Essay on Auditors: Internal and External - Defining Ethics and Financial Records

Ethics are principles or rules and regulations that, that helps to determine what is right and evil or moral policies, that are standard for everyone to follow in life. An auditor is a professional accountant who knows financial management system whose main task is to ensure that financial records are kept well and they are a real and honest reflection of the money used (Louwers et al., 2018). Auditors can be categorized into two; we have internal and external auditors. Internal auditors are employed by the business or organization the carry out the auditing process within the company or organization. External auditors are those employed by the private company to come and check whether books of accounts are well kept, the money recorded is a true reflection of the money spend (Louwers et al., 2018).

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There are various guidelines given out in the bible on the ethical ways of handling money. Auditors are required to uphold utmost honesty and faithfulness when it comes to writing a report about the status of the financial documents and the usage of the finances in that particular organization or company. Thus the Bible, in Leviticus 9:11 it states that no one is allowed to steal or do deals falsely or even lie to one another. The bible holds that keeping your name clean and having favor is better than any riches, gold, or silver (Proverbs 22:1). Believers are urged according to the bible teaching to first seek for their soul rather than reaches of the world (Mark 8:37), Mathew 6: 24 states that no one can serve two masters at a time for he/she will hate the other and love the other and it concludes by stating that man cannot serve God and money at the same time. Better be poor, and your ways are straight than being wealthy, and yours are crooked (proverbs 28:6). Getting treasures and wealth through lying is like fleeting vapor and snare of death.

Auditors have the most robust role of speaking the truth or speaking what is wrong and get rich out of it. An auditor can detect misuse or mishandling of funds through the postings in the financial books, both the financial standards rules and bible advocates for the auditor to raise questions and report the matter to the necessary authority, but times the auditor can be given an offer may be money not to talk the truth (Murray, 2017). This is why there are some standard rules that the auditors must follow when giving their report and when carrying out their auditing process some of which are; Integrity, this establishes and determines the trust of the auditors and thus reflect the reliance that we may have on the auditor's report and judgment (Louwers et al., 2018). Objectivity, auditors must be highly objective on their way of collecting, assessing, and evaluating all circumstances before giving their judgment, which should not also be influenced by outsiders or their interest. Confidentiality, auditors, should not just share any top secrets they have been told to anyone about the company or organization unless they have the legal authority to do so to specific body or people (Fountain, 2016). Competence, the auditors must have the necessary skills and knowledge needed to carry out the auditing process (Louwers et al., 2018).

Conclusion

In conclusion, from the above guidelines of auditors plus teachings from the Holy Bible, it is clear that auditors should hold the highest level of integrity and ethic morals when it comes to giving reports and making a judgment about the financial status and of particular company or organization. This means that auditors should be guided by the principles and ethics of auditing processes and also they should incorporate the bible teaching them to understand that richness acquired in the wrong way never last, but that which is gained through hard work and determination is like a blessing and it last.

References

Fountain, L. (2016). Ethics and the Internal Auditor's Political Dilemma: Tools and Techniques to Evaluate a Company's Ethical Culture. Retrieved from https://www.worldcat.org/title/ethics-and-the-internal-auditors-political-dilemma-tools-and-techniques-to-evaluate-a-companys-ethical-culture/oclc/971265032

Holly bible. New International Version.In Murray, Z., Chartered Accountants Australia + New Zealand, & Global Accounting Alliance (Firm). (2017). Auditing assurance and ethics handbook 2017 New Zealand: Incorporating all the standards as at 1 December 2016. Retrieved fromhttps://www.worldcat.org/title/auditing-assurance-and-ethics-handbook-2017-new-zealand-incorporating-all-the-standards-as-at-1-december-2016/oclc/973560095

Louwers, T. J., Ramsay, R. J., Sinason, D. H., Strawser, J. R., & Thibodeau, J. C. (2018). Auditing & assurance services - With CD (7th ed.). New York, NY: McGraw-Hill.