An auditor’s behavior must be strictly professional, ethical, and objective to maintain public confidence and ensure audit quality. Key behaviors include integrity, confidentiality, competency, and independence. They must also be observant, diplomatic, open-minded, and tenacious in pursuing evidence while acting with skepticism and impartiality.
Desired professional behavior includes being: Ethical – fair, truthful, sincere, honest and discreet: Auditor should not draw conclusions if there are no objective evidences.
Successful practitioners share these core attributes.
By continuously working to be trustworthy, ethical, passionate about learning, curious, and a good communicator, auditors can always work to be the best they can be in the profession.
Introverted sensors, ISTJs are known as the best personality type for accounting jobs, CFO positions, or careers as auditors. This type is loyal, hardworking, and understands the importance of their roles; but the real predictor of success here is their analytical nature that enables them to work quickly and precisely.
The 5 Cs of audit (Criteria, Condition, Cause, Consequence, Corrective Action) are a framework for structuring clear, actionable audit findings, explaining what should be (Criteria), what is found (Condition), why it happened (Cause), what the impact is (Consequence/Effect), and how to fix it (Corrective Action/Recommendation) to drive organizational improvement and compliance.
The basic principles of auditing are confidentiality, integrity, objectivity, independence, skills and competence, work performed by others, documentation, planning, audit evidence, accounting system and internal control, and audit reporting.
Audit evidence is critical for verifying the accuracy of financial statements and supporting auditors' opinions. Different types of audit evidence include physical examination, documentation, observations, inquiries, confirmations, analytical procedures, and reperformance.
Here is a look at the abilities auditors need to develop to perform their jobs effectively.
Ethical - Fair, truthful, sincere, honest and discreet.
As auditors, we need to be open, transparent and clear in our communications at all times (even when we're not being watched).
The average audit partner in our sample has, on a scale from 1 to 9, an IQ score of 6.82, which is higher than the average IQ of the rest of the population, which is 5.0.
Goal-oriented & Unbiased
Additionally, auditors must not have a bias toward a certain outcome from their findings. One of the most valuable aspects for a business is being able to rely on neutral and factual information and reporting from an audit.
The field of internal audit can be demanding and stressful. Auditors often face high-pressure situations and the responsibility of ensuring financial integrity and compliance with regulations. In addition, their presence can be unwelcome, and their motivations are often misunderstood.
The 7 E's in operational auditing are Effectiveness, Efficiency, Economy, Excellence, Ethics, Equity, and Ecology, forming a comprehensive framework for internal auditors to assess an organization's success beyond mere compliance, focusing on goal achievement, resource optimization, quality, moral conduct, fair treatment, and environmental impact to add significant value.
Inquisitive and curious people can make for great auditors. Professional skepticism (having a questioning mind), objectivity (open-minded), and good judgment are important traits to have when reviewing a company's financial statements.
It is divided into three sections, and is underpinned by the five fundamental principles of Integrity, Objectivity, Professional competence and due care, Confidentiality, and Professional behaviour.
Fundamental Principles Governing an Audit:
Auditors tend to be predominantly conventional individuals, meaning that they are usually detail-oriented and organized, and like working in a structured environment.
The auditing profession does come with unique challenges for maintaining a good work-life balance. Auditing often involves time-sensitive tasks and peak work periods, especially during the end of financial years or during tax seasons. This can lead to extended working hours that interfere with personal life.
Don't Ignore Corrective Actions
If findings or recommendations are made, take them seriously. Implement corrective actions promptly to avoid repeated findings in future audits. Failing to address past issues will indicate non-compliance and could lead to more severe consequences.
The four common types of auditors are Internal Auditors (evaluate company operations for management), External Auditors (independent review of financial statements for outside parties), Government Auditors (ensure compliance with laws for public agencies like the IRS), and Forensic Auditors (investigate financial fraud for legal proceedings). These roles focus on different areas, from internal controls and risk management to financial reporting accuracy and fraud detection.
To be a successful auditor, you will need both hard skills and soft skills. Hard skills include understanding of principles and standards, performing risk assessments, evaluating data and use of auditing software. Meanwhile, soft skills include critical thinking, communication and attention to detail.
Physical Evidence
This type of evidence is tangible and as a result, it is the most reliable and persuasive form of evidence that can be used in any internal and external audit. Such evidence can be: Counted. Inspected.
The specific documents required for an audit depends on the type of audit being conducted and the industry, but some standard documents include:
Basic Principles of Auditing