10.4 Rights and liabilities

10.4 RIGHTS AND LIABILITIES

Rights of auditors

1. Access to information: Auditors have the right to access all books, records, documents, and other relevant information of the company necessary to perform their audit.
2. Professional judgment: Auditors have the right to exercise professional judgment in conducting the audit and forming their opinion on the financial statements.
3. Professional confidentiality: Auditors have the right to maintain confidentiality regarding the information they obtain during the audit process.
4. Fair remuneration: Auditors have the right to receive fair and reasonable remuneration for their services.

Liabilities of Auditors

1. Professional negligence: Auditors can be held liable for professional negligence if they fail to exercise the level of care, skill, and diligence expected of a reasonably competent auditor.
2. Breach of duty: Auditors have a duty of care to the company and its shareholders.
3. Legal and regulatory compliance: Auditors have a responsibility to comply with applicable laws, regulations, and professional standards.
4. Reliance on misrepresentation: Auditors may be held liable if they rely on false or misleading representations made by management or other individuals within the company that lead to an incorrect audit opinion.
5. Liability to third parties: Auditors may have potential liability to third parties who rely on their audit reports.