What Is the Job of An Auditor- Auditing is a process used to verify complex information systems’ accuracy, reliability, and performance. Auditing processes may include examining the internal controls and management systems of an organization or individual that manages a financial account or another asset in order to ascertain that these cause no material misstatements in the statements and reports they issue.
Auditing is fundamentally a process that provides assurance. This means it should be described in terms of what it will not do rather than what it does do because auditors may not be able to detect all frauds or other illegal activities—this is especially true for personal accounts. The accountant’s function is merely one part of the auditor’s overall effort.
Types of Auditors
There are two major kinds of auditors: the internal auditor, who audits company records and operations, and the external auditor, who audits company records and operations for an outside organization such as a bank.
Internal auditors:
They are hired by the company to assess its structure, policies, and procedures and compliance with statutory requirements. They also assess a company’s conduct and internal controls related to its financial reporting activities.
External Auditors:
They are hired by an independent third party to assess whether a company is compliant or not with its financial statements. These auditors are usually unconnected with an individual or a corporation as they do not work for them but instead work for third-party assurance firms such as KPMG, PwC, Deloitte & Touche, etc., who then ensure that the company meets all its legal obligations.
What is the Job of an Auditor?
1. Account Evaluation
An auditor evaluates the accuracy and comprehensiveness of accounting records, ensuring they are complete and that financial transactions are recorded accurately. They may be required to audit a variety of documents, including payroll checks, cash receipts, and invoices. Auditors might work in the private or public sector; those in the public sector could find themselves auditing projects financed by taxpayer dollars or larger institutions like hospitals.
2. Internal Control
An auditor may be hired to conduct an internal audit at a company where there has been concern about irregularities or poor performance. They may also be called upon by law enforcement agencies if suspicions arise about criminal activity within a company’s management team. Regulatory bodies might also hire auditors to ensure companies are following federal laws.
3. Book Keeping
An auditor should have an excellent grasp of mathematics and may be required to complete an advanced degree in accounting or business administration. They must possess a keen eye for detail and an analytical mind that can ferret out even the tiniest discrepancy in a company’s books.
4. Financial Control
An auditor may focus on internal accounting controls, external auditing, or both. The internal audit component is primarily concerned with reviewing a company’s financial management. In contrast, the external audit traditionally concentrates on the accuracy of a firm’s financial statements and the filing of tax returns. Both roles are equally crucial to maintaining the public’s confidence in the integrity of financial dealings within organizations.
5. Data Management
An auditor typically spends part of their time in the office, checking account records and accessing data. The remainder of their time is generally spent outside the office, meeting with company management, or visiting business locations. They may travel extensively throughout a project, especially if auditing companies in multiple countries or states.
Auditors often have to obtain specialized software for audits, though some may use spreadsheet programs like Excel to digitally tally figures. Working with numbers on a regular basis can be tedious and repetitive work; however, auditors are required to be detail-oriented, often spending hours reviewing reports and spreadsheets.
Responsibilities of An Auditor
The responsibilities are:
- Preparing and maintaining the financial statements
- Completing audit procedures to test whether and to what extent the financial statements are free from material misstatement, whether due to fraud or error,
- Reporting on the audit findings in a timely manner, communicating relevant information clearly, and providing sufficient support for such results.
- Enhancing auditor independence by avoiding political influence, personal interests, and undue economic gain
- following professional standards for auditors in their country of practice.
- Reporting on the results of the audit to management, the audit committee, and any other relevant parties.
- Working with management to improve control systems and promote an ethical culture.
- Developing their career through continuing professional education, training, and development
- Advances the standing of auditing in society.
The Benefits of Choosing a Career in Auditing
The benefits of choosing a career in auditing are:
- The work of an auditor is both challenging and fulfilling.
- The auditor’s responsibilities are diverse, encompassing the financial, operational, compliance, and risk management functions of a company’s operations.
- Auditors are always in demand as businesses see the importance of audit services to validate the accuracy and reliability of their data across all aspects of the organization.
- Auditors have opportunities for advancement; advancement is based on expertise in auditing skills gained through experience and professional training courses that lead to certification designations such as Certified Public Accountant (CPA), Chartered Professional Accountant (CPA), or Certified General Accountant (C5G5).
- Auditors have the possibility of working for prestigious companies. From there, they can make a difference by working for a company that significantly impacts the economy of this country with its business growth, innovation, and efficiency.
- An auditor’s work can be both challenging and lucrative.
- Auditing is a good fit for everyone interested in financial services, science, mathematics, or analytical skills; they are all required to become an auditor.
- There is a strong demand for qualified professionals as firms face challenges from new government regulations and the increased use of technology; there is thus more significant demand for auditors who possess sophisticated IT skills to ensure that these challenges can be met effectively.
Conclusion
Auditing is a fulfilling career that combines the challenges of data entry and analysis with the opportunity to work in a job related to both finance and management. It is significant for those wishing to embark on a career in financial auditing to spend time getting familiar with the industry and its tools. The auditor should be able to understand the fundamental difference between accounting and auditing as well as how best to interpret financial statements.
Aspiring candidates should also become comfortable working with computers and digital systems.
Frequently Asked Questions
What does an auditor do on a daily basis?
On a typical day, the projects he works on might include process improvements, internal control identification, and testing, reviews of policies and procedures, audit planning, external audit assistance, reviewing work papers, inventory counts, IT audits, and, on rare occasions, fraud investigations.
What does a first-year auditor do?
Your first year as an auditor will split your time between working and studying. You may also travel frequently and decide to become involved in extracurricular activities organized by your employer, such as sports teams and CSR operations.
Do auditors travel?
Internal auditors work for large corporations operating globally. For this reason, most auditors spend 50% of their time overseas, visiting every subsidiary. Some travel 100% of the time.
Can an auditor become an accountant?
As an experienced external auditor, you could move into management and then become a partner or finance director. You could also set up your accountancy practice.
Do auditors work in an office?
Auditors typically work standard office hours, plus some overtime or weekend work at busy times, particularly at the financial year’s end. When conducting audits for clients, they may be required to work from their client’s workplaces.
References
- Glassdoor.com – Auditor Job Templates
- Rasmussen – What Does An Auditor Do?
- Legit.ng – Who is an Auditor and What do they do?
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