3 Main Types Of Auditors And What They Essentially Do

3 Main Types Of Auditors And What They Essentially Do

Apart from the benefits businesses can enjoy, auditors play a crucial role in ensuring the reliability and accuracy of financial information. These experts assist companies in spotting potential inaccuracies or inconsistencies in financial statements, as well as evaluating the efficacy of internal control systems.

In Singapore, an audit company can be hired to provide audit services that businesses need for development and compliance purposes. However, did you know that there are several different types of auditors, each with distinct specialisations and responsibilities? To help you better understand how these professionals might benefit you or your business, this article will explore the main types of auditors and what they do. 

1. Internal auditor 

The company employs internal auditors to assess the effectiveness of risk management processes and internal controls, in addition to ensuring compliance with laws and regulations. They report to the company’s Audit Committee and provide management with independent assurance that internal controls are functioning effectively. Moreover, they offer suggestions for ways to enhance processes and reduce risk.

Internal auditors in Singapore are regulated by the Institute of Internal Auditors Singapore (IIAS). The IIAS establishes the guidelines for internal audit procedures and standards in Singapore, which must be adhered to by the internal auditors to maintain their accreditation. Many businesses in Singapore have an internal audit function since it is regarded as an essential component of corporate governance.

The responsibilities of an internal auditor include:

  • Conducting audits of the company’s operational and financial processes.
  • Looking into claims of fraud and misconduct.
  • Assessing the company’s risk management practices.
  • Working closely with the company’s management team to identify risk areas and create mitigation plans.

2. External auditor

The company’s shareholders appoint external auditors to review the financial operations and statements of the company. They conduct audits according to International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) – evaluating the company’s internal controls, financial reporting, and ensuring compliance with laws and regulations.

The Accounting and Corporate Regulatory Authority (ACRA) oversees external auditors in Singapore, setting the guidelines for auditing procedures and standards that external auditors must adhere to in order to maintain their licence to practise. To guarantee the company is receiving quality audit services and competitive pricing, the external auditors’ services are required to be re-tendered every three years.

The primary objective of an external auditor is to express an opinion regarding the fairness, completeness, and accuracy of the financial statements. This opinion is presented in the auditor’s report, part of the annual report. The auditor’s report essentially assures stakeholders that the company’s financial statements provide a fair and true view of the company’s financial performance and position.

3. Government auditor 

Government agencies employ government auditors to review government finances, services, and programmes. They evaluate the effectiveness of government policies and programmes and make recommendations for improvement where necessary. In addition, they guarantee adherence to laws and regulations by government agencies.

In Singapore, these government auditors are employed by the Auditor-General’s Office (AGO). The AGO provides independent assurance to Parliament and the general public that government agencies are properly and efficiently managing public resources and funds. All government agencies, including statutory boards, ministries, and government-linked companies, are subject to audits by the AGO.

The duties of government auditors include:

  • Doing financial audits of government agencies.
  • Evaluating the effectiveness and efficiency of government programmes.
  • Looking into claims of corruption and fraud.
  • Working closely with government agencies to identify risk areas and develop mitigation plans. 


Overall, the principal function of auditors is to ensure financial integrity among businesses and even government bodies. Although there are different types of auditors, their roles and responsibilities are essentially similar. They determine whether financial statements follow applicable accounting principles and help businesses survive and grow. For this reason, being an auditor remains one of the most in-demand jobs in the corporate world today.

Should you require reliable and extensive audit services to assist in the development of your business, OneStop Professional is here for you! We are a leading audit firm in Singapore that can help you understand the issues and needs of your company profoundly through our trusted audit services. Aside from this, we also offer a comprehensive range of other corporate services, such as accounting, financial outsourcing, company secretary services, and nominee director search. Contact us today to learn more.