According to company ordinance 1984, a person shall not be qualified for appointment as an auditor of a company unless he is a charted accounted. An auditor should possess a thorough knowledge of the theory of financial accounting and cost accounting. He should have a practical knowledge of commercial procedures, business organization, accounting methods, finance, and taxation principles. He should be a man of integrity and honest as well as being skilled in his profession. His work required balanced judgement and analytical thinking on the evidence put before him. He must be an unbiased judge and not an advocate. His decision should be correct and be tactful. He should receive full information of a particular business and be kept secret.
Qualities of an auditor:
The qualities in an auditor are as under:
1. Professionally competent:
An auditor must have a complete and exhaustive knowledge of the accountancy. To understand the accounting explanation he can apply his knowledge and skill. He must know the method of audit taxation and law of his country.
2. Up to date knowledge:
An auditor’s knowledge of auditing must be up to date. He must have a through training in business organization, management and finance. He must know the general principles of economics, business and other subjects relating to auditing.
3. Honesty:
An auditor must be honest. He must not report what he does not believe to be true and he must take a reasonable care and skill before he believes that what he certifies is true.
4. Intelligent:
It is an important quality of an auditor that he should be brilliant. He must be able to know the technical details of any business.
5. Tactful:
In a particular situation auditor should deal properly. He should ask the questions in such a way. That it does not show about his ignorance or weakness. He must have the tact of putting intelligent questions to extract full information.
6. Qualification:
According to company ordinance 1984, the essential qualification for professional is that he must be character accountant.
7. Critical attitude:
It is also very important quality of the auditor. Statements critically He should examine the statements critically. He should ask various questions from the client and try to find contradictions.
8. Maintain secrecy:
The auditor nature of work is confidential. He should maintain secrecy from other about the affairs of his client.
9. Bold and courageous:
Auditor should be courageous and bold person. He should not be effected by any authority. He should pass the courage to face the difference of opinion between him.
10. Courteous:
It is an important quality, which the staff of client should be very humble and polite. He should also stress on his own staff to be courteous with the client.
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