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1. Collusion with the management – auditors may collude with the management in performance of their duties such that they don’t give a true and fair view of the business financial position.
2. Charging high fees – although the law determines the percentage that an auditor can charge a client, auditors may still charge fees which are not commensurate with the work done.
3. Misleading the shareholders – auditors may issue unqualified reports which may be misleading to the shareholders leading to losses if the shareholders make decisions based on such information.
4. Lack of professionalism – auditors may fail to apply professional care and due diligence in the performance of their duties.
Lellah answered the question on November 8, 2021 at 06:43