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Qualities of An Auditor

Auditing

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1K views3 pages

Qualities of An Auditor

Auditing

Uploaded by

jimoh kamiludeen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Qualities of an Auditor

An auditor must possess specific qualities to perform their role effectively.

 Integrity and Ethics: An auditor must adhere to ethical standards, maintaining


integrity, objectivity, and confidentiality. This ethical foundation is crucial for
building trust with clients and stakeholders (Whittington & Pany, *Principles of
Auditing*).
 Professional Skepticism: Auditors need to apply a critical mind to evaluate
evidence and detect inconsistencies. Professional skepticism helps auditors question
assumptions and evaluate the sufficiency of the evidence collected (Arens, Elder, &
Beasley, *Auditing and Assurance Services*).
 Attention to Detail: Auditors must meticulously examine financial records and
assess compliance with relevant regulations. A detail-oriented approach helps in
identifying errors, omissions, and fraud (Rittenberg, Johnstone, & Gramling,
*Auditing: A Risk-Based Approach*).
 Technical Competency: Auditors must be knowledgeable in accounting standards,
auditing techniques, and industry-specific practices. Technical expertise enables
auditors to apply appropriate audit procedures (Messier, Glover, & Prawitt,
*Auditing & Assurance Services*).
 Communication Skills: Clear and concise communication is essential for an auditor
to explain findings, draft audit reports, and discuss issues with management.
Effective communication ensures that complex audit results are understood by
stakeholders (Louwers et al., *Auditing and Assurance Services*).
 Independence: Independence, both in fact and appearance, ensures that auditors
remain unbiased and objective. Independence is crucial for credibility in reporting
(Boynton & Johnson, *Modern Auditing*).
 Time Management and Organization: Auditors manage numerous tasks under
tight deadlines, requiring strong organizational skills. Effective time management
helps in planning and executing audits within prescribed timelines (Sawyer et al.,
*Sawyer's Internal Auditing*).

Other Services Provided by an Auditor

Auditors offer a range of services beyond financial statement audits, they include;

 Tax Services: Auditors often provide tax planning, compliance, and advisory
services. This includes preparing tax returns, advising on tax regulations, and
helping companies minimize tax liabilities (Whittington & Pany, *Principles of
Auditing*).
 Consulting and Advisory Services: Auditors may offer consulting on operational
efficiency, internal controls, risk management, and strategic planning. This role is
particularly important for helping businesses optimize processes and ensure
compliance with regulations (Arens et al., *Auditing and Assurance Services*).
 Forensic Auditing: Forensic services involve investigating fraud and other financial
irregularities. Forensic auditors use specialized techniques to identify, analyze, and
report on fraudulent activities within an organization (Messier et al., *Auditing &
Assurance Services*).
 Internal Audit Services: External auditors can assist with internal auditing by
providing internal audit reports and advising on internal controls. This service
supports management by identifying potential weaknesses in the control
environment (Sawyer et al., *Sawyer's Internal Auditing*).
 Compliance and Regulatory Services: Auditors help organizations adhere to
regulations such as the Sarbanes-Oxley Act, GAAP, IFRS, and local tax laws. This
service includes preparing compliance reports and assessing adherence to
regulatory standards (Louwers et al., *Auditing and Assurance Services*).
 Business Valuation: Auditors sometimes provide valuation services, assessing the
fair value of business assets or entire enterprises. This is useful for mergers,
acquisitions, and asset-based financing decisions (Boynton & Johnson, *Modern
Auditing*).
 Information Technology (IT) Audits: With increasing reliance on technology,
auditors perform IT audits to assess data security, system integrity, and IT-related
internal controls. IT audits help companies safeguard data and optimize technology
use (Rittenberg et al., *Auditing: A Risk-Based Approach*).

Referenced Textbooks

 “Auditing and Assurance Services” by Alvin A. Arens, Randal J. Elder, and Mark S.
Beasley,
 “Principles of Auditing and Other Assurance Services” by Ray Whittington and Kurt
Pany,
 A Risk-Based Approach” by Karla M. Johnstone, Audrey A. Gramling, and Larry E.
 An Integrated Approach” by Alvin A. Arens, Randal J. Elder, and Mark S.
 “Auditing and Assurance Services” by Timothy J. Louwers, Robert J. Ramsay, David H.
Sinason, and Jerry R. Strawser.
 “Auditing and Assurance Services” by Alvin A. Arens, Randal J. Elder, and Mark S.
 “Principles of Auditing and Other Assurance Services” by Ray Whittington and Kurt
Pany highlights the role of auditors in ensuring tax accuracy and efficiency.
 “Forensic and Investigative Accounting” by D. Larry Crumbley, Lester E. Heitger, and
G.
 A Risk-Based Approach” by Karla M. Johnstone, Audrey A. Gramling, and Larry E.
 “Auditing and Assurance Services: An Integrated Approach” by Alvin A. Arens,
Randal J. Elder, and Mark S.

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