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The Role Of An Auditor

March 8, 2017 | Comments Off on The Role Of An Auditor

If you put it simply, auditors are those who perform financial and risk management audits both internally and for external organizations. The purpose of this is to assess risks and increase efficiency in these organizations. However, their role is a little more complex than that; there are various services that auditors offer and services that they cannot and should not offer. This article will analyze this role.

What they should do

The purpose of an objective party doing this task is to gain an independent perspective as to whether a company has fairly and accurately presented its financial assessments. They also look at whether the organization has followed the given framework in terms of reporting financial information. When you take on best audit jobs in Singapore, you are trusted to provide an accurate report. You must collect data and information, observe the company’s work, and make an assessment as to the fairness of their financial reports in accordance with their activity as a firm. You have to determine whether the firm’s reports are accurate and lacking any misinterpretation of facts.

In addition, you have to be involved and speak to multiple employees at the firm, to gain insight into how the organization functions. This is critical to understanding if there are any errors in their reports. Thus, you need to be capable of assessing their internal systems. Further, you should possess an understanding of the procedures required to judge account balances and transactions of the company you are auditing. You will have to audit a variety of sectors, including private businesses, government organizations, and those with banking jobs. For this purpose, you need to have knowledge regarding checking financial documents, such as account balance reports and transaction reports. As a last step, you may provide the company with information on enhancing financial reporting and risk assessment.

What they should not do

As an auditor, you must always keep in mind that there is a reason why you are known as an independent and objective consultant. You are not a member of the company’s management and you do not have any duty regarding the financial reports you assess. If there are errors within the documentation, they lie in the hands of the company. As an external party, you should not get involved in the company’s transactions and account management functions. You are there only to assess how they perform these functions. You must not create controls within the company’s system and you should not be involved with hiring or firing employees. Further, it is not your duty to find financial reports. The company should hand all information to you.

In this manner, if you stick to your role as an auditor, perform your tasks accurately, and stay uninvolved in internal company functions, you can do your job successfully.