Various government agencies and industry-specific bodies have established rules and regulations that businesses must adhere to.
Failing to comply with these regulations can lead to hefty fines, legal actions, and damage to the company’s image. This is why a professional auditor is needed in an organization.
What is an auditor?
An auditor is responsible for evaluating an organization’s financial statements, transactions, and accounting practices. This role is essential for businesses because it provides an independent and objective financial health assessment.
An auditor also helps build trust among stakeholders, including investors, creditors, and government authorities.
Auditors evaluate internal controls, financial processes, and risk management practices. Through this process, these professionals can pinpoint weaknesses, potential fraud, or areas where operational improvements are needed.
It not only helps to prevent fraud but also improves the overall efficiency and accuracy of financial reporting.
Auditors’ findings offer valuable insights for management. They enable organizations to make informed decisions and implement necessary changes to enhance the company’s financial integrity and compliance with regulations.
Duties of an auditor
Auditors have several key duties, including:
Financial statement review
Auditors meticulously examine documents like balance sheets and income statements during a financial statement review.
They check if figures match supporting documentation, test mathematical calculations, and assess the proper application of accounting principles. This process involves verifying the accuracy and completeness of the information presented in these statements.
Internal controls assessment
An auditor assesses an organization’s internal controls to identify any weaknesses or areas for improvement. These controls include processes and policies to safeguard assets, ensure data accuracy, and prevent fraud.
An auditor helps ensure that the company operates within the boundaries of the law and maintains compliance with industry-specific standards.
Non-compliance could lead to legal and financial repercussions, making this aspect of auditing crucial for risk mitigation and preserving the organization’s reputation.
A proactive auditor also evaluates the risks associated with financial transactions and recommends measures to mitigate them and implement solid financial integrity.
Auditors may recommend risk mitigation strategies, helping the organization make informed decisions and maintain financial integrity even in uncertain environments.
After the audit, an auditor prepares detailed reports summarizing their findings, including any discrepancies or areas that need attention.
Skills and requirements needed in an auditor
Auditors must possess the following:
- Financial acumen – Auditors must deeply understand accounting principles.
- Analytical thinking – An auditor must analyze complex financial data, identify patterns, and draw meaningful conclusions.
- Attention to detail – Precision is crucial to spot errors and inconsistencies in auditing.
- Regulatory knowledge – Knowledge of relevant laws, regulations, and accounting standards is essential for compliance.
- Communication skills – Effective written and verbal communication is needed to convey findings and issues to stakeholders.
- Ethical judgment – Auditors must uphold high ethical and moral standards and maintain independence and objectivity.
Where to hire an auditor
There are various online and offline sources and platforms to hire auditors.
Here are some options:
1. Freelance websites
Platforms like the following allow you to find freelance auditors with diverse skills and experience:
2. Social media and networking
These websites list job postings for auditors:
You can also post your job openings on these platforms.
3. Outsourcing companies
Consider outsourcing firms that specialize in auditing services. They can provide experienced auditors on a project basis.
Here is the comparison of annual salaries between the Philippines and the United States for the auditor role from junior to a senior position, according to Glassdoor:
Did you know? You can compare offshore vs. onshore staffing prices by using this Outsource Calculator.
On-site vs. Remote setup for an auditor
On-site auditors work within the organization’s physical premises, allowing immediate access to documents and personnel. However, it may require a dedicated workspace, and travel can increase costs.
Remote auditors work remotely, leveraging technology for document access and communication. This setup offers flexibility and cost savings but may pose information security and communication challenges.
The choice between on-site and remote auditing depends on the organization’s needs, technology infrastructure, and the auditor’s preferences.
Combining both setups when necessary, a hybrid approach is also an option.
Auditor job description template
This job description template is a comprehensive guide for recruiters looking to hire a skilled auditor to evaluate their financial records and internal controls independently.
It outlines the key responsibilities, qualifications, and application process, clearly showing the role’s requirements and expectations within the organization.
Feel free to customize this template to match your company’s needs and preferences.
Moreover, you may use these interview guide questions to elevate your recruitment process and hire the right candidate fit for this role.