If you have your own company, it is very likely that in recent times you have seriously valued the possibility of hiring an auditor. This professional will be in charge of reviewing the accounts of your business and helping you optimize resources to the maximum, in order to avoid economic imbalances in the future.
The figure of an auditor is essential for those companies that want to be transparent and guarantee that there will be no inconsistencies or indications of fraud.
In fact, few large companies do not have their own internal audit department to avoid any kind of problem related to their accounts.
What role does an account advisor play?
fulfills the function of thoroughly analyzing the accounts of a business, as well as any accounting process, with the main objective of ensuring that the books of accounts balance and are totally reliable.
But the work of an internal auditor is not only focused on keeping an exhaustive control of the accounts of a business, but also act as financial advisors,designing strategies to avoid economic risks, reduce costs and, ultimately, maximize productivity.
Aware of the importance of the work performed by an auditor, from AYCE Laborytax we want you to know a little more about his figure, with the intention of facilitating the choice of betting or not on his hiring.
Internal and external auditors: How are they different?
Within the auditors of accounts, it is necessary to differentiate between two categories: internal and external auditors.
- Internal auditors:They are the most common figure in the audit sector, working directly for a company,as employees, in which they are responsible for carrying out audits of the different departments with certain periodicity.
- External auditors:Instead, external auditors are certified public accountants,and routinely work for government entities or accounting firms independently,conducting annual audits that typically coincide with the end of the fiscal year.
Main functions of an auditor
Beyond controlling the financial health of companies, auditors perform a series of functions that are crucial for the future of business, which can be summarized in 5 points:
1 – Detect opportunities for improvement
An internal or external auditor must be responsible for all types of data and information from any department belonging to the company, and that may be relevant in order to seek conclusions that allow the improvement of the operation of the company.
Through this data, the auditor will try to look for opportunities for improvement and detect possible failures that were causing inefficiencies in the financial system.
2 – Optimization
On the basis that one of the main objectives of an auditor is to improve the productivity of an entity, the auditor must also be responsible, together with the Directorate-General and the Financial Directorate, for find products or services that are competitive and efficient,and that allow optimizing the activity.
Establishment of policies and procedures
The actions carried out by the auditors must be framed within a framework regulated by the company itself.
This leads to the need to establish policies, procedures and internal protocols within the regulations and the current legislation of the country in which the company is located, always under a criterion that must be objective, as well as approved by both the General Management and the Financial Management.
Implementation and evaluation
Under the supervision and responsibility of the General Management and the Financial Management, the auditor shall be responsible for supervising that such policies, procedures and protocols are being implemented and carried out by the company’s personnel.
To do this, you will have to carry out a process of evaluation and continuous improvement,which allows you to identify errors or bad practices that may be occurring, in order to update and renew them, always with a view to improving them.
Finally, the auditor will be responsible for giving his own vision to the managers of the company in an objective manner, once he has evaluated all the results obtained after the implementation of the policies, procedures, protocols or any other action that has been promoted by his figure.
In case of finding deficiencies,you must look for alternative solutions and transmit them to the Management,with the aim of achieving the objectives set in the business strategy of the organization or entity.
To conclude, the function carried out in a company by an
fundamental not only to guarantee good economic health, but also to carry out an effective management in the administrative, legal, financial, fiscal and accounting area, being highly recommended its hiring.
If you are a business owner and you still have doubts about betting or not on your hiring, contact our accounting advisors.
They’ll be happy to assist you.