Every company is obliged to prepare a financial statement to examine the financial reports as per the court of law. For preparing financial reports, auditors are essential employees of the company. They help a company maintain consistency, find errors, or detect fraud. They provide an opportunity for a business to incorporate independence into the review process of their internal control program. Auditors review all the accounts of the companies to ensure their financial records are correct in line with the law. In this article, you will find the answer to all of your questions about auditors.
An auditor CPA (Certified Public Accountant) or CA (Chartered Accountant) is a person appointed by a company to execute an audit and inspect the books of accounts. Auditors typically work standard office hours, Some overtime, and weekend working at busy times or the end of the financial year.
Auditors form an opinion about the company’s financial statements. Whether the report depicts an accurate and fair view of the financial statements. Their primary objective is to protect businesses from fraud, inconsistency in accounting methods, among other things.
An audit is the examination of an organization’s financial report (balance sheet, an income statement, a statement of changes in equity, and cash flow statement) of an organization-as presented in the annual report by someone independent of that organization. It is done to determine the accuracy of the financial system provided by the organization.
The types of auditor are as follow:
External auditors/independent Auditors
External auditors are third-party consultants hired by a company. They look for financial statements resulting from errors, fraud, and pilferage. External auditors independently review a company’s financial records, payroll, accounts payable, accounts receivable, inventory, and tax payments.
Internal auditors perform the same role as external auditors. They are company employees who provide an independent and objective evaluation of company operational and financial activities.
Government auditors examine and maintain the record of government agencies. The auditors report their findings to Congress to create and manage policies and budgets. These accountants work for the government accountability office.
Forensic auditors or accountants are specialists in the field of forensic accounting. Their duty is to investigate fraud, pilferage, business closures, bankruptcy filings, and other crimes. A forensic auditor’s findings are used in a court of law for investigation.
Auditing skills are qualities and attributes that allow an auditor to examine and verify a company’s financial information ideally. There are several skills auditors need to provide the best advice and solutions to the company. There are numerous skills auditors should possess some of which include.
The primary responsibility of auditors is to prepare company financial reports and statements. This financial report and statement include correct and truthful information about the company’s financial situation.
The auditors’ role in a company is to assist the business in maintaining its financial reliability by reviewing and verifying financial statements. The goal of auditors includes risk controlling and supervisory compliances. Some of the significant roles an auditor plays in an organization include.
Hope this article helped you in understanding auditors’ skills and responsibilities. I tried to cover all the details of auditors, and this article gives you an insight into auditor skills, roles, and responsibilities. Internal and external audit of a company or a business plays a vital role in business growth.