Describe the role of auditor in accounting.
Describe the role of auditor in accounting.
1. An auditor's responsibility is to give a true and fair view of the financial statements which include the profit and loss, Balance Sheet and Cashflow statements
2. An audited statement gives confidence to the users of the financial statements which can be shareholders, management, lenders, government, etc.
3. An auditor has to vouch ie check transactions related to the financial statements and determine whether they were done for the business in accordance with rules and regulation
4. An auditor has to make a final audit report which states that the companies financial statements are free of any material misstatements and give a true and fair view of the affairs of the business
5. An auditor has to also check the Internal controls related to accounting and has to ensure that they as per standards
6. An auditor has to test samples for the journal entries and financial transactions made, he also has to ensure the presentation of the said financial transactions in the financial statements are in accordance with the rules and regulations laid down by authorities
Step by step
Solved in 2 steps
