Question

How do states ensure auditors "...possess the required skills to evaluate the accounting entries"

Answer 1

There are certain criteria for choosing an auditor

1) Qualifications

When an audit is conducted for the purpose of meeting an external regulator’s requirements, it’s essential that the lead audit partner meets the conditions that the regulator requires. For example, if your audit is to comply with the requirements, only a registered auditor can conduct your audit. To ensure your auditor is registered, you can check their details in the professional registers section of auditors.

2) Industry experience

When the auditor has experience within an industry, it will typically blend into a more efficient audit and avoid generic questions being asked. It will also enable them to provide more relevant value-added services and translate their analysis into solid actions that the business can take. Continuity of audit staff working on the organization’s audit will also enable a more efficient audit year-on-year.

3) Quality assurance processes

An auditor we choose should be able to demonstrate how they ensure their professional service quality, their compliance with relevant legislative requirements, auditing standards and reporting best practices. For example, are regular focused review procedures in place? Are the audit partners and staff attending regular technical training, professional development in-house and externally?