The correct answer is D. The auditor is an agent of shareholders.
An auditor is an independent person who is appointed to review the financial statements of a company and report on whether they are accurate and fair. The auditor is not an agent of the shareholders, but rather an independent professional who is responsible to the public. The auditor’s duty is to report on the financial statements, not to represent the interests of any particular group.
A corporate body can be appointed as an auditor of a company. However, the auditor must be a person who is independent of the company and its management. The auditor must also be qualified to carry out the audit, and must have the necessary knowledge and experience.
The first auditors of a company must be appointed within one month after the registration of the company. If no auditor is appointed at the Annual General Meeting of the company, the Central Government must be so informed within 15 days.