AUDITOR, ROLE OF AN AUDITOR, KINDS OF AUDITOR, INTERNAL AUDITORS, GOVERNMENT AUDIOTRS, INDEPENDENT AUDITORS, IMPORTANCE OF AUDITOR & PROBLEM FACED BY AN AUDITOR.

1. ROLE OF AN
AUDITOR
BY :
ABHISHEK VERMA

2. AUDITOR
• Auditor is an individual qualified to conduct
audits and who carefully checks accuracy of
business records
• An auditor can be external auditor or internal
auditor

3. ROLE OF AN AUDITOR
• Auditors play important role in ensuring that
shareholders interests are well protected
• It is the shareholders who primarily depends
on good faith and efficiency of company s
auditors to ensure company actions in day to
day operations are verified

4. KINDS OF AUDITOR
• INTERNAL AUDITORS
• GOVERNMENT AUDIOTRS
• INDEPENDENT AUDITORS

5. INTERNAL AUDITORS
• Internal auditors are employed by the
organizations they audit. These auditors may
review employee performance, compliance
with company regulations and financial and
accounting systems. Internal auditors allow
company leaders to be informed of what is
happening within the company and to address
issues or concerns early.

6. GOVERNMENT AUDITORS
• Government auditors review the finances and
practices of federal agencies. These auditors
work for the U.S. Government Accountability
Office. Auditors in this office report their
findings to Congress, which uses them to
create and manage policies and budgets. In
addition, most state governments have similar
departments to audit state and municipal
agencies

7. INDEPENDENT AUDITORS
• Independent auditors do not work for the
government or the organization being
audited. These auditors review the financial
statements of a company, municipality, agency
or district to determine if the statements and
reports are accurate and fair. Independent
auditors help prevent organizations from
releasing misleading financial information.

8. ROLE OF INTERNAL AUDITOR
DURING FRAUD
 Types of fraud committed by employees
include skimming payments from customers ,
check tempering , cash theft , and misuse of
company credit cards
 In small as well as in large business firms
auditor role is very important as he find
frauds happening as well as mistake incurred

9. TYPES OF GOVERNMENT AUDIOTRS
 INTERNAL AUDIT UNITS
 INDEPENDENT EXECUTIVE OR LEGISLATIVE
AUDITORS
 GOVERNMENT AUDITORS FROM OTHER
LEVELS OF GOVERNMENT
 GOVERNMENT AUDITORS WHO CONDUCT
AUDIT OF DIFFERENT GRANTS OR CONTRACTS

10. ROLE OF GOVERNMENT AUDITOR
 OVERSIGHT
 DETECTION
 DETERRENCE
 FORESIGHT

11. OVERSIGHT
 Auditors assist decision-makers in exercising
oversight by evaluating whether public sector
entities are doing what at they are supposed
to do, spending funds for intended purpose
and complying with laws and regulations

12. DETECTION
 It is intended to identify inappropriate ,
inefficient , illegal , fraudulent or abusive acts
have already transpired and to collect
evidence to support decisions regarding
criminal prosecutions , disciplinary actions or
other remedies

13. DETERRENCE
 It is intended to identify and reduce the
conditions that allow corruption . Auditors
seek to deter fraud, abuse, and other
breaches of
public trust by:
• Assessing controls for existing or proposed
functions.
• Assessing organisational or audit specific risks
• Review contract for potential conflict of
interest

14. FORESIGHT
 It also help their organisation look forward by
identifying trends and bringing attention to
emerging challenges before they become
crises

15. ROLE OF INDEPENDENT AUDITORS
• Independent auditor is an accountant who
examines the financial records and business
transactions of a company that he or she is
not affiliated with.
• They are even mandated to protect
shareholders and potential investors from the
occasional fraudulent or unpresentative
financial claim made by public companies

16. CONTINUED....
• In the UNITED STATES, independent auditing
firms can only be operated by individuals who
have been formally recognised by state
government as Certified Public Accountants

17. IMPORTANCE OF AUDITOR
 FOR ACCURATE FINANCIAL STATEMENTS
 FOR MAINTAING ACCOUNTING STANDARDS
 INTERNAL CONTROLS

18. PROBLEM FACED BY AN AUDITOR
 Management doesn't support the audit
program
 No audit preparation
 Dealing with difficult auditees
 Writing or publishing audit reports not in
timely manner

19. NO MANAGENMENT SUPPORT
 We must understand that conducting audits is
a business tool that improves our quality
system
 CEO , or board of directors must know that
audits are essential part of business processes
and not something to resent or neglect
 If senior management are not cooperating
auditors what we can expect from employees
of the organisation

20. NO AUDIT PREPARARTION
• Organisation or firm gives too less audit
preparation time to auditors
• When we are slammed to get an audit ready
we must take procedure and study it well it is
not small work which will happen in seconds
• Audit preparation is most crucial part of an
audit program

21. DEALING WITH DIFFICULT AUDITEES
• To get most of any audit , we must successfully
interact with the owner of the process while
reviewing his or her processes , procedure,
and records
• WAYS TO MANGE DIFFICULT AUDITEES
• Take a communication class on verbal and
nonverbal skills
• Get training
• Ask open ended questions from with auditees

22. PUBLISHING AUDIT REPORTS
• Audit reports are often one of the least-liked
aspects of an auditor’s job. Audit reports take
more time to complete than was planned for,
which usually results in them being published
later than expected. A common expectation is
that audit reports are formally published no
more than a week after the audit has been
performed

23. AUDITING WORK SHOULD BE DONE
IN TEAMS
• 1. A team without a mission is like an eye without vision
Top teams have team goals and objectives as well as individual
ones. They have a clear understanding of the team’s overall
guiding mission. Individual objectives simply lack punch if not
linked to the bigger picture. Providing direction and purpose
to the team transforms aimlessness into purpose and supplies
fuel for optimal productivity. Team leader: communicate your
objectives and where you want your team to go.

24. CONTINUED....
• 2. Clear roles, tight goals and firm budgets
Clearly, communicating roles and setting
individual objectives is paramount. Every
member needs crystal clear clarification on
what they bring to the team, how they will
contribute and what resources they have at
their disposal. Tight goals mean specificity –
no room for misunderstandings.

25. CONTINUED...
• 3. ‘If you can laugh together, you can work
together’
supporting in achieving goals is a must. A
valuable approach is the ‘coaching ’
philosophy where members support each
other and personal growth matters.

26. CHANGING ROLE OF AUDIOTRS IN
INFORMATION AGE
• The early components of IT auditing were drawn
from several areas.
• First, traditional auditing contributes knowledge
of internal control practices and the overall
control philosophy.
• Another contributor was IS management, which
provides methodologies necessary to achieve
successful design and implementation of systems.
• The field of behavioural science provided such
questions and analysis to when and why IS are
likely to fail because of people problems.

27. CONTINUED .....
• IT auditing is an integral part of the audit function because it
supports the auditor's judgment on the quality of the information
processed by computer systems.
• Initially, auditors with IT audit skills are viewed as the technological
resource for the audit staff.
• The audit staff often looked to them for technical assistance
• . The IT auditor's role has evolved to provide assurance that
adequate and appropriate controls are in place.
• The responsibility for ensuring that adequate internal controls are
in place rests with the management.
• The audit's primary role, except in areas of management advisory
services, is to provide a statement of assurance as to whether
adequate and reliable internal controls are in place and are
operating in an efficient and effective manner

28. CONCLUSION.....
• Hence , auditor is necessary in each and every
company to manage all accounting information
• To reduce frauds and mistakes incurred in an
organisation
• Auditor’ s work is hard but important for
upliftment of an organisation
• Auditors reduces losses which could incurr in an
organisation due to any employee or wrong due
to wrong entries