Question

Identify the unique characteristics of auditing profession

Answer 1

Auditing refers to evaluating the effectiveness of a company's internal controls. An audit is an assessment of an individual, process, system, firm, organization, institution, company, project, or product. Audits are carried out to check and verify the reliability of any given information and give an evaluation of the internal control of the system.

Unique Characteristics of auditing profession:

--Pursue goals: A unique auditing profession is a important because it facilitates to pursue for the attainment of several corporate purposes. It helps to prevent and identify irregular transaction, measure the performance of the corporate, maintain adequate business records and to enhance the productivity.

--Fraud Prevention: Auditing serves vital role for companies in the prevention of fraud. Recurring analysis of the operations and maintaining rigorous systems in the company can prevent and detect various forms of accounting irregularities and other fraud activities. Audit professionals helps in the design and modification of the control systems the purpose of which includes, among other things, prevention of fraud.

-- Cost of Capital: Unique audit systems profession reduces the several forms of risk in an enterprise, including its information risk (the risk of material misstatement in financial reporting), the risk of suboptimal management due to insufficient information on its operations and also the risk of fraud and misappropriation of assets.

--Prevents debilitating misstatements: A unique auditing system helps in preventing debilitating misstatements in a company’s records and reports

--A thirst for knowledge: Auditors needs to strive to cultivate a deep knowledge of the company consisting of its culture, key players and competitive environment. It is main factor that is guaranteed to set audit apart from other auditing and risk compliance professionals

--Innovation: Every company has its own inner workings and to be a unique auditing manager or compliance officer needs creativity. Combine innovation with current company's processes to provide impressive results.

--Communication/People skills: The ability to read people and adapt for any given situation is a key driver in those who progress up the internal or external auditing career ladder effectively.