Auditors help to ensure that firms are run more efficiently, particularly from a financial point of view; that a country's public records are kept accurately; and that taxes are paid properly and on time. An auditor examines and audits the financial statements of an organisation to ensure that the records reflect the true financial state of the business and that the procedures employed are correct.
Auditing roles can sometimes be divided into internal or external: Internal auditors work on the internal control systems of a business within an organisation and report to its audit committee or the directors. They help to design the company’s organising systems and help develop specific risk management policies. External auditors are independent, and make an impartial evaluation of the financial statements, systems and internal controls of the client. The resulting audit opinions have credibility for investors, creditors and the public because the financial statements have been independently appraised. An external auditor investigates the financial records of a company and then gives a report. External auditors need to have a sound knowledge of mercantile law and company law.
New IT developments and in particular the advent of blockchain technology is rapidly changing the nature of the work for most auditors. Personal and laptop computers enable auditors to be more mobile and to use their clients’ computer systems to extract information from the cloud. As a result of these trends, a growing number of auditors have extensive computer skills and specialise in correcting problems with software or in developing software to meet unique data needs. To cope with audits on sophisticated computers, data bases, networks and electronic fund transfer, auditors require a dedicated and continuous effort to keep abreast of new developments.