What Does an Auditor Actually Do?

  • Thread starter Jack8rkin
  • Start date
In summary, the conversation revolved around the meaning of the word "auditor". While some argued that an auditor is someone who inspects drawings or completed work in production, others believed that an auditor is a person who checks financial accounts. Ultimately, it was concluded that an auditor conducts an audit to ensure compliance to defined procedures and may make observations on areas of strength or weakness. The use of dictionaries and live experience was also discussed, with the conclusion that dictionaries may not always cover everything and live experience is valuable. It was also noted that there may be differences in the use of the word "auditor" in different countries.
  • #1
Jack8rkin
52
0
When you hear the word "auditor"

Hello everyone!

When you hear the word "auditor", what comes to your mind?

We've just been arguing about the meaning of this word -- "auditor".
Does it have anyting to do with a person who inspects drawings used in the production process? Or with a person who checks on the comleted work in producion?
Is not it an "inspector"?

Thank you.
 
Physics news on Phys.org
  • #2


Have you tried using your dictionary yet? After that, if you still have doubts, do post your question(s) here.
 
  • #3


Oh yeah. I have tried. Why I'm asking it's because our company just had an audit and it was strange to hear that the U.S. auditors called our in-process inspectors "auditors". The interpreter had to explain that they are "inspectors" rather than "auditors". It may be contextual misunderstanding, of course. But still, there is a doubt, and I wanted to clarify it.
 
  • #4


My English dictionary says an inspector is one who views, or looks over, something closely in critical appraisal.

An auditor is one who is authorized to examine financial accounts.

So they are different in the dictionary and also different in normal usage. Even so, they are similar, but not exactly the same.

I would call in-process production inspectors just that: inspectors.

And if I go to visit the financial control department I would find auditors checking the books with numbers for expenses, losses, and profits!
 
  • #5


An auditor is a person who conducts an audit. (I say that first, because an audit need not necessarily be conducted by an auditor, it is possible to create an automated audit process. Also, 'non-auditors' may, or may be required to, participate in 'an audit'.)

An audit is a process in which checks are made to ensure that there is a reasonable level of evidence to demonstrate satisfactory compliance to a defined procedure, or set of procedures.

You cannot audit a process if it has no defined procedure. You cannot audit a process if there is no evidence of the procedure. An 'audit-able' procedure must therefore include steps within it in which evidence is recorded.

The audit should reveal compliances and non-compliances in the particular areas/topics of the procedure(s) examined, and will generally also make observations in regards matters that are either particular strengths or weaknesses of the practices being adopted in regards the essential purpose of those practices.

Audits are generally 'themed' so as to 'sample' the procedure, rather than look at the whole. For example, an audit may follow a particular job through, or may examine one particular step of a procedure across different jobs, or look at a particular piece of kit.

The audit is therefore unlikely to reveal all non-compliances - this is not [necessarily] an audit's purpose. The audit is an examination of specimen matters. The purpose is to ensure the procedures are generally operating as required, and those procedures should have embedded within them the means to correct and self-correct issues. A good audit might raise areas of the procedure that are not 'self-checking', so to speak. It is the procedure that should correct itself, it is not for the audit to correct a procedure.
 
  • #6


Thank you guys a ton!

A dictionary is a dicitonary. Live experience is precious!
 
Last edited:
  • #7


""A dictionary is a dicitonary. Live experience is precious!""

well,, in my experience there's a lot of difference in dictionaries.
I always come back to good ol' Websters collegiate.
 
  • #8


I use many dictionaries like Webster Encilopedic Unabridged Dictionary, the one you mentioned, Longman (3 of them), Russian-English dictionaries like ABBYY Lingvo 12, Multitran. At work, it's mostly electronic dictionaries that I use...

One thing here:
no dictionary can cover everything, especially when things
are geting down to lexical compatibility, which is mostly a tradition.
Here, I can only ask native speakers about what is acceptable, and what is not.
 
  • #9
You would use an encyclopedia to get an explanation of the subject, a dictionary just gives you the definition of the word.

http://www.encyclopedia.com/topic/auditing.aspx
 
  • #10


Thank you so much!

I suspected there might be a difference in the use of the word "auditor" in the U.S. and in Russia. The word auditor was borrowed from English somewhere in the 1990's as many other words. But more often than not, the meaning of such words has changed.
For example, the word "manager". In the U.S. it's a really big guy, who is a head of something. In Russia it's basically a sales person (the one that sits in an office and sells something just like I did -- was selling petroleum products for a year or so).

Now I see there is no difference. Our auditors are the same as yours!

Actually the one I use is WIKIpedia.
 
  • #11


As far as I see it (and perhaps simplistic).

An auditor examines a system (usually part of it) for compliance to rules and regulations. It might be a financial system or a quality system for example.

An inspector examines individual things (usually physical) for compliance to a speciication.
 

FAQ: What Does an Auditor Actually Do?

What is an auditor?

An auditor is a professional who examines and evaluates financial records and statements to ensure their accuracy and compliance with relevant laws and regulations. They are responsible for providing unbiased and objective opinions on a company's financial health and performance.

What does an auditor do?

An auditor's main role is to review and analyze financial data, such as balance sheets, income statements, and cash flow statements, to assess the accuracy and integrity of a company's financial records. They also identify any potential risks or areas for improvement and make recommendations to improve financial practices.

What qualifications do you need to become an auditor?

To become an auditor, you typically need a bachelor's degree in accounting, finance, or a related field. Many auditors also pursue professional certifications, such as the Certified Public Accountant (CPA) or Certified Internal Auditor (CIA) designations.

How does an auditor ensure objectivity and independence?

Auditors must adhere to strict ethical and professional standards to maintain objectivity and independence. They should not have any financial or personal interests in the company they are auditing and must disclose any potential conflicts of interest. Additionally, auditors must follow specific auditing standards and procedures to ensure their work is unbiased and accurate.

Can an auditor be held liable for errors or fraud in a company's financial records?

An auditor can be held liable for errors or fraud in a company's financial records if they were negligent in their duties or failed to follow auditing standards. However, auditors are not responsible for detecting all instances of fraud, and their liability may be limited based on the specific circumstances of the case.

Similar threads

Replies
10
Views
2K
Replies
51
Views
6K
Replies
11
Views
2K
Replies
5
Views
2K
Replies
14
Views
283
Replies
17
Views
4K
Replies
24
Views
3K
Replies
33
Views
3K
Back
Top