A firm needs to enrol an authorised person that has the right to review the financial records of a firm. That person will verify if the records of the firm are authentic. The auditor also checks if the company has complied with the tax regulations or not. Auditor’s main aim is to ensure that the firm doesn’t undergo any fraud. It has to keep the firm on the right track by highlighting the discrepancies. Auditor’s opinion is of utmost importance. It keeps the power to make or break the reliability of a firm’s financial records. Since the place of an auditor in the firm is regarded as a professional body, he carries a lot of responsibilities with himself. He is answerable to the firm and many parties concerned. All the inspection work is done by the auditor himself. The opinion formed by the auditor upon the financial statements has a major stance in the company. His prime duty is to depict the true and meaningful picture of the firm. The clients, employees and investors will only invest in the firm if the firm will represent its true image and assurance services in Pune assure this. The exact and fair figures of the turnover, balance sheet, revenue should be written down in the firm’s information. In case the auditor feels that the firm’s financial records don’t depict the true value, he has the right to adverse his opinion.
Let’s understand the role of an auditor:-
- Preparation of Audit Reports
The first and foremost purpose of an auditor is to prepare and maintain reports of the firm. An audit report depicts the financial position of a firm. The auditor should keep in view the updated laws and prepare the reports accordingly. All the vital information regarding the firm’s position should be kept in mind while forming the statement.
- Has the right to form an opinion
The auditor has the right to form a decision about the firm’s financial position. Whenever the auditor feels that the financial records are not in the best interests of the firm, the auditor can form a negative opinion. This is termed as the disclaimer of opinions. One of the important things is to specify the reason for such a disclaimer.
- To report fraud
It is completely okay on the part of the auditor to raise suspicion on certain financial statements. He can ask for the blueprints, bills for the same. He cannot be questioned for the same. It is his prime duty to work in the best interests of the firm and depict or write down what is real. Although it is a matter of confidentiality, the auditor should not get out with the figures in public. The auditor should be alert all the time and keep in check the activities of the firm.
These are some of the prime duties of an auditor that he has to fulfil in all regards. Auditor has to guide the firm throughout and provide major assistance in case of emergencies. An auditor has a very important role to play in every type of business. One has to make sure that hiring an auditor is of utmost importance nowadays. Connect to audit firms in Pune and let your business flourish.