Definition of auditor

The word "auditor" derives from the Latin word "audire," which meant "to hear" or "to listen." In ancient Rome, auditores were appointed by magistrates to oversee public accounts, making sure that funds were spent appropriately and all expenditures were recorded accurately. As commerce and business activities grew in medieval Europe, merchants and guilds employed auditors to check each other's accounts and settle disputes. This practice continued in the early modern period, where auditors were employed by governments to ensure accurate accounts and prevent corruption. The modern meaning of "auditor" in English came into usage in the 17th century, with the emergence of the accountancy profession. Today, an auditor is a trained professional who examines and reports on the financial statements of an organization to ensure they are accurate, reliable, and conform with generally accepted accounting principles (GAAP). The role of an auditor typically involves planning and executing an audit, gathering evidence, evaluating controls, and communicating findings and recommendations to clients and other stakeholders.