Ali is an auditor of Maju Sdn Bhd (MSB). While carrying out some audit work on the company's account, he discovered some irregularities with the financial statements of MSB. He notices that there were so many discrepancies in figures as well as statements stated therein. When he asked for explanation from Abu, the managing director of MSB, he was told to keep the matter to himself and not to reveal it in his report. Abu also told Ali that if he wanted to be reappointed as an auditor for the next company's financial year, he should follow what he is told to do. Being afraid that his service will not be continued, Ali finally verified and certified the financial statements.

The verified financial statements were later relied upon by Mata Sdn Bhd in the purchasing of the MSB shares. The shares of MSB later became worthless when the large-scale management frauds were discovered. Mata Sdn Bhd alleged that Ali was negligent in failing to detect frauds when auditing the MSB financial statements.

1. Based on the above scenario, discuss the duties and liabilities of Ali as an auditor. Support your answer with reference to the Companies Act 2016 and decided cases.