Prepare today for tomorrow's success
Auditors are necessary for those companies that want to offer an image of transparency to the market. A company audited by an auditor of annual accounts is a reliable and secure company compared to an unaudited company. The auditor has the function of reviewing and verifying that the balance sheets and annual accounts of the company reflect the faithful image in its most significant aspects.
R
The auditor should not be confused with the company's advisor. The main function of the auditor is to review the accounts of the company, not to advise the company, for this there are already the advisors or lawyers of the company. On some occasions the auditors issue a letter of recommendations on those aspects of internal control that they have detected have some weakness or aspect to improve. The auditor is not responsible for implementing these corrective measures, the administrators of the company will always be.
The auditor has to audit the annual accounts of the company that include the balance sheet, the profit and loss account, the memory and the statement of cash flows. You must verify that these annual accounts reflect, in their most significant aspects, the faithful image of the company. One of the most important tasks of the auditor of accounts and that is rarely valued, is that he has to verify that the report contains all the relevant information necessary for a correct interpretation of the balance sheet and the profit and loss account. The annual accounts must be drawn up by the directors of the company and reviewed or audited by the auditor appointed by the shareholders.
The auditor must also prepare a letter of recommendations containing all the internal control weaknesses detected with the recommended improvements for the company that is ultimately responsible for the implementation of these recommendations.
The auditor has a transparency function and has to be a generator of confidence to independent third parties that they want to know the status of a company at any given time. Shareholders, suppliers, banks, employees and some customers will consult the audit report with the intention of confirming that the balance sheets formulated by the directors conform to the reality of the company.
Valuing a brand or an intangible asset is one of the functions entrusted to account auditors.
Some companies hire auditors not for the preparation of an audit report, but for the preparation of a purchase audit of an entity, commonly known as Due Diligence, or audit of a specific division or delegation of a business group. On this occasion, the scope of the work is different and if you can issue some recommendation or suggestion, but as long as it reflects it in the scope of the contract of assignment of the work. Otherwise, an auditor only has to audit the company's accounts.