AUDITOR

Auditors principally inspect company accounts and check their records and procedures. They have various specialisms and ways of doing their work effectively which include:

• accessing company records and all in-goings and outgoings over a given time period
• verifying financial information and examining data
• analysing company risk and any fraudulent occurrences

Auditors will begin their process by building up an accurate picture of a company’s accounts and gaining a grounded understanding of profit and loss. Larger companies have their own auditors who constantly check on the company accounts. Others will call in an auditor to check over their accounts this being called an ‘external audit’.

An ‘internal audit’ is a full and independent evaluation of a business’s performance over a given time period and specifically highlighting any weaknesses that become apparent. The auditor must not only gather this information but be prepared to present it to the senior management.

There are three main stages to completing an audit outlined below:

• Planning – Liaise with clients and relevant members of the company to determine complete picture of company accounts particularly the risks involved with their business.
• Fieldwork – Usually completed at the offices of the company being audited. Reviewing all figures and documents including; invoices, statements, payroll, data, transaction history.
• Completion – Reviewing of all financial statements and ensuring all numbers agree. Make all relevant disclosures and ensure they are in line with regulations. This requires a good eye for detail, understanding of numbers and working with great concentration.