The role of Internal, External and Forensic Auditors Essay

The role of Internal, External and Forensic Auditors - Essay Example Auditors play a significant role in the deterrence of fraud. They assist in risks detection and monitoring, control and regular testing of internal processes and suitable follow up for the purpose of dealing with weaknesses in the system. There are three types of the audit; these include internal, external and forensic audit (Weightman 2008 p 38). This literature review presents a critical evaluation of the roles of the professionals involved in the three types of audit. An organization’s management decides the role of internal auditors whose objectives are usually different from those of external auditors who are chosen to give an independent report regarding the financial statements (Wholey et al 2004 p 66). They work towards satisfying the requirements of the management. Internal auditing is used by organizations as a strategy to assist the organization to accomplish its objectives. The internal auditors, therefore, are in charge of using the systematic methodology designed by the management to analyze the organizational processes, actions, and events with the main goal of identifying organizational problems and suggesting possible solutions. These are independent authorities that conduct regular checks on an organization’s records and books of accounts depending on the agreed procedures for external auditing. These auditors are usually concerned with attesting that there are no substantial misstatements in the books of accounts (Sawyer et al 2003 p 91). They provide essential information about the efficiency of the in-house controls in regard to financial reports, precision and punctuality in transaction recording, and the precision and wholeness of reports regarding monetary and regulatory issues. They also offer an independent and non-subjective opinion in regard to the activities of an organization, as well as vital information for the maintenance of its risk management processes (Weightman 2008 p 88).