What does an auditor do?

A chartered accountant is a qualified professional who assists companies and organisations with financial reporting and auditing. The main responsibilities of a chartered accountant include:

1. Auditing financial statements: Auditors conduct audits of financial statements to ensure that a company’s financial information complies with the applicable accounting standards (e.g. HGB or IFRS) and provides a true and fair view of the company’s financial position.
2. Ensuring compliance with regulations: They verify that companies comply with legal requirements and regulations. These include tax regulations, financial market regulations and other relevant laws.
3. Consultancy and support: In addition to auditing, auditors also offer consultancy services to help companies optimise their financial reporting, internal control systems and business processes. They help identify risks and recommend appropriate risk mitigation measures.
4. Due diligence reviews: In the case of company takeovers or mergers, auditors conduct due diligence reviews to assess the financial situation of the target company and identify potential risks or discrepancies.
5. Reporting: After completing an audit, auditors prepare audit reports summarising their findings and recommendations. These reports are often of great importance to shareholders, investors and banks.
6. Internal audit: Some auditors also offer internal audit services to assess the effectiveness of risk management, control processes and governance structures within a company.
7. Training and education: Auditors regularly keep up to date with the latest developments in financial and tax law and accounting standards and provide training to their clients.

Conclusion

The role of an auditor is crucial to maintaining the integrity and transparency of corporate finances. Through their independent auditing activities, they help to strengthen the confidence of investors, creditors and the public in the financial information of companies.