Are you thinking of hiring a chartered accountant to handle the business accounts? Then you must know about the core functions of a chartered accountant. A chartered accountant gives you trustworthy information about your business, financial data, status and solvency. Sometimes a business also needs an auditor’s interference to understand the financial statements’ flaws.
For entrepreneurs who are not well equipped with the terms of accounting, the role of a chartered accountant and an auditor may seem blurred. Auditors, unlike chartered accountants, are the professionals who work for a business on an ad hoc basis and are responsible for the financial audit of the entire business throughout the year.
Simply put, chartered accountants and auditors are responsible for the company’s accounting processes. Every chartered accountant knows to audit. However, a certified auditor must pass perfume or examinations to get the professional designation.
If you are considering hiring a professional chartered accountant in Yeovil, you must keep the same functions in mind. Read on and get clarity on the same.
What are the differences between an auditor and a CA?
An auditor usually performs quarterly or annual auditing of the accounts of a business. Generally, an auditor is an external entity brought into the business to make unbiased decisions. Like a chartered accountant who can be a part of the internal accounting team of an organisation, an auditor is always an external person. This helps the order to make an unbiased analysis of the suspected accounting frauds and malpractices within the company.
The work performed by a CA is generally governed by international accounting standards. On the other hand, the calculations and analysis performed by an auditor are regulated by auditing standards. Hence the set of rules followed by a CA is different from that of an auditor.
The role of a CA in a business is inevitable. You are required to either outsource the accounting operations to a CA or employ a CA within the internal team. However, there is no scope of doing accounts without the interference of a CA in the same. On the other hand, the role of an auditor is optional and is required only to improve the policies and processes of the company.
At Whites Chartered Accountants, we have an experienced team of chartered accountants in Yeovil. To know more, check our website.