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Audit
To understand this report one must first acquaint the knowledge to
understand this report so therefore to make life easier for every one
first of all we will start off with the explanation of what is an audit?
An audit is an accounting procedure under which the financial
records of a company or individual are closely inspected to make
sure that they are accurate. (Price water house coopers, 2014)
Types of Auditors
Now moving on how many types of auditors are they? They are 4
types of auditors which include internal auditors, External auditors,
Government auditors and Forensic auditors. (Farrell, 1998)
Starting with internal auditors we raise the question that what are
internal auditors? An internal auditor is a person who is hired by the
business to examine only the internal financial documents and
records which relate to the business and the role an internal auditor
is to maintain the highest level of accuracy in the financials of the
business. High accuracy is required to avoid any monetary and legal
problems. (Farrell, 1998)
Now moving on to external auditors they perform the same task as
the internal auditors but there is a difference and that is that they
are not permanent staff of the company they are auditing (Farrell,
1998).
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to
conduct
audits
on
government
sectors
and
reputation,
growth,
environmental
impact,
treatment
of
has been in the right way. They share similar roles as Internal and
External auditors but only main difference would be the purpose of
the audit and that is the main difference between the types of
auditors. (Auditing, 2014).
The function that government auditors serve is that they audit
companies and government sectors and departments this is done in
order to inspect that all the financial documents and records are
kept in line and meet the policies of the country and that they are
not violating any of the rules and regulations of the taxation
regulations of the country. This helps them identify any companies
or government sectors departments who causing a truancy of the
rules and regulations of the country. (Auditing, 2014).
Coming to the final, the role of a Forensic auditors is to assist law
enforcement organizations in cases where financial documents and
records have been involved in a crime or fraud. Therefore the role
this type of auditor is assist and law enforcement in solving cases
related to companies or individuals. (Hamid, 2009).
Functions that are provided by government auditors are to track
where money came in and where did it go out and this did done to
easily track any money laundering and fraud. Their main function is
to help law enforcement in solving financial crimes. (Hamid, 2009).
All the 4 types of auditors share common roles and functions and
these are to analyse the financial documents and records and also
to report the findings of the analysis. In some way or another they
all carry out an audit. Auditors have to keep in check that the
companies are following the accounting principles and that they
implementing them (Hamid, 2009).
themselves with the change is rules of the audit and this is very
time consuming and tedious work to do. (Wrix, 2014).
Auditors face an issue of insufficient information in order to conduct
a proper audit and this also consumes time. Also companies and
individuals dont keep a full record of everything monetary and this
cause problems in audits. (Cassim, 2014).
Tight budgets on which an auditor as to carry out a full audit. As
auditors are given a budget in which they have to conduct an audit
and this can be difficult at sometimes as some audits require a
bigger and more flexible budget and along with that they have to
maintain a high level of efficiency. (Cassim, 2014).
Auditors have to have full insight on a companys and individuals
details and this is very difficult to obtain as people are very
reluctant to disclose information to the auditors and this sometimes
leads to something being missed out which causes lots of problems
and also this is a very tedious work. (Wrix, 2014).
The ever increase in computer technologies and softwares which
auditors have to spend time on to understand and which also time
consuming. (Wrix, 2014).
All the auditors have a problem and that is time and due to an
increase in the challenges faced by auditors this is wasting their
precious time which can be used in auditing. (Cassim, 2014).
Auditors face a great deal of paper work that they have to go
through and check this is a very long process and requires a lot of
man power. The amount of work load of going through the paper
can take a total on the auditor and lead to mistakes happening.
(Cassim, 2014).
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References
Auditing, A. C. (2014, August 6). American Center for Goverment Auditing.
Retrieved from ACGA: https://acga.theiia.org/
Auditors-General, A. C. (2014, August 4). Australasian Council of auditorsgeneral. Retrieved from Australasian Council of auditors-general:
http://www.acag.org.au/roag.htm
Cassim, T. &. (2014, July 15). Challenges faced by Auditors. (A. Y. Sidat,
Interviewer)
Farrell, B. a. (1998). The Changing Role of the Auditor: An Analysis of
Viewpoints from the Auditors' Perspective. In B. a. Farrell, MidAtlantic Journal of Business (p. 101). New York:
http://www.referenceforbusiness.com/encyclopedia/AssemBraz/Auditing.html.
Hamid, K. T. (2009). Bayero Business Review. In K. T. Hamid, Bayero
Business review (Vol. Volume 3 Number 2 , pp. 15-19).
lacoma, T. (1999-2014, August Tuesday). Ehow.com. Retrieved from
Ehow.com: http://www.ehow.com/info_7754377_types-auditors.html
Ooi, F. (2008). The Institute of Chartered Accountants in Australia. The role
and function of external auditors, 1-5.
Price water house coopers. (2014, August Tuesday). www.pwc.com.au.
Retrieved from
http://www.pwc.com.au/assurance/financial/statements/audit.htm
Times, T. N. (2014, August 16). The New York Times. Retrieved from The
New York Times:
http://www.nytimes.com/2001/12/03/business/enron-s-collapse-theoverview-enron-corp-files-largest-us-claim-for-bankruptcy.html?
pagewanted=2
Wrix, N. (2014, August 13). Net Wrix. Retrieved from Netwrix 1 for chande
auditing: http://www.netwrix.com/audit_challenges.html
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