What are the functions & responsibilities of Audit firms?- Zmas

January 12, 2022

It is often a misapprehension that the duties of an external auditor are just summed up to individuals that assess monetary records with the motive of creating an opinion about the fairness of information that is offered within the financial statements of the company. 


It is important for you to understand that audit is a process of generating an opinion about procedures, transactions as well as other information. When it comes to engaging or hiring an auditor, there are several reasons. 


However, if you want to hire one of the topmost Audit Firms in Mumbai then ZMAS is the right option because here you can find a team of highly experienced auditors. 


You need to know that business owners hire auditors as tools in order to improve procedures and methods, generate a tone from the top that prevents deceitful activity as well as hold both employees and management responses to implement their tasks and responsibilities.


Keep one thing in your mind, the auditor’s opinion can make or break the reliability of the monetary statements and the information they offer. When compared to unaudited statements, audited financial statements come with a high degree of validity and trustworthiness.  


Functions and responsibilities of the audit firms 


When it comes to the functions and responsibilities of an audit firm, everything is dependent upon the role of an auditor. The duties of an auditor are put down by the Companies Act, 2013 in section 143. 


An auditor is responsible for preparing an audit report which is mainly a review of the business financial situation. Depending upon the economic statements of the company, an auditor needs to prepare an audit report. The books of accounts examined by him are further kept according to the applicable laws.


Wherever required, an auditor can create a negative opinion. The report offered by an auditor has a high degree of declaration and reliability as it comprises all the ideas of an auditor about the financial reports. In case, an auditor feels the statements do not represent a true assessment of the financial condition of a business then he can form a contrary opinion on the same.   


One of the major duties of an auditor of Audit Firms In India is to make an investigation as and when required. Some of the queries usually include:


  • Determine whether loans and advances made on the basis of security are secured and the terms relating to them are true


  • Any kind of personal expenses are charged to the revenue account or not


When an auditor is the branch auditor and not the auditor of the company, he is going to extend assistance in the accomplishment of the office audit successfully. Depending upon the accounts of the branch as examined by an auditor, he will prepare a report and then finally send it to the auditor of a company. 


Ultimately, the company auditor will integrate this report into the core audit report of the company. 


It is the responsibility of an auditor to comply with all the audit standards. The Central Government in consultation with the National Reporting Authority, issues the auditing standards. These standards play a vital role in helping the auditor to accomplish his audit duties with great ease as well as accuracy at the same time. 


Therefore, if your company requires an investigation then an auditor can offer help to the officers. You can now understand that the duties and responsibilities of an auditor are diverse and have a great impact on audit firms.

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