Company Auditor & its Qualities

Who Is an Auditor?

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency.

Auditors work in various capacities within different industries.

The main duty of an auditor is to determine whether financial statements follow generally accepted accounting principles (GAAP).
The Securities and Exchange Commission (SEC) requires all public companies to conduct regular reviews by external auditors, in compliance with official auditing procedures.
There are several different types of auditors, including those hired to work in-house for companies and those who work for an outside audit firm.
The final judgment of an audit report can be either qualified or unqualified.

Qualities of an Auditor:

The Auditor must possess the following qualifications and qualities:

Only the qualified chartered accountant can be appointed as auditor of a limited company.
The auditor must have thorough knowledge of principles and practice of all aspects of accountancy.
He must be familiar with all systems of accountancy in use.
He should have adequate knowledge of financial management, industrial administration and business organization.
He must have thorough knowledge of audit case laws as per the various cases decide by the courts in and outside India.
He should be able to understand the technical details of business whose accounts he is going to audit.
An auditor must be honest i.e. He must certify that he does not believe to be true and he must take reasonable care and skill before he believes what he certifies is true.
He must act impartially and not influenced by others, directly or indirectly while discharging his duties.
He should be hard working, systematic and methodical.
He must have the capacity to hear arguments of others.
He should have adequate skills and courage to write audit report correctly clearly and concisely.
He should not disclose the secrets of his client.

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