What is an Auditor?
In the world of accounting, an auditor is significant. An auditor is a professional person authorized and verified to review the accuracy of financial records and ensures papers to comply with tax laws. They are to protect businesses and other companies from frauds and liabilities. They are pointing out discrepancies in the accounting methods and strategizing ways to increase operational performance. Auditors work in different capacities in different industries.
HOW DOES AN AUDITOR WORK?
Auditors are expected to be unbiased and independent. They are responsible for things:
- Managing the performance and financial audit investigations
- Verifying company’s assets and liabilities through checking the documentation and transactions, financially related records, annual reports and financial statements
- Making conclusions on the results of cheque books
- Examining, understanding, and appraising some of the management strategies, practices and exercises following the financial situation of the organization.
- Implementing analytical procedures on the company’s statement balances and activities
- They are assessing the possible risk and management controls.
- Performing written conversations with debtors to certify the amount of possible debt
- Completing all audit questionnaires
- They are maintaining professional knowledge by attending educational classes, workshops and programs in regards to accounting techniques and ethics.
TYPES OF AUDITORS
- INTERNAL AUDITORS
Internal auditors are those who are employed for professional firms outsourced by client companies. Internal auditors mostly work in private sectors to improve the efficiency of the businesses and recognize where processes are not working as they should. As well as assessing financial accounts, they also look at aspects of the company such as environmental sustainability, ethics, growth and reputation.
- EXTERNAL AUDITORS
External Auditors usually work in affiliation with government agencies to carry out obligatory audits of the public sector. They are also called to scrutinize the finances of private business, especially those working in association with governmental bodies.
- GOVERNMENT AUDITORS
Government Auditors are the ones that keep and examine records of government agencies of private businesses or individuals conducting subject to government regulations or taxation. They ensure revenues are received and spent according to laws and regulations. They detect robbery and fraud, analyze agency accounting controls and evaluate risk management.
- FORENSIC AUDITORS
Forensic Auditors requires a diverse set of skills. They are also called investigators and can elicit useful information by questioning suspected witnesses and wrongdoers. They are specialized in crime and are helpful by law enforcement organizations.
Auditors are not accountable for transactions that occur after the date of every report. Moreover, they are not necessarily required to discover all instances of fraud and financial misinterpretations- that primarily lies in the organization’s management team.
Auditors don’t belong to the management team of a particular company which means that the responsibility for financial statement presentation.
To summarize, an auditor has to express an affirmation on whether the company’s accountant has included in the annual report and financial statement the fair information about the company’s activity. The career of an auditor is quite esteemed yet demanding and risky. It involves a lot of opportunities and constant personal development. While an auditor’s job requires so much effort, it is always worth it to be part of this prestigious vocation.