Audit and assurance
An audit is the process of assessing the financial statements of an organisation to ensure they are accurate and show a true and fair view of that company and its financial status. An audit will also evaluate internal processes, risk management and any areas of concern within the company.Read more
An auditor is a highly trained individual who is authorised to evaluate and verify the accuracy of financial records. They also determine whether financial statements follow generally accepted accounting principles (GAAP). Auditors may work for an external practice or internally for the company itself.
External auditors are employees of an independent accountancy firm and they are engaged, work on behalf of, and report to the shareholders to ensure the accounts show a true and fair view of that company and its financial status.
External auditors may also provide assurance services. Auditors working in assurance also work for independent accounting firms, however, they are appointed by the directors of the client company to conduct reviews of the financial processes within the business to give them assurance that the information on which they are making decisions is reliable.
Internal auditors are employed directly by the organisations that they are auditing. Their role is to perform assurance and consulting activities designed to evaluate and improve the effectiveness of the entity's governance, risk management and internal control processes. Within audit and assurance, there are a number of key roles. A few examples include external audit partner, internal audit professional, pension auditor.