An auditor is a person who is answerable for checking out the efficacy and the accuracy of a firm’s financial statement. He is a person who is experienced in analyzing and certifying that the provided accounting data by a company exactly coincide with the actions that have been played by the firm.
The main job of an auditor is to make a clean and clear report at the outcome of the audit which actuates the level of efficiency and accuracy that the firm has held for.
Similarly, in case that, the accounting steps that are taking by a firm are cast back in the general ledgers, and the data that is present in the record coincide to the course of business in the firm, then there will be no misstatements shown by audit.
There are two categories of auditors of the financial statements. They can be externally or internally. But remember, it depends on the firm whose financial statements they are going to be an audit.
In general, internal auditors are those auditors who are hired by the firm that they are going to audit. They cater to the audit that is related to the potency of the firm’s internal controls on financial reporting.
Internal auditors are not bounded by the firm for whom they are going to perform the audit. And normally do not provide all the audit reports straight to the administration. This is done for minimizing the risk that they will be influenced to deliver one-sided evaluations.
External auditors are independent accounting/auditing firms that are hired by companies subject to an audit. External auditors express their own opinions on whether the financial statements of the company in question are free of material misstatements (these could be due to fraud, error, or otherwise).
External Auditors are the auditors who are self-reliant auditing firms who are hired by the firms visited for an audit. External Auditors presents their own suggestions, their own recommendations, and their own opinions on the financial statements whether the presented financial statements are
For publicly-traded companies, external auditors could also be required to provide an opinion on the effectiveness of internal controls over financial reporting.