What is the legal auditor doing?
The statutory auditor is an external auditor appointed by the company to audit its books or other activities as required by law. In general, this auditor checks the company's accounting procedures and determines whether they meet the minimum requirements. Sometimes the statutory auditor is hired by the Board of Directors accounting committee; Other times, it can be employed directly by the Board of Directors. It is rare that the corporation administration would hire this auditor. This overview includes the most important accounting activities, internal checks and reporting procedures. The auditor's review compares the activities of the company with proven procedures as it is in the country in which the company is located. The auditor must then submit a message to the Board of Audit Committee or directly to the Board of Directors.
The auditor works closely with the company management to collect the information necessary to complete the required work. Each auditor gives caution in relationships that he develops with the company management, because the statutory auditor must always be considered independent. SomeBory for Audit and Board of Directors reduce any further work that the legal auditor can do to ensure the independence of the auditor.
Auditors are completing all work in accordance with the accounting standards of proven procedures and any legal regulations for certified public accountants. Many statutory auditors are certified public accountants. The requirements for the statutory auditor vary according to jurisdiction. Some jurisdictions require the auditor to be licensed in their jurisdiction for the purpose of practicing corporate audits.
As soon as the audit company begins to work with the company on any external audit work, the company does not receive any further work from the same company. Each company has internal regulations within the company or its Board of Directors to determine what other work, if any, the company can conclude a contract with the company. MostThe legal auditors have extensive experience with external corporate audits to specialize in this type of work.
Some corporations hire an audit company that confirms their financial reports. In general, statutory auditors perform this certification. The external auditor will complete the review of the company's financial situation and its annual financial statements. The auditor then logs off for the annual statement of the company with the findings of the report. This external report is usually included in the company's annual report to its shareholders.