Responsible to Shareholders
The auditor is responsible to the shareholders since they are the member of the company, assigned the auditors to ensure their benefits on the business. Auditor is required to give a report to the shareholders to give the assurance that accounts show a true and fair view and comply with the statutory requirements. Furthermore, the auditors give the assurance that all directors' remuneration has been disclosed so that the shareholders received their benefits.
Responsible to proffesion
The independent auditor also has a responsibility to his profession which is the responsibility to comply with the standards. In recognition of the importance of such compliance, the government set up a legislation which is Companies Act 1965, Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards.