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Q.1 Critically evaluate the qualities of an Auditor in the wake of recent scams


Answer:
An auditor renders a professional service to his client. He should not only possess the prescribed statutory qualifications but also certain personal qualities. Some of those personal qualities are mentioned below:

1. Common sense: According to Spicer and Pegler, ”the auditor should have a full share of
that most valuable commodity-commonsense.” This is necessary to distinguish between important and not so important information.

2. Independence: Expression of opinion is a prime duty of an auditor. An influenced and biased person cannot form an independent opinion.
Hence, independence in true sense is an utmost quality of an auditor.

3. Honesty and Integrity: Like any other professional viz. Doctors, Lawyers etc. auditor should possess a high moral character. In a way, he is a public servant. He must not knowingly, misinterpret any fact or sign any document under undue pressure.

4. Objectivity: Independence of an auditor depends on his ability to act with objectivity. For example, the auditor of XYZ Company believes that closing stock has not been properly valued but accepts a certificate from the management as to its valuation. In this case, the auditors judgment lacks objectivity.

5. Communication: He should be able to communicate effectively, both orally and in writing. Particularly in the matter of report writing, he should be able to convey his message clearly and unambiguously.

6. Tactfulness: He should be firm, yet diplomatic with his client and staff.
He should be tactful enough to obtain necessary written as well as oral evidence from his client, so that he can form a reasonable opinion.

7. Awareness of latest developments: An auditor should keep his knowledge up to date related to his audit work likes changes in laws, changes in professional standards, latest development in technical guidelines etc.

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