From Open Risk Manual


Auditor. An individual qualified (at the state level) to conduct audits. A person with competence to conduct an audit. An auditor may be an internal auditor (an individual whose primary job function is to audit his or her own company) or an external auditor (an individual from outside the company, who typically is employed by an auditing firm who handles many different clients).

Issues and Challenges

They have power independently of the board. Power to assess the quality of the financial reports. Also has obligations to the statutory authorities in that regard. The auditor has obligations to the shareholders which are not directly to the Board. Their specific role is to supervise the board to ensure they are acting on behalf of the shareholders. To report to the shareholders on the activities of the Board. Therefore, Auditor's report is a required part of the financial reports. They are responsible for providing a true and fair view of the financial positions of the company. Election - Put up by the board. Appointed by the Board on behalf of the shareholders. Can be voted out by the shareholders at an AGM or EGM but the board can also put up a competitive process. Normally board elects them but the shareholders can override that selection.

See Also


This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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