Auditor
An auditor is a person or a firm appointed by a
certified by the regulatory authority of accounting and auditing or possess certain specified qualifications. Generally, to act as an external auditor of the company
, a person should have a certificate of practice from the regulatory authority.
Types of auditors
- financial reporting. External auditors may also be engaged to perform other agreed-upon procedures, related or unrelated to financial statements. Most importantly, external auditors, though engaged and paid by the company being audited, should be regarded as independent.
- Internal Auditors are employed by the organizations they audit. They work for government agencies (federal, state and local); for publicly traded companies; and for non-profit companies across all industries. The internationally recognised standard setting body for the profession is the Institute of Internal Auditors - IIA (www.theiia.org). The IIA has defined internal auditing as follows: "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes".[2]
References
- ^ Practical Auditing, Kul Narsingh Shrestha, 2012, Nabin Prakashan, Nepal
- ^ "Pages - Definition of Internal Auditing". Na.theiia.org. 2000-01-01. Retrieved 2013-09-02.
External links
- Quotations related to Auditor at Wikiquote
- Encyclopædia Britannica. Vol. III (9th ed.). 1878. p. 69. .