THE ROLE OF AUDITORS IN CONTEMPORARY TIME
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This write-up focuses that auditors express important opinion on financial statement.
And it describe the principles and technique that auditor use to ascertain the true and fair view of financial statement. Therefore the primary aim of this work is to provide a simple but thorough approach to understanding of auditing concepts principles and techniques.
It start in chapter one the introduction and theoretical frame work of auditor chapter two meaning of auditor and auditing the right and duties of auditors and other point that contain in this work. Chapter three focuses on summary of role of auditors which follows by conclusion and recommendation.
The role of an auditor are impressed by the layman is that of an auditor being in quest of errors, theft, defalcation and fraud. But the impression of various accounting society on the role of auditor cuts across this limit of layman view. Accountant see the purpose of audit by an auditor beyond the layman view to include the inquiry of the truth and fairness of the entity affairs as represented in their records, whether they have prepared it in accordance with the general accepted financial statement of the current period and the proceeding period and, conform the statutory requirement.
The observance of generally accepted auditing standards, the auditor must exercise sound professional judgment in determine the auditing procedures, which will lend a reasonable basis for his opinion. In the case of unqualified opinion auditors should not make to be thought have represented that no undetected fraud exist or grant that the financial statement is of affair representation of the financial position and result of operation. for instance this implies that he should portray the expertise of the medical doctor in guaranteeing theta an operation will be successful.
The auditors responsibility to detect fraud is determine by audit survival instruct users demand and, regulatory imposition and requirement of financial statement.
Historical detection of fraud was and major audit objective influenced by Mckenons Robins case (1940) and the 1939 statement on auditing procedures No 1, extensions of audit procedures, which states that “ordinary examination incident to the starting of an opinion representing financial statement in not designed and can not be relied opinion to disclose defalcation and other similar irregularities.
My purpose of this term paper is to discuss the role an auditor performed in the conduct of an audit in an entity to the extent of this job, the qualification required of him, distinguishing his function to that of an accountant and to know when a report is qualified or unqualified. Thus auditing controls the financial activities of a company to our tail fraudulent act and to ascertain the true and fair view of the financial statement Of financial Statement of that company.
- THEORITICAL FRAME WORK (3)
The continuous change in pace of business systems and the impact of statute and the publics request to has changed the role of auditors over time.
In next chapter we will examine the concept of audit, the meaning of