Harun is an auditor of Majujaya Sdn Bhd, a private limited company. During an audit process Harun discovered several irregularities in the financial statement of the company. Harun noticed that some invoices had been altered and there were a number of doubtful transactions. Harun suspected that these were done by someone at the upper level of management of the company. Harun, however,did not disclose the matter in the audit report and decided to verify the account as true and fair for fear that his contract will not be renewed by the company in future if these were disclosed. The verified financial statement was later relied upon by Khalid when he decided to purchase Majujaya Sdn Bhd's shares. The shares later became worthless when a large-scale management fraud was discovered. Khalid who had subscribed and paid for the shares suffered a huge loss.

Advise Majujaya Sdn. Bhd and Khalid whether they would be able to take legal action against Harun in the above situations.

Give 2 Issue for this sentences, 2 conclusion and law that must apply in that answer.