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An auditor is a person or a firm appointed by a company to execute an audit. To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications. Generally, to act as an external auditor of the company, a person should have a certificate of practice from the regulatory authority. An auditor is an official whose job it is to carefully check the accuracy of business records. An auditor might be either an internal auditor, external auditor or independent auditor for accounting firms in the public or private sector. Auditors can also work for many different entities, such as the IRS or a state government. The auditor is an individual who is trained to review and verify that the accounting data provided by an audited company accurately corresponds to the activities that have been partaken by the company. The auditor's job is to write a report at the conclusion of the audit which determines the level of accuracy and clarity that the organization has accounted for. For instance, if all accounting moves made by the company are reflected in the books (such as the general ledger), and all data that appears in the records correspond to the course of business in the company, then the audit will have shown no misstatements. Audit is an objective examination and evaluation of the financial statements of an organization to make sure that the records are a fair and accurate representation of the transactions they claim to represent. It can be done internally by employees of the organization, or externally by an outside firm. The IRS can perform audits to verify the accuracy of a taxpayer?s returns or other transactions. When an audit is being preformed by the IRS, it usually carries a negative connotation and is seen as evidence of some type of wrongdoing by the taxpayer. Audits preformed by outside parties on private companies can be extremely helpful in removing any bias when it comes to the state of a company's financials. Audits look for what can be called a "material error" in statements on any specific object. They help provide stakeholders with a sense of accuracy when regarding the state of the subject being audited and can help enable them to make better, more informed decisions regarding the subject being audited. When audits are performed by third parties, the opinion on whatever is being audited (a business? books, an organization as a whole or a system) can be candid and honest without it effecting daily work relationships. Most all companies receive an audit once a year, while even larger companies can receive audits monthly. For some companies, audits are a legal requirement due to the compelling incentives to intentionally misstate financial information in an attempt to commit fraud. For some publicly traded companies, auditors are used as a resource to evaluate the effectiveness of internal controls on financial reports.