endurskoðandi

Endurskoðandi is Icelandic for auditor. It refers to a professional who audits financial statements and related information of organizations to provide an independent opinion on whether they present fairly, in all material respects, the financial position, results, and cash flows in accordance with the applicable financial reporting framework. The term covers both external auditors who examine entities’ books and internal auditors who assess processes within an organization, though their audits serve different purposes.

Responsibilities of an endurskoðandi include examining accounting records, testing evidence, evaluating internal controls, and gathering sufficient appropriate evidence to form an audit opinion. The results are communicated through an audit report addressed to shareholders or the board, and the auditor may identify control weaknesses and offer recommendations to management and the audit committee. Opinions can be unqualified (clean), qualified, adverse, or a disclaimer if evidence is insufficient.

Qualifications and regulation: Endurskoðandi is a regulated profession requiring formal education in accounting or related fields, professional examinations, and ongoing continuing professional development. Practitioners must maintain independence and objectivity and comply with professional standards, often aligned with international auditing standards (ISA) and national regulations.

Role in governance: External endurskoðandi provides assurance to investors, lenders, and regulators, while internal endurskoðandi supports risk management and governance through ongoing reviews of operations and controls. The audit process typically occurs at least annually for entities subject to statutory audit requirements, with the auditor’s reportforming part of the financial statements.