You Have just audited a company and provided your report to the shareholders at their annual general meeting. afterwards, one of the shareholders approaches you and says "i'm glad the audit report was good. it means that the financial reports are correct and that I should not sell my shares." What would be your response?

My response to the shareholder is that I cannot make a comment to his statement. The reason being is that my status as a professional will either confirm or sway the shareholders willingness to sell, buy or hold shares.

Because of my status as a professional, the shareholder could argue that they were relying on the statement made as it was an 'audit opinion' and that a duty of care was owed to the shareholder as made out in the case of London & General Bank Ltd (1895). This case was in relation to an unqualified opinion being made on an audit report. The audit report was relied one and subsequently the auditor was found liable for the losses.

Is this correct?