The word Auditor has been taken from Latin language which means to hear, an auditor is a listener.
An auditor is a person whose duty is to make proper examination of books of accounts and detect error and frauds, auditors generally are appointed by the board of directors or any authority who has the right in the organization to appoint the organization.
Two parties can appoint the auditor either it is the Board of Directors of with company or the shareholders of the company, the decision is taken in the Annual General Meeting generally known as AGM.
Auditors are appointed by the government as well in case any mislead or misappropriation found or any complaint lodged against the company for the well being of general public government has the authority to appoint an independent auditor.
An auditor makes examination of the financial statement of the company in order to make sure whether company has followed the principles/standards GAAP Generally Accepted Accounting Principles these are the standards that a company has to follow.
An auditor who is professional and qualified person with the data or documents such as vouchers provided by the company’s staff, auditor has to review these books of accounts and verify by the comparing voucher with the assets available or any clue available with the company.
The criteria and qualification for an auditor is that he or she must be the member of ACCA (Association of Chartered Certified Accountants) auditor must have well knowledge of accounting as well.
An auditor must be appointed independently, who must be allowed to work freely, without any force from the management or any other authority, he should be natural and must not be bias of anybody.
An Auditor when receives a letter from the company for its appointment in the very first step he makes audit plan mostly on the notebook, it is process in which auditor ensures himself for the to-the-point attention, it is an strategy of auditor in which he manages his materiality, areas to focus most on.
Some companies which are large in size has a separate internal audit department which makes things easier for the auditor to eliminate the wastage of time more on detailed checking, but again an auditor must not rely on the internal check he must measure the internal check as well.
At the end after the proper examination of books of accounts it is the responsibility of the auditor to give an opinion for the company.