Professional Documents
Culture Documents
CORPORATE GOVERNANCE”
Presented To:
Presented By:
Hamid Ayub
Mi07BBA026
BBA-IR&M (6th, sem)
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Hailey College of Banking and Finance, Lahore.
Basic Terms to understand
Audit:
Internal Audit:
Internal audit can identify control problems, and aims at correcting lapses
before they are discovered during an external audit. Although the internal
auditors are the firm’s employees, they normally do not audit themselves or their
External Audit:
things, whether (1) the accounting records are accurate and complete, (2)
prepared in accordance with the provisions of GAAP, and (3) the statements
prepared from the accounts present fairly the organization’s financial position,
Corporate Governance:
of its financiers (investors, lenders, and creditors). The modern definition calls it
accountability, fairness, and transparency in the firm’s relationship with its all
stakeholders.
need for the auditor. Many businesses, depending on size and nature, employ
impartiality and independence. For the purpose of this discussion the terms
Independent Auditor:
Accountant who is not an employee of, and not otherwise related to, the
department must share responsibility for the completion of all assigned tasks in a
professional manner.
Internal Auditor: The Internal Auditor is generally responsible for the following:
documented manner.
situations that would lead to criticism by the area being audited, or by the general
public.
10. Requesting any files that may be needed. Management of the audited
area should be made aware that the Internal Auditor has those files.
11. Safeguarding all files / records that have been entrusted to the
Auditor’s possession.
12. Returning all files / records to the person or area they were obtained
from.
13. Maintaining all records in the same or better condition than that in
15. Returning all documents taken to the Internal Auditor’s work area to
the records custodian by the end of the day if such return is requested.
Additional Responsibilities: The Internal Auditor also bears the following,
higher-level responsibilities:
be audited.
8. As work papers are completed, ensuring that all objectives have been
9. Ensuring that the audit or review is conducted with the least amount of
12. Finalizing the audit file(s), and ensuring that all supporting
The duties and responsibilities of the external auditor cover a large and
varied field, from recording deeds and other instruments, to serving as the
county’s chief ex-officio supervisor of all elections. These duties each require
knowledge in many different areas so that the office can be run efficiently and
effectively.
The major duties of the auditor have been listed by breaking the office
Financial Opinionate:
The very basic and first duty of an external Auditor is to give true and fair
brought upon any of financial instrument or any other documents which would be
helpful for him for the performance of auditing. However he is also responsible
for giving credibility report of the organization. Regarding business laws all over
the world, Auditor’s first job is to create opinion about the organization’s financial
position.
Recorder:
Documents recorded by the auditor include, but are not limited to, deeds,
real estate contracts, liens and other written instruments which are required by
law to be filed in the county. The records become public upon filing and are
indexed accordingly. The exact time of filing is recorded with a time stamp so that
if several instruments are filed on the same day, it is easy to determine priority of
a document when referring back to it. Many requests are handled by the auditor
for copies of various instruments. These requests are handled expeditiously with
the use of photo equipment. A small fee is charged for search of records and
copies of document and, when certified by the auditor, these documents are
Auditor:
The county auditor must audit all bills approved for payment by the board
charges are legitimate and that there are adequate funds to cover the payments
disbursing officer for taxing districts, for example, a fire district. The auditor is
The law requires the auditor to examine the county treasurer’s books each
responsible for numerous reports concerning county fiscal affairs which are
periodically turned over to the board of county commissioners and the State
Auditor. In addition, the auditor is involved with both the preparation and
payment, decisions on bids, votes on questions submitted to the board and all
quarterly. All actions are indexed for quick reference of individual matters.
Licensing:
encompasses sale of motor vehicle licenses and collection of license fees and
excise tax, but also the transfer of vehicles from one owner to another, title
changes to add or delete a legal owner other than the registered owner,
collection of load fees on trucks and other transactions involving motor vehicles.
The auditor is also an agent for the Department of Revenue and collects
the auditor is responsible for watercraft titling and registration and issues
Finance:
system for all of county government. This entails the control and issuance of
officer. The internal audit duties may also fall under the direction of the county
auditor.
Elections:
The auditor is the ex-officio supervisor of all primary, general and special
elections for all state, county, city/town or school, hospital, fire, cemetery, water,
sewer, port, park and recreation, and public utility districts. In correlation with
Apportioning to state, city, county, town and district, their share of election
expenses
The county canvassing board for all election returns is comprised of the
county auditor, the county prosecuting attorney and the chairman of the county
commissioners. The auditor works very closely with the Secretary of State and
sends complete abstracts of all election results to the Secretary of State’s office
in Olympia.
Voter Registration:
accordance with state law, prior to each election, and to publish requisite legal
Miscellaneous Duties
Authority Districts
Under the general responsibilities listed above, the auditor will have
further specific duties which their job entails them to complete on a daily basis.
These specific duties will vary from auditor to auditor however many individuals
with this job will perform some if not all of the specific duties listed below.
company financial records. In doing so, the auditor will be looking to ensure that
the company is abiding by laws and regulations, keeping their books in order,
and determine if the objectives of the company are being actively pursued. These
are just some of the many examinations which take place by the auditor.
The auditor will also interview employees and supervisors of the company.
The reason for doing so is to ensure that the company’s goals are being realized;
the employees and supervisors are accurately filling out financial information and
individuals, the auditor can fill in the blanks to determine what is missing in the
and charts. These reports and charts will detail the findings by the auditor and
put the results in a nice neat package for interested parties in the audit to review.
The reports which will need to be completed vary from entity to entity but the
auditor certainly has their work cut out for them with regard to recording findings.
The auditor will also need to address any issues regarding the findings
that they discovered during their audit. These issues will be discussed by the
auditor and numerous parties involved in the audit process such as superiors of
the company. The auditor will need to detail anything not included with the charts
didn't the auditors catch it? That's the first question many people ask when
review the financial statements prepared by the organization's staff. The auditor's
main job is to judge the accuracy of the financial statements and report back to
the board. To do this, auditors usually examine some typical transactions and
Through the management letter, auditors also help nonprofits develop effective
financial controls.
accuracy of the financial statements only "in all material respects." A clean bill of
health from an auditor means that the auditor is convinced that the financial
Auditors are not charged specifically with uncovering fraud. Since they rely
perpetuated by more than one key staff person within the organization.
An important final point: all firms are not equally qualified to audit a
from those of business and government. A firm that is unfamiliar with these
An auditor has a very important role to fill in their profession. They must
possess certain traits in order to do their jobs to the best of their ability. Having
these traits will allow them to pursue financial answers while investigating
must go over financial documents with a fine toothcomb and the results that they
pull up must be of such a condition that they are as exact as can be. An auditor
cannot be lazy in their job role as a few wrong numbers can throw the whole
financial accuracy of the audit off. Therefore, preciseness is an important trait for
auditors to possess. Auditors should also be hard workers. Since they will have
must pursue it with a hard working attitude. This will enable them to do the job
the best that they can. An individual who is lackadaisical in their mannerisms will
completes audits will need to delve into many different tasks involving numbers
make the job of the auditor much easier if they are used to dealing with numbers
traits which auditors should possess. Since individuals in this profession will need
to interview a variety of different people during their audits, they should have
necessary interviewing skills which will make the interviews go that much more
smoothly. One who has good people skills and relates well to others will also
Auditors should also be focused in nature. Since tasks such as these are
time consuming and involved, one who can focus on the task at hand will be the
best auditor possible. They will be able to concentrate well and complete each
Conclusion
An auditor has an important job filled with many different in-depth tasks. In
having these traits, one who is in the role of an auditor will be able to be the best
multiple tasks and duties in a financial capacity, then becoming an auditor might