What Is The Role Of An Auditor?

In financial accounting, an audit is categorized by the independent assessment of the justice by which a company's financial statements are prepared and presented to and by its management. This task is mainly performed by the skilled, competent, independent and objective persons, known as accountants or auditors. Auditors are on the whole very knowledgeable with every aspect of auditing and they in turn issue a report known as auditors report. There are mainly two types of auditors:

External Auditors: These auditors are called from outside the company to access and evaluate financial statements of their clients or to perform necessary evaluation than required. They are mostly employed for a period of 1 year.

Internal Auditors: These are the company hired employees to access and evaluate the internal control required by the company. They report directly to BOD’s or the top management. They are responsible to have a through view related to the frauds and mishappenings that exists in a company.

An auditor basically does auditing for a firm or organization. Where as an audit evaluates an association, scheme, procedure, plan or product.

According to accounting, an audit is an autonomous evaluation of the fairness via which a corporation's economic statements are offered by its management. It is executed by competent, independent and intent individual or individuals who are known as accountants and auditors, who then give a report on the results of the audit. Audits are carried out to determine the authority and dependability of financial information.

An audit is usually based on chance sampling and is not a declaration that financial statements are completely perfect. It plainly offers assurance for third parties or external users that such statements offer 'fairly' a company's economic condition and results of the operations carried out.

Role of an auditor

The primary role is to provide users with independent expert opinion and information about the truth and fairness of the financial statement.
Audited accounts do not however guarantee accurate accounts