What is auditor: 15 qualities of an auditor
The shareholders, who are the real owners of the company, are not expected to keep proper account of the transactions themselves. The account must be kept by certain trained and qualified persons. However the trained persons viz, the accountants are likely to commit mistakes, they are misappropriate the funds of the company. Therefore, it is essential that the accounts of the company must be checked and verified as to their accuracy and trustworthiness by certain qualified persons (known as auditor) every year.
What is an auditor
According to F. C. De PAULA “The auditor is the individual or firm carrying on the audit of the enterprise and the partners of such individual or in such firm.”
According to F. A. MARTIN “An auditor is a person appointed to examine the books of accounts and the accounts of a registered company to report upon them to the company members.”
15 qualities of an auditor
An auditor is an expert accountant who makes an examination of accounting records and available evidence and verify the financial statements in order to express his opinion to the reliability of such statements and records.
Every profession requires its member to possess certain qualities so also the auditing profession. Auditor can acquire such qualities by proper education, experience and training. These qualities of an auditor are as under:
- Knowledge of accountancy
An auditor should know completely and thoroughly the principles of accountancy and book-keeping, cost accounting, managerial accounting, as he is required to examine the accounts prepared by the company.
- Knowledge of company ordinance
The auditor should have complete knowledge of company ordinance and other laws effecting on the functioning of the company.
- Knowledge of production system
The auditor should have the knowledge of production system planning and processes involved in producing goods.
- Knowledge of economic factors
He should be able to judge and analyze the economic factors effecting the business under review.
- Knowledge of relevant subjects
Other than accounting he must have the knowledge of business mathematics, finance, marketing management etc.
The auditor should be tactful to handle all the situations specially when some technical information has not been disclosed, he tactfully extract those information’s from his client, so that he will be in a position to criticize and present true picture of the company’s affairs.
The auditor should not certify any certificate or document which in his opinion do not give true and fair view of the state of company’s affairs.
JUSTICE LINDLY SAYS,
“An auditor must be honest that is he must not certify what he does not believe to be true and must take reasonable care and skill before he believes that what he certifies is true.”
An auditor should be impartial and should not be influenced in the discharge of his duties.
An auditor should perform his duties patiently. He should not sign any document without evidence in a hurry.
The auditor must be vigilant as his duty to detect error and frauds of others. He cannot perform his duties unless he remains alert at all the times.
- Good personality
An auditor should possess a pleasing personality and other qualities like self-control, dignity, diligence, judgment and fair amount of common sense.
He must observe professional ethics and should maintain complete secrecy of his client’s confidential information means, should not disclose business secrets to any unauthorized person.
Although it is not duty of an auditor to suggest. But if he is asked to suggest for improvement, he must be proud to be practical.
An auditor should be able communicate effectively both orally and in writing. He should possess the ability to convey his message clearly concisely and precisely.
Public confidence in the auditing profession comes from high standards of quality and a sense of responsibility to the public interest the auditor should display a great sense of responsibility.