Importance of Audit Accountant from an Organization’s Financial Perspective

An audit accountant or an auditor refers to an accountant who is basically concerned with examination and verification of financial statements. They study different sources to verify whether the records of a company depict its true financial condition. Moreover, these professionals also check the accounting and bookkeeping methods of a company through analysis of its records and books. Besides this, they also draw comparison between the books of a company and the records of brokers, banks, creditors as well as other people dealing with the company. In addition, they also examine the records of a company’s departments. The reports prepared by them help the management in cutting costs, saving taxes and increasing profits.

Not only does an audit accountant prepares, analyzes and verifies financial statements, but also determines the causes behind the inaccuracies or errors. He/she also develops a plan of action for rectification of these errors and prevents its recurrence in future. The auditors also examine the bills needed for ensuring accuracy in debits and credits.
Generally, auditors are of two types, internal and external. Independent or external auditors are either self-employed or work for a public accounting firm. Industries, government agencies and businesses contract with the auditors for verification and certification of financial statements. Well-managed financial companies get their books of accounts audited on a yearly basis. Moreover, an independent audit provides creditors and shareholders an expert, outside opinion of the company’s financial position.

The only difference between the work of external and internal auditors is that the internal auditors are employed by a particular company. Therefore, these auditors evaluate and examine the financial system of their organization to make sure that it is run in an economic and efficient manner. They also examine all the financial records such as payroll records, inventory and equipment records as well as books of accounts. These reports are submitted to the management that decides upon the performance of existing accounting policies. Depending upon the reports, the management takes the decision about the continuation or termination of present accounting policies.

The job of a government audit accountant is different from that of a business auditor. They examine the records only from tax perspective. Moreover, if an individual or business’ tax return is suspected, the auditor is responsible for carrying out a tax audit on the individual or business for examination of its accuracy. If misrepresentation or any doctoring is found in the books of accounts of an individual or business, the latter is liable to face penalties.