, Solutions - relationship between auditors and shareholders Discussions

Write discussion on Solutions - relationship between auditors and shareholders
Your posts are moderated
Related Questions
Problem: (a) Describe why a critical analysis of the following is important while reading a research article: (i) The author, (ii) The date of publication. (b) What do

If the winner’s prize increases at the same rate (8.43%), what will it be in 2041?

Disadvantages of Floatation of New Shares 1. The cost of getting a quotation is high, mainly when a new issue of shares is completed and the company is small. It means that su

Business Activity Cycle The interest rates also depend on business cycles as above. Because the economy moves in the four (4) business cycles, such interest rates will shift l

Shareholders Expectation and Growth Stage Growth Stage Dividend policy is likely to be influenced with firm's growth stage as like a young rapidly growing firm is probabl

Dividend Policies and Decisions Dividend policy determines the division of earnings among payments to stock holder's ad re-investment in the firm.  Hence now it looks at the f


Distribution Policies   Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3)

Question 1: a) Explain the framework put forward by the Basel Committee to ensure that banks and supervisors give appropriate attention to the second (supervisory review) and

Drawback of Stock Repurchases 1. High price A company may find it not easy to repurchase shares at their recent value and price paid may be higher to the detriment of rem