Back to: Auditing
Hello everyone!
Hope you’re enjoying the course so far. This week, we’ll focus on the essential qualities an auditor should possess and the duties they are expected to perform.
Qualities and Duties of an Auditor
Understanding these helps you appreciate the level of professionalism and responsibility required in the auditing profession.
A. Qualities of an Auditor
To carry out their responsibilities effectively, an auditor must possess certain personal and professional qualities. These include:
Integrity – An auditor must be honest and straightforward in all professional and business relationships.
Objectivity – Free from bias or conflict of interest; decisions must be based on facts, not personal feelings.
Independence – An auditor must be independent in appearance and in mind to ensure credible and impartial reporting.
Confidentiality – Must not disclose client information without proper authority or legal duty.
Professional Competence – An auditor should have adequate knowledge and skill and must keep up with updates in auditing standards.
Scepticism – A questioning mind and alertness to conditions that may indicate possible misstatement.
Communication Skills – The ability to express audit findings clearly in writing and speech is essential.
Ethical Conduct – Following professional codes of ethics and maintaining the dignity of the profession.
B. Duties of an Auditor
The specific duties of an auditor may vary depending on the type of audit and the organisation, but core responsibilities include:
Examining financial records – Reviewing books, receipts, invoices, and other financial documents.
Evaluating internal controls – Assessing the effectiveness of the organisation’s control systems.
Expressing an opinion – Giving an independent opinion on whether the financial statements give a true and fair view.
Detecting errors and fraud – While not primarily responsible for detecting fraud, auditors must be alert to red flags.
Reporting to stakeholders – Preparing an audit report for shareholders or management.
Ensuring compliance – Confirming that the business adheres to legal, tax, and regulatory requirements.
Maintaining audit evidence – Keeping records of audit findings and working papers.
Following auditing standards – Adhering to generally accepted auditing practices and professional standards.
Evaluation:
Mention five qualities of a good auditor and explain any two.
List and briefly describe four major duties of an auditor.
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