Register now or log in to join your professional community.
I agree because Auditor has nothing to do with the day-to-day operation of a company and is not engage in its management. Its function primarily involve in the checking the adequacy of the internal control of the company.
Auditor is neither police nor crime investigating officer. He is bound by standards of his profession and as per these; he is supposed to report on wrongdoings in company and suggest recommendations for their mitigation to highest authority, rather then stop people from committing irregularities, that is management's job.
I agree that Auditor is a 'Watchdog not a Bloodhound' as the main duty of the Auditor is to examine and authenticate the correctness & trueness of the accounts. The Auditor has to find out if there are any mistakes, omissions, fraudulence and theft which is in interest of the company internally and externally. This is very important as on the basis of his authentication, Tax is paid to the authorities aswell as the trust of the shareholders & widely the stakeholders relies on the certification of Auditor.
According to the above phrase it is explained that like a watch dog auditor should protect the interest of those who appointed. But he will assume the servants of the company honest and he will rely on their statements. Further he can take a reasonable care. He should perform his duties with normal skill. The attitude of watch dog will not reduce his responsibilities. In doubtful cases he should investigate the matters thoroughly. But he is also not expected that he should become suspicious mind. Any how, an auditor is a watching dog but not a sleeping watching dog.
Auditor is a watchdog in the sense that main purpose of Audit is to improve the financial systems and internal control of the company. Auditor is to seek betterment of the company not the destruction of the company.
Good explain by@: Qasim Ali
