Auditor is a watchdog and not a bloodhound - whether relevant today?
The terminology ‘ Watchdog’ is being used for auditor in normal course of audit, where the terminology ‘Bloodhound’ is being used for investigator in course of investigation. Ø What is Audit and who is Auditor? A person who is doing work of audit known as Auditor. As per Companies act, 2013 section 141 states that “A practising chartered accountant of India can act as an auditor” An Audit is a process of identifying whether the results of accounting information are accurate and according to the specified norms or not. Auditing is an impartial and methodical examination of the financial statement of an entity to give an opinion on true and fair view. The word financial statement may include Balance Sheet with Notes to Accounts, Income Statement and Cash Flow Statement. The term entity refers to any organisation whether it is profit making or a charitable institution. Size and structure of the entity are also irrelevant. Ø What is Investigation