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An auditor is an individual or a firm that a company hires to conduct an audit. To work as an auditor, an individual must be accredited by the accounting and auditing regulatory authority or meet certain requirements. An individual should, in general, have a certificate of practice from the regulatory authority to serve as an external auditor of the company.
The audit can be on any topic. An auditor, on the other hand, will review an organization's financial statements from a financial standpoint. The auditor conducts the inspection to ensure that all records are correct and that all documents are free of errors. An auditor’s hire can be of two types, internal auditors and external auditors. An external auditor, also known as a statutory auditor, is an independent agency hired by the client to express an opinion about whether the financial statements of the corporation are free of material misstatements, whether due to fraud or error. External auditors may be asked to express an opinion on the efficacy of internal controls over financial statements for publicly listed entities. Internal Auditors are employed by the organizations they audit. They work for federal, state, and local government agencies, publicly-traded corporations, and non-profit organizations in a multitude of sectors. The auditor’s results from their analysis are known as the auditor’s opinion. If there are just three paragraphs in total – two paragraphs discussing scope and one paragraph discussing opinion – it is known as the auditor's clean opinion.
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