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What-are-the-role-and-responsibilities-of-an-auditors

Every company is obliged to prepare a financial statement to examine the financial reports as per the court of law. Auditors review all the accounts of the companies to ensure their financial records are correct in line with the law. In addition, examination of the financial statements is the auditor’s responsibility 

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. In this article, you will find the answer to all of your questions about auditors.

Outline

  • Who is an Auditor
  • What is Audit
  • Types of auditor
  • Skillset of auditors
  • Responsibilities of an auditor
  • Role of an Auditors
  • Conclusion

Who is an Auditor

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.

What is Audit

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. 

Types of Auditor

 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

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

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

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.

Skillset of auditors

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.

  • A strong aptitude for maths
  • Have a vast understanding of the business
  • Critical thinking and Analytical skills
  • Have an ability to pay attention to every little detail
  • Excellent interpersonal and excellent problem-solving skills
  • A keen interest in the financial system
  • Good Leadership qualities 
  • Strong IT skills

Responsibilities of an auditors

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.

  • To check the findings of the financial audit.
  • To verify the company’s assets and liabilities by checking documentation and transactions of the company.
  • Check whether the company financial report is based on the law and regulations
  • Monitor, examine, and evaluate management policies, practices, and activities related to the organization’s financial saturation.
  •  Performing analytical procedures on the company’s account balance and transactions.
  • Ask formal and informal questions from company administration and accountants about the company’s financial activities
  • Prepare a final audit report with an unbiased view
  • Updating and Completing audit questionnaire.
  • Offering new policies and procedures 
  • Written conversation with company’s debtors about the dept

Role of an Auditors

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 complainces. Some of the significant role of an auditor play in an organization include.

  • Make sure to follow the police rule regulations diligently.
  • Compiling, cross-checking, and evaluating accounts report statistics.
  • Protect organization reputation by keeping information confidential.
  • Financial threats assessment in the organization
  • Auditors assist the investigating officer
  • Assit in changing company procedures

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. Auditing a company or a business is one of the essential and best accounting and business management.

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