Explain the legal relationship between the auditor and i) the client company, ii) the client companies shareholders, and iii) third parties

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Independence of an external auditor means that the auditor has no prior relationship with the client company before or after the arranged contract. The contract, however, unites the client company, the shareholders and other relevant third parties such as government. The auditors require ensuring that all items in a financial statement are presented fairly despite the available stakeholders…

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