Question

The 21st Century Auditor" Please respond to the following: The 21st century auditor requires knowledge of technology and accounting information systems in addition to his / her understanding of accounting concepts and guidelines. The degree of knowledge in technology and AIS will vary with each auditor. Recommend the top-five technology and AIS skills that the 21st century auditor should have. Justify your recommendations. Now, recommend a series of actions that need to be taken by auditors and their firms to ensure that the auditors maintain their skills

Answer 1

The principle objective of an audit of financial statements, prepared within a framework of recognized accounting policies and practices and relevant statutory requirements,if any, is to ensure that financial statements reflects a true and fair view.

For the nations auditor the beginning of the 21st century was unfortunately defined by mammoth accounting frauds, hence the auditor should have AIS knowledge to understanding of accounting concepts and guidline.

Top five technology and AIS skills that the 21st century auditor should have.

1. Strong communication skills: For the successful auditor, it means clearly conveying thoughts, ideas and suggestions during meetings, presentations, interviews, and negotiations with audit clients and executives.

2. Emotional intelligence: Just because auditors approach their work with a level head doesn’t mean their clients are in the same place. Whether they’re frustrated over disorganized financial records or anxious about uncovering a potential fraud, clients need the steady hand of an auditor who excels at keeping composure and making sure the bull’s eye—an accurate, exhaustive audit—remains squarely in sight.

3. Critical thinking: This equates to objective analysis and evaluation of the information and facts contained in an audit that can produce actionable insights—or in many cases, the questions that inspire them.

4. Professional skepticism: Professional skepticism is necessary to the critical assessment of audit evidence. This includes questioning contradictory audit evidence and the reliability of documents and responses to inquiries and other information obtained from management and TCWG.

5. Interpersonal skills; For the successful auditor, exceptional people skills are a must. Empathy, for example, allows an auditor to better understand the client’s perspective as the audit operation progresses.

These skills are required to the audutors in 21 century.