The purpose of having a staff auditor

Many companies employ an actual staff auditor, what this means is that they hire somebody to work at the company and to perform internal audits. But depending on the size of your company this might not be feasible. For those companies that do not find hiring a staff auditor to be feasible they employ the use of a CPA firm that provides them with a staff auditor. But regardless of which type of staff auditor you are using, internal or external, their job is still the same. But having an internal staff auditor just allows you to get on the ball even faster, you have them to use at your convenience rather than having to work around their schedule with other customers. But regardless of whether your company hires a staff auditor or you use a CPA firm the staff auditor is basically an entry level auditor who does all of the inspections and tests for the other auditors.

Here are some reasons why you should have a staff auditor.

Reason one:
One of the most important reasons for having a staff auditor is to be sure that your company is complying with the rules and regulations that are required. What this means is that the Securities Exchange Commission or SEC, which oversees all publicly traded companies has certain rules and regulations that must be followed. So to be sure that your company is following all of those rules and regulations it helps to have a staff auditor. The reason why is because the staff auditor is always up to date on any new rules or regulations that the SEC is putting into effect.

Reason two:
Another purpose to having a staff auditor is to make sure that your company is using generally accepted accounting principles. One thing that you need to keep in mind when it comes to generally accepted accounting principles is that not all companies have to use them, the only companies that are required to use them are publicly traded companies. But many companies that are not publicly traded tend to use generally accepted accounting principles because of the uniformity to the rules and regulations. Besides the fact if they do decide to go public they are already using the right accounting principles and won't have to switch their accounting practices when they go public.

Reason three:
A staff auditor also makes it nice to be sure that your company is on the up and up and nothing is going on that should be going on. What this means is that staff auditors will look at a variety of different reports, balance sheets, departments, processes, etc to see what is going on with the company and to make sure that all of the rules are being followed and that nothing shady is going on. By having staff auditors check the different areas companies can usually find problems rather quickly, such as embezzlement or employee theft of goods.

Reason four:
Staff auditors are also important in implementing and testing controls, whether they are internal or external controls. Staff auditors design the controls and then perform random tests to ensure that the controls are working properly. But not only do the staff auditors help test the controls but they are also useful for finding out if your checks and balances are working properly. They can also give you advice on how to set up various checks and balances so that your departments will run smoothly and the risks that are associated with that department are lower.