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DUTIES AND RESPONSIBILITY OF

AUDITORS
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INTRODUCTION

The role of an auditor, in general, is no walk in the park.

Having been regarded as a certified professional, the auditor
has placed on himself, responsibilities to various parties and
the duties that go with it. The auditor’s opinion basically makes
or breaks the reliability of the financial statements and the
information they provide. Audited financial statements have an
extremely high degree of reliability and validity in comparison
with unaudited statements.
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Who is an Auditor?

 Independent accounting / auditing firms hired by

companies subject to an audit as per Companies Act 2013.

 In simple terms, an auditor is an individual who is

appointed to inspect the books of accounts of a company,
the validity and accuracy of the transactions contained
therein.

 He also forms an opinion on the overall view of the

financial statements, whether the statements depict a true
and fair view of the entity’s financial position
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RIGHTS OF AN AUDITOR
 Rights to access the books and records.

 Right to get explanations from company staff.

 Right to receive notice of general meetings.

 Right to visit branches.

 Right to seek legal and technical advises.

 Right to claim remuneration.

 Right to refuse to commence the audit.

 Right to question the board.

 Right to qualify his report.

 Right of indemnity
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DUTIES OF AUDITOR

1. Prepare an Audit Report

The auditor is responsible for preparing an audit
report based on the financial statements of the
company.
2. Form a negative opinion where necessary
The auditor’s report has a high degree of assurance and
reliability because it contains the auditor’s opinion on the
financial statements.
3. Make inquiries
One of the auditor’s important duties is to make inquiries,
as and when he finds it necessary. Whether loans and
advances made on the basis of security are properly
secured and the terms relating to the same are fair.
z4. Lend assistance in case of a branch audit

Where the auditor is the branch auditor and not the auditor of the company, he will lend assistance in the
completion of the branch audit. He shall prepare a report based on the accounts of the branch as examined
by him and then send it across to the company auditor.

5. Comply with Auditing Standards

The Auditing Standards are issued by the Central Government in consultation with the National Financial
Reporting Authority. These standards aid the auditor in performing his audit duties with relevant ease and
accuracy.

6. Reporting of fraud

Generally, in the course of performing his duties, the auditor may have certain suspicions with regard to fraud
that’s taking place within the company, certain situations where the financial statements and the figures
contained therein don’t quite add up.

7. Adhere to the Code of Ethics and Code of Professional Conduct

The auditor, being a professional, must adhere to the Code of Ethics and the Code of Professional Conduct.
Part of this involves confidentiality and due care in the performance of his duties.
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P.SHYAM
REG NO:19331E0086