An auditor is a certified accountant who reviews financial accounts for errors, omissions, and ensures that accounts are true and correct. If the accounts are true, this ultimately results in an auditor's report.
Many businesses conduct internal audits if they suspect fraudulent activity. An auditor will ensure that your company is compliant with the law and that all operations are running smoothly.
Some companies are subject to audit obligations externally. This means that companies are obligated to hire an auditor. If your company is subject to an audit requirement, you must consult with an accountant who can audit your financial reports and provide the necessary documentation.
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Small businesses are always in need of proper accounting and bookkeeping protocol. Internal and external audits are a necessary part of running your small business. A qualified auditor will help you navigate every step of the auditing process.
The sole proprietorship business structure often leads to commingling of business and personal funds, which can trigger tax audits. These businesses also often have a long, unusual list of tax deductions which can cause red flags on their tax returns. It can be wise to hire an accountant to prepare your tax return to ensure these issues are taken care of before they cause an audit to be prompted, and to be properly prepared should the time come.
The federal, state, and local governments may request copies of your audited financial statements. A certified auditor can review your accounting material and officially sign off on these documents for you.
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