Back to: Auditing
Hello, Students!
It’s wonderful to have you back.
Last week we touched on the principles guiding auditing work. This week, we will talk about what an auditor actually does – the real job description. Many people think auditors only look at money, but their role is more than that’s. Let’s break it down together.
Lesson Objectives:
By the end of this lesson, students should be able to:
List the main duties of an auditor.
Explain what auditors are expected to do before, during, and after an audit.
Understand the rights and responsibilities of an auditor.
Role of an Auditor
Main Role of an Auditor
An auditor’s job is to check the financial records of an organisation to make sure they are correct and follow the law. But that is just the summary. Let us now look at what they really do, step by step.
1. Planning the Audit
Before starting the audit, the auditor must plan properly. This includes:
Understanding the company
Identifying risky areas
Preparing an audit programme (a step-by-step guide of what to check)
Planning helps the auditor to work smarter and not waste time.
2. Gathering Audit Evidence
The auditor must collect information that shows whether the accounts are correct. This is called audit evidence. They can do this by:
Checking documents (invoices, receipts)
Asking staff questions
Visiting the office or warehouse
Recalculating figures
3. Checking Internal Control
The auditor reviews the systems the organisation uses to prevent errors and fraud. If the internal control is strong, fewer mistakes are likely. If it is weak, the auditor may do more checking.
4. Writing an Audit Report
After all checks are done, the auditor writes a report. This report gives their opinion. They may say:
Everything is okay (clean report),
There are some issues,
Or the records are very poor (adverse report).
This report helps people like investors, government, or the public to make decisions about the company.
5. Giving Advice
Even though the main job is to check and report, auditors may also suggest ways for the company to improve, especially in internal control or record keeping.
Rights of an Auditor
By law, an auditor has some rights, such as:
Right to access all financial records
Right to ask any staff questions
Right to get explanations
Right to attend meetings (e.g. AGM)
Responsibilities of an Auditor
With the rights come responsibilities:
To report the truth
To follow professional rules
To keep information private
To do the work carefully
Class Talk:
Lecturer: Imagine you are the auditor of a secondary school. What are some things you will check?
Student Response (expected): School fees records, salaries paid, purchase of books or chairs, etc.
Summary of Lesson:
Today, we saw that an auditor does much more than just looking at money. They plan, collect evidence, check systems, report findings, and even give advice. They also have special rights and duties. A good auditor is careful, honest, and helpful.
Evaluation:
Mention three things an auditor does during an audit.
What is audit evidence? Give two examples.
Why is planning important in auditing?
Mention two rights and two responsibilities of an auditor.
What is the name of the final document the auditor prepares?
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