07 Jan
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.
Table of Contents
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
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
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 math
- 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 compliances. Some of the significant roles an auditor plays 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
- Assist in changing company procedures
Conclusion
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.
Related Post
Copyright © 2024 – Powered by uConnect