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The accounts are audited once a year by an auditor
Auditor
An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.
What Is an Auditor?
An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within different industries.
- The main duty of an auditor is to determine whether financial statements follow generally accepted accounting principles (GAAP).
- The Securities and Exchange Commission (SEC) requires all public companies to conduct regular reviews by external auditors, in compliance with official auditing procedures.
- There are several different types of auditors, including those hired to work in-house for companies and those who work for an outside audit firm.
- The final judgment of an audit report can be either qualified or unqualified.
