Auditor – myths and reality

What an auditor does and does not do during a financial audit


Auditor does Auditor does not
  • Controls whether the annual report is in accordance with the accounting principles
  • Controls the implementation of tax calculation principles to the extent necessary from the point of view of the annual report as a whole
  • Controls that third parties would get an adequate picture of the company when reading the annual report
  • Provides reasonable assurance with his/her work
  • Focuses on material financial indicators
  • Requests evidence in order to fulfil the requirements under law
  • Does not prepare the client’s annual accounts, including choosing the accounting principles and making accounting estimates
  • Does not work out the internal control system
  • Does not give, within the audit framework, a comprehensive assessment of the performance of the company’s internal control system
  • Does not prepare, within the audit framework, internal accounting policies and procedures for the company
  • Does not perform a tax audit
  • Does not examine how perfect is the accountant’s work
  • Does not compile the consolidation table
  • Does not compile cash-flows
  • Does not provide 100% assurance
  • Does not pursue every last euro
  • Does not take responsibility from the management
  • Is not a paranoid sceptic