Why Every Auditor Needs to Master Accounting Basics (and Beyond)
Chidambaram Karthik Narayanan
Financial & IT Audit Professional | Risk Management & Governance | Lifelong learner | The best is yet to come | Excited for what's next
Auditors go beyond just financial statements—they dig into the entire journey of transactions and how they shape a company’s financial health. But in order to do this, they should at their heart be well versed with the fundamentals. Recently, we came across people who couldn't explain or write down simple accounting entries.
That got me thinking - do auditors need to know accounting? The answer is a resounding YES!
It’s About Understanding the Process, Not Just the Numbers: Every transaction tells a story. Whether it's invoicing a client or running payroll, each step in the process impacts the company’s financial results. A solid grasp of accounting fundamentals helps auditors understand how these processes work, making sure everything adds up and stays compliant.
Seeing the Bigger Picture: Transactions aren’t one-offs—they connect to everything from cash flow to assets and liabilities. To really get a handle on a company’s financial health, auditors need to see how all these pieces fit together.
Spotting What Others Might Miss: With a deeper understanding of accounting, auditors can pick up on things others might miss, like unusual patterns or misstatements. This expertise helps them catch potential errors, fraud, or inefficiencies that could otherwise slip through the cracks.
At the end of the day, auditors are more than just numbers people. They’re process people—with a keen eye for how every transaction plays into the bigger financial picture.
Amal Al Khaburi Abbas Al Lawati "That Omani Auditor" Jon Taber, CPA, CIA, CFE, CFF
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Information Security Senior Officer at Oman Cement Company
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2 个月I agree thank you for this Chidambaram Karthik Narayanan