responsibility of the auditor

The auditor audits FINANCIAL STATEMENTS - not people. Financial statements that "present fairly, in all material respects" in accordance with the applicable financial reporting framework are a reflection of management's stewardship. If the shareholders don't like the results presented in the financial statement, they can remove directors. The auditor does report MATERIAL inconsistences/misstatements as matters of fact/professional opinion - this should be sufficient prompt to the shareholders without adding "oh - and by the way - I think your chairman is incompetent" ... even if that were true and not libelous - what about the fundamental ethical principle of professional behaviour?