An auditora€™s job is a highly responsible job for it deals with the companya€™s financial status. An auditor should be a well-qualified person who can keep the companya€™s position well stabilized and gives timely warning to the directors of the company if there is a fraud or if the companya€™s position is sinking due their financial crisis.
Auditors are divided into two categories, internal auditors and external auditor. Internal auditor is the companya€™s full time employee and works with the companya€™s interest in mind. He heads over a team of accountants who prepare monthly quarterly and annual financial statements of the company. This team gives the internal auditor an up to date report of all the necessary outstanding, the stock in hand and other matters dealing with finance. It is the internal auditora€™s responsibility to see that the right entries are made in the report.
If the internal auditor is working for a large organization, then it is his duty to give an account of all the raw material, finished goods, outstanding bills, and payments to be received from clients. He keeps the Managing Director well informed about all these things by submitting his quarterly report. Since the internal auditor is the companya€™s employee, he may at times, due to his professional backing, save the company from heavy loss due to financial strategy.
It is also the internal auditora€™s job to draw the companya€™s attention if the company is going in loss or profit by preparing a profit and loss report.
External auditor does not work for any one company but is a freelance worker. He has his own firm and takes up accounts of several companies. He is hired by the company on contract basis, or specific fees. He checks the companya€™s financial reports, and sees that there are no lapses in preparing the annual report before they are filed in the income department. He checks these reports thoroughly to detect any fraud by either the company or its employees. Sometimes the repots do not show entries, or the bills may be missing from the files, or the company is showing excess overhead expenses, all these queries are made by the external auditor, only then will he sanction the annual report which can then filed for returns.
In London, Auditors have to go through a special certification course to become an auditor. For more information on London Auditors please refer the different websites on London Auditors.