Nature and scope of the duty of care of a company auditor

David is the sole auditor of Kenanga Bhd , a company dealing in food and health products. During the course of the audit of Kenanga Bhd’s accounts, David discovered certain transaction which may be in breach of the companies Act 2016. The directors of Kenanga Bhd had not been satisfied with the way David had been conducting the audit of the company’s account and wish to replace him. Discuss the nature and scope of the duty of care of a company auditor in the auditing of the company’s accounts.

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