It is the duty of every company directors to ensure that a qualified auditor audits the books of the company. This is because financial audits is a requirement that every company has to meet. Company has two types of auditors. The first auditor is the internal auditor. He or she deals with the internal control system of the organization. It is the duty of the internal auditor to ensure that the company runs in the right way. The other auditor is the external auditors. A company cannot operate without an external auditor.
A public company cannot operate without having an auditor to ascertain the correctness of the books of the company. Although hiring an auditor acts as additional cost to the company, a company cannot survive without such an auditor. This is because; the company cannot publish its books unless qualified auditor ascertains them.
There are errors that may occur as the accountant prepares the statements. Again, some accountants are generally crafty. They may disfigure the company's accounts by offering the wrong statements. This is called committing a fraud. It is the duty of the external auditor to note such errors and frauds to ensure that the financial statements are a true representative of the company state.
Shareholders are very important for the survival of any company. However, most shareholders may not invest in a company if the company has not invested in a good auditor. This is because; shareholders depend on the information that the auditors give concerning the company. The auditor is also held liable in case the shareholder loses his or her money after relying on the information given by the auditor.
The books of every company are prepared as far the requirement of the company's act. This means that the persons preparing the books must be conversant with the generally accepted rules. The auditor ensures that the books are in line with the company's act. Apart, from preparing the books of accounts, the auditor also offers sound advice to the managers and directors of the company.
You need to be careful on the auditor that you select. This is because; not all auditors that you come across offer you quality services. Before hiring an expert, you need to consider the expertise of the auditor. You need to check the academic qualifications of the auditor. Get to know if the auditor has gone through the right academic process. Auditors are professional in their areas. You need to ascertain that the auditor is registered with the right professional body.
Apart from being duly registered, it is essential to ensure that the auditor has the right experience. This is because; the auditor may be registered, but lack of experience may hinder his or her ability to perform his or her duties. It is essential to ensure that the auditor has four to five years of experience. This will ensure that the auditor is able to carry out the task in the right way.
Sometimes, finding the best auditor to carry out financial audits may not be easy. However, you can start by talking to your relatives and friends. This is because; these individuals may have information on how you can get a reliable auditor. You may also search through the internet.
A public company cannot operate without having an auditor to ascertain the correctness of the books of the company. Although hiring an auditor acts as additional cost to the company, a company cannot survive without such an auditor. This is because; the company cannot publish its books unless qualified auditor ascertains them.
There are errors that may occur as the accountant prepares the statements. Again, some accountants are generally crafty. They may disfigure the company's accounts by offering the wrong statements. This is called committing a fraud. It is the duty of the external auditor to note such errors and frauds to ensure that the financial statements are a true representative of the company state.
Shareholders are very important for the survival of any company. However, most shareholders may not invest in a company if the company has not invested in a good auditor. This is because; shareholders depend on the information that the auditors give concerning the company. The auditor is also held liable in case the shareholder loses his or her money after relying on the information given by the auditor.
The books of every company are prepared as far the requirement of the company's act. This means that the persons preparing the books must be conversant with the generally accepted rules. The auditor ensures that the books are in line with the company's act. Apart, from preparing the books of accounts, the auditor also offers sound advice to the managers and directors of the company.
You need to be careful on the auditor that you select. This is because; not all auditors that you come across offer you quality services. Before hiring an expert, you need to consider the expertise of the auditor. You need to check the academic qualifications of the auditor. Get to know if the auditor has gone through the right academic process. Auditors are professional in their areas. You need to ascertain that the auditor is registered with the right professional body.
Apart from being duly registered, it is essential to ensure that the auditor has the right experience. This is because; the auditor may be registered, but lack of experience may hinder his or her ability to perform his or her duties. It is essential to ensure that the auditor has four to five years of experience. This will ensure that the auditor is able to carry out the task in the right way.
Sometimes, finding the best auditor to carry out financial audits may not be easy. However, you can start by talking to your relatives and friends. This is because; these individuals may have information on how you can get a reliable auditor. You may also search through the internet.
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