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Sir aren’t members of a company same as Shareholders. They both are the same right?
In the lecture video entitled “Auditor’s liability” you said that Auditors report only extends to members of the company and not to an individual or group of shareholders.
So what does this mean?Yes – the members of the company are the equity/ordinary shareholders. Case law (“Caparo”) established that the auditor’s liability is the “shareholders” (to whom the auditor’s report is addressed) collectively – i.e. to all of them “as a class”. So not to a particular group that is a subset of the whole – and certainly not to any one individual shareholder.
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