What is an Auditor, Duties, Code of Ethics and Types? This is the explanation

What is an Auditor: An auditor is someone with certain expertise or qualifications in the field of finance. The main task of the auditor is to carry out auditing activities. If you work for a company, maybe this job is familiar, right?

It can be said, auditors play an important role for the company’s operations. However, do you actually know what the duties of an auditor are? If not, let’s look at the discussion and explanation of what an auditor is, a code of ethics, and its types below.

What is an Auditor?

As previously mentioned, the auditor is a professional in charge of carrying out auditing activities, especially on financial-related reports from a company, institution or agency.

In other words, the auditor is someone who has the authority to review and verify the accuracy of all financial statements. Responsible for ensuring the company does not violate tax laws.

So, it is not surprising that auditors are people who have special skills and qualifications to carry out audit tasks on financial records. When it comes to salary, this profession has an average income of around IDR 3 million – IDR 5 million.

Well, if you want to pursue this profession, then you must at least meet the requirements of the principle of independence and competence. That is, a person with this job is a competent figure (expert) in his field, and is independent or has honesty, freedom, and is also not controlled by anyone.

The requirements to become an auditor are as follows.

1. Have an independent and honest mentality
2. Have good technical skills and training
3. Utilize his professional expertise carefully and thoroughly

Auditor Code of Ethics

As a person with an important role, this profession has a number of codes of ethics that must be met in order to regulate the auditing process while maintaining professionalism. The code of ethics is also intended to protect clients so that the confidentiality of their data is maintained.

The code of ethics is as follows.

1. Integrity: which has the nature, quality, ability or potential that shows honesty and authority.

2. Competence: namely the skills, knowledge, and behavior needed in carrying out their duties.

3. Objectivity: namely being able to be honest without being influenced by personal opinions or considerations or other parties when acting and making decisions.

4. Accountable: namely the ability to explain the accountability of performance or action to those who are authorized or have rights.

5. Professional: namely behavior that meets the quality or quality of a profession and requires certain skills in carrying it out.

6. Confidentiality: namely being able to keep things that are entrusted so that they are not known by parties outside the authority or interests.

Auditor Duties

When viewed more deeply, the responsibility of an auditor is not only auditing. Overall, the tasks are as follows.

1. Understanding Accounting System

One of his duties is to clearly understand various recording systems and transaction procedures. It aims to measure its validity so that it can be used as the basis for making financial statements.

2. Doing Planning, Monitoring, and Recording

The next task is to plan, control, and record every job. In this case, it is mandatory to know the object of the audit very well in order to be able to produce a program that runs effectively and efficiently.

3. Internal control

In charge of evaluating and reviewing internal control. In addition, they also carry out compliance tests in order to determine their accountability.

4. Reviewing Financial Statements

Another task is to re-examine the financial statements by analyzing the conclusions from different audit evidence in order to generate a rational opinion on the report.

For example, evaluating controls or gathering evidence using various methods, such as surveys, observations, interviews, and also review documentation.

5. Audit Results or Evidence

Last but not least, the task is to produce reliable and relevant audit evidence in order to show the final conclusions rationally.

Types of Auditors

1. Independent Auditor

Is a public accountant. This profession basically works externally to provide services to the general public who are in need of audit services. Like anything else, independent reports must be objective.

2. Internal Auditor

Is a type that performs work for a company or institution. His job is to review the internal financial documents of a company, but with a limited scope. Responsible for improving the validity of the company’s financial data.

3. Government Auditor

Are those who are employed by companies or government-owned institutions. The task is to supervise the financial turnover and practices in government agencies.

4. Tax Auditor

He is an auditor who works to serve the Directorate General of Taxes (DGT) of the Ministry of Finance of the Republic of Indonesia. His job is to audit a number of taxpayers and ensure whether they are in accordance with the laws and regulations or not.

5. Forensic Auditor

Specialization in financial crime. Thus, the main task is to review all documents related to criminal acts, for example tracing the origin or source of money and money laundry.

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