Who is Auditor?
Auditors are authorized experts who prepare and review an entity`s financial reports in order to ascertain the accuracy and legality of its financial documents. These are the financial supporters of any firm, any company or any organization, irrespective of how large or small scale firm it is. These individuals have a strong sense in dealing in the financial capacity, be it dealing with respect to managing their internal accounts or the external ones. Their primary goal is to ensure that all monetary transactions are processed and documented correctly. The auditor`s report is a representation of their independent and informed opinion of whether the financial records in question are fair and consistent with the accounting principles and tax norms.
Due to this, an auditor`s opinion lends an enhanced degree of confidence in the company`s financial reporting practices. Throughout the process, the auditor maintains professional skepticism to ensure that their judgement is true and free of bias. By investigating the reliability of financial statements and identifying accounting discrepancies, the auditor`s work protects the company from fraudulent practices. In order to assure the objectivity of the audit report, the auditor is provided unrestricted access to all data relevant to the company`s financial statements. Apart from this, an auditor can also offer unbiased advice regarding risk aversion methods and strategies to reduce costs.
In general, it can be understood that the auditors examine, analyze and interpret the entire situation with respect to the accounting based records and files leading to the thorough documentation. In their work schedule this works in interpreting the entire data, preparing the financial statements, providing advices, doing thorough audits and to evaluate the statements that are prepared by others. This way the entire system of recording costs, budgetary data and other financial aspects come under their supervision.
Typical day at work
What does Auditor do?
In a nutshell, an auditor examines a company's financial records to check if they are honest by analysing the level of precision and clarity that has been accounted for. Auditors must explain their findings in addition to evaluating and generating financial documentation and written reports.
Face-to-face encounters with organisation managers and individual clients are included. Depending on the organisation for which they work, many auditors specialise. Some are experts in risk management or assurance (improving the quality or context of data for decision-makers) (determining the probability of a misstatement on financial documentation). Others, such as healthcare auditors, specialise in specialised industries. Accounting and auditing professionals are sometimes hired to teach in colleges and universities.
The core responsibilities of an auditor include:
- Examine whether the accounting systems and account books are maintained in accordance with the accounting standards and the law
- Take necessary action when fraud is detected by alerting the relevant authorities of the same
- Examine documents to detect non-compliance to legal or managerial laws, including incorrect declarations, duplicated initiative, fraud
- Gather data from the company's staff about the organization and its operations, particularly regarding its financial reporting
- Identify and assess the risks associated with a material misstatement of the financial records
- Obtain an understanding of internal audit controls to appropriately design procedures to be undertaken for the audit report
- Prepare audit reports by offering an unbiased, objective opinion about the entity's financial statements
- Report to management about the outcomes of the audit, provide recommendations to financial activities and operations
- Evaluate the physical inventory of documents to tally the financial records, check entries in the journals and ledgers
- Evaluate the internal control structure of the entity, and its financial systems, inspect the reliability of the practices in places
Abilities & aptitude needed
What are the skills, abilities & aptitude needed to become Auditor?
Owing to the nature of the job, an Auditor needs to be equipped with high analytical skills, and a questioning mind that is particularly alert to errors. An individual with a shrewd eye, excellent numerical aptitude, and the ability to exercise professional scepticism is suited to be an auditor. They should be highly vigilant to make key decisions about a company's financial records and practices. This job also demands ethics, integrity, and honesty to deliver unbiased, reasonable professional opinions. Expert knowledge about the relevant laws and regulatory guidelines as well as that of accounting practices is key to doing justice to this role.
Critical thinking skills are also necessary for them to be able to derive the practical implications of the company's financial practices, this knowledge makes auditors invaluable to the stakeholders. They should be proficient at using the technologies relevant to their tasks as it requires handling large amounts of confidential data. Meticulous organization skills and the ability to work in a supervisory role are other important elements that make an auditor successful at their job. Additionally, they shall also require excellent communication skills, both written and spoken. Business awareness and thorough knowledge of the specific entity they are working for have enormous benefits for the auditor's work output. There are various other factors that are involved in the category of the skills, strengths and the abilities needed to the work in this profession.
First being the deductive reasoning, it is understood that the individuals being good at this particular ability can apply various distinctive or even general rules to peculiar problems to produce all the answers that are needed to understand the budget or other financial matters. Some other aspects and abilities include strong mathematical, logical and reasoning skills to understand the formulas to solve a problem, to apply logic to get into the depth of the concept and the problem solving skills to support the organization. Auditors also need to have strong, both oral expression and written comprehension based ability to work accurately with the entire team.
Which course I can pursue?
Which are the best colleges to attend to become Auditor?
National Institute of Technology, Calicut
Kattangal, Kerala | AICTE, UGCNIRF Rank : 3
Loyola College, Chennai
Chennai, Tamil Nadu | University of Madras, ChennaiNIRF Rank : 6
National Law University, Jodhpur
Jodhpur, Rajasthan | National Law University, JodhpurNIRF Rank : 6
Xavier Labour Relations Institute, Jamshedpur
, Jamshedpur, Jharkhand 831001 | AACSBNIRF Rank : 7
Savitribai Phule Pune University, Pune
Pune, Maharashtra | Savitribai Phule Pune University, PuneNIRF Rank : 10
Madras Christian College, Chennai
Chennai | University of MadrasNIRF Rank : 13
Banasthali Vidyapith, Banasthali
Jaipur, Rajasthan | UGCNIRF Rank : 19
Symbiosis Institute of Business Management, Pune
Lavale, Maharashtra | Symbiosis International University, PuneNIRF Rank : 20
Siksha 'O' Anusandhan, Bhubaneswar
Bhuvaneshwar, Odisha | Biju Patnaik University of Technology,UGC,NAACNIRF Rank : 21
Symbiosis International University, Pune
Lavale, Maharashtra | Symbiosis International University, PuneNIRF Rank : 22
Thapar Institute of Engineering and Technology, Patiala
Patiala, Punjab | UGCNIRF Rank : 23
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
Nagpur, Maharashtra | UGC,AIUNIRF Rank : 29
Mar Ivanios College, Thiruvananthapuram
Thiruvananthapuram | University of Kerala,UGCNIRF Rank : 29
Lovely Professional University
Delhi | University Grants Commission (UGC)NIRF Rank : 38
Maharishi Markandeshwar University, Mullana
Mullana, Haryana | Maharishi Markandeshwar University, MullanaNIRF Rank : 41
Motilal Nehru National Institute of Technology, Allahabad
Allahabad, Uttar Pradesh | Uttar Pradesh Technical University (UPTU)NIRF Rank : 42
Alliance University, Bengaluru
Bengaluru | UCCNIRF Rank : 42
National Institute of Technology Durgapur
Durgapur, West Bengal | Deemed UniversityNIRF Rank : 46
Sri Padmavati Mahila Visvavidyalayam, Tirupathi
Tirupati, Andhra Pradesh | UGCNIRF Rank : 46
Pt. Ravishankar Shukla University, Raipur
Raipur, Chhattisgarh | UGCNIRF Rank : 48
Amity University, Gautam Budh Nagar
NOIDA | UGC?, ?NAAC?, ?WASC?, ?AIU?, ?ACUNIRF Rank : 49
National Institute of Technology Silchar
Silchar, Assam | UGCNIRF Rank : 51
Lovely Professional University, Phagwara
Phagwara, Punjab | UGC, AIU, PCI, NCTE, COA, ACBSP,NIRF Rank : 52
VELS Institute of Science Technology and Advanced Studies, Chennai
Chennai, Tamil Nadu | ?UGC NAACNIRF Rank : 52
Kurukshetra University, Kurukshetra
Thanesar, Haryana | UGCNIRF Rank : 53
Sacred Heart College, Ernakulam
Thevara, Kochi | Mahatma Gandhi University, KottayamNIRF Rank : 57
Koneru Lakshmaiah Education Foundation University(K L College of Engineering), Vaddeswaram
Guntur, Andhra Pradesh | University Grants Commission, All India Council for Technical EducationNIRF Rank : 58
Mohanlal Sukhadia University, Udaipur
Udaipur, Rajasthan | Mohanlal Sukhadia University, UdaipurNIRF Rank : 67
NSHM Knowledge Campus, Kolkata
Kolkata, West Bengal | Maulana Abul Kalam Azad University of Technology, KolkataNIRF Rank : 68
SRM Institute of Science and Technology, Chennai
Kattankulathur, Tamil Nadu | SRM University, ChennaiNIRF Rank : 73
Mepco Schlenk Engineering College, Sivakasi
Melamattur, Tamil Nadu | Anna University, ChennaiNIRF Rank : 88
Hindustan Institute of Technology and Science, Chennai
Chennai | NAAC; UGCNIRF Rank : 95
Sri Krishna College of Engineering and Technology, Coimbatore
Coimbatore, Tamil Nadu | Anna University, ChennaiNIRF Rank : 97
Kongu Engineering College, Perundurai
Erode, Tamil Nadu | Anna University, ChennaiNIRF Rank : 99
New Horizon College of Engineering, Bengaluru
Bengaluru, Karnataka | Visvesvaraya Technological University, BelagaviNIRF Rank : 106
Sri Sairam Engineering College, Kancheepuram
Sirukalathur, Tamil Nadu | Anna University, ChennaiNIRF Rank : 123
NMAM Institute of Technology, Nitte
Nitte, Karnataka | Visvesvaraya Technological University, BelagaviNIRF Rank : 128
NITTE Meenakshi Institute of Technology, Bengaluru
Govindapura, Karnataka | Visvesvaraya Technological University, BelagaviNIRF Rank : 142
Pimpri Chinchwad College of Engineering, Pune
Pimpri-Chinchwad, Maharashtra | Savitribai Phule Pune University, PuneNIRF Rank : 192
Which industries are open for Auditor?
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Are there internships available for Auditor?
What does the future look like for Auditor?
With the growing demand for financial management services, the requirement of this occupation has been rising rapidly. Most common employers include industries and autonomous establishments. In government industries, auditors work to identify and reduce occurrences of embezzlement of resources. While the private industries require the services of an auditor to maximize their profitability by evaluating the allocation of funds and providing recommendations for the same. Auditors can also work independently as freelancers and consultants to businesses, organizations, and government agencies.
The auditor functions as a financial counsellor to evaluate the financial practices of an entity, detecting impending threats to monetary resources, and suggesting methods to optimize the process. Since their work has a significant bearing on the entity`s performance and productivity, auditors are sought after by companies from a range of industries. Nonetheless, this is a very critical job position wherein the professional requires active listening by giving full attention to the needs and requirements of the employers of the company.
It also involves strong reading comprehension skills from the part of the financial officer (the auditor) along with some strong critical skills. These critical skills would naturally help the individual to identify the strengths and the weak points (or the loopholes) within the system pertaining to the financial aspect. Naturally, their speaking and writing skills would also be considered as the crucial ones to work in these capacities in a company.
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