The correct answer is: To report to shareholders on the structure and operation of accounting systems and internal controls.

Auditors have a right to inspect the books and records of the company, to obtain information and explanations from officers of the company and to require directors to call an extraordinary general meeting (EGM) where it is proposed to remove them. They have a duty to report to shareholders on the truth and fairness of financial statements but they have no right or duty to report to shareholders on the structure and operation of accounting systems and internal controls. This report is made to directors.