What Auditors Do And Don’t Do

uditors play an important role in the accounting industry. In this post, you will learn what an auditor is, what they do and what they don’t. What Is an Auditor?

For the purpose of accounting, an auditor is a person whose job it is to ensure that the information reported on financial statements is accurate and true and that the financial statements are prepared according to GAAP (Generally accepted accounting principles) principles . GAAP principles for financial reporting must be followed by accounting professionals. What Do Auditors Do? The most vital thing that an auditor does is to form an opinion. Keep in mind that an auditor’s opinion is not just any old opinion, but his or her opinion can make or break the reliability of your company’s financial statement information. Auditors will form their opinions based only on the information collected in the audit. Also, the GAAP protocol on financial reporting needs that this opinion must be a part of the notes to the financial report.

Furthermore, notes to the financial report are footnotes that show up at the base of the reports that provide financial statement users added information regarding things that show up on the statements.  If the auditor’s opinion does not appear on the financial report, they don’t fulfill the set standards. Remember, audited financial statements of a company that contain the written opinion of an  auditor are deemed to be true, reliable and  valid. What auditors don’t do

Do not take responsibility for the financial statements on which they form an opinion.

Do Not prepare or make changes to source documents

Do not authorize, execute or consummate transactions on behalf of a client

Do not establish or maintain internal controls

Do not report to the board of directors on behalf of management

Do Not Sign payroll tax returns on behalf of a client

Do not approve vendor invoices for payment

Do not Hire or terminate employees

Some other tasks you should not expect your auditor to perform are:

nalyze or reconcile accounts and “Close the books”

Prepare financial statements

Determine  restrictions of assets and estimates included in financial report

Set up account coding or classifications

Prepare confirmations for mailing and locate invoices, etc., for testing

Choose  accounting policies or procedures

Find out  retirement plan contributions

Implement corrective action plans

Prepare an entity for audit

Establish value of your company’s assets and liabilities

Maintain client permanent records

udit services in Pune assure your organization’s consistence with requirements of applicable laws,  regulations, rules, financial reporting standards or contracts. The most common audit & accounting services provided by audit firms in Pune include Accounting, Audit, Review & Compilation and Internal Audit.


Sachin Gujar & Associates,
Chartered Accountants
47/22, Erandwana, Law College Road,
Ekta Apts, 3rd Floor, Above Nirmitee Furniture,
Pune - 411004

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