ABSTRACT
A correspondent; writes to us as follows:—“I am glad to observe that this subject has been taken up by a writer in the Accountant, who promises two more articles thereon. I am sure it is one which demands attention, with the view to defining what the duties of an auditor really are, and the value of the service, when properly rendered. It would be well for Accountants’ Societies generally to move in this matter, as also in that of accountants’ charges, which like the duties of an auditor, require to be defined with the object of securing uniformity. I believe no dozen men would have the same view as to the said duties; nor do directors, or the public, appreciate as they ought, the immense value of them, if honestly performed. Many consider an audit has nothing more in it than certifying to the agreement of balances in a balance-sheet with those in the ledgers from which they are taken; and that cash at the bankers is stated conformably with the pass book, (cash in hand being in some cases absolutely ignored). An auditors’ duties are much more important, and should embrace his right to have the accounts kept on such a system that he can really get at the essence of affairs; and that his supervision should extend throughout a year, and not merely at the end of it. His signature to a balance-sheet then would mean something, and responsibility in the shape of a guarantee, would rest upon him towards the shareholders, for which fees should be paid equivalent. See the various forms of certifying accounts, daily appearing on balance-sheets, and you at once detect how very vague are the views of the different parties signing the accounts on the subject. At any rate, whether I take a wrong view of the matter or not, it is certainly one which must sooner or later be discussed. The public as well as the profession (which would gain also in status very considerably), would be gainers by the duties of an auditor being properly understood, defined, and performed as a bona fide service, instead of, as it appears to be a mere sham, and as fees paid and various forms of certifying prove it to be at present.”
