The External Auditor is hired by an organization to audit, or review in detail, its financial statements and related materials so as to inform investors and law enforcement authorities that the organization’s financial statements are accurate, complete, current, and that financial controls are in force and in compliance.
EXTERNAL AUDITOR ESSENTIAL DUTIES AND RESPONSIBILITIES
- Examine financial statements to be sure that they are accurate and in compliance with applicable standards (e.g., SAS, SSAE) and regulations (e.g., Sarbanes-Oxley)
- Inspect account books and accounting systems for efficiency and use of accepted accounting procedures (GAAP and/or IFRS)
- Assess financial operations and make best-practices recommendations to management
The independent auditor – or in the case of a team, the lead auditor – reports directly to the organization’s Board of Directors.
The External Auditor Job Description is mentioned in the following procedures:
|Procedure ID and Name||Policies & Procedures Manual|
|AC1040 External Auditing||Finance|
EXTERNAL AUDITOR QUALIFICATIONS
A bachelor’s degree in accounting or business administration is required. Seven years of experience as an accountant, with three or more in positions of increasing responsibility are also required. Must be a Certified Public Accountant (Chartered Accountant).
Excellent communication skills and the ability to work well with people at all levels are essential. Prior management experience is strongly preferred.
Experience with SAP and/or JD Edwards software is crucial.
EXTERNAL AUDITOR PHYSICAL DEMANDS
Ability to communicate orally with management and accountants is crucial. Regular use of phone and email for communication is essential. Hearing and vision correctable to within normal ranges is essential for normal conversations, receiving ordinary information, and preparing or inspecting documents.
The ability to remain in a stationary position roughly 50% of the time, as well as the ability to move about the office occasionally (accessing files/storage, office equipment, computers and other office productivity devices, attending meetings, etc.), is required.
Using a computer while sitting for extended periods is common. Must also be able to position self to maintain equipment, including under tables and desks.
No heavy lifting is expected, though occasional exertion of about 20 lbs. of force (e.g., carrying accounting books (G/L, etc.), laptops) may be required. Good manual dexterity required to use common office equipment (e.g., computers, mobile devices, calculators, copiers/scanners).
The job is performed indoors in a traditional office setting. Extended periods of sitting while using a computer or other device are common.
 More commonly referred to as an “Independent Auditor” by accounting and finance professionals.