Duties and Responsibilities of 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.
Auditors assess financial operations and ensure that organizations are run efficiently. They are tasked with tracking cash flow from beginning to end and verifying that an organization’s funds are properly accounted for.
In the case of public companies, the main duty of an auditor is to determine whether financial statements follow generally accepted accounting principles (GAAP). To meet this requirement, auditors inspect accounting data, financial records, and operational aspects of a business and take detailed notes on each step of the process, known as an audit trail.
Types of Auditors
An internal auditor works for the entity which he or she audits. This person conducts independent analyses of a variety of processes within a business, and may also evaluate the level of corporate governance. Internal auditors report their findings to the board of directors, along with remediation suggestions.
An external auditor is independent of the clients which he or she audits. An external auditor may be certified by a state agency to be a certified public accountant, and thus allowed to issue certified reports on the financial condition of clients. An external auditor may instead work for a government, and in that role is tasked with examining the records of individuals and businesses to see if they have complied with the various tax laws.
A forensic auditor investigates whether fraud had been committed. The resulting evidence is used to prosecute the party that committed the fraud. A forensic auditor may be employed within a business, or may work for an outside firm that conducts these investigates for its clients.
Auditor Duties:
- Maintain a thorough knowledge of applicable laws and regulations
- Perform compliance audits and reviews of organizations
- Develop and maintain effective internal auditing procedures
- Compile, analyze, and report the findings of internal audits
- Prepare and issue audit conclusions and recommendations
- Provide training, coaching, and assistance to less experienced auditors
- Present audit findings to management
- Advise management on corrective actions
Auditor Responsibilities:
- Perform financial audits for supply chain, production, procurement, logistics, and human resources
- Review and approve purchase orders and invoices
- Conduct internal audits of project sites, warehouses, and staff
- Perform analysis and reporting on operating metrics, financials, or other areas
- Supervise outsourced audits and vendor management
- Provide expert technical support and guidance to managers on process improvements and operational issues
- Make recommendations based on data analysis to projects, teams, and managers on areas of improvement
