Roles of an Auditor

As an accounting student, I learn about auditing and all types of auditing because it is one of the career paths that we might take. New accountants become auditors first before trying other scope of practice. Most freshly graduates and newly licensed professional accountant choose auditing because this is where they could show their expertise in other fields and would gain more opportunities.

Auditing is a broad field and I admit that it is really difficult. As I study more about it, the more I am amazed with the auditors. They may not be like doctors who saves lives, teachers who educate or lawyers who uphold justice, they still have an important role to play. They have an irreplaceable place in this society. We should never underrate them.

Auditors are known for their competence, objectivity, credibility and independence. They are people who gets examined regularly if they are fit to do their job. They always walk on eggshells as they are always bound by legal liability and the ethics of their profession. They spent years of studying and even after passing the licensure, they continue to develop their skills.

According to Philippine Standards on Auditing 200, auditors’ objective are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to report on the financial statements, and communicate in accordance with their findings. The auditor, therefore, has the role of expressing an opinion on the fairness of financial statements. These financial statements reflect the financial position and financial results of a business and must be presented fairly without errors and manipulations. Auditors has an important role of ensuring that these financial statements are reliable.

Many users rely on financial statements. If these financial statements are audited by a professional and independent auditor, it becomes more acceptable for these users. Auditors have the role of providing credibility and enhancing the degree of confidence on this financial users. Investors and creditors rely on financial statements on their decision-making. Auditors add credibility to the financial statements and decreases the risk of choosing the wrong decisions.

The emergence of corporations has also increased the reliance to auditors. The shareholders do not directly manage the business but delegate it to the management of the board of directors. Shareholders, therefore, may not have the true information as the management may falsify or make accidental errors on their financial statements. Auditors have the role of reducing the information risk between managers and owners by their opinion. They have a role in helping to monitor the relationship between these two parties.

Auditors have the role of upholding transparency and accountability of the managers of every business for the public interest. In businesses, government and other institutions, financial statements reflect of what really happened during the period. Auditors must see to it that no intentional falsifications have been done so the people who are responsible should be accountable.

Lastly, auditors has a role of ensuring that the profession continues to provide quality service. They help in ensuring the sustainability of the profession by committing to continuous learning and always upholding integrity, professional behavior and competence. They must ensure that they will not be negligent and fraudulent.

Auditors have only two responsibilities written on their standards, but the implied role of it is too heavy of a burden. One little mistake and they are liable as their decisions affects corporations where many employees and consumers depend on. They are known for their consistent professional due care and expertise.

Being an accounting student, I am also considering auditing as my first scope of practice. That is why I am studying hard these days. I hope to be more capable so I will have more opportunities in the near future.