An auditor is not bound to be defective, or to approach his work with suspicion, or with the foregone conclusion that there is something wrong.
He is a watchdog but not a bloodhound. He is justified in believing servants of the company and is entitled to rely upon their representations, provided he takes reasonable care.
An auditor is not bound to assume when he comes to do his duty that he is dealing with fraudulent and dishonest people if circumstances of suspicion arise it is his duty to probe them to the bottom.
Definition of an Auditor
An auditor is responsible for judging the validity and reliability of a company or organization’s financial statements.
The person doing the audit and who is ultimately responsible for the results of the audit is called an auditor. An auditor multiples his hand through employing the assistance for doing the work, but still, he alone is responsible for what he does and others do for him.
So, an auditor is a professional that accumulates and evaluates evidence to report on the degree a company’s assertions that they comply with an established set of procedures or standards (criteria).
Qualities of an Auditor
An efficient auditor must have certain qualities besides Professional qualification. It is essential for him to carry out the audit efficiently and smoothly.
- It is very important for an auditor to be well versed in the fundamental principles and theory of all branches of accounting, e.g., general accounting, cost accounts, income-tax, etc.
- He should not pass a transaction unless he knows that it is correct. This is possible only when one knows thoroughly well the principles of accounting.
- He should be able to grasp quickly the technical details of the business whose accounts he is auditing. If possible, he should pay a visit to the works of his client, before he commences his work.
- He should be prepared to seek elucidation on technical questions rather than show a false pride or fear of displaying his own ignorance.
- He should be quite familiar with the company and mercantile laws and must be a complete master of the principles of auditing.
Types of Auditors
Auditors carefully examine financial records so they can evaluate an entity’s financial position and the authenticity of its data.
This requires experience not only in all types of accounting practices but also in various tax, laws and financial regulations governing the use of certain documents.
While it takes a highly trained accountant to work as an auditor, there are different types of auditors with different aims. Several types of auditors conduct these procedures.
Types of Auditors are;
- Independent/External Auditors
- Internal Auditors
- Government Auditors
- Forensic Auditors
Learn More about types of Auditors.