What is an auditor?
A simple auditor definition is simply a person who conducts an audit. However, knowing what an audit is, therefore, is then helpful in such a definition. An audit is an assessment of the financial operations and statements of a company. An auditor is consequently the individual or business that runs the audit - by overseeing the analysis of those financial statements.
An auditor can be both an internal auditor or an external one. An external auditor will be an individual from an outside organization looking to verify the honesty and legitimacy of the financial statements that the company has submitted for tax purposes. An internal auditor is an employee of a company who can simply check that the processes and procedures a company has in place.
How does an auditor work?
Different auditors will work in different ways, especially if they are internal or external. However, the results of their findings should always be reliable, so the way they go about their audit has to be careful and considered. However, an auditor will investigate financial statements and internal controls to determine whether they are adequate or not. They can also review IT projects and technology to see whether it is being used to its best advantage. Finally, they will also identify whether a company is remaining in compliance with the relevant policies and industry regulations for a company.
Advantages of an auditor
While so many individuals and companies may fear being audited - either internally or externally - due to both the process and the results that may arise from the audit itself, they should be seen as an opportunity. Audits can highlight areas of risk in a company that the company can mitigate against - making them more likely to succeed in the future.
Plus, auditors can highlight areas of weakness in the costs, income, and expenditure in which a company partakes. Auditors can often recommend many cost-saving exercises that will help a company’s profit margin and be more successful. Finally, an external auditor, in particular, is beneficial to a company given that they are objective, outside assistance. They will be unbiased when looking at the processes in place and can make sensible suggestions without unconscious influence from having worked at the company for a long time.
Contractbook and auditor
Contractbook can help no end in keeping audits by auditors as streamlined and efficient as possible. Thanks to how our software works, our contracts can be used in audit management by producing a clear audit trail. Thanks to our cloud storage facility as well as our online collaboration tool and data-driven inputs, deriving the information needed from electronic soft copies of documentation is straightforward. There is no need to sit in the filing cupboard and find back copies of any records needed. Instead, Contractbook’s intuitive software is a tool that can help speed up the results of an audit as well as leverage the power of them too.