Auditor

In accounting, an auditor is a certified public accountant (CPA) who performs an objective examination of a company’s financial statements and internal controls. They evaluate the validity and reliability of the data and confirms whether the financial statements were prepared in accordance with the rules of GAAP. Furthermore, there are two types: an internal auditor and an external auditor. They summarize the results of the audit in an audit report, also called an accountant’s opinion.

Internal Auditor, External Auditor

There are two types of auditors: internal and external. An internal auditor is an employee of the audited company. Whereas, an external auditor is not an employee of the audited company.

Audit Report

An auditor summarizes the results of the audit in an audit report. Then, the audit report states the their opinion of the validity and reliability of the audited company’s financial statements and other relevant data. Include the audit report in the audited company’s annual report.
An accountant’s opinion may be qualified or unqualified. If the opinion is unqualified, then the auditor concluded that the data are valid and reliable and the financial statements were prepared in accordance with the rules of GAAP. If the opinion is qualified, then the auditor concluded that the data may not be valid or reliable and the financial statements may not have been prepared in accordance with the rules of GAAP. Furthermore, a qualified opinion often warrants further investigation of the audited company’s financial statements and accounting systems.

Audit Definition

In accounting, an audit refers to the objective evaluation of a company’s financial statements and internal controls. It checks the validity and reliability of the data. Then it confirms whether the company prepared its financial statements in accordance with GAAP.
If you want to start building the team your company needs to grow, then download our free whitepaper 5 guiding principles for recruiting star-quality team.

[box]Strategic CFO Lab Member Extra
Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]

See Also:
Audit Committee
How to Control Annual Audit Fees
Managed Sales and Use Tax Audit Programs
Future of the Accounting Workforce

ARTICLES YOU MIGHT LIKE

Audit Committee

July 25, 2013

An audit committee is a subcommittee of a public company’s Board of Directors. Furthermore, a Board of Directors can have several subcommittees. The committee focuses on corporate governance, specifically, the company’s internal controls and financial accounting systems. Audit Committee Membership A company’s committee typically includes a number of outside directors, or non-executive directors. In addition, a

Management Audit

July 24, 2013

See Also: Total Quality Management Capital Structure Management Activity Based Management (ABM) Retainage Management and Collection Management Definition Management Audit Definition A management audit can be defined as an audit which analyzes the effectiveness of the management team of a company. The purpose of this is seven-fold: understand current practices, relate these to company financials,

Managed Sales And Use Tax Audit Programs

July 24, 2013

See Also: Auditor Audit Committee Choose a CPA/Auditor Allowance for Uncollectible Accounts Are You Collecting Business Data? Managed Sales And Use Tax Audit Programs A managed audit is an agreement with a state’s taxing authority in which a company self-examines its own books and records. A managed audit agreement allows the company, or an outside

MARCH 28TH-31ST 2022

Days

Hours

Min

August 7-10th, 2023

Days

Hours

Min

SHARE THIS ARTICLE