An auditor is a professional who is hired to review a company’s financial statements and operations to ensure compliance with regulations and that all financial statements have been prepared according to Generally Accepted Accounting Principles (GAAP). The Securities and Exchange Commission (SEC) requires all publicly traded companies to undergo regular audits by external auditors.

The objective of an audit is to assess the integrity and accuracy of the company's financial statements. The auditor seeks to express an opinion on whether the financial statements are presented fairly and whether they give a true and fair view of the company's financial position. An external auditor may examine the corporation’s financial records, operations and any other related processes. He or she looks for accuracy and consistency throughout the entire accounting system. Auditors also assess the system’s controls to determine that period-end controls were implemented and operating properly when the financial statements were prepared.

Depending on the nature of the specific audit, the auditor may need to verify the accuracy of certain transactions, such as inventory , accounts receivable, accounts payable, payroll and other areas.The auditor may also need to confirm that the company is following the internal accounting system and procedures correctly.

The auditor is supportive of management, since the external auditor is not responsible for the actual day to day management of the company and acts as an independent third-party. Ultimately, the auditor’s work results in the handover of a report, which is often referred to as an audit opinion. This audit opinion is the auditor's final judgment as to whether financial statements follow generally accepted accounting principles. The opinion can be either qualified or unqualified.

An audit is a crucial part of corporate governance as it provides assurance and instills confidence when it comes to corporate activities. Auditors can help assure investors, lenders, suppliers and other stakeholders that the company is following the law and operating with integrity. Ultimately, an audit assists in contributing to the health of the company by helping to build trust.