Auditors are Financial Reviewers, Here’s What They Do

Corporate Secretary Service Indonesia – Auditors are professionals who have the expertise to audit & review financial transactions. His main task is to ensure that all financial flows are by procedure. The auditor profession is vital for companies, given that an auditor’s job is to review a business’s financial compliance. Moreover, almost all types of companies intersect with finance. Not surprisingly, financial auditors can be found in various industries, especially the banking sector. But what are the duties of auditors? Find out more here!

Auditor Functions and Duties

Auditors have an essential role in the success of a company. This profession will audit or review the company or client’s finances. In addition, there are several other functions and duties of auditors, namely:

Understanding the accounting system

A financial auditor must be able to understand the company’s accounting system. This relates to recording financial income and expenses in depth. That way, the audit team can ensure the financial statements comply with accounting principles. This record-keeping is also helpful in reducing documentation errors that impact the business’s reputation. For this reason, any business owner needs an accountant auditor. They are the ones who will review and improve the accounting procedures in their company.

Internal control

After the audit & review process, the auditors will issue a written report. Well, this report is the material for internal financial supervision and control. The hope is that business owners can improve company efficiency. In addition, financial transaction reporting will be more organized and minimize recording errors. Inaccurate recording of financial statements will bring several negative impacts to the company, such as fines and a reduction in the company’s overall reputation.

Read Also: When Should You Hire an Accountant for Your Business?

Planning the audit process

To maintain business financial compliance, auditors must also do thorough planning. They will create a list of audit questions, also known as an audit checklist. Their duties include examining financial documents and all company activities.

Detailed financial records

Another task relates to the monitoring process. An auditor must make detailed notes on each audit process during the audit process. This is often called an audit trail. The audit process also includes determining strategies for recognizing a business’s financial risks. This involves an in-depth understanding of a company’s business model.

Reviewing the financial statements

The auditor’s function is to audit & review the accuracy of the financial statements. This review is done before the report is widely published in other sections, especially to investors considering disbursing funds to the business. The auditor ensures that the report reflects the actual condition of the business.

This check also includes matching with industry report formats to make the company more professional. When there are indications of fraud, the audit team will be tasked with a thorough investigation.

Generating relevant audit evidence

Finally, the audit team is also authorized to issue supporting evidence related to the results of financial monitoring. This evidence is significant in supporting the accuracy and validity of the reports made. Not only that, the audit results will also be considered by stakeholders.  Audit & review results contain recommendations that are objective, precise, and thorough. The auditor will also provide suggestions for improvement in the next period.

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