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Ramzee Company faces the possibility of legal charges against its Chief Operating Officer (COO) who has recently approved selling outdated clothes under a different brand name to ower income countries. This has not only brought bad publicity to the company, but the share price has also dropped significantly. The shareholders blame the auditors for having .overlooked the dealings of the COO and not being honest in their opinion of the company (a) Identify the stakeholders who would be impacted by the above act of the COO. (1 mark) (b) Explain why the shareholders are blaming the auditors. (2 mark) c) How should the auditors respond to the bad publicity and blame from the shareholders?) Should they go beyond statutory reporting duties and investigate the accusations against the (COO? Explain why or why not. (3 marks PART 2: Explain the relevance and reliability of the following two cases as 'source of a) The managers of a company have provided thei .confirming that the bank overdraft bavided their audit firm with an oral representation) included within current liabilities are complete b) The managers of a company have provided their audit firm a copy of their earnings report) .that was used for 'stock market image' and taxation reasons

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