Some of the shareholders of Y Co Ltd think that the auditor has not performed his duties properly

Some of the shareholders of Y Co Ltd think that the auditor has not performed his duties properly. These shareholders bought additional shares in the company as a result of last year’s accounts, which mistakenly stated that the company made a profit when in fact it made a large loss. The directors of the company have faith in the auditors and do not want them to be removed from office. Explain any procedure by which the auditors could be removed from office, and the extent to which the auditors could be liable if the accounts were misleading in the way in which the shareholders allege that they were.