Section 315, The Companies Act, 2009

(1) A company’s auditor shall in the performance of hisduties, exercise all such care, diligence and skill as is reasonably necessary in each particular circumstance. (2) Where a company suffers loss or damage as a result of the failure of its auditor to discharge the duty imposed on him by subsection (1) , the auditor shall be liable for negligence and the directors may institute an action for negligence against him. 240 241 Auditors’ attend company’s Resignation of auditors. auditors for negligence. (3) If the directors fail to institute an action against the auditor under subsection (2), any member may do so under section 258 after the expiration of 30 days notice to the company of his intention to institute such action. (4) Where the company suffers loss as a result of fraud by an auditor, the auditor commits an offence and shall be liable on conviction to a fine not exceeding Le8,000,000