Auditor

accounting

The auditor is the professional in charge of reviewing the accounting books of a company. This, in order to corroborate that the records correspond to the activity actually carried out by the firm.

In other words, the auditor evaluates whether the company's accounting reflects reality, verifying that all operations have been duly recorded and justified.

In this sense, it should be emphasized that the accounting of a company is like its letter of presentation before the public authorities, partners and potential investors.

In this sense, the ideal is that the figure of the auditor is as independent as possible, that is, that it does not have any link with any member of the organization. Thus, conflicts of interest are avoided.

Types of auditor

There are mainly two types of auditor:

  • Internal: It is hired by the audited company. For example, to periodically evaluate different areas or departments of the organization.
  • External: It is hired by a third party. For example, by the tax collecting authority that seeks to ensure that the audited organization has duly declared its income and expenses and will pay the corresponding taxes.

Auditor functions

Among the functions of the auditor are:

  • Examine the financial statements of the company, such as the balance sheet and the income statement.
  • Review documentation that supports recorded transactions, for example, sales vouchers.
  • Verify if accounting standards are met. For example, if fixed assets are being depreciated according to their respective useful life period (which is determined by law).
  • Ensure the consistency of the records. For example, if the acquisition of a certain machinery has been recorded, it must be possible to verify its existence.
  • Analyze the assets and obligations of the company.
  • Study the reports sent by all departments to management.
  • Review compliance with labor laws with employees, acknowledging, making, for example, the respective withholdings on the payroll.
  • Provide recommendations to increase productivity and / or reduce company costs. It may be, for example, that unnecessary or unjustified expenses have been being made in a specific area of ​​the firm, which goes against the interests of the partners.

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