Auditor
Modified on 2009/10/28 12:13 by tmkern — Categorized as: Uncategorized
See Also:
Audit Committee
How to Choose an Independent CPA/Auditor
How to Control Annual Audit Fees
Managed Sales and Use Tax Audit Programs
Future of the Accounting Workforce
Auditor
¶
In accounting, an auditor is a certified public accountant (CPA) who performs an objective examination of a company’s financial statements and internal controls. The auditor evaluates the validity and reliability of the data and confirms whether the financial statements were prepared in accordance with the rules of
GAAP
. There are two types of auditors: internal and external. An auditor summarizes the results of the audit in an audit report, also called an accountant’s opinion.
Internal Auditor, External Auditor
¶
There are two types of auditors: internal and external. An internal auditor is an employee of the company being audited. An external auditor is not an employee of the company being audited.
Audit Report
¶
An auditor summarizes the results of the audit in an audit report, also called an accountant’s opinion. The audit report states the auditor’s opinion of the validity and reliability of the audited company’s financial statements and other relevant data. The audit report is included in the audited company’s annual report.
An accountant’s opinion may be qualified or unqualified. If the opinion is unqualified, the auditor concluded that the data are valid and reliable and the financial statements were prepared in accordance with the rules of GAAP. If the opinion is qualified, the auditor concluded that the data may not be valid or reliable and the financial statements may not have been prepared in accordance with the rules of GAAP. A qualified opinion often warrants further investigation of the audited company’s financial statements and accounting systems.
Audit Definition
¶
In accounting, an audit refers to the objective evaluation of a company’s financial statements and internal controls to check the validity and reliability of the data and to confirm whether the financial statements were prepared in accordance with the rules of GAAP.