No doubt, everyone knows that services of auditors are very complex. These assurance services provide an independent opinion of a third party on company’s financial statements. People sometimes confuse their role and think that they prepare company’s financial statements. However, their role is to just obtain an assurance that financial statements gives true and fair view. Preparation of accounts and accounting record is solely responsibility of company’s management. As obtaining a reasonable assurance of company’s financial data can never be easy, financial statement auditors has to obtain such assurance by implementing auditing procedures prescribed by International Standards of Auditing. These procedures include analytical testing, re-performance of accounting entries, transaction testing on sample basis and testing internal controls of an entity. All these procedures are implemented in a structured approach which can cover or mitigate significant risk of material misstatements. Some people confuse the role of auditors as fraud detectors. Note that it is not a forensic assignment, still there are certain auditing procedures which mitigates the risk of fraud to a certain level. So, it is very apparent that their services are very complex and due to which, it is necessary to ascertain the competence and expertise level of accounting firms rendering auditing and assurance services.
Majorly auditing and assurance services furnish certain lucrative factors. Some of them include a) assurance of accuracy in data processing b) testing of effectiveness of accounting system and internal control c) tells true and fair picture to shareholders of a company about company’s operation and actual position d) assurance on company’s internal control system e) identification of material areas which need improvement etc. Now, can anyone deny with this fact that all these factors lead an entity towards success and attainment of corporate goals and objectives? It means that their technical services are value addition for any company/business. However, importance of hiring right and experienced accounting firms should be considered here. An amateur firm would not merely waste company’s cost but also it would waste too much time of a business because auditing is a time consuming process depending upon the scope of work. Go here for more information about financial auditors
In order to avoid any destructive and painstaking culmination because of poor selection of service providers, it has been seen that companies are now opting to engage these professionals via online medium. It is due to the reality that one would always remain able to hire extremely competent and proficient accounting firms via this mode. Also, one can determine the scope of work, nature of auditing procedures and layout of auditing report via e-portal before hiring of accounting firms so that there would be no ambiguity regarding roles of management and auditors.